Redacted_Amendment_SM-3 Blk IB_IIA Combined FY23-25 JA_202504287.pdf

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a prime contractor. Consideration of small business concerns will be managed through the statutory requirements for RTX to render a subcontracting plan offering the maximum practical opportunity to participate in the contract performance consistent with its efficient performance per the FAR 19.702. Use of small business in the performance of the contract will be a requirement of the statement of work.

Market research and results from the Sources Sought confirmed that a viable competitive environment for the SM-3 scope is not feasible; and as such, MDA/AB will continue to communicate with industry to create cost effective contract structures. The market research was documented in a MRR which was endorsed by the and the on . The SM-3 Program will remain in a sole source contracting relationship with the incumbent RTX.

e. ABG currently has a large indefinite delivery/indefinite quantity (IDIQ) contract with RTX to provide system engineering, test, development, and obsolescence mitigation efforts for all SM-3 variants. ABG is working to identify parts of that contract effort which could be removed from the IDIQ and competed as separate contract efforts. ABG does not see a path forward for similar efforts related to a contract solely dedicated to producing SM-3 BLK IB and SM-3 BLK IIA missiles.

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

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services under this contract are procured at a fair and reasonable price. The contractor may submit a formal price proposal and/or historical actuals will be utilized with certified cost or pricing data and sufficient information to support accuracy and reliability in the estimate. A thorough analysis of proposed costs will be conducted.

Price analysis shall be performed to verify that the overall price offered is fair and reasonable and may include: comparison of proposed prices to historical prices paid, whether by the government or other than the government, for the same or similar items;

comparison of proposed prices with independent government cost estimates; and/or analysis of data other than certified cost or pricing data provided by the offeror. Cost analysis shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing data are required. Cost analysis techniques for a proposal of this requirement may include: verification of cost data and evaluation of cost elements, including the necessity for, and reasonableness of, proposed costs, and the application of audited or negotiated indirect cost rates, labor rates, and cost of money or other factors.

Cost realism analyses (on cost-reimbursement contract line item numbers) to determine the probable cost of performance. Profit/fee shall be assessed utilizing the weighted guidelines method. The Contracting Officer will conduct thorough negotiations to ensure the settlement of fair and reasonable costs that are in the best interest of the USG.

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

ABG performed market research in accordance with FAR Part 10 to arrive at the most suitable approach to acquiring, distributing, and supporting the necessary supplies and service requirements of a new production contract. Accordingly, market research was performed to collect and analyze information about capabilities within the market to satisfy agency needs before developing new requirements documents for an acquisition.

The data resulting from the market research performed was analyzed and used to make informed decisions whether ABG needs can be met by commercial products or services or, to the extent commercial products suitable to meet the agency’s needs are not available, non-developmental items are available that meet the agency’s requirements;

could be modified to meet the agency’s requirements; or could meet the agency’s requirements if those requirements were modified to a reasonable extent.

In May 2022, ABG published an RFI announcement on the government-wide point of entry requesting information packages from any interested party to determine capability of sources. The requested requirements included advanced capability development/upgrades, manufacturing/production, testing, and operational sustainment.

Raytheon and The Boeing Company were the respondents to the RFI. The Boeing Company was determined to be at a moderate risk with experience manufacturing missile systems, but would require capital investments for facilities and equipment, as well as the . Raytheon was judged as a low risk.

ABG conducted market research in 2023, concluding in a MRR signed in September 2023, which came to the same conclusions as the MRR originally connected to J&A 22- 0031. The competitive environment for SM-3 AUR production remains the same.

Further, ABG solicited information from interested sources in a RFI posted on SAM.gov for the SM-3 Program in March 2025. The results of the RFI are consistent with the results of the previously referenced MRRs, with no significant changes to the competitive environment for production. The results from the RFI are also aligned with the observations and experiences of key leaders and subject matter experts in ABG, who maintain close working relationships with industry throughout the world. These working relationships cultivated with industry allow MDA to be apprised of available technologies and manufacturing capabilities and provide a base of knowledge more extensive than would normally be obtained through a formal market survey. Together, the results of the March 2025 RFI and ABG’s continuous efforts to stay apprised of industry’s capabilities regarding the requirements at issue, confirm RTX is the only source capable of performing, as required, without substantial duplication of cost that is not expected to be recovered through competition. The market research is appropriate to the circumstances and will be captured in an updated MRR.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (FAR

6.303-2(b)(9)).

The main barrier to competition for the SM-3 program has always been the lack of

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12. Technical/Requirements Official Certification (FAR 6.303-2(c)). “I certify that this justification for other than full and open competition is made in good faith and that the supporting data and information are accurate and complete to the best of my knowledge and belief. I further certify that this request is not the result of a lack of advance planning.”

CAPT COLIN MONK, Program Manager, MDA/ABG

13. Contracting Officer (FAR 6.303-2(b)(7) and (12)). “I have determined that the anticipated cost to the government will be fair and reasonable and certify that the justification is accurate and complete to the best of my knowledge and ability.”

COREY LISENBEE, Procuring Contracting Officer, MDA/DACA

14. Legal Counsel (Program Level). “I have reviewed the justification and determined it to be legally sufficient.”

JAMAL A. RHINEHARDT, Associate General Counsel, MDA/GCA

15. Contracting Director (Program Level). “I have reviewed the justification and recommend it be approved.”

KATHERINE HALL, Chief of Contracting Office, MDA/DACA

DIXON.KIMMY.ANN.123059

Digitally signed by

DIXON.KIMMY.ANN.1230599218

Date: 2025.04.16 16:15:40 -04'00'

LISENBEE.COREY.C

URTIS.1071009447

Digitally signed by

LISENBEE.COREY.CURTIS.1071009447

Date: 2025.04.16 15:22:12 -05'00'

RHINEHARDT.JAMAL.A.117

6604790

Digitally signed by

RHINEHARDT.JAMAL.A.1176604790

Date: 2025.04.17 13:48:15 -04'00'