Redacted Justification and Approval.pdf

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

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APPROVAL ( DAFFARS 5306.304(a))

Date

09 Dec 2025

William S. Rogers, Brig General, USAF Commander, Air Force Nuclear Weapons Center, and Program Executive Officer (PEO) for Intercontinental Ballistic Missiles (ICBM)

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I. Agency and Contracting Activity.

United States Air Force

AFNWC/PZNT

7330 Sentry Blvd, Bldg 469 Tinker AFB, OK 73145

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

This individual J&A is to execute a modification to an existing contract that increases the total estimated contract value and extends the overall period of performance. A previously approved J&A authorized the use of Other than Full and Open Competition procedures to obtain a new, sole source, Indefinite Delivery Indefinite Quantity contract utilizing cost and fixed price contract types, with an estimated value of . This previous J&A authorized a contract action to maintain sustainment engineering support services for the Air Launch Cruise Missile (ALCM) Inertial Navigation Element (INE), National Stock Number (NSN) 1420-01-163-8424NT. The Original Equipment Manufacturer (OEM) of the INE is Litton Industries, which was acquired by Northrop Grumman Systems Corporation (NGSC) - Commercial and Government Entity (CAGE) code 06481 -in 2001. The current contract, FA8128-21-D-0001, includes seven (7) one-year ordering periods (OPs); its period of performance currently runs through March 2021 - March 2028.

A previous in-scope change to the contract increased the estimated contract value from to [an amended J&A was not required for these changes, per DAFFARS 5306.304(e)(3)]. This in-scope change was primarily driven by as well as the increased costs of

For example, the original INE Engineering Services Performance Work Statement included a one-time requirement for the Contractor to develop two Shop Replaceable Unit (SRU) test stands to test INE sub-assemblies. This capability would help identify the serviceability of the SRU population and streamline overall troubleshooting of failed INEs. The SRU testers would support identification of failure/scrap rates and inform future reliability analysis for the INE. After contract award, it was discovered that this requirement involved more complexities than originally anticipated. The unforeseen challenges included ambiguous testing requirements, underdeveloped specifications, and multiple SRU hardware configurations that were originally assumed to be functionally identical. Overcoming these obstacles to achieve a mandatory Government requirement resulted in an increase to the contract value of over .

Recently, it was discovered that an additional three years of recurring engineering services and multiple engineering studies/ reports will be necessary to continue sustainment of the ALCM INE (see Section III for further details). Although the type of work to be performed is generally the same, the 1) change in performance period and 2) substantial increase in the costs between the anticipated modification and the original contract estimated contract value signifies these changes as new work, outside the scope of the original contract and J&A. In accordance with (IAW) DAFFARS 5306-304(e), if a proposed change is for new work outside the scope of the original J&A, a new J&A must be submitted to the appropriate approving official based on the value of the new work.

Therefore, this new J&A is to increase the estimated contract value by (the estimated value of the new work).

The new, overall estimated contract value would therefore increase from to . In addition, this J&A extends the period of performance by three years; the new period of performance under the existing contract will be March 2021 - March 2031, to include 10 one-year ordering periods. The rationale for both of these changes is established in Section III of this J&A. This contract action is noncommercial and is NOT a bridge action. Contract clauses will be updated as necessary to support this modification.

Current Contract Number: FA8128-21-D-0001 Award Date: 5 March 2021 Current Completion Date: 4 March 2028 Revised Completion Date: 4 March 2031 Basis of Award: Sole Source

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

This contracting effort is a service. Under the existing contract, NGSC shall provide recurring engineering services

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 9August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 9 throughout the performance period, as well as providing nonrecurring engineering services as required to maintain component integrity under the ALCM INE Sustainment Program. Recurring Engineering support activities include establishing and maintaining an aging surveillance program, monthly status reports, Contract Funds Status Report, obsolescence/diminishing manufacturing and material shortage analysis and reports, technical inquiries, Test Equipment Maintenance, Contract Data Requirements List deliverables, Product Quality Deficiency, update Air Force Technical Order 95/ data plate replacement, and receiving/harvesting/storing Reference Measuring Unit and Computer (RMUC) circuit cards that are compatible with INE circuit cards. The nonrecurring engineering support activities to include, but are not limited to, Engineering Studies and Analysis, INE field troubleshooting support, Test Related Deficiencies, Circuit Card Assembly (CCA) Failure Analysis, Air Launched Munitions Analysis Group (ALMAG) support, Prototypes/Engineering Models, and Test Procedure/Plan development and support, Product Quality Deficiency.

It is necessary to add three years to this effort to continue to support the ALCM

. In addition, NGSC is currently remanufacturing the INE under Contract FA8128-20-D-0003, which ends in March 2034. This ongoing INE engineering services contract is highly interdependent with the remanufacture contract, as the diverse nonrecurring engineering studies undertaken through this contract substantially inform the processes and procedures that are utilized in the remanufacture effort. By advantageously harnessing the current engineering services contract, potential impacts can be mitigated through ongoing efforts made by NGSC.

Additional nonrecurring engineering services and studies are anticipated to be needed to ensure the INE's continued reliability and capacity to accomplish the ALCM's mission. These studies include, but are not limited to, the following:

1) The INE is responsible for several key functions of the ALCM, As the ALCM has now exceeded 40 years of service life, a reliability assessment is necessary to ensure the INE can continue to support the ALCM's mission.

2) The A16 bearing retrofit study will ascertain and analyze which were determined via a previous engineering study

3) The Contractor is currently conducting an investigation due to the recently discovered within the remanufacture process.

The Contractor is determining a root cause. The program office expects a subsequent engineering study will be needed to augment the current burn-in tests and further facilitate the remanufacture of INEs.

4) The program office also projects multiple supportability studies to be conducted over the remainder of the Engineering Services contract. These evaluations will be directed toward identifying any additional that are currently unknown.

5) Test equipment, which assists in the production of remanufactured INEs, will also need to be maintained throughout the remainder of the remanufacture contract. This continued support will entail sporadic hardware updates and software troubleshooting.

These crucial nonrecurring engineering studies are expected to increase the overall contract value by , as each effort will require a substantial amount of engineering labor hours, and the complexity of the INE and its SRUs requires specialized expertise and knowledge. These anticipated studies will be conducted with the intention of proactively identifying and addressing potential obstacles that would inhibit the ongoing remanufacture - and overall sustainment - of the INE.

An outline of the To Date Obligations and the Projected Obligations over the remaining period of performance under the INE Engineering Services Contract is provided below. Services will be funded on as as needed basis for emerging requirements.

This requirement will utilize 3400 (Operations and Maintenance), 3020 (Procurement), and 3600 (Research and Development) appropriations.

RECURRING ENGINEERING SERVICES - TO DATE

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Ordering Periods Past OP Dates Obligated To Date

I - V Mar 2021- Mar 2026

NONRECURRING ENGINEERING SERVICES - TO DATE

Ordering Periods Past OP Dates Obligated To Date

TOTAL - TO DATE

Ordering Periods Past OP Dates Total Obligated To Date

RECURRING ENGINEERING SERVICES - PROJECTED

Ordering Periods Estimated OP Dates Estimated Amount

VI Mar 2026- Mar 2027

VII Mar 2027- Mar 2028

VIII Mar 2028- Mar 2029

IX Mar 2029- Mar 2030

X Mar 2030- Mar 2031

*Ordering Period VI has already been negotiated and the pricing amount was established in FA8128-21-D-0001-P00012.

NONRECURRING ENGINEERING SERVICES - PROJECTED

Ordering Periods Estimated OP Dates Task Estimated Amount

V Mar 2025- Mar 2026 Reliability Study

VI Mar 2026- Mar 2027 A16 Bearing Retrofit Study

VII Mar 2027- Mar 2028 Burn-in Investigation Follow-On

VIII Mar 2028- Mar 2029 Supportability Assessment Action #1

IX Mar 2029- Mar 2030 Supportability Assessment Action #2

X Mar 2030- Mar 2031 Potential Test Equipment Actions

TOTAL - PROJECTED

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Ordering Periods Estimated OP Dates Estimated Total Projected

V - X Mar 2025- Mar 2031

TOTAL - OVERALL

Ordering Periods OP Dates Estimated Overall Total (including previously Obligated)

I - X Mar 2021- Mar 2031 *

*Estimated Overall Total rounded up to nearest thousandth.

NSN: 1420-01-163-8424NT

Part Number: 750600-002, 750600-003, 750600-004, 750600-005

Noun: Inertial Navigation Element (INE)

Application: Air Launch Cruise Missile (ALCM)

Description and Function:

Due to the circumstances described below in Sections V, VI and IX, there are no immediate actions that could be taken to develop future competition. Therefore, it is considered appropriate to seek approval for more than one fiscal year's requirements.

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

This acquisition is for engineering services in support of sustainment of the ALCM INE, . The INE is a complex line replaceable unit, encompassing over twenty CCAs and five analog instruments.

INE engineering services are highly specialized services due to the complexity of the INE, technical engineering experience, extensive knowledge of the specialized test equipment, and access to the technical data and drawings. NGSC is currently the only source able to provide the technical engineering and engineering support required for analyzing the sustainability and supportability of the ALCM INE to support the Air Force's minimum need. Therefore, this acquisition is for continued performance of highly specialized services for continued supportability and sustainability of the INE program.

The INE is a unique item which was specifically built for the ALCM. The INE components do not have dual use applications in other current weapon systems and The device's configuration and its functionality and capabilities are rarely found within today's industry. The INE's precise manufacturing processes and component material requirements are not open knowledge. The INE, including its circuit cards and gimbal gyroscope, were originally designed by Litton Industries with proprietary technology. Litton Industries was acquired by Northrop Grumman Corporation in 2001 and was retitled NGSC while retaining CAGE Code 06481.

On 18 Jul 19, the Contracting Officer requested to license or purchase the engineering drawings and data rights to the INE to which NGSC declined. On 26 Jun 25, the Contracting Officer again requested if NGSC would entertain the idea of selling and/ or licensing the data to the Government. NGSC provided a verbal response indicating the company is not interested in selling and/or licensing the INE data to the Government. Should NGSC make the data available to the Government at an economically feasible cost in the future, the Government will work with interested vendors to determine engineering capabilities for future requirements. NGSC is the only known contractor that possesses the experience, specialized test

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Officer will request a technical evaluation from the AFNWC/NDM and the Defense Contract Management Agency (DCMA) will aid in the evaluation of the contractor's proposal. The Contracting Officer will seek audit assistance from the Defense Contract Audit Agency (DCAA), if necessary.

VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

IAW FAR 10.001(a)(2), market research was conducted by a multi-functional team (MFT) consisting of the AFNWC Program Manager, Engineer and Contracting Officer. The market research was initially conducted prior to the onset of the INE Engineering Services contract; this assessment found that NGSC was the only known source available to accomplish the required services. The sources of information used in the establishment of the initial market research included the following:

historical acquisition information for the INE repair, Internet searches (Dynamics Small Business Search, Haystack, Google), requests for information to the OEM, a site visit to the OEM, and inquiries to the OEM regarding any subcontractors which may have been previously qualified by the OEM.

In June 2025, the MFT reviewed and re-validated the previously conducted market research. Multiple databases (SAM.gov, Federal Procurement Data System, Small Business Search) were queried for "Inertial Navigation Element" and the applicable North American Industry Classification System (NAICS) code, to identify potential vendors. These evaluations corroborated prior market research findings. The INE remains a military-unique component and is not commercially available. There are no commercial repair or engineering processes available to meet this requirement. NGSC remains the sole owner and authorized user for the required technical repair data and engineering drawings (NGSC previously purchased all rights and access to this data through its acquisition of the INE OEM, Litton Industries) related to the INE.

Based on the market research, NGSC remains the only vendor with unrestricted access to the technical drawings and the necessary engineering expertise to continue sustainment of the INE, and that can fulfill the contract requirements.

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

In addition to the market research conducted in section VII, a review of potential new sources revealed no alternative vendors are capable of supporting the INE, and NGSC was found to be the only known source available to fulfill the current contract to include the additional period of performance.

IAW FAR 5.201, a synopsis for this proposed contract action was posted on https://sam.gov on 24 July 2025. No other vendors expressed interest in, and/or the capability of, performing this requirement.

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

Northrop Grumman Systems Corporation, Cage Code: 06481 21240 Burbank Blvd Woodland Hills, CA 91367-6675 Phone: (818)715-2782

See Section VII for more detail.

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.

As a result of continued declination by the Sole Source contractor, NGSC, to provide or license data, as well as the unacceptable delays of developing additional sources per Section IV, there are no known additional actions which can be taken to remove barriers to competition. Therefore, specific actions and milestones cannot be established. However, the ALCM Program Office will continue to monitor the marketplace for any changes which identify new potential sources, and the Government will continue to synopsize future requirements IAW regulation.

Per PGI 206.304(a)(S-70), as indicated by signature on the Coordination and Approval document, the previous J&A has been reviewed and the Approval Authority determines that all stated actions to remove barriers to competition have been accomplished.

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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.

By their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified as accurate and complete all supporting data, which is their responsibility, contained herein IAW FAR 6.303-2(c).