JA_23-0010-Amendment01_signed_20250602_Redacted.pdf

DEPARTME.FDEFENSEMISSILE DEFENSE AGENCY

S700 18TM STREET

FORTBELVOIR, VIRGINIA 22060-5S73

J&A No: 23-0010 J&A No: 23-0010-Amendment 01

Contract No: HQ085121C0002

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Missile Defense Agency (MDA) Aegis-Based Defense requires additional scope be provided to continue support of Aegis Ballistic Missile Defense (BMD) software development, integration, and test, Combat System Hardware Procurement, capability installation on United States Navy (USN) Ships, Fleet Readiness and Sustainment, Glide Phase Intercept (GPI) Weapon System development, and Laboratory Operations and Sustainment (O&S).

Authority: JO United States Code 3204(a)(J) as implemented in Federal Acquisition Regulation (FAR) 6.302-1 (a)(2), on�y one responsible source and no other supplies or services will satisfy agency requirements.

Amount: The aggregate J&A value is increased from

1. Agencies and Contracting Activity, (FAR 6.303-2(b) (1)).

This Justification and Approval (J&A) is for the MDA Aegis-Based Weapon Systems Program Executive Office (AB) in suppo1t of the Aegis Ballistic Missile Defense (BMD) Weapon Systems Program (ABS). The contracting activity is the MDA/AB Contracts Directorate (DACA). The point of contact for this action is Contractino Officer who can be reached by telephone at

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

The intent of this J&A amendment is to increase the ceiling and to extend the period of performance covered fl-om June 2025 to June 2026 for the Lockheed Martin Rotary and Mission System (LM RMS) Aegis BMD Combat System Engineering Agent (CSEA) sole source contract HQ085121 C0002. Scope (and associated period of performance) on this contract which is not discussed within this document is covered under other stand alone J&As,· see Table C. Requirements covered under this contract will be transitioned to the follow-on CSEA Next contract vehicle, the requested timeji-ame allows/or this transition to occur.

This amendment requests a ceiling increase to prevent work stoppage and to allow continued support of Aegis BMD software development, integration, and test, Combat System Hardware Procurement, capability installation on USN Ships, Fleet Readiness and Sustainment, GPI Weapon System development, and Laboratory O&S. This will allow

DISTRIBUTION STATEMENT A. Approved for public release;

distribution is unlimited.

Approved for Public Release 25-MDA012111 (2 Jun 25)

LM RMS has demonstrated the specialized Aegis BMD system engineering and technical expertise essential to the efforts necessary to develop the capabilities required for continued Aegis BMD Weapon System support to meet the combined USN/MDA schedules. From a baseline development standpoint, LM RMS is uniquely positioned to fulfill this requirement due to their historical involvement in both the USN and Aegis BMD Programs. They are the only source that currently possesses the indepth technical knowledge of the weapon system required to perform the work.

As the USN transitions to an agile, digitally transformed Development, Security, and Operations integrated combat systems development strategy, MDA has acknowledged risk in changes associated with a business model, acquisition strategy, and technical approach occurring simultaneously.

6. Efforts to Obtain Competition (FAR 6.303-2(b)(6)).

The ABS program continues to conduct routine market research to include close coordination with USN on technical maturity, results of Navy market research, and opportunities for competition. Additionally, as stated under the CSEA Next Follow-On J&A 23-0036 the program will continue to engage and collaborate with Program Executive Office for Integrated Warfare Systems on transition strategy to the Integrated Combat Systems (ICS) agile/digital development construct. ABS will work to develop a technical approach, which includes the implementation of digital transformation tools, agile software development processes, and delivery of white box models and simulations. This technical approach, considered with potential non-FAR based authorities and tools, will potentially enable MDA/AB to compete requirements among vendors to provide proof-of-concept data to leadership prior to off-ramping and competing requirements that have been sole sourced for a long period. AB intends to begin competition timeline within the next three years targeting scope to containerize software coding for Aegis Display System and Mission Planner, as well as conducting future studies for system engineering and capability improvements. This timeline allows maturation of the new environment, processes, and teams to definitize cost estimates and statement of work refinements.

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

In accordance with FAR 15.402, the Contracting Officer (CO) shall ensure that all supplies and services under the contract actions are procured at a fair and reasonable cost. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support accuracy and reliability of the estimate. A thorough analysis of proposed costs will be conducted to include comparisons of proposed costs to costs experienced on previous contracts with LM RMS in support of the MDA/AB program.

Additionally, the CO will conduct negotiations which utilize the results of the Government’s analysis of proposed costs to ensure the settlement of a fair and reasonable total price that is in the best interest of the Government.

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

A Request for Information (RFI) or Sources Sought was not published because the program scope was initially included under J&A (23-0010) and the CSEA Next J&A (23-0036). The computer program development and integration and all scope listed in Table A was included. The Program’s uniqueness in utilizing the CSL and leveraging Aegis BMD Baselines drives the determination that competition is not currently viable due to the complex nature of the required software integration, but may be viable for a follow-on effort in a future contract action. Furthermore, under the Market Research for the CSEA Next Follow-on, LM RMS was the only response received. The Market Research report was signed on October 18, 2022. MDA Director for Acquisition and Sustainment (MDA/DA) signature in section 16 of this J&A as the Head of the Contracting Activity approves waiving the requirement to post a RFI or Sources Sought Notice for this effort in accordance with DFARS PGI 206.302-1(d).

An updated market research report validating the prior analysis was conducted and the report was signed August 27, 2024 by the PCO. The PCO conducted market research appropriate to the circumstances, which included an internet search to identify any potential industry sources that may have experience in the Program of Record Aegis Weapon System development. Results of the internet search did not reveal any new or additional sources capable of meeting the Program’s needs. The internet search results are consistent with the experiences of the Contracting Officer Representative (COR) and Product Manager.

During the administration of the contract with LM RMS, the COR and Product Manager did not learn of any other companies that were capable of performing the required work. The market research has not revealed any indication or evidence that the market of sources capable of satisfying the Agency’s requirements has changed in the past two years, since the Agency conducted the previous market research that resulted in a response from only LM RMS. Based on the updated market research, there are no other suitable sources to perform the Agency’s unique requirements.

From August 30, 2022 through September 14, 2022, MDA published on the System for Award Management (SAM.gov) site a sources sought announcement, “Sea-Based Weapon Systems (AB) Aegis BMD Weapon System (ABS) Sources Sought,” (MDA-22-AB-RFI-02) requesting information packages from any interested party to determine capability of sources. Requested requirements included computer program development integration with Aegis Guam System development, Integrated Combat System (ICS), GPI weapon system development; Digital Receive Upgrade for the AN/SPY-1D (V) RADAR, and continuation of computer program development, Foreign Military Sales support, ground and flight test support, model and simulation, concept development, system installation and test, operations and sustainment of AAMDTC and AA sites, and weapons system sustainment.

As a result of the request for information, only one response was received, from the incumbent LM RMS.

software documentation and computer software will document the configurations developed and tested under this acquisition.

As the USN transitions to an agile/digital based integrated combat systems development strategy, MDA has acknowledged risk in changes associated with a business model, acquisition strategy, and technical approach occurring all at once. Market research yielded one source that can complete the Government’s requirements, and ensure timely delivery of all critical, non-severable capability delivery. The follow-on contract vehicle is being planned with base and option year CLINs to allow for transitional ease, should MDA adopt the USN strategy once the risk is mitigated. The contract vehicle will also allow for MDA development of an ICS strategy, to potentially align with the USN. The ABS program will monitor progress and seek out opportunities for competition.