competition related to As this J&A focuses on missile production, the ability for ABG to obtain competition is extremely limited.

In addition, ABG currently has a large indefinite delivery/indefinite quantity (IDIQ) contract with Raytheon to provide system engineering, test, development, and obsolescence mitigation efforts for all SM-3 variants. ABG is working to identify parts of that contract effort which could be removed from the IDIQ and competed as separate contract efforts. ABG does not see a path forward for similar efforts related to a contract solely dedicated to producing SM-3 BLK IIA missiles.

7. Determination of Fair and Reasonable Cost (RFO 6.104-1(a)(7)).

In accordance with RFO 15.402, the Contracting Officer shall ensure that all supplies and services under this contract are procured at a fair and reasonable price. The contractor may submit a formal price proposal and/or historical actuals will be utilized with certified cost or pricing data and sufficient information to support accuracy and reliability in the estimate. A thorough analysis of proposed costs will be conducted. Price analysis shall be performed to verify that the overall price offered is fair and reasonable and may include: comparison of proposed prices to historical prices paid, whether by the government or other than the government, for the same or similar items; comparison of proposed prices with independent government cost estimates; and/or analysis of data other than certified cost or pricing data provided by the offeror. Cost analysis shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required. Cost analysis techniques for a proposal of this requirement may include verification of cost data and evaluation of cost elements, including the necessity for, and reasonableness of, proposed costs, and the application of audited or negotiated indirect cost rates, labor rates, and cost of money or other factors. Cost realism analyses (on cost-reimbursement CLINs) to determine the probable cost of performance.

Profit/fee shall be assessed utilizing the weighted guidelines method. The Contracting Officer will conduct thorough negotiations to ensure the settlement of fair and reasonable costs that are in the best interest of the USG.

8. Description of Market Research Conducted (RFO 6.104-1(a)(8)).

ABG performed market research in accordance with FAR Part 10 to arrive at the most suitable approach to acquiring, distributing, and supporting the necessary supplies and service requirements of a new production contract. Accordingly, market research was performed to collect and analyze information about capabilities within the market to satisfy agency needs before developing new requirements documents for an acquisition. The data resulting from the market research performed was analyzed and used to make informed decisions whether ABG needs can be met by commercial products or services or, to the extent commercial products suitable to meet the agency’s needs are not available, non-developmental items are available that meet the agency’s requirements; could be modified to meet the agency’s requirements; or could meet the agency’s requirements if those requirements were modified to a reasonable extent.

Table 2. SM-3 BLK IIA Procurement History (Sole Source)

Contract Number Description Award Date

Contract Type

Total Value of Contract

HQ027610C0005 SM-3 BLK IIA Development Sep

2010 CPIF $2.14B*

HQ027615C0003

FY 2016, FY 2018 – FY 2020

SM-3 BLK IIA Manufacturing

Jul

2015 CPIF $2.77B

HQ085122C0001

FY 2021 – FY 2022 SM-3 BLK

IIA Production

Jun

CPIF $0.82B

HQ085124C0001

FY 2023 – FY 2025 SM-3 BLK

IIA Production

July

FPIF $1.95B

*The total value of the HQ027610C0005 contract is actual cost; all other contracts listed above are active and therefore are ‘estimated’ total value.

10. Listing of Sources (RFO 6.104-1(a)(10)).

For the MRR dated , the responding sources were Raytheon and RFI response was rated as medium risk, with the ability to produce SM-3 missiles with some capital investments required.

highlighted corporate experience with producing the Patriot Advanced Capability and Ground-based Midcourse Defense programs. In order to produce SM-3 missiles and provide sustaining engineering and product support (SE&PS) to the SM-3 Program, would need to make significant capital investments in tooling, test equipment, and facilities.

response was rated as being a moderate risk because of the need for a which was listed as a precondition and a barrier to competition. As the current prime contractor for SM-3 production and support, Raytheon’s response noted its current abilities to support all aspects of SM-3 production and engineering support without any investments or additional costs to the government; thus, the Raytheon response was rated as low risk.

The MRR dated involved two responding sources as well: Raytheon and .

s response described its abilities in establishing digital test environments and automated testing capabilities but was unable to support any other SM-3 related production, integration, or support requirements. lacked lacked historical experience in producing or supporting guided missiles. ’s response did not address its ability to monitor or mitigate SM-3 obsolescence issues. The Program Office’s lack of a to provide to was noted, but even with the would have been rated as high risk. The response was rated as being a high risk because of the lack of capability to

. The Raytheon response was rated as a low risk because it showed evidence that it could provide all of the required production, integration, testing and delivery scope with both an acceptable capabilities rating and low risk.