JA- FD2060-24-31169- MALD CLS Redacted_Redacted.pdf

CONTROLLED UNCLASSIFIED INFORMATION

Justification and Approval (J&A) for Other Than Full and Open Competition

CONTROLLED UNCLASSIFIED INFORMATION 13 May 2022 Page 3 of 11 management, logistics support, and sustaining engineering required to sustain the system's total life cycle throughout the Operations & Support (O&S) phase, sustaining materiel readiness while continuously striving to improve program efficiency and cost-effectiveness. The services required to meet agency needs include CLS Management Support, Logistics and Engineering Support, Non-Warranty Repairs, Software Maintenance and Ordnance Assessment (OA) Support, and Replacement Parts as described below:

CLS Management Support:

These activities include, but are not limited to, establishing non-warranty repair support capabilities and a non-warranty repair infrastructure that includes setting up depot non-warranty repair support plans, processes, and operations. In addition, CLS management support will serve to support MALD Government Furnished Material (GFM) processing, storage, issues, repairs, and return processes in anticipation of depot missile repair actions, to include establishing a MALD GFM return to vendor process flow and appropriate accounts for transfer of failed sub-assemblies to suppliers for repair. Furthermore, this activity supports management of Government Furnished Property to meet ongoing Financial Improvement and Audit Readiness that includes surveillance and reporting activities, quarterly Chief Financial Officer reconciliation and reporting, and spot and annual physical inventories and maintenance/sustainment of Government Furnished Equipment.

Logistics and Engineering Support:

These activities include, but are not limited to, all associated CLS tasks representative of logistics and engineering/technical support required to sustain the MALD/MALD-J program. Tasks associated with Logistics and Engineering Support comprise failure, fault, root cause investigations and support those occurrences that warrant Deficiency Review Board and Configuration Control Board activities, system safety and reliability analysis, technical data development and maintenance in support of configuration changes, program meetings, program plan updates and system familiarization (Initial/Refresher) as requested by the user. In addition, Logistics and Engineering support provides program risk management, hazard classification, parts obsolescence, Range Safety System (RSS), and data base management (e.g.

Tactical Missile Reporting System /Reliability Asset Monitoring) required to support and sustain the missile system. Logistics and Engineering support also encompasses technical support, intermediate/field repair activities, platform integration, test, and simulation (3-Degrees of Freedom (DOF)/6-DOF) support (e.g. Software-in-the-Loop (SIL), Joint Preflight Integration of Munitions and Electronic Systems (J- PRIMES), Guided Weapons Evaluation Facility (GWEF), and Weapons System Evaluation Program (WSEP) etc.).

Software Maintenance Support:

These activities include, but are not limited to, supporting user-generated deficiencies captured as Software Change Requests which encompasses support for contractor-maintained MALD Operational Flight Software, Jammer Operational Flight Software, and Munitions Application Program for Common Munitions Built In Test (BIT)/Reprogramming Equipment. Additionally, tasks associated with Software Maintenance includes, but is not limited to technical support for Mission Planning Common Component (MPCC) and Electronic Warfare Common Component. In addition, software maintenance supports extensive testing (e.g. Qualification, Verification, Validation testing etc.) that accompanies all software updates which include, but are not limited to, B-52 and F-16 integration testing (and necessary support from the aircraft OEM); SIL Eglin's J-Primes; GWEF; and managing required source data to capture changes used to generate and support technical data updates.

Ordnance Assessment (OA) Support:

These activities include, but are not limited to, support for ongoing OA requirements imposed by

CONTROLLED UNCLASSIFIED INFORMATION 13 May 2022 Page 4 of 11 the System Program Office (SPO), which include identifying and extending critical component shelf life values for MALD/MALD-J Missiles. Ongoing tasks include four major areas of effort:

1) OA program support: includes core-engineering resources required to manage and execute the OA program, which includes the required component research, analysis, coordination, and communication to convey status and planned efforts to optimize shelf life extensions while maintaining OSS&E.

2) OA test identification and planning: includes the development of effective test methods to successfully identify shelf life related performance as well as conducting the necessary test design and preparation for execution.

3) OA related harvesting activities: includes the identification of components that can reasonably be harvested from naturally aged missiles to allow data collection from naturally aged and inventory representative components.

4) OA test execution and reporting: includes the execution and reporting of approved test plans by destructive or non-destructive methods resulting in the correlation of performance data to component age.

Statistical analysis of this data identifies performance trends and permits the determination of meeting OSS&E requirements.

Non-Warranty Repair Support:

These activities include, but are not limited to: sustainment of necessary post-production non-warranty depot support activities; such as, conducting depot repair operations and processes (e.g. support inbound testing, defueling operations, troubleshooting, major component replacement, and RSS refurbishment).

Test Event Support:

These activities include, but are not limited to, providing support to the 86th Fighter Wing Squadron (FWS) and the Program Office in the execution of Weapon System Evaluation Program (WSEP) activities, possible Flag events, such as Orange Flag or Emerald Flag, etc. WSEP will evaluate mission capabilities in a combat-realistic environment from storage through impact. Support provided will include attending planning meetings, performing flight test analysis, the configuration of the requisite number of MALDs/ MALD-Js for WSEP shots to include the installation and certification/recertification of Range Safety Systems (RSSs) and Flight Termination Receivers (FTRs) contained therein, attendance of WSEP events for on-site mission support, provision of post-mission data review, and the shipment of assets to support WSEP if needed. Flag test events will provide more opportunity to evaluate MALD/MALD-J-specific performance through engagement with threat representative targets, providing data not otherwise available during WSEP tests.

Government Furnished Property Maintenance:

These activities include, but are not limited to, the repair and maintenance of MALD GFP as necessary for the proper function of MALD repairs, failure diagnosis, RSS calibration and validation, etc.

Maintenance and repair is limited to routine maintenance, calibration, and minimum labor required to restore an asset to Ready For Issue (RFI) condition. It also includes the labor to replace or incorporate material into test equipment that is funded under this contract. Replacement of obsolete equipment, redesign of equipment and software to accommodate new equipment or configurations, or any major repairs to existing test equipment is not covered under this task.

CONTROLLED UNCLASSIFIED INFORMATION 13 May 2022 Page 5 of 11

Travel:

These activities include, but are not limited to, travel in support of test events, training events, PMRs, and other events that require temporary duty at locations besides the contractor's primary place of performance.

The MALD/MALD-J, Weapon System elements, entail the Missile and its Sections; Operational Flight Software (OFS), RSS, Containers, and Support/Test Equipment:

NOUN NSN

ADM-160B (MALD) 1410-01-528-9851

ADM-160C (MALD-J) 1410-01-574-1975

ADM-160C-1 (MALD-J) (GAINS II) 1410-01-642-4122

DATM-160 (MALD) 1410-01-544-8561

DATM-160-2 (MALD) 1410-01-611-9231

ADM-160B Flight Test Vehicle 1410-01-622-3160 ADM-160C Flight Test Vehicle 1410-01-622-2814 ADM-160C-1 Flight Test Vehicle 1410-01-642-4122 CNU-683/E Ship/Stor. Container 8140-01-540-7921 CNU-683A/E Ship/Stor. Container 8140-01-590-6511 Test Program Set; Digital AN/GYQ-79A 6625-01-535-4586

At this time intellectual property (IP)/data rights are not being purchased, but the MALD SPO has requested a rough order of magnitude (ROM) for them, receiving a no-bid response, and will continue to request a ROM in the future. The Contract Line Item Number (CLIN) structure for the contract is as follows:

Cost Element/CLIN Cost

Base Year CLIN 0001 CLS Mgmt Support CLIN 0002 LG & EN Support CLIN 0003 Non Warranty Repairs CLIN 0004 Software Support CLIN 0005 GFP Mx CLIN 0006 Data CLIN 0007 OA Support CLIN 0008 Travel CLIN 0009 Field Events

OY1

CLIN 1001 CLS Mgmt Support CLIN 1002 LG & EN Support CLIN 1003 Non Warranty Repairs CLIN 1004 Software Support CLIN 1005 GFP Mx CLIN 1006 Data CLIN 1007 OA Support CLIN 1008 Travel

CONTROLLED UNCLASSIFIED INFORMATION 13 May 2022 Page 6 of 11

CLIN 1009 Field Events

OY2

CLIN 2001 CLS Mgmt Support CLIN 2002 LG & EN Support CLIN 2003 Non Warranty Repairs CLIN 2004 Software Support CLIN 2005 GFP Mx CLIN 2006 Data CLIN 2007 OA Support CLIN 2008 Travel CLIN 2009 Field Events

OY3

CLIN 3001 CLS Mgmt Support CLIN 3002 LG & EN Support CLIN 3003 Non Warranty Repairs CLIN 3004 Software Support CLIN 3005 GFP Mx CLIN 3006 Data CLIN 3007 OA Support CLIN 3008 Travel CLIN 3009 Field Events

OY4

CLIN 4001 CLS Mgmt Support CLIN 4002 LG & EN Support CLIN 4003 Non Warranty Repairs CLIN 4004 Software Support CLIN 4005 GFP Mx CLIN 4006 Data CLIN 4007 OA Support CLIN 4008 Travel CLIN 4009 Field Events

Overall Ceiling Estimate

The total estimated value is . The basis for the projected estimate was extrapolated from LRDP POM figures, O&S model, historical proposal data, previous CLS contract, and associated task orders that include commensurate tasks/efforts. Each CLIN also includes a 15% total escalation factor. This effort will be funded with 3400 Centralized Asset Management (CAM) funds. A combination of four (4) 3400 Element of Expense Investment Codes (EEICs) will be used to support this requirement that include Depot Overhaul 57812; Software Maintenance 57819; and Sustaining Engineering/Support 57834 and 57836. The PoP is anticipated to be 14 May 2025 through 13 May 2030.

In accordance with FAR 16.504(c)(1)(ii)(B)(1), Only one contractor is capable of providing performance at the level of quality required because the supplies or services are unique or highly specialized, and therefore a single award IDIQ contract was determined to be the most effective and efficient vehicle to procure the

CONTROLLED UNCLASSIFIED INFORMATION 13 May 2022 Page 9 of 11 regression testing and WSEP. Once integrated onto a vehicle and certified, the test vehicle allows for the collection of live fire performance data transmitted by the RSS/telemetry, which includes system performance (to include deficiencies) that aid in system analysis and support software and/or mission planning deficiency anomaly investigation. With telemetry data, the PO, alongside test organizations, can validate missile performance and effectiveness; ensuring key performance parameters, key system attributes, and additional performance attributes meet or exceed threshold requirements. Raytheon is the only vendor with the capability and expertise to execute the six DOF reconstruction to support these validation and verification activities.

As of 2014, the total development efforts for MALD-J were $347M. Additionally, studies performed by the previous SPO using a comparative cost estimate for a continuation of sole-source procurement, by applying standard escalation factors to production unit costs from recent production contracts for MALD-J and adjusting historically based cost estimates by standard annual escalation factors, including costs of either purchasing or developing an updated TDP from the contractor, including necessary production facilitation, and allowing for initial learning curve inefficiencies results in an estimated additional cost of (at least) $364M (in FY24) (excluding the cost of procuring the TDP from Raytheon). A summary of these costs and time frames are as follows: $100M for the basic MALD System Development and Demonstration contract, $88M for supplier facilitation and risk, $113M for MALD-J unique development and $63M for MALD-J flight test. The development of the MALD took five years and required unique facilitation due to the nature of the MALD/MALD-J system. There would be similar cost and a potential for severe mission critical impacts in sustaining the MALD/MALD-J and associated Weapon System elements if the Government pursued the development/qualification of a new vendor. As the cost to develop a new source or product would only result in approximately $3 - $5M savings per year, the investment of $364M would not achieve a return of investment by the current shelf-life expiration

Accordingly, Raytheon is the only firm capable of providing the supplies and services described in Section III above without the Government experiencing substantial duplication of cost that could not be recovered through competition. The capability to sustain and improve the MALD/MALD-J weapons system requires in-depth knowledge of the MALD missile system. Raytheon, as the developer of the TDP, manufacturer, and integrator, is the only vendor with this capability.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Sources Sought (SS)/Request for Information (RFI) synopsis under Solicitation # FA852018R0012 was posted to the SAM.gov website on 5 Jan 2024 with a response date of 26 Jan 2024. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualifications for this effort. One vendor, Kpaul Properties, LLC, who is not the incumbent, responded directly to the SS/RFI. This vendor was evaluated and determined not capable. This vendor was a distributor of IT equipment and power tools, and as such they do not possess the experience or expertise required for this effort.

Raytheon sent a reply directly to the MALD contracting officer detailing their experience and expertise, illustrating that they alone are able to support this effort.

The requirement will be synopsized in SAM.gov in accordance with FAR 5.201. It is anticipated that

CONTROLLED UNCLASSIFIED INFORMATION 13 May 2022 Page 10 of 11 sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Based upon (1) certified cost or pricing data provided in the offeror's proposal in accordance with FAR 15.403-4; (2) the program office or expert technical personnel analysis of the offeror's Basis of Estimates;

(3) inputs from the Defense Contract Management Agency; (4) review or comparison to past actuals, the contracting officer expects to determine the anticipated cost to the Government to be fair and reasonable.

The contract price will be negotiated in accordance with the procedures in FAR Part 15 ensuring the ultimate cost to the Government is fair and reasonable.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market Research was conducted in accordance with FAR Part 10.001 and 10.002. The market research was completed on 06 Feb 2024. Market Research techniques used are as follows:

As described in Section V above, a SS/RFI was posted to SAM.gov on 5 Jan 2024 under Solicitation #FA852018R0012. One vendor, KPaul Properties, LLC, not the incumbent, responded directly to the SS/ RFI. This vendor was evaluated and determined not capable. Raytheon replied directly to the PCO with their response to the RFI, illustrating their past performance on MALD.

A search of the SAM.gov website archives was conducted to investigate current and past contract efforts using the keyword “MALD.” During the search, 112 relevant hits returned, which were then reviewed to identify only those efforts for life-cycle support services.

The DCMA Commercial Item Group Part-Database for commercial opportunities was searched using MALD NIINs. Upon further evaluation, there were no commercial capabilities, practices, items, and services feasible of a commercial solution to meet the requirement. The MALD/MALD-J does not fit the definition of a commercial item as defined in FAR Part 2.101. This item is defined as military unique and is not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

The Interagency Contract Directory (ICD) was searched using Product or Service Code 1425 - Guided Missile Systems; which yielded three potential suppliers; two of which were small businesses. After reviewing ICD, the profiles of the two small businesses were directly searched using SBA DSBS; Lektron Inc. and Systima Technologies Inc. Upon reviewing Lektron's capabilities narrative, they specialize in the manufacturing of electronic and electro-mechanical assemblies but do not list NAICS 336414. FPDS lists

NAICS 336415, GUIDED MISSILE AND SPACE VEHICLE PROPULSION UNIT AND PROPULSION

UNIT PARTS MANUFACTURING, as the only NAICS they have a contract under with the Department of the Army. Systima Technologies' capabilities fall under NAICS 336413, OTHER AIRCRAFT PARTS AND AUXILIARY EQUIPMENT MANUFACTURING. The records surveyed for these organizations do not indicate that they possess the capabilities to provide adequate support to MALD/MALD-J in a CLS environment.