MUOS SLE Phase 1 Extension Class JA Redacted.pdf

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

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I. Agency and Contracting Activity.

Narrowband SATCOM Acquisition Delta (SSC/CGN) is the procuring agency of the Mobile User Objective System (MUOS) Service Life Extension (SLE) Phase 1. The contracting activity is the MilComm PNT Contracting Office (SSC/CGK). MUOS and MUOS SLE were previously Navy programs and transferred to SSC under the Department of the Air Force in October 2021. OSD CAPE Program Decision Memorandum (PDM) III No. 700A1 in 2020 directed acquisition of two additional MUOS space vehicles. Service Life Extension (SLE) Acquisition Decision Memorandum (ADM), dated 14 September 2022, initiated

MUOS SLE.

II. Nature and/or description of the action being approved.

This Class Justification and Approval (J&A) authorizes the use of other than Full and Open Competition procedures to extend, by up to one year, the two current Mobile User Objective System (MUOS) Service Life Extension (SLE) Phase 1 contracts for Early Design and Risk Reduction. Each one - year extension will be awarded via contract modification. The MUOS SLE Phase 1 extension modifications will be awarded to Lockheed Martin Corporation (hereafter referred to as LM) located at 1111 Lockheed Martin Way, Sunnyvale, CA 94059 under contract FA8807-24-C-B001 and The Boeing Company (hereafter referred to as Boeing) located at 900 N. Pacific Coast Highway, El Segundo, CA 90245 under contract FA8807-24-C-B002. Both the Boeing and the LM contract will include one six-month Fixed Price Incentive Firm Target (FPIF) CLIN ($ and six FPIF one-month option CLINs (unfunded totaling $ ($ ea.)). The scope of work in these extensions includes engineering to continue the MUOS SLE Phase 1 Early Design and Risk Reduction effort concurrently through commencement of the MUOS SLE Phase 2 Final design and Production contract until performance transition. The current MUOS SLE Phase 1 contract types are Fixed Price Incentive (FPIF), and the work in the extension will continue to be FPIF CLINs.

The initial SLE Phase 1 contracts experienced delays in award due to schedule delays associated with challenges using and understanding the results of the predecessor trade studies contracts (competitively awarded using the GSA One Acquisition Solution for Integrated Services (OASIS) which impacted the Phase 1 contract awards. Results of the Phase 1 contracts are being used by the contractors for Phase 2 for both determination of the appropriate bus for each contractor as well as tailored mission assurance for each vendor.

These extensions allow for the further continuation of SLE Phase 1 risk reduction efforts and early design activities during the Phase 2 source selection.

Furthermore, "award to any other source(s) 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."

Therefore, IAW FAR 6.302-1(a)(2)(iii)(A) and (B) the SLE Phase 1 contracts must be

August 2023 Page 4 of 8August 2023 Page 4 of 8 modified since Lockheed Martin and Boeing are the only sources capable of performing "follow-on" contract work for "continued development or production of a major system or highly specialized equipment".

III. Description of supplies/services required to meet agency needs.

The overall objective of Phase 1 is to execute targeted risk reduction and design activities to reduce as much risk and uncertainty as possible prior to the commencement of the SLE Phase 2 effort. The requirement for the extension to the early risk reduction efforts stems from delays in RFP development process and is compounded by the need to have the risk reduction efforts run in parallel with the Phase 2 effort. These two contract option extensions will continue the focus on risk reduction activities which are included within the scope of the current SLE Phase 1 contracts. Work will include risk reduction tasks such as and / / Also, several high priority Contract Data Requirement List (CDRL) items will be included to provide items for a more highly refined design going into SLE Phase 2. The contracts will be modified to allow for six months extensions through 01 February 2026 with six additional one-month options as well to ensure continued performance in case of any additional unplanned delays.

The type of funding would be RDT&E. The estimate for the work associated with this extension was calculated using the current SLE Phase 1 monthly costs associated with the CLIN 0001, Risk Reduction and Early Design and the labor required to achieve the requirements.

Additionally, the contract extensions will include the same intellectual property required in the basic contracts which were evaluated during the source selection evaluation of both contract awards and were found to be "Acceptable". Therefore, there are no current concerns regarding contractor intellectual property.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

In accordance with the FAR 6.302-1(b) application of FAR 6.302-1(a)(2) authority, when the supplies or services required by DoD, NASA, and the Coast Guard are available from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Due to the Unique Nature of the MUOS SLE Phase 1 and 2 effort, described below, only LM and Boeing are eligible for the Phase 2 effort as Phase 1 awardees.

UNIQUE NATURE OF THE MUOS SLE PROGRAM:

The MUOS SLE satellite acquisition is divided into two phases with separate contracts for each phase. The Phase 1 effort covers risk reduction and early design activities, forecasts, and execution plans. Three proposals were received in response to Request for Proposal

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(RFP) FA8807-23-R-0005. The MUOS Program executed the approved Phase 1 acquisition strategy (MUOS SLE ADM included as attachment 01) by awarding a pair of competitively selected Contracts in response to the SLE Phase 1 solicitation - FA8807-24-C-B001 (Lockheed Martin) and FA8807-24-C-B002 (Boeing). The future Phase 2 effort covers final design and production, as well as launch, checkout, relocation, turnover to operations, and subsequent initial contractor support. The MUOS SLE Phase 2 effort will be comprised entirely of Phase 1 awardees and, as such, the competition will be between those Phase 1 vendors, iaw the MUOS SLE Acquisition Plan and the SLE Phase 1 SOW/RFP. To facilitate the limited competition an approved J&A (24-20, dated 18 July 2024), was executed to establish LM and Boeing as the only two contractors eligible to participate in the SLE Phase 2 limited competition. Additionally, the Option period for the Phase 1 effort is designed to run in parallel with commencement of the Phase 2 effort to facilitate transition.

Subsequently, extension of the current SLE Phase 1 contracts is necessary due to the delays in RFP development experienced by the solicitation development team and to provide the required transition to the Phase 2 effort for the Phase 2 awardee. These extensions allow for the further continuation of SLE Phase 1 risk reduction efforts and early design activities occurring in parallel with the Phase 2 source selection. Therefore, IAW FAR 6.302-1(a)(2), and in the best interest of the Government, both SLE Phase 1 contracts must be modified since Lockheed Martin and Boeing are the only sources capable of continuing the effort and competing in the Phase 2 Source Selection to continue the performance of "follow-on" contract work for "continued development of a major system". Furthermore, award to any other source(s) 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 due to the need to reopen the MUOS SLE Phase 1 source selection.

MISSION IMPACT:

LM and Boeing have unique capabilities to complete MUOS SLE satellite design, production, launch, and integration activities required in SLE Phase 2 since they were the only two contractors awarded Phase 1 contracts. Unique capabilities include credible

As evidenced by the May 2024 RFI, discussed in section VII, other industry partners exposed to and invited to discuss SLE requirements, have 1) lacked the technical proficiency to retrofit and modernize MUOS as an interoperable satellite and 2) stated disinterest further participation in the SLE program. In accordance with the approved acquisition strategy, only Boeing and Lockheed Martin can credibly perform the work in the SLE Phase 1 contract extensions and compete in Phase 2 to meet the operational need date of 2031.

Accordingly, and pursuant to FAR 6.302-1(a)(2), LM and Boeing are the only sources capable of continuing performance of MUOS SLE Phase 1's Early Design and Risk Reduction.

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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.

The nature of MUOS SLE is such that there is no commercial market for UHF SATCOM due to being a Government reserved spectrum; this eliminates UHF SATCOM fee-for-service and leasing as viable acquisition solutions. Given the extensive market research that has been conducted over the past five years associated with the MUOS satellite procurement, an additional Request for Information or Sources Sought Synopsis were both deemed unnecessary and impractical.

Following is a time-line of previous market research and the results of each: January 2019:

General Services Administration Federal Acquisition Service Region 8 posted a Request for Information (RFI) on Federal Business Opportunities (FBO) to identify interested and capable industry sources with potential solutions for maintaining UHF WCDMA SATCOM capability. Eight sources responded and participated in subsequent one-on-one meetings.

Results showed five vendors were incapable; three lacked UHF payload experience, which is essential for successful MUOS system end-to-end communication and performance. The fourth incapable vendor was a fee-for-service provider and the fifth vendor indicated inability to comply with the Buy American Act. The three remaining vendors, Boeing, Lockheed Martin, and Northrup Grumman were suitable to effectively compete for SLE.

September 2020: The Naval Information Warfare Command (NAVWAR) posted a second RFI on both the NAVWAR Business Opportunities page and FBO page. In conjunction with an Industry Day, the RFI informed and solicited feedback on MUOS SLE technical requirements, timelines, and estimated contract values. Four large businesses participated in the Industry Day, as well as teammates of the four vendors. As a result, the SLE phased acquisition strategy was finalized.

August 2022: The Acquisition Decision Memorandum documented the outcome of two RFIs conducted for SLE up to that point. It was documented therein that Phase 1 would be procured as two C-type contracts with a limited competition for Phase 2. Further, it was determined in the ADM that fixed price contracts would be used for both Phase 1 and Phase

2. The phased acquisition strategy was upheld from the beginning of the program inception to prevent duplication of costs while also sustaining and encouraging as much full and open competition as possible. Traditionally at SSSC, phased approaches to acquisition reduces risks as a program matures and helps refine cost estimates associated with system procurements to award contracts with achievable cost and schedule baselines.

In September 2022: Prior to releasing a draft RFP for SLE Phase 1, SSC/CGK and CGN determined a second Industry Day should be held to assess and allow industry to present potential advancements in technology and their capabilities, potentially significant enough to enable full and open competition for SLE Phase 1 and Phase 2. The Industry Day socialized and refined the SLE Space Phase 1 opportunity. Industry responses again confirmed the limited acquisition strategy for Phase 2.

December of 2022: The draft Phase 1 RFP was publicly posted to the System for Award

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Management to alert industry that Phase 2 as a limited competition was part of the overall acquisition plan for SLE. The posting description stated, "The Government intends to acquire MUOS SV6 and SV7 in two contracting phases: Phase 1 is an Early Satellite Design and Risk Reduction phase. Phase 2 will be a Final Satellite Design, Production, and Delivery Phase limited to offeror(s) awarded contract(s) for Phase 1."

May 2024: SSC/CGN published a third RFI to seek industry confirmation again that SLE Phase 2 is appropriate as limited competition as required by DFARS PGI 206.303-2(b)(i)).

The SLE Phase 2 RFI was released on 1 MAY to limited vendors (11) who participated in the SLE Industry Day in Sept 2022; the scope of the RFI extended beyond Phase 1 contractors but was not publicized to allow CGN to obtain technically proficient and comprehensive responses. SSC/CGN received five responses from non- Phase 1 vendors that were both large and small businesses; each notified the Government of disinterest in performing MUOS SLE Phase 2 as a prime contractor as response to the May 2024 RFI. The RFI results showed that Boeing and Lockheed Martin remain the only vendors both technically proficient and interested in competing for SLE Phase 2.

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

Per FAR 15.403-4, the Contracting Officer will require Lockheed Martin and Boeing to submit certified cost and pricing data in support of their respective proposals for the sole source modifications for a six-month extension (CLIN) with six one-month options (six unfunded CLINs) for the SLE Space Phase 1. By using actual cost information for baseline SLE Phase 1 performance under their respective contracts, and the data provided with the contract extension proposals, the Contracting Officer shall be able to ensure that the negotiated cost to the Government for this acquisition 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.

Please refer to section V for market research and corresponding results.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

The MUOS SLE technical trade studies contracts to LM, Boeing, and a third large business were awarded competitively under the GSA One Acquisition Solution for Integrated

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Services (OASIS) Indefinite Delivery Indefinite Quantity (IDIQ) contract. The third large business later submitted a Phase 1 proposal and competed for one of the two Phase 1 contracts. Ultimately, that third large business did not win a contract award, and formally notified the Government via the May 2024 RFI of no further interest. Therefore, only LM and Boeing are technically proficient to execute the work associated with the SLE Phase 1 contract and allow for the subsequent successful limited competition of the SLE Phase 2 contract award.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

Please refer to section V.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The modifications extending the SLE Phase 1 contracts will allow for the cost-efficient and smooth transition to the Phase 2 source selection. Also, while there will be no future acquisition of additional MUOS space vehicles, the agency is obtaining sufficient IP rights to ensure that the sustainment/modernization of the ground system can be competed. MUOS will not require another service life extension beyond this current effort.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.