Redacted JA Amendment.docx

J&A NO: 08-0016

AMENDMENT #1 TO JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introductory Paragraph. Upon the basis of the following justification, I, as Senior Procurement Executive of the Missile Defense Agency (MDA), hereby approve the issuance of the contractual action discussed below using other than full and open competition pursuant to the authority cited herein.

2. Agencies and Contracting Activity, (FAR 6.303-2(a)(1)). This Amendment to Justification and Approval (J&A) for Other Than Full and Open Competition is for the MDA, Terminal High Altitude Area Defense (THAAD) Project Office. The contracting activity is MDA/DAC THAAD Project Office (MDA/DACD). The point of contact is Ms. Janice Harrison, Contract Specialist, 256-450- 1460.

3. (FOUO) Description of Action Being Approved (FAR 6.303-2(a)(2)). A J&A for Other Than Full and Open Competition for THAAD Fire Unit Fielding was approved by Lieutenant General Obering on February 6, 2006. It addressed a sole-source action to Lockheed Martin Space Systems Company (LMSSC) for the manufacture of THAAD Fire Units 1 and 2. This Amended J&A addresses a sole source action to LMSSC for the manufacturing of THAAD Fire Units 3 and 4 (48 interceptors, 6 Launchers, 2 Fire Control Suites and associated Peculiar Support Equipment (PSE) and for the manufacturing of THAAD Hardware required to satisfy the Joint Requirements Oversight Counsel (JROC) validated Joint Capability Mix II (JCM-II) study results (THAAD ground components required for 2 additional fire units, 104 total interceptors, and all associated THAAD Peculiar Support Equipment). The contracting approach for these manufacturing efforts will consist of modifying the existing Fire Unit Fielding (FUF) Contract HQ0147-07-C-0196. It is anticipated that Contract Line Items (CLINS) will be added for obsolescence (cost plus award fee (CPAF)), long lead material (firm fixed price (FFP)), the manufacturing of Fire Units 3 and 4 (CPAF/IF and FFP), and Option CLINS for the JCM hardware requirements (FPIF/FFP). This action is to begin in the 1st QTR FY09. An Amendment to the FUF Acquisition Plan is being submitted for approval with this J&A Amendment.

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FOR OFFICIAL USE ONLY

4. Description of Supplies and/or Services Required to Meet the Agency's Needs (Including the Estimated Value, (FAR 6.303-2(a)(3)).

a. (FOUO) The objective of the FUF effort is to provide THAAD Element equipment for operational assessment and fielding of a BMDS capability useful to the combatant commanders and services. Contract HQ0147-07-C-0196 requires manufacturing, delivery and integration of the THAAD components for fire unit fielding, and initial spares. The THAAD Fire Unit Fielding (FUF) components are comprised of the interceptor, launcher, THAAD Fire Control and Communications (TFCC), and Peculiar Support Equipment (PSE). The FUF contract requires delivery of the first two Fire Units to the Army. The proposed action covered by this J&A will add the requirement for production engineering (including obsolescence) and long lead for Fire Units 3 & 4, the complete procurement of Fire Units 3 & 4 and the manufacturing of the THAAD hardware required by the JCM-II study. Quantities to be procured are 48 Interceptors, 6 Launchers, 2 Fire Control Suites, associated PSE or other quantities as may be permitted if increases are within the program funds and if it does not result in exceeding the justification dollar threshold approval level.

b. (FOUO) The total estimated cost for production engineering and long lead and manufacturing of Fire Units 3 & 4 is $778,600,000. The total estimated cost for the JCM-II study recommendation hardware is $1,2 19,600,000. The anticipated period of performance for the obsolescence and long lead is December 2008 through March 2010. The anticipated period of performance for the manufacturing of Fire Units 3 & 4 is December 2009 through September 2013. If funded, the anticipated period of performance of the JCM Hardware is April 2010 through March 2016.

Funding Profile ($M)

FOR OFFICIAL USE ONLY

64.6

Fire Units 3 & 4

JCM Hardware Option

Total this J&A

1,998.2

This effort will be funded with Procurement, Defense Wide appropriation funds or other funds as authorized and appropriated by Congress.

5. Statutory Authority Permitting Other than Full and Open Competition, (FAR 6.303-2(a)(4)). No change to original J&A paragraph 4 "Authority Cited".

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FOR OFFICIAL USE ONLY

6. Demonstration of Contractor's Unique Qualifications (FAR 6.303-2(a)(5)).

No change to original J&A paragraph 5 "Reason for Authority Cited.

7. Market Research, FedBiz Ops and listing of Interested Sources, FAR 6.303-2a. A formal market survey was not conducted because there is no other contractor who possesses the insight, experience and expertise on the THAAD program to meet the needs of this effort. This acquisition was synopsized on May 8, 2008 in the FedBizOps, in accordance with FAR 5.2, advising industry of the pending acquisition and soliciting inquiries from interested parties. To date, no responses have been received; any forthcoming responses will be reviewed.

8. Determination of Fair and Reasonable Cost, (FAR 6.303-2(a) (7)). In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services ordered under this contract are procured at a fair and reasonable price. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The Contractor's proposed cost will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. Analysis will be based on historical cost and rate information provided by field pricing support agencies. The Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price with LMSSC.

9. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(a)(11).

No change to original J&A paragraph 7 "Actions to Increase Competition".

10. Other Facts. The THAAD FUF contract contains FAR clause 52.244-5, encouraging subcontract competition to the maximum extent practicable.

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11. Justification and Approval Certification (Per FAR 6.303-2) Technical/Requirements Official:

I certify that this justification for other 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 advanced planning.

Printed Name: COL William L. Lamb Date:

Signature:

Printed Name: Terry S. Ganoe Date:

Signature:

Printed Name: Anthony Condurso Date:

Signature:

Printed Name: Gary Bliss Date:

Signature:

Printed Name: Karla Smith-Jackson Date:

Signature:

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Justification and Approval (J&S), Amd #1 For Other Than Full and Open Competition Terminal High Altitude Area Defense (THAAD) Fire Unit Fielding

MDA Director of Contracting.

I have reviewed the justification and recommend it be approved.

PRINTED NAME: Barney Klehman DATE:

SIGNATURE: ________________________________________________

Approval

The above justification for other than full and open competition is approved.

SIGNATURE: _________________________ DATE:_______________

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