Justification_and_Approval.pdf

J&A No: 17-0009 Contract No: HQ0147-16-D-0054

MISSILE DEFENSE AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introductory Paragraph.

Upon the basis of the following justification, I, as Director of the Missile Defense Agency (MDA), 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)(l)).

This Justification and Approval (J&A) is for the MDA Sensors Directorate (MDA/SN).

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

The action approved by this J&A is the award of a follow-on Sole Source Indefinite Delivery/ Indefinite Quantity (ID/IQ) contract for Radar Development Contract (RDC) services with Raytheon Company, Integrated Defense Systems (IDS), (hereafter referred to as Raytheon), Woburn, Massachusetts, for the X-Band family of Ballistic Missile Defense System (BMDS) X band radars (XBRs). The family of radars is comprised of, but is not limited to, the Army/Navy Transportable Radar Surveillance and Control Model 2 (AN/TPY-2) Terminal Mode (TM) and Forward Based Mode (FBM), and the Sea-Based X-band (SBX) Radar. This contract is scheduled to be awarded in the 1st Quarter Fiscal Year 2018 (1QFY18) with a five year base ordering period and one successive one year optional ordering period.

4. Description of the Supplies and/or Services Required to Meet the Agency's Needs (including the estimated value), (FAR 6.303-2(b)(3)).

The services required to meet the Agency's needs for the X-Band radars include:

• Product improvement, including developmental upgrades of software and development of hardware and software to meet enhanced capabilities and risk reduction measures;

• Warfighter support, including wargames and exercise support;

• Engineering services, including engineering support for delivered and accepted radars to facilitate maintenance efforts which may include, but are not limited to, hardware obsolescence studies, hardware redesign, technology insertion and refurbishment;

• BMDS test subject matter expert (SME) support;

• Modeling and simulation SME support; and

• Cybersecurity.

17-MDA-9393

ContractNo: HQ0147-16-D-0054

The contract addressed herein will have a basic 5-year base ordering period beginning at contract award (November 1, 2017) and ending October 31, 2022. One additional 1-year option ordering period will be available to allow for continued performance through the end of the ordering period (October 31, 2023) if this option is exercised. Separate task orders will enable services and support to the AN/TPY-2 and SBX and the contract will utilize primarily 12-month task orders each FY throughout the ordering period of performance.

The Government will fund its efforts using Research, Development, Test and Evaluation (RDT&E) for the AN/TPY-2 and SBX Defense-Wide appropriation funds or other funds as authorized and appropriated by Congress.

The Government funding profile over the course of the period of performance is as follows:

FY18 FY19 FY20 FY21 FY22 FY23 Total

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 is 10 U.S.C. 2304 as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(iii) where services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency' s requirements.

6. Demonstration of Contractor's Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited (FAR 6.303-2(b)(5)).

Raytheon has been the X-Band Radar original product developer for MDA and the Ballistic Missile Defense Organization (BMDO) for more than 20 years. A contract was awarded to Raytheon in September 1992, as a result of a full and open competition for the Strategic and Theater Demonstration/Validation of a Ground-Based Radar. In FY2000, Raytheon was awarded a subcontract under Lockheed Martin contract DASG60-00-C-0072 for the Engineering and Manufacturing Development (EMD) of the Terminal High Altitude Area Defense (THAAD) X-Band Radar (AN/TPY-2). In April 2003, Raytheon was awarded a prime contract (HQ0006- 03-C-0047) for the production and further development of the AN/TPY-2 radar. Under contracts HQ0006-0l-C-0001 and follow-on contract HQ0147-09-C-0008 for the Ground-based Midcourse Defense (GMD) System, Raytheon was awarded subcontracts by the prime (Boeing) for the design and development of the X-Band Radar on the SBX Vessel. Under contract HQ0147-08-D-0001, Raytheon previously provided test support for the Ground Based Radar-

Prototype (GBR-P) Radar. In October 2011 the Government consolidated these four legacy X Band Radars contracts into the current Indefinite Delivery/Indefinite Quantity contract (HQ0147- 12-D-0005) award to Raytheon.

The current contract (HQ0147-12-D-0005) encompasses all RDC support for the X-Band radars, via a single multi-year ID/IQ contract that was awarded to Raytheon. This approach provided significant cost savings by combining duplicative efforts, reducing overhead expenses and scope, and prevented a gap in development. As the original product developer of the MDA X-Band radars since 1992, Raytheon has highly specialized technical expertise to meet the aforementioned agency requirements.

Unacceptable delays in fulfilling the agency's requirements:

The existing software architecture dictates a reliance on the product developer's highly specialized technical expertise to operate and maintain the system.

Without Raytheon's highly specialized expertise and knowledge ofBMDS X-Band radars acquired as the developer, another source would not be able to establish a software and hardware development approach that was developed by Raytheon and successfully execute it without encountering delays that would preclude the agency from meeting its requirements to the BMDS, Capability Increment support to the President's Phased Adaptive Approach, and the persistent W arfighter sensor needs.

The need date for RDC services and support remains a constant and persistent W arfighter need.

The capability and capacity performance requirements described in the USSTRA TCOM Integrated Air and Missile Defense Prioritized Capability List and the sensor functionality requirements for the integrated BMDS are needed 24 hours a day 7 days a week to support the Warfighter and their ability to counter the threat.

7. Description of Market Research Conducted (FAR 6.303-2(b)(6), (8) and (10)).

MDA/SN conducted market research to determine interest and capability for its follow-on X Band Radar requirements. MDA determined, via market research and its industry knowledge that there are no industry sources that can currently provide the highly specialized services to meet the Agency' s requirements to include the mission need dates addressed herein.

A Request for Information (RFI) was coordinated with the MDA Small Business Office and published in FedBizOpps on May 12, 2015 under Solicitation Number HQ0147-15-R-0025 to determine Industry interest and capability in follow-on requirem~nts. Industry responses were received on June 10, 2015.

MDA's industry knowledge: MDA is recognized as the Center of Excellence for Missile Detection and "Hit-to-Kill" technology. As such, MDA requires its representatives to maintain close working relationships with industry throughout the world. The working relationships cultivated with industry allows MDA to be apprised of available technologies and manufacturing capabilities and provides a base of knowledge more extensive than would normally be obtained through a formal market survey.

Additionally, in accordance with FAR Part 5 a synopsis (pre-solicitation notice) was published to FedBizOpps on October 25, 2016; it addressed the Government's intention to award this requirement on a sole source basis. MDA did invite any other contractor that reasonably believes it can fulfill the requirements without incurring duplication of costs and experiencing delays to provide a capability statement electronically to the Procuring Contracting Officer (PCO) NL T November 25, 2016; however no contractor provided a response.

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

In accordance with FAR 15.402, the PCO shall purchase supplies and services from responsible sources at fair and reasonable prices. The Contractor will submit a formal proposal addressing all requirements of the solicitation. MDA will conduct a thorough evaluation of the offeror's proposed price/cost for this effort, followed by negotiations. Certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate will be required in the proposal. Raytheon's proposal(s) will be reviewed by experienced technical analysts and contracting personnel with assistance of necessary field pricing support from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA). 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 resultant contract.

Accordingly, Raytheon shall be required to select subcontractors on a competitive basis to the maximum extent practical, consistent with the objectives and requirements of the contract.

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

In order to remove the barriers to competition MDA/SN is in the process of examining the technical and software data that it has in-house, and will do the same for the data it has ordered but has yet to receive, in order to assess the Government' s associated data rights and the utility of the data as it relates to future competition. MD A/SN will also pursue obtaining Government Purpose Rights for technical data, computer software documentation, and computer software should its analysis conclude that such a step is necessary. MDA/SN will also pursue the implementation of an Open Systems Architecture when initiating systems engineering efforts.

In the interim MDA/SN will take steps to promote competition by increasing Small Business participation to grow and train Small Businesses for future opportunities. This includes challenging the Contractor to achieve goals above historic performance with contract requirements for a Small Business Participation and Commitment Plan for first and second tier subcontractors.

The Government will require the delivery of detailed technical data, computer software documentation and computer software with the appropriate Government Rights. The technical data, computer software documentation and computer software will document the configurations developed and tested under this acquisition. Data developed under this effort will support future full and open competition for the services described in paragraph 4 above which should afford lower risk opportunities to introduce new sources.

Additionally, the use of an ID/IQ contract limits the Government's contractual obligation to a minimum dollar value; which is anticipated to be met early in the contract period of performance. This will allow the Government to capitalize on opportunities for competition as they emerge rather than after the period of performance of the subject contract concludes.

Finally, DFARS clause 252.246-7001 (Warranty of Data) will be included in the follow-on ID/IQ contract; therefore, the contractor must warrant that all of the technical data delivered under the contract conforms to the specifications and all other requirements of the contract.

Consequently, technical data found to be nonconforming will be corrected or replaced at the contractor's expense. Such a step will afford sources other than the original contractor a greater opportunity to utilize data obtained with taxpayer dollars in future competitions.

I ,\ \ ' l I - I I! I I I

( 1•1\ll.ti..I •• 11 1)111 1-. ,,. I ) . Ill•' I

11 . I rrhnit·a ll l<l·q11in·11H·11 1' ( l ' rtific:11io11 (~\ I { (1 . Jll .~ - 1(rJ) : · 1,,·11 11 \ 1111 ... w-.t11i,.1111111 1 .. 1 lltltt'I tltdll lllff <Ill.I "f'l ll l 'Plllf't 'llll ttll I' Ill.I th: Ill " t1t1,I !.111'1 .ll ld lb.I iltl• \l lf'l'•ll lll l;! d.it,t ,!J11 f llllPflll tl l tt ll ;11,· .1,, 111.11c : 11 1tl 1»1 11pl , k 111 the h,·.,1, tf111\ k1"'" 'l,· , f.•,· 111.f l •,·1 1, I I 1111 1!1,·1 ,, ·11!· llt, 11 tl1i l<'1 fl lC ., I I Ill •! lilt' ll' 't llt ••I .I f.1d, ,,j :1d t..1111, 1 l. 11 11\lll., .

I 1.. ( 0 1111·acti11" < lffin·r· ( I· \I{ l o. JlU - 21h)(11 i) : I Ii .I\,. 1ktc1 1111 1, ·d 1'1.11 1'1 , · ,1 1;1- 'I' ti , j

, , "' 1" t lw < "'' , · 1 n 1111 ·11 '' i 11 f 1,· I 11 r .1 nd 1 ,-.1 t111. ti' k .111.I , ,·1 111 ' I h .11 1 Ii ,· 111 .111 1, "1i.111 1 , .llll ll.I {\' .11l i llll llpk1 ... · 111 11t ... · l 'l"• l 1il Ill\ L1 1t1\1k, l;.•1' .111<1 . 1brl11~

13 . 1.q.:a l ( 11 1111 ,l'l.·· f li1 \1 11'1,•1\,1 1 •1, 111.111i,o1111•11.1• J,l,1,11111:., 111.

,, ! · 1i ... 11"1!

1-1.C 011f1·a1· 1111 g l> in·c 111r · ( l '1 ·o"r:1111Ind t. " l'11•.,1,11,-1.,_.I I. 1·1,111.,!11••11.1·1[•;," ,!

II h ·11 ' 11' "''"I .

J&:\ ;\o: I 7-(HI09

Contr~1ct :--\11: I IC)O 1-1 7- 1 (>-D-005-1

15. Hecomo1 c11datio11 o f Co m petitio n A1 h m:att·. "I rc..:0111 11 11.: nd appn\\ al 111' till' ah11\.:

.i ll~l i !il'<!I i( Il l. ..

17. Din:.:tor fo r Al:qt1i s iti o 11 . .. , ha \ l' n:\ i.:\\l'd th · j1 htilii.: a tio 11 :111d rcn 1rrnnc11d it he

18. :\ppnn al ( F:\ H 6.30.f ). ··1 11 :ll l·Prdann: \\ ith I .·\ R (1. W-l . the ahP\ ,. ju 1ificati1111 l11 r uthi:r than full a11d open nimp..:tition i ~ hl·ri:b :1rpr'I• \ ..:d ..

\'ice •\d1niral. l 'i'\ Dircl·tnr