THAAD_Class_Justification_and_Approval_for_Lot_9_Interceptor_Production_(14-0010).pdf

DISTRIBUTION STATEMENT A. Approved for public release; distribution is unlimited Approved for Public Release 17-MDA-9132 (10 April 17) 1

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

MISSILE DEFENSE AGENCY

TERMINAL HIGH ALTITUDE AREA DEFENSE

1. Introductory Paragraph. Upon the basis of the following justification, I, as Director of the Missile Defense Agency, hereby approve the issuance of the contractual action discussed below using other than full and open competition pursuant to the authority cited herein.

2. Agencies and Contracting Activity, (FAR 6.303-2(b)(1)). This justification and approval is for the Missile Defense Agency Terminal High Altitude Area Defense (THAAD) Project Office. The contracting activity is THAAD Contracts (DACD), 5222 Martin Road, Attention:

VBII (DACD) Redstone Arsenal, AL 35898.

3. Nature and Description of the Action being Approved (FAR 6.303-2(b)(2)).

The action being approved is the award of a sole source contract(s) on a class basis to Lockheed Martin (LM) for the follow-on production of THAAD Interceptors. The contract type for interceptor procurement will be a fixed price type. Currently, Lot 7 is anticipated to be awarded under the new production contract HQ0147-13-R-0002; Lot 6 ground components.

Beginning with Lot 8 interceptors, the Government intends to award stand-alone contracts in order to limit the period of performance; which reduces risk and enables more efficient contract close-out in the future. The period-of-performance (PoP) will be approximately 36 months for each single Lot award, with each Lot award projected 1QFY15 and each year thereafter, through Lot 9. This equates to an approximate total PoP for all lots from 1QFY15 through 4QFY19.

4. Description of Supplies and/or Services Required to Meet the Agency's Needs (Including the Estimated Value) (FAR 6.303-2(b)(3)).

The THAAD element provides the Ballistic Missile Defense System (BMDS) with a globally transportable, rapidly-deployable capability to intercept and destroy ballistic missiles inside or outside the atmosphere during their final, or terminal, phase of flight. The future contracts will meet the Government’s need for Interceptors, and associated engineering support. This effort will be funded with Procurement, Defense Wide appropriation funds or other funds as authorized and appropriated by Congress.

The Acquisition Plan entitled “Terminal High Altitude Area Defense (THAAD) Enhancement Capability Development, Fire Unit Fielding and Fielding Support and Contractor Logistics Support” was approved on February 6, 2006. The THAAD Interceptor procurements supported by this Class J&A are included in Amendment 2 which was approved on May 14, 2013.

5. Statutory Authority Permitting Other than Full and Open Competition (FAR 6.303- 2(b)(4)). The statutory authority permitting other than full and open competition for this follow-on contract is 10 USC 2304 as implemented by FAR 6.302-1(a)(2)(ii):

J&A No: 16-0010

DISTRIBUTION STATEMENT A. Approved for public release; distribution is unlimited Approved for Public Release 17-MDA-9132 (10 April 17) 2

“(ii) Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in—

(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition; or

(B) Unacceptable delays in fulfilling the agency’s requirements.”

6. Demonstration of Contractor's Unique Qualifications (FAR 6.303-2(b)(5)). See classified Annex to this J&A For Other Than Full and Open Competition, Missile Defense Agency, Terminal High Altitude Area Defense (THAAD).

7. Description of Market Research Conducted (FAR 6.303-2(b)(6), (8) and (10)). See classified Annex to this J&A For Other Than Full and Open Competition, Missile Defense Agency, Terminal High Altitude Area Defense (THAAD).

8. Determination of Fair and Reasonable Cost (FAR 6.303-2(b) (7)).

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services ordered under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The Contractor's proposed cost will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support.

Analysis will be based on historical cost and rate information provided by field pricing support agencies. The Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition

(FAR 6.303-2(b)(9). FAR clause 52.244-5, Competition in Subcontracting, will be included in the contract. Therefore, LMMFC will be required to select subcontractors on a competitive basis to the maximum extent practicable.

10. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(b)(11).

See classified Annex to Justification and Approval (J&A) For Other Than Full and Open Competition, Missile Defense Agency, Terminal High Altitude Area Defense (THAAD).

*All signatures have been redacted due to privacy act data.

*In accordance with FAR 6.304, the above justification for other than full and open competition was approved on May 13, 2014 by the Director for the Missile Defense Agency.