ISAI__JA_17-0032_Signed_June2017_Redacted_FINAL_REDACTIONS.pdf

J&A No.: 17-0032

Contract Solicitation No.: HQ0147-18-R-0035

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introduction Paragraph.

Upon the basis of the following justification, I, as the Missile Defense Agency Competition

Advocate, 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 (J&A) is for the Missile Defense Agency (MDA), U.S.-Israeli

Cooperative Program Office (MDA/IP). The contracting agency is DAC (DACV). The point of contact for this action is .

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

MDA/IP intends to award a sole source, Firm-Fixed Price (FFP) contract to WALES, Ltd., in support of the Israeli Systems Architecture and Integration (ISA&I) Study addressing Israel

Missile Defense. The anticipated contract period of performance for this requirement is five (5) years, consisting of a one- (1-) year base and four (4) one-year options. The expected period of performance (including options) is November 2017 through October 2022.

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)).

This is a follow-on effort to MDA/IP contract HQ0147-13-C-0002 with WALES, Ltd., to perform system architecture definition and evaluation, mission requirements, , system optimization, assessment of sensitivity studies and analyses, and conformance of related Cooperative Program activities for the ISA&I program. WALES, Ltd., is a wholly owned Israeli company. The total estimated contract value of this action is approximately including all options. The planned funding type is Research Development Test & Evaluation (RDT&E) and the current funding profile for this effort is estimated at for the base period and for each of the four option periods.

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 (c)(1), and Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(A), where the services required by

MDA are for highly specialized, follow-on services available only from the original source.

WALES, Ltd., is deemed through market research (Section 7) to be the only responsible source for providing the services required to perform this unique U.S.-Israeli cooperative effort.

Public Release 18-MDA-9521

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)).

WALES, Ltd., is uniquely qualified to provide the ISA&I studies with over thirty (30) years of successful experience/performance in support of the stated services. The first contract to jointly develop BMDS architectures for the Middle-East Theater was signed between the United States

Department of Defense (DoD) Strategic Defense Initiative Organization (SDIO) and the IMOD in November 1986 (SDIO84-87-C-0008). A Memorandum of Agreement (MOA) between the

IMOD and the U.S. DoD provided the SDIO authority to contract with Israel to jointly develop this technology. A requirement of the contract was for Israel to recommend experiments, primarily using Israeli technology, which would support the near-term missile defense architecture. IMOD’s prime contractor under this contract was WALES, Ltd. The U.S. DoD

BMDO awarded a sole source contract (HQ0006-93-C-0015) directly to WALES, Ltd., to continue the required ongoing effort due to their direct involvement, unique knowledge, insight into Israeli missile defense activities and operations, as well as experience gained in Research and Development work integral to the ISA&I program. In November 2001, U.S. DoD BMDO awarded a sole-source follow-on, five- (5-) year contract to WALES, Ltd. (HQ0006-02-C-0001).

In November 2007, MDA awarded a new sole-source one-year contract with four one-year options to WALES, Ltd. (HQ0006-08-C-0005). In November 2012, MDA awarded a new sole-source, one-year contract with four one-year options to WALES, Ltd. (HQ0147-13-C-0002).

MDA plans to award a follow-on contract directly to WALES, Ltd., on or about 1 November

2017, to continue these activities for another five- (5-) year period of performance.

Market research was conducted in February 2017 identifying WALES, Ltd., as the only U.S.- or

Israeli-based source that could provide the required services. There were no other qualified sources identified. No other contractor, U.S. or Israeli, has the requisite technical capability due to the uniqueness and complexities of the ISA&I program. WALES, Ltd., related to this and other Israeli programs that have been developed and used on the ISA&I studies over the past two decades. WALES, Ltd., has established working relationships with IMOD, IMDO, and the Israel Defense Forces (IDF), Additionally, the IMDO is for the missile defense elements and architecture analysis upon which the ISA&I Program is based.

IMOD and IMDO have permitted WALES, Ltd., access to required Israeli classified data and information.

Award to any other source would result in substantial additional cost to the Government that would not be recovered through competition and unacceptable delays would be experienced in the ISA&I program.

7. Market Research, FedBizOps and Listing of Interested Sources (FAR 6.303-2 (b)(6), (8) and (10))

MDA/IP conducted market research, Request for Information (RFI), to identify potential sources interested and with the capabilities to meet the required ISA&I program requirements. The RFI was synopsized in the Federal Business Opportunities (FedBizOpps) on January 30, 2017.

WALES, Ltd., was the only source to express an interest in the synopsis and was evaluated based on the following ten criteria:

a. Facilities located in Israel.

b. IMDO approved access to Israeli classified information.

c. Access to the major Israeli defense contractors.

d. Access to the Israeli Test Bed and associated data.

e.

h. Perform studies and simulations based on the current Joint architecture for Joint U.S.-

Israel BMDS interoperability.

i. Fluent in Hebrew and English.

j. Provide all labor, equipment, expertise, materials, facility, services, and transportation for this effort.

WALES, Ltd., met all ten of the criteria requirements. The criteria requirements were not a constraint or barrier to other sources. No further inquiries were made by other sources or interest shown even after the RFI synopsis closed.

Additionally, previous market research has shown that due to the size of the country, defense industries in Israel have a narrowly focused specialty. Several organizations have technical expertise in particular fields but no general missile defense analysis capability. WALES, Ltd., is the only contractor within Israel that has the size and comprehensive resources (access to sensitive Israeli Defense information, etc.) to perform all of the ISA&I program requirements.

MDA/IP determined, through market research and its industry knowledge, there are no viable industry alternative sources currently capable of meeting the technically complex ISA&I program requirements other than WALES, Ltd.

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

No award shall be made until the Contracting Officer determines the costs to the Government to be fair and reasonable. In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services under this contract are procured at a fair and reasonable cost. The contractor will submit a formal cost proposal with certified cost and pricing data and sufficient information to support accuracy and reliability of the estimated costs. A thorough analysis of proposed costs will be conducted. MDA/IP Subject Matter Experts will perform a thorough technical assessment of the proposal to form the basis for the Contracting Officer’s determination of fair and reasonable cost. Additionally, the Contracting Officer intends to use historical data that has been determined reasonable in past contracts and will conduct thorough negotiations to ensure the settlement of fair and reasonable costs that are in the best interest of the Government.

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

Part 6.303-2(b)(9).

None.

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

There are currently no plans for enabling competition in future awards; however, the market climate will be re-evaluated prior to any future awards to determine whether another Israeli contractor has emerged with the required technical capability and access

MDA/IP will not be procuring any technical data rights packages in this acquisition. As a joint cooperative program, all data developed under this program and the results of software simulations will be mutually shared and will not be sold to foreign entities without approval from both the U.S. and the IMDO as stipulated in the Program/Project Agreements for the Joint U.S.-

Israeli Cooperative programs.

.J&A No.: 17-0032

Contract olicitation No.: HQ0147-18-R-0035

11. Technical/Requirements Certification (FAR 6.303-2(c)) . .. I ce11ify that this justification for other than full and open competition is made in good faith and that the supporting data and information arc accurate and complete to the best of my knowledge and belief. I further certify that this request is not the resul� of a lack of advance planning:·

12. Contracting Officer (FAR 6.303-2(b)(12)). ··J have determined that the anticipated cost to the Government will be fair and reasonable and certify that the justification is accurate and complete to the best of m) kno\.\lcdge and ability ...

13. Legal Counsel. .. I have reviewed the justification and determined it to be legally sufficient.··

14. Contracting Director (Program Level) . .. I have re, iev.ed the justi Ii cation and recommend it be apprm ed ...

IS. Approval (FAR 6.304) . .. In accordance with FAR 6.304. the above justification for other than full and open competition i hereby approved ...