Justification and Approval_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001 IN REPLY TO:

In accordance with FAR 6.302-4 and DFARS 206.302-4, recommend approval pursuant to 10 U.S.C. 2304(c)(4) to contract for the acquisition described below using other than full and open competition with Raytheon Missile and Defense (RMD).

DOCUMENTATION

1. Program Name:

2. Dollar Amount:

STANDARD Missile-2 (SM-2) FY21 Block

IIIA/B Production for FMS and MOU

Requirements.

$549,369,153

FMS FY21 APPROVED BUDGET ITEMS –

BLK IIIA/IIIB AURs

FY21

QTY

ESTIMATED

COST

Denmark SM-2 BLK IIIA AUR 50 $102,626,002

Japan SM-2 BLK IIIB AUR 4 $9,338,301

Korea SM-2 BLK IIIB AUR 84 $192,416,595

Netherlands SM-2 BLK IIIA AUR 23 $48,519,253

Spain SM-2 BLK IIIB AUR 21 $47,271,775

Taiwan SM-2 BLK IIIA AUR 16 $33,979,025

Total AUR Quantities: 198 $434,150,951

SPARES COMPONENTS/CONTAINERS and

ROUND DESIGN AGENT

FY21

QTY

ESTIMATED

COST

SM-2 Spare Components/ Section

Level Containers Various $100,218,202

Round Design Agent Hours $15,000,000

TOTAL OTHER COSTS $115,218,202

Total Cost: $549,369,153

3. Contracting Activity:

The Naval Sea Systems Command Surface Systems Contracts

Division 025 on behalf of the Surface Ship Missiles Program

(SSMP) Office, IWS 3A/3I.

J&A Number: 54,010

4. Memorandum of Understanding:

Germany/Netherlands/U.S. MOU for the Production of STANDARD

Missile, Amendment 1 signed 03/21/2018, Annual Requirements

Memorandum (ARM) for Fiscal Year 16, dated 27 SEP 2016;

Annual Requirements Memorandum (ARM) for Fiscal Year 17, dated 8 DEC 2016; and, ARM for Fiscal Year 20, dated 16 MAR

2020.

5. LOA Case Identifier:

COUNTRY FMS CASE AMENDMENT NO.

Australia AT-P-AMM Basic

AT-P-GSQ Amendment 2

Denmark DE-P-AED Basic

Germany GY-P-GQA Amendment 1

Japan JA-P-ATI Basic

JA-P-QAS Modification 1

JA-P-QCT Basic

Korea KS-P-AMO Basic

KS-P-AMR Basic

KS-P-CAA Basic

Spain SP-P-LHL Basic

SP-P-LHM Basic

SP-P-LHP Basic

Taiwan TW-P-LGQ Amendment 6

TW-P-LHT Basic

6. Foreign Government(s): Australia, Denmark, Germany, Japan, Korea, Netherlands, Spain, and

Taiwan.

7. Required Source:

Raytheon Missile and Defense (RMD) 1151 East Hermans Road Tucson, Arizona 85706

Even though the MOU and FMS cases do not specifically name RMD as the sole source manufacturer, RMD is the only manufacturer of SM-2 BLOCK IIIA/B missiles and production spares. Therefore, per DFARS 206.302-4, the requirements included in the MOU and

J&A Number: 54,010

Contracting Officer

FMS cases can only be met by RMD using other than competitive procedures.

8. Acquisition Plan:

PEO IWS 3A 17-013, Rev 1 signed 13 August 2020

9. Description of the Action Being Approved

The FY21 SM-2 Block IIIA/IIIB International and FMS requirements consist of the purchase of 198 SM-2 All-Up-

Rounds (AURs) and support material such as spare sections/components/parts/containers, Round Design Agent services and associated test rounds to proof the remanufacture rounds/components. The procurement includes

AURs which consist of the following components/sections:

guidance section, Auto-pilot battery unit, Warhead, Target

Detection Devise (TDD), Rocket Motor, Safe and Arm Device

(SAD), fuze booster, dorsal fin set and Steering Control

Section (SCS). The current total estimated value of the FMS procurement is $549,369,153.

10. Delivery Requirement

Performance is anticipated to begin on or about

1 June 2021 and end on or about 30 September 2026 which include deliverables to the Country final destination.

Attachments:

(1) Signed MOU and FMS Cases

(2) Acquisition Plan 17-013 Rev 1, signed 13 August 2020

SIGNED:

BOYLES.KRISTINE.R.1

052638131

8/_1_3_/2_0_2_0

Date

Digitally signed by

BOYLES.KRISTINE.R.1052638131

APPROVED: D_a_t_e_: 2_0_2_0_.0_8_.2_1_1_7_:5_4_:2_8_-_0_4'00' Director, NAVSEA 025 Date