SHIELD Consolidation DF_Redacted.pdf

DEPARTMENT OF DEFENSE

MISSILE DEFENSE AGENCY

5700 18th STREET

FORT BELVOIR, VIRGINIA 22060-5573

Go Fast, Think BIG

DETERMINATION

THAT

CONSOLIDATION IS NECESSARY AND JUSTIFIED

Authorities

Based on the following findings, made pursuant to 15 U.S.C. § 657q, as implemented in Federal Acquisition Regulation (FAR) 7.107-2, the consolidation of requirements described herein is necessary and justified because the expected benefits to the Government are critical to the Missile Defense Agency’s (MDA) mission success and the procurement strategy also provides for maximum practicable participation by small businesses. Solicitation number:

HQ0859-25-R-E001.

Background

The MDA requires an advanced, multi-domain defense system capable of detecting, tracking, intercepting, and neutralizing threats to the United States homeland, its deployed forces, allies, and friends across all phases of flight by ballistic, hypersonic, and cruise missiles, as well as other advanced aerial attacks.

The Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) Multiple Award Indefinite Delivery Indefinite Quantity (IDIQ) Contract will support national defense objectives by ensuring continuous, layered protection against air, missiles, space, cyber, and hybrid threats originating from any vector - land, sea, air, space, or cyberspace.

The SHIELD IDIQ will be a 10-year contract, if all optional ordering periods are exercised. The IDIQ will be comprised of scope that is currently conducted under multiple stand-alone contracts. The scope for these stand-alone contracts will be consolidated in an effort to eliminate redundancies, increase efficiency, and enable MDA to rapidly acquire defense capabilities in support of the warfighter.

This effort supports commercial and non-commercial services and commodities of both classified and unclassified programs on multiple security domains.

(b) (6) agency2 addressing the criteria in FAR Part 16.504(c)(ii)(D)3. This additional documentation and the related staffing require additional resources in manpower and time.

• Alternate 3 – Use of Other Multiple Award Contract Vehicles

The MDA considered the use of other multiple award vehicles such as Enterprise- Wide Agile Acquisition Contract (EWAAC), Governmentwide Acquisition Contracts (GWACs), and other vehicles managed by the GSA. However, these vehicles are not tailored to the specific requirements of the MDA mission and may not provide access to the specialized expertise needed. The Eglin EWAAC vehicle uses the primary NAICS code of 332993 Ammunition (except Small Arms) and allows a comprehensive approach to digital acquisitions, focusing on systems engineering, agile systems development and modular open systems architectures. Eglin refers to this scope as their digital trinity and all contract holders must provide capabilities using these methodologies. The scope in the SHIELD IDIQ does not duplicate the digital trinity and as such this vehicle is not a viable alternative. GWACs provide access to various IT solutions including systems design, software engineering, information assurance, and enterprise architecture solutions. As the SHIELD IDIQ is not intended to provide these services, GWACs would not be a viable alternative.

Currently a contract vehicle that can capture the scope provided within the SHIELD IDIQ does not exist for direct order placement.

C. Coordination:

The determination was coordinated through the MDA Office of Small Business Programs.

D. Negative impact by the acquisition strategy on contracting with small business concerns:

The Government intends to make an award to all qualifying offerors, applying Federal Acquisition Regulation (FAR)15.304(c)(1)(ii), Evaluation Factors and Significant Subfactors. A qualifying offeror is an offeror that is determined to be a responsible source, submits a technically acceptable proposal that conforms to the requirements of the solicitation, and the Contracting Officer has no reason to believe the offeror would be likely to propose other than fair and reasonable pricing. Offerors must be rated as acceptable . In addition, Ordering Contracting Officers will continue to implement subcontracting goals where appropriate at the order level to maximize small business participation throughout the life of the IDIQ contract. Because of the award to all methodology which places no limit on the number

2 The DFARS allows for the senior procurement executive to sign the determination in some instances. It should be noted that the head of the agency is also the SPE at MDA.

3 A single-source IDIQ can be justified if the tasks are so interconnected that only one source can reasonably perform them, if the contract uses firm-fixed prices for products or services with pre-established prices, if only one source is qualified and capable at a reasonable price, or if exceptional circumstances in the public interest necessitate a single source.

(b) (6) of awardees and the continual review of small business subcontracting, there is no negative impact on small business concerns.

E. Steps taken to include small business concerns in the acquisition strategy:

The proposed acquisition strategy mitigates the impact of consolidation on small businesses since requirements previously provided under separate contracts (to include those previously awarded to large businesses) will be suitable for competition amongst all SHIELD IDIQ award holders. Furthermore, all orders will require review via a DD2579 Small Business Coordination Record to determine if appropriate for small business set-asides. If appropriate, those orders will be reserved exclusively for SHIELD IDIQ holders that are small business concerns.

Additionally, this acquisition includes strategies which maximize small business participation at both the prime and subcontractor level. As a part of the solicitation process for the SHIELD IDIQ, other-than-small businesses will be required to submit a small business subcontracting plan. The solicitation will provide baseline small business subcontracting goals.

A contract may not have more than one subcontracting plan. However, contracting officers will be encouraged to establish separate subcontracting goals for each order under the SHIELD IDIQ (FAR 19.705-1(b)(2)).

Lastly, the SHIELD IDIQ will include on-ramping provisions, enabling the MDA to periodically announce an interim competition for the purpose of adding additional contractors to the pool. While the on-ramping approach offers another mechanism to promote and sustain competition, it also further cultivates small business participation over the duration of the contract.

MDA has considered the potential impacts of this consolidation to small businesses. In accordance with 15 U.S.C. § 657q (c)(1)(D) and FAR 7.107-2(a)(4), based on the information discussed above, this consolidation will have no negative impacts to small business concerns. In accordance with 15 U.S.C. § 657q (c)(1)(E) and FAR 7.107- 2(a)(5), MDA has ensured that steps will be taken to include small business concerns in the acquisition strategy and has encouraged it to the maximum extent practicable.

2. Bundling Analysis

FAR 2.101 defines bundling as consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to:

(i) The diversity, size, or specialized nature of the elements of the performance specified; (ii) The aggregate dollar value of the anticipated award; (iii) The geographical dispersion of the contract performance sites: or (iv) Any combination of the factors described in paragraphs (i) through (iii) of this definition.

This IDIQ solicitation requires Offerors to be able to perform in two of the various intended scope areas and be registered for one of the listed NAICS codes, so the MDA believes this approach encourages Small Business participation as IDIQ primes. The Government is procuring this requirement as a full and open competition with awards being made to all qualifying Offerors, including small businesses. Accordingly, the SHIELD IDIQ is not likely to be unsuitable for award to small business concerns and the Contracting Officer has determined that this procurement does not meet the definition of bundling as defined in FAR 2.10 or under the Small Business Reauthorization Act of 1997.

Benefits of Consolidation

The consolidation of requirements under a multiple award IDIQ offers the optimal balance of flexibility, competition, and streamlined management. It will enable the MDA to rapidly respond to evolving program requirements, access a broader range of specialized expertise, and foster innovation through competition amongst SHIELD IDIQ holders.

The threat of attack by ballistic, hypersonic, and cruise missiles, and other advanced aerial attacks, remains the most catastrophic threat facing the United States. The threat from next-generation strategic weapons has become more intense and complex with the development by peer and near-peer adversaries of next-generation delivery systems and their own homeland integrated air and missile defense capabilities. The planned acquisition ensures that contract vehicles are available to expedite acquisitions throughout the Department of Defense, by using FAR Part 16 ordering authorities to promote streamlined acquisitions. Benefits to the Government that are critical to mission success are discussed below:

A. Cost savings or price reductions:

MDA will realize cost savings through competition of orders. Leveraging the collective buying power of the DoD and promoting competition will drive down prices. Also expanding our options for competition will reduce DoD’s dependency on a single provider making it easier to switch or integrate with other providers, thus avoiding costly vendor lock-in arrangements.

B. Quality improvements that will save time or enhance performance or efficiency:

The use of a multiple award IDIQ will significantly reduce inconsistencies and variability associated with the current use of separate, individual contracts. Upon awarding the contract, the MDA will be able to coordinate across the Agency to implement a strategic sourcing approach that will issue orders under this contract with the goal of appropriate work prioritization. In addition, this SHIELD IDIQ vehicle allows for the incorporation of innovative contracting mechanisms within individual orders, such as evaluation methodologies that provide further flexibility not readily available under standard FAR Part 15 procurements.

C. Reduction in acquisition cycle times:

Utilizing a multi-award IDIQ with streamlined ordering procedures avoids the protracted timelines associated with traditional FAR Part 15 source selections when issuing orders.

This approach enables the MDA to rapidly award orders to SHIELD IDIQ holders, accelerating the development and deployment of critical technologies. The competitive selection of SHIELD IDIQ holders ensures a pool of technically acceptable vendors, while simplified ordering procedures facilitate quick responses to urgent requirements.

This streamlined approach is crucial for the MDA SHIELD, as it allows for rapid prototyping, iterative development, and quick reaction to emerging threats and technological advancements.

D. Better terms and conditions:

The use of a multiple award IDIQ would eliminate the need to negotiate all of the terms and conditions for separate contracts. This would streamline and standardize terms and conditions, thereby reducing the burden of managing contractors against differing requirements and ensuring that contractors are not held to disparate standards across similar requirements.

Need for Consolidation

Favorable costs impacts are expected to be realized through a reduction in operating and administrative costs while instituting uniformity and continuity in support of MDAs mission.

While the cost savings do not meet the thresholds in FAR 7.107-2(d) to qualify as “substantial,” they do represent a benefit of the consolidation approach in addition to the non-monetary benefits described herein. As such, consolidation is necessary and justified as this acquisition strategy is critical to the MDA’s mission success by enabling the rapid acquisition of defense capabilities and provides for maximum practicable participation by small business concerns.

Determination

The expected benefits to the Government described above are critical to the MDA’s mission success. The procurement strategy also provides for maximum practicable participation by small businesses. Based on this and the above facts, I determine that the consolidation of requirements described herein is necessary and justified, pursuant to the authority set forth in 15 U.S. Code § 657q and in accordance with FAR 7.107-2.