D Final Signed JA_TH_TFODC_Redacted_01272025_Redacted.pdf

J&A No: xx-001

J&A No: xx-0001

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION – FAR Part 6

Program/Equipment: The Development, Integration and Testing of any Hardware and Software upgrades, Obsolescence Surveillance and Mitigation, Information Assurance and Cybersecurity Engineering, Quality, Safety and Mission Assurance, Initial Fielding, Logistics Support and Training Products for THAAD upgrades and/or capability.

Authority: 10 U.S.C. 3204(b)(B) as implemented by FAR 6.302-1(a)(2)(iii) which states: “For DoD, NASA, and the Coast Guard, 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 – (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.

Amount: The estimated ceiling of this IDIQ contract, with all options, is

1. Introductory Paragraph.

Upon the basis of the following justification, I, as the 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)(1)).

This Justification and Approval (J&A) for Other Than Full and Open Competition is for the MDA, Terminal High Altitude Area Defense (THAAD) Project Office. The contracting activity is THAAD Contracts (THK). The point of contact for this action is

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

MDA intends to award a sole-source contract to Lockheed Martin (LM) Space, Sunnyvale, CA, for THAAD Follow-on Development and Engineering Technical Support for future testing, Missile Defense System integration and development as a follow-on to the current Advanced Capabilities Development (ACD) contract, HQ0147-12-D-0001. The THAAD Follow-on Development Contract (TFODC) will be an Indefinite-Delivery/Indefinite-Quantity (IDIQ) type, the majority of Contract Line Item Numbers (CLINs) will be cost-plus-fixed-fee, cost-plus-incentive-fee for Development and Engineering Support, due to the uncertainties involved in capability development. This is particularly true as threats change and the Warfighters’ demands for THAAD increase. Use of fixed price incentive is also a consideration for certain Task Orders where development risk is lower, such as form fit function replacement obsolescence mitigations and laboratory sustainment. The contract type for each task order will be determined by the complexity and risk associated with the task order requirement. Subject to availability of funds, this contract effort will be funded with Research, Development, Test and Evaluation, Procurement, Operations and Maintenance, funds as authorized and appropriated by Congress for this and other related activities. Foreign Military Sales (FMS) customers’ requirements will be funded with Foreign Military Sales (FMS) funds.

THAAD plans to award this contract in the second quarter of FY 2025 with an initial ordering period of 5 years extending through the second quarter of FY 2030 and options for one (1) 3 -year option, through FY 2033 and one (1) 2-year option, through FY 2035, totaling 10 years.

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 THAAD Weapon System is comprised of the following components: Interceptor, THAAD Fire Control and Communications, Launcher, Peculiar Support Equipment, and Radar integrated into the Weapon System.

In this IDIQ contract, the Contractor’s scope includes the Development, Integration and Testing of any Hardware and Software upgrades, Obsolescence Surveillance and Mitigation, Information response instructions and a classified threat annex provided by MDA’s Directorate of Engineering Threat Intelligence organization.

Ten vendors responded to the RFI, and each vendor was assessed by a cross functional team comprising of 42 members from seven separate MDA organizations and two Federally Funded Research and Development Centers (FFRDCs) John Hopkins University/Applied Physics Laboratory (JHU/APL) and the Massachusetts Institute of Technology/Lincoln Laboratory

(MIT/LL))

After market research was conducted applying the THAAD-unique constraints as described in Paragraph 6, the only viable source that could conduct the follow-on work was LM.

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

In accordance with FAR 15.402, the Procuring Contracting Officer (PCO) shall ensure that all supplies and services ordered under this contract are procured at a fair and reasonable price.

As necessary, the Contractor will submit formal price proposals with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimates.

Experienced technical analysts and contract specialists will review the Contractor’s proposed cost with the aid of necessary field pricing support. Cost Analysis will be based on historical cost data and rate information by field pricing support agencies. The PCO will use the cost and price analysis as the basis for negotiating a fair and reasonable price with LM.

9. Description of Market Research Conducted (FAR 6.303-2(b)(8)).

Pursuant to the FAR and DFARS, THAAD Missile Defense Layered Enhancement (TMDLE) market research was conducted from March 2022 to March 2023. While the result of this research showed a developing market space within the development arena, the lack of the Level III TDP does not allow offerors, other than the incumbent, to meet all objectives, specifically the area of Government Furnished Equipment (GFE). Therefore, the risk of transitioning to another Prime would be high.

The Government conducts continual market research, and the following represents the latest information that supported the decision to request this J&A:

a) THAAD conducted market research to determine interest and capabilities for sources to meet requirements such as future capability development/upgrades, flight and ground testing, obsolescence surveillance/mitigation, cybersecurity and initial fielding of capabilities. The market research was conducted from March 2022 – March 2023 to assess business interest and capabilities to meet the requirements, as well as obtaining opportunities and market knowledge.

b) The Request for Information was developed and posted to SAM.GOV on March 8, 2022. An assessment found one vendor fully met the requirement to complete the full effort (LM), one other marginally met the requirement (Raytheon) and two small businesses responded (Arcarithm, deciBel), but did not address the requirements.

After market research and applying the THAAD-unique constraints as described in Paragraph 6, the only viable source that could conduct the follow-on work was LM.

As stated above in section 9 b) The Request for Information was developed and posted to SAM.GOV on March 8, 2022. An assessment found one vendor fully met the requirement to complete the full effort (LM), one other marginally met the requirement (Raytheon) and two small businesses responded (Arcarithm, deciBel), but did not address the requirements.

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

In order to overcome competition barriers in the Future THAAD conducted a formal market research report and forwarded the results of that report to the MDA Chief Architects office in