Redacted_JA Lot 3 Hardware (5-17-23).pdf

MISSILE DEFENSE AGENCY

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN

COMPETITION

HQ0147-14-C-0001

May 4, 2023

J&A No: 23-0008-01 Contract No: HQ0147-14-C-0001

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introductory Paragraph. (No Change)

Upon the basis of the following justification, I, as Director for Contracting for 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 Part 6.303-2(b)(1)). (No Change)

This justification and approval (J&A) is for the MDA Targets and Countermeasures (TC) Program Office. The contracting activity is TC Contracts Directorate (TCK). The point of contact for this action is

3. Nature and Description of the Action Being Approved (FAR Part 6.303-2(b)(2)).

The action approved by this J&A, valued at , will ensure MDA experiences no lapse in meeting the current Medium Range Ballistic Missile (MRBM) Type 1/Type 2 (T1/T2) requirement. The action will be awarded as a non-competitive sole source modification.

In order to support the current Integrated Master Test Plan (IMTP) and any subsequent revisions associated with the scope provided in this J&A, MDA requires a modification to the Aerojet Rocketdyne AR Coleman Aerospace, Inc. (AR Coleman) MRBM T1/T2 contract, HQ0147-14- C-0001 for Lot 3 Hardware.

a. Lot 3 Hardware HQ014714C0001 Space Integrated GPS Instrument (SIGI), Thrust Vector Control System (TVCS) actuators and batteries, and additional Lot 3 Hardware Obsolescence.

The AR Coleman contract, HQ0147-14-C-0001, which was competitively awarded in October 2013, included a base of six (6) target vehicles (tails 1 6), priced options for up to 12 additional target vehicles tails 7 12 (Lot 2) and tails 13 18 (Lot 3), and associated mission support. MDA awarded Lot 2 in June 2019 and Lot 3 in November 2022. In order to complete production of the Lot 3 MRBM T1/T2 targets with the required hardware, MDA requires a modification to the AR Coleman contract to increase the contract ceiling by to a total value of $1,124,182,752.69 $1,130,528,752.60. The required hardware includes the SIGI, TVCS actuators, and TVCS batteries, and additional Lot 3 hardware due to obsolescence. This additional hardware is required for the MRBM T1/T2 enhanced Solid Rocket 19 (eSR-19) motor so that Lot 3 target vehicles will be able to meet emergent MDA Integrated Master Test Plan (IMTP) requirements for planned Ballistic Missile Defense System (BMDS) testing.

Per the Joint Emergent Operational Need (JEON) borrow/payback requirement and a need to meet emergent IMTP requirements, J&A No: 18-0013 was approved by the Director on 27 April 2018. J&A No: 18-0013 approved increasing the base quantity of targets from six (6) to 12, repricing of 12 expired option targets, associated mission support, increasing Direct Productive Labor Hours (DPLH) for Engineering Services activities, and a contract ceiling increase of up to . Request for Proposal (RFP), DACT-14C0001-18-0036, was submitted to the contractor on 16 May 2018, for the firm-fixed price (FFP) re-pricing of 12 additional target vehicles, associated mission support, spares and required kits. After the RFP was released, it was determined the entire effort would be split into separate contract actions:

1) Additional DPLH

2) Repricing of six (6) option targets (Lot 2)

3) PMO Extension

4) Repricing of options for Mission Planning of Lot 2

5) Repricing of six (6) option targets (Lot 3)

6) Mission Planning of Lot 3 s inability to propose timely to meet the required award schedule. As shown in the table below, modifications for additional DPLH, the repricing of Lot 2, PMO extension, Mission Planning for Lot 2, and repricing of options for Lot 3 have been awarded in the total amount of $531,084,035 $532,571,317. Although the hardware was addressed in J&A No: 18-0013, only in ceiling value remains. Based on the estimated cost for Lot 3 Hardware there is not enough remaining ceiling for this contract action to be procured under J&A No: 18-0013.

During the Lot 3 negotiations, the contractor identified obsolescence and limited part availability issues with the legacy design. The contractor also had a loss of confidence in the current ability to meet requirements. As a result, the Hardware was removed from the Lot 3 requirement due to the identification of obsolescence. Because there is only capacity on J&A No: 18-0013, a new Justification and Approval will be required for the estimated Hardware award.

Modification Award Date Award Value DPLH June 2019 $33,602,756 Lot 2 June 2019 $140,184, 433 PMO Support Sep 2020 $63,824,354 Lot 2 Mission Planning June 2022 $63,472,024 Lot 3 Dec 2022 $230,000,468 Lot 2 Mission Planning (Kit G) April 2023 $1,487,282 Total Award Value $531,084,035 $532,571,317

J&A 18-0003 June 2019 30% Variance Total Contract Ceiling

4. Description of the Supplies and/or Services Required to Meet the Needs (including the estimated value) (FAR Part 6.303-2(b)(3)).

The Government awarded Lot 3 targets in November of 2022. The following hardware is required to missionize and launch each target, which must be available for each year of the contract period of performance.

Hardware:

The remainder of Lot 3 consists of hardware, which includes but not limited to one (1) SIGI per target plus one (1) spare. Each Lot 3 target is comprised of two (2) eSR-19 stages. Each stage requires two (2) TVCS actuators and one (1) TVCS battery, with the recommended one

(1) full ship set of spares. Total hardware quantities are below:

SIGI: Quantity seven (7).

TVCS Actuator: Quantity of 40.

TVCS Battery: Quantity of 14.

After the Lot 3 award, the contractor identified more hardware obsolescence and limited part availability issues with the legacy design. The negotiated Lot 3 proposal ground rules and assumptions specified: 1) Obsolescence discovery shall require additional contract action, and

2) The proposal assumes no additional qualification requirements other than those identified in this proposal. Any qualification required will be on a separate contract modification. All of the items associated with component obsolescence that was discovered post award is driving the need for qualification tests or the need to generate qualification by similarity reports. All of the identified and future identified hardware obsolescence is required to complete the build of MRBM T1/T2 Targets 13 18. In order to allow for potential multiple qualification programs, the contract modification need date is no later than 31 Jan 2024.

5. Statutory Authority Permitting Other than Full and Open Competition (FAR Part 6.303-2(b)(4). ( No Change)

The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, which authorizes other than full and open competition when the required supplies and services are available from only one responsible source, or only from a limited number of responsible sources and no other supplies or services will satisfy agency requirement, without unacceptable delays:

ii. Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or 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 requirements.

6.

AcquisitionRequires use of the Authority Cited (FAR Part 6.303-2(b)(5)). (No Change)

Contract HQ0147-14-C-0001 was competitively awarded to AR Coleman on October 31, 2013, for a base quantity of six (6) and option quantity of 12 MRBM T1/T2 target vehicles.

To date, MDA has awarded all 18-option target vehicles to AR Coleman. Only AR Coleman is able to complete the Lot 3 build without incurring significant additional Non-Recurring Engineering (NRE) resulting in duplicative cost or unacceptable schedule delays. To date the MDA has spent over in NRE costs associated with the development of the MRBM

T1/T2 targets. A Technical Data Package (TDP) requirement was not included in the solicitation nor resulting contract award. Because MDA does not have a TDP or Interface Control Document (ICD), the highly specialized services related to the targets will need to be executed by the prime contractor to avoid a substantial duplication of costs. Failure to utilize the prime contractor would require the Government to first purchase a TDP and then pay the new contractor to acquire the expertise to produce the required hardware. AR Coleman has already developed that expertise and is able to execute these requirements upon award of the modification. Award to any other source would require duplication of these costs that would not likely be recovered through competition. The additional time required to negotiate the purchase of the TDP, compete the requirement, and allow a new contractor to develop expertise for the subject requirement would result in unacceptable delays. As a result, only AR Coleman will be able to provide the highly specialized engineering activities required to produce and integrate the required hardware of the subject targets.

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

This sole source action is for the continuation of existing work for which market research was conducted prior to contract award in 2013, prior to approval of J&A No: 18-0013 in 2018, and again in 2023 for this requirement. Based on the results of the updated MRBM T/T2 market research for this requirement, non-incumbents are incapable of providing the support needed to completion of the current contract. The existing launch vehicles contain numerous hardware and software components developed by AR Coleman at private expense. AR Coleman has consistently asserted data rights on all of these components. Use of these components has benefited the MDA through minimizing NRE cost avoidance over the course of the existing MRBM contract.

MDA currently procures "all up round" target classes from three (3) different vendors; there is clearly a market for the MRBM class targets. However, the duplicative NRE costs ( in NRE incurred to date), coupled with the considerable NRE/developmental timeline (36 months), make competition untenable for meeting the current and emerging IMTP requirements and real world events. Further, due to the description of this requirement, no other offerors would be able to meet the current requirements of this acquisition.

In accordance with DFARS PGI 206-302-1(d), when utilizing the authority at FAR 6.302-1, the Contracting Officer shall post a request for information or a sources sought notice, and shall include the results of this inquiry in the justification required by FAR 6.303. This requirement to post may be waived by the Head of the Contracting Activity or designee in accordance with MDA Directive 5013.01 for Acquisition Management. On 24 February 2023 a Request for Information (RFI) waiver was approved by , Director for Contracting, which was delegated by MDA Head of the Contracting Activity. On 21 April 2023, , Director for Contracting, approved the use of a PCO MFR in lieu of another RFI waiver for the additional hardware obsolescence.

8. Determination of Fair and Reasonable Cost (FAR Part 6.303-2(b) (7)). (No Change)

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 proposal addressing all requirements of the Request for Proposal (RFP).

Certified cost or pricing data and sufficient information to support accuracy and reliability of the estimate shall be required in the proposal. The AR Coleman proposals will be reviewed by experienced technical analysts and contract specialist with the assistance of necessary field pricing support from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA). The cost and price analysis will concentrate on completeness, realism, reasonableness, allowability and allocability. Rates and factors will be verified through the DCMA and DCAA activities, as well as any unusual or propose deviations from contract. To the maximum extent possible, historical data from the performance of the MRBM T1/T2 contract will be used as part of the analysis. The Government also has access to cost/pricing data on other contractors who provide similar support on other contracts.

Thorough price analysis of proposed prices for the modification of the current contract and execution of sole source contract will be conducted. This analysis will include comparisons of proposed prices to prices previously incurred under the current contract, as well as market analyses for similar requirements performed by other contractors as applicable. The Contracting Officer will utilize a combination of the cost and price analysis and technical evaluation, as well as the Independent Government Cost Estimate as the basis for negotiating a fair and reasonable price.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (FAR Part 6.303-2(b)(9)). (No Change)

When this contract was competitively award in October of 2013 a TDP requirement was not included in the solicitation. Negotiation of cost and data rights for a complete TDP would take an extended period of time and impose an unacceptable delay and cost in fulfilling the

Furthermore, 98% of the requirement for the MRBM T1/T2 target vehicle is already under contract. The MDA does not own the ICD; therefore another contractor cannot integrate the required Lot 3 hardware without obtaining an ICD from the current prime contractor.

10. Actions Taken to Remove Barriers to Competition (FAR Part 6.303-2(b) (11)). (No Change)

For the purposes of this J&A, the contract modification is required for the remaining Lot 3 Hardware that applies to the existing MRBM T1/T2 contract. Due to the inability of any other

-term needs without unacceptable delays, based on the time required to award a new contract, as well as the time required to complete a new development and qualification effort, there are no actions the MDA can take to remove the barriers to competition. The current contractor is the only responsible source to provide uninterrupted mission support. If requirements for future (follow-on) MRBM Targets are required, validated, and approved by leadership, Future Acquisitions Division will focus on the delivery of new enhanced target solutions and services to counter threats for the 2035 and beyond timeframe. To promote competition for future (follow-on) MRBM Targets, TC intends to compete the requirement and will consider opportunities and/or feasibility of procuring data rights. TC will also continue to implement its Strategic and Tactical market research program to inform industry of possible future requirements and for TC to determine Industry capabilities.

11. Technical/Requirements Official Certification (FAR Part 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.

Program Manager, Medium Range Targets Targets and Countermeasures

12. Contracting Officer (FAR Part 6.303(b)(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.

Contracting Officer Target and Countermeasures

13. Legal Counsel.

I have reviewed the justification and determined it to be legally sufficient.

Deputy General Counsel Missile Defense Agency

14. Contracting Director (Program Level).

I have reviewed the justification and recommend it be approved.

Director of Contracts Targets and Countermeasures

15. Recommendation of Competition Advocate.

I recommend approval of the above justification.

Competition Advocate Directorate of Acquisition

16. Approval (FAR Part 6.304).

In accordance with FAR Part 6.304, the above justification for other than full and open competition is hereby approved

Director for Contracting Missile Defense Agency