JnA_19-0008 THAAD KSA_Redacted_20190401.pdf

J&A No: 19-0008 highly-specialized equipment, including major components thereof, 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.”

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)).

Lockheed Martin (LM) is the prime Contractor (provider and integrator) for the

THAAD Weapon System. LM was under contract initially for system development, and is currently under contract for manufacturing and production with Lockheed Martin

Missiles and Fire Control (LMMFC). No other source possesses the extensive knowledge, experience, facilities and/or equipment to meet the Government’s need at this time. The THAAD Weapon System consists of highly-complex technical data requiring special knowledge and engineering expertise to ensure and maintain stringent performance requirements and extremely tight tolerances. The current THAAD

Weapon System technical data package does not include special and/or critical processes required to manufacture a first-time quality product. In addition, the procurement and qualification of tooling and test equipment at a new prime Contractor and supplier facilities would incur significant costs above the assumed budget estimates which would also result in unacceptable delays in fulfilling the Agency's needs should the requirement be competed. In addition, by utilizing the current Contractor, the

THAAD Project Office will not be impacted by potential costly redesigns necessary to mitigate obsolete parts if the Contractor is required to furnish new tooling and test equipment to produce the THAAD Interceptor. It would take an excess of 24 months for another prime Contractor to duplicate the knowledge base, proficiency level, unique processes, and manufacturing equipment and facilities required to produce THAAD

Interceptors. Such a duplication of effort would result in failure to meet the milestone delivery dates stated in the Letter of Offer and Acceptance (LOA) signed 26 November

2018.

See classified Annex to “Justification and Approval (J&A), For Other Than Full and

Open Competition, Missile Defense Agency (MDA), Terminal High Altitude Area

Defense (THAAD), 9 April 2014.”

7. Description of Market Research Conducted (FAR 6.303-2(b)(6), (8) and (10)).

The MDA THAAD market research report, 5 June 2018, determined that there is no other

Contractor who possesses the insight, experience, and expertise on the THAAD Program to meet the needs of this effort. Details of market research include:

The Classified Annex to “Justification and Approval (J&A), For Other Than Full and Open Competition, Missile Defense Agency (MDA), Terminal High Altitude

J&A No: 19-0008 extent practicable. LMMFC submits a Comprehensive Small Business Subcontracting

Plan annually that is evaluated and approved by the Defense Contract Management

Agency. LMMFC is also required to submit a “Small Business Subcontract Report” semiannually to the THAAD Project Office and the MDA’s Small Business Office for evaluation and approval.

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

For the reasons stated in paragraph 6 above, LMMFC is currently the only source for the continued production of the THAAD Interceptor. The Deferred Ordering of Technical

Data or Computer Software clause resident in the THAAD contracts will be used, as practicable, to acquire data or software needed to develop second sourcing opportunities for parts and services procured in the coming years.

In addition to FAR 52.244-5, Competition in Subcontracting, the THAAD Project Office will carefully consider requirements for competition, to the maximum extent practicable, as emerging needs become known to the Government.

The Acquisition Strategy Decision Memorandum, 27 April 2018, authorized the THAAD

Project Manager and the Sensors Program Director to proceed within defined acquisition strategies, to include release of request for proposals for contractor’s preplanning and proposal development to support acquisition timelines.