Tab 1 JA_FT3.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

March 2020 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 6

Was a J&A approved for the preceding acquisition? Yes No

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined at AFFARS 5302.101? Yes No

Dollar Value of this Acquisition: < $750K > $750K and < $15M > $15M and < $100M > $100M

Contracting Activity: Air Force Nuclear Weapons Center - Contracting (AFNWC/PZB)

Purchase Request (if available): TBD

Program / Project (and PE, if applicable): Flight Test, Telemetry, and Termination (FT3) Production and Sustainment

Program Type (PEO, Enterprise, of Operational): AFPEO/SS

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $ 182.3M J&A Type: Class Individual

COORDINATION ( AFFARS 5306.304(a)) Sign and Save Procedure

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Date

22 Dec 2020

DENNIS W. PULSIPHER, NH-04, USAF

Program Manager, FT3

AFNWC/NMAA, (801)775-2007

Signature

X

Date

22 Dec 2020

BRADLEY R. VARGO, GS-13, USAF

Contracting Officer

AFNWC/PZBB, (801)775-3700

Signature

X

Date

23 Dec 2020

MICHAEL D. BASSETT, NH-03, USAF

Legal Reviewer

75 ABW/JAQ, (801)586-4191

Signature

X

Date

06 Jan 2021 for/KAYLA V. MARSHALL, NH-04, USAF Chief of the Contracting Office (COCO)

AFNWC/PZB, (801)777-4106

Signature

X

Date

05 Feb 2021

ERIK N. QUIGLEY, Colonel, USAF Director, MMIII Systems Directorate

AFNWC/NM, (801)777-8647

Signature

X

Date

20 Feb 2021

TROYCE R. GUNTER, NH-04, USAF

Competition Advocate

AFNWC/PZ

Signature

X

Date

22 Feb 2021

BRETT W. HARRY, Col, USAF Senior Center Contracting Official (SCCO)

AFNWC/PZ, DSN 246-4745

Signature

X

March 2020 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 6

Date

26 Mar 2021

ANTHONY W. GENATEMPO, Brig Gen, USAF Air Force Program Executive Officer for Strategic Systems

AFPEO/SS, (781) 225-4088

Signature

X

Date

24 May 2021

JOHN E. CANNADAY, SES, DAF

Associate Deputy Assistant Secretary (Contracting)

SAF/AQC /312-260-2397

Signature

X

APPROVAL ( AFFARS 5306.304(a))

Date DARLENE J. COSTELLO Acting Assistant Secretary of the Air Force (Acquisition, Technology, & Logistics)

SAF/AQ

Signature

March 2020 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 6

I. Agency and Contracting Activity.

United States Air Force AFNWC/MMIII Systems Directorate AFNWC/PZB Contracting Office 6008 Wardleigh Road, Bldg 1580 Hill AFB UT 84056-5837 Contracting Officer: Bradley Vargo, AFNWC/PZBB, (801)775-3700

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

The MMIII Systems Directorate requests approval to use other than full and open competition procedures, allowing the Air Force (AF) to award a new contract to The Boeing Company (Boeing). This contract will require Boeing to produce, deliver and sustain flight test kits which include the Integrated Instrumentation System (IIS) and the Flight Destruct System (FDS).

This contract will also include the sustainment of the Launch Support System (LSS), flight test kits, and associated equipment. Boeing is currently on contract through June 2024 for the Engineering and Manufacturing Development (EMD) of Flight Test, Telemetry and Termination (FT3) Systems.

The FT3 Program intends to award a Requirements (D-type) contract to procure approximately 36 flight test kit replenishment spares and to sustain FT3 systems. The procurement is expected to cover the life of the MMIII Operational Test Launch (OTL) Program. This Requirements (D-type) contract includes an order/purchase (3020 BP25) Firm Fixed Price (FFP) Contract Line Item Numbers (CLIN) for up to four flight test kit replenishment spares per year, starting in Fiscal Year 2022 through Fiscal Year 2035. The supporting sustainment effort will use separate Cost-Plus (CP) CLINs, starting in Fiscal Year 2023. The contract will have an 8-year base ordering period, with two 2-year ordering period options and one 1-year ordering period option. The AFSS/PEO approved a Determination and Findings memorandum for a contract greater than 10 years on 26 March 2021.

III. Description of supplies/services required to meet agency needs (including the estimated value).

An FT3 Production and Sustainment contract for the period of February 2022 through 2035, is necessary to support the Air Force Global Strike Command (AFGSC) Force Development Evaluation OTL mission. The OTLs are critical to validating the continued accuracy and reliability of the MMIII ICBM Weapon System, and providing data to ensure a safe, secure, and effective nuclear deterrent. It is estimated 36 flight test kit replenishment spares are required to support MMIII OTL Program through 2035 or until the AFGSC establishes a termination date for MMIII OTLs. The Program has submitted Program Office Memorandum (POM) requests to secure future years' requirements for 3020 BP25 production funding and will require 3400 appropriation for sustainment activities. Using methodologies and data derived from the Program Office Estimate (POE) dated 14 December 2020, it is estimated the cost for this contract will be $166.9M for the production of the flight test kits (an average cost of $13.9M per year) through the life of the MMIII OTL Program. Although a consumable asset, the flight test kit may require repair/replacement of piece-parts, components, sub-kits, and potentially the full flight test kit if there is an anomaly or failure after Government acceptance and prior to flight. An additional estimated $15.4M (3400) is required for the sustainment of LSS, flight test kits, and associated equipment.

Estimated total contract amount with option years: $182.3M for the period of February 2022 through 2035.

IV. Statutory authority permitting other than full and open competition.

The authority is 10 U.S.C. 2304(c)(1) and 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1(a)(2)(ii)(A), Only one responsible source and no other supplies or services will satisfy agency requirements due to "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 systems or highly specialized equipment, including major components thereof, when it is likely that award to any source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition." This part of the authority is implemented by FAR 6.302-1(a)(2)(ii)(A).

March 2020 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 6

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

The rationale for awarding the FT3 Production and Sustainment contract to The Boeing Company is to avoid a minimum 15% duplication of costs (production only) which is not expected to be recovered through full and open competition. It was determined through market research, The Boeing Company is the only capable or interested source for providing replenishment spares.

The following activities were conducted during the Engineering and Manufacturing Development (EMD) phase, and would be necessary to duplicate if another source is awarded the contract: Qualify approximately 15 major components; qualify flight test kit; and stand up and qualify a manufacturing facility. The estimate for these activities is at a minimum of $24.2M.

This conservative cost estimate assumes a new contractor would acquire the flight test kit components from the 10+ currently qualified vendors, producing more than 15 major components. In addition, if the assumption to contract with current vendors does not hold true, even for just one of the components, qualifying a new vendor would not only increase costs but also, significantly delay the FRP effort by a minimum of 18 months, increasing total program costs.

Conclusion: Based on the above rationale to avoid a minimum, yet substantial 15% duplication of costs and potential for a significant delay to start of the FRP effort, the AF concludes it is appropriate to award the FT3 Production and Sustainment contract to Boeing.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Sources Sought Synopsis (SSS) FA8214-21S-FT3PD was posted in November 2020 for 30 days. The purpose of the Sources Sought was to conduct market research to determine if responsible sources exist and to assist in determining if this effort can be competitive and/or a total Small Business Set-Aside. A second SSS FA8214-21S-FT3PE was posted in December 2020 for 30 days to include the FT3 LSS sustainment effort. Both inquiries resulted in one response, from Boeing, the Original Equipment Manufacturer (OEM).

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will ensure the anticipated cost is considered fair and reasonable prior to award. Actions anticipated to ensure fair and reasonableness will be in accordance with the procedures and criteria contained in the FAR under Part 30 - Cost Accounting Standards Administration, Part 31 - Contract Cost Principles and Procedures, Subpart 15.4 - Contract Pricing;

to include technical evaluations and audits, as appropriate. The contracting officer will take additional steps to ensure price reasonableness is in accordance with Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The AF will obtain certified cost and pricing data IAW FAR Subpart 15.403 if determined necessary prior to award. The final step is to prepare the Price Negotiation memorandum (PNM) upon completion of negotiations. The PNM contains detailed documentation and justification of price reasonableness.

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

As stated above in paragraph VI., two Sources Sought Synopses (SSS) were posted in November and December 2020. The purpose of each Sources Sought Synopsis was to determine if responsible sources exist and to assist in determining if this effort can be competitive and/or a total Small Business Set-Aside. Results: The OEM, The Boeing Company, was the only respondent; no other company expressed any interest in the acquisition or indicated that they have the capability to perform any aspect of FT3 requirements. The Boeing Company provided substantiating information that supported a follow-on production and sustainment contract. Based upon their responses, the Government determined Boeing is capable in providing the products and services required through the end of the MMIII OTL Program.

In Boeing's response to the SSS, they stated the benefits of awarding the follow-on contract to them, as the OEM, are 1) production line is already stood up and operating at the Boeing Heath facility in Ohio as part of the eight LRIP units

March 2020 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6 requirement under the current EMD contract; 2) specialized test and support equipment are built and functional to support qualifying, testing, and check-out of FRP units; 3) an established 1,500+ piece-part tracking database and contractual relationships with vendors for lot screening and qualification to ensure compliance with Range Safety Parts Management Plan; 4) a modified Missile Guidance Set (managed by Boeing at the depot (Boeing Heath facility)) is required for FT3 flight test kit installation which could cause logistical difficulties and/or delays if another contractor produced the flight test kit.

In addition to external market research, the team solicited Government managers for the MMIII legacy equipment to be replaced by FT3 for lessons learned and potential solutions. These lessons learned addressed CLIN structures, contract type, supply concerns, etc. Some of the flight test kit production and sustainment lessons learned included: ordering flight test kits as a whole vs. component-level to ensure timely assembly and test in support of launch date, as well as reducing logistics footprint; including separate maintenance/sustainment CLINs for post flight test kit Government acceptance sustainment effort in case of failure/anomaly preflight; accurately capturing test/support equipment repairs in the scope; ensuring Government program office manages requirements determination during pre-acquisition to avoid gap in scope and required deliverables are identified. These lessons learned and recommended solutions were considered as part of the FT3's acquisition and product support strategy.

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

A Product Support Business Case Analysis (PS-BCA) was conducted in 2018/2019 with Milestone Decision Authority approval in February 2020. The PS-BCA weighed four courses of action (COA) for flight test kit production and three COAs for the LSS and test/support equipment. The PS-BCA team analyzed many strategies during this research. These efforts included an evaluation of affected logistics integrated product support (IPS) elements; a review of DoD processes, organic repair capabilities and performance based logistics agreements; manpower assessment, and a weighted comparison of costs and benefits. The team's objective was to implement a FT3 systems product support strategy that leverages current processes and optimizes reliability, availability, and maintainability through a strategy that reduces cost and logistics footprint while meeting sustainability requirements. After extensive research and completion of the analysis, the recommended COA for the flight test kit production is to award a contract to the OEM. For sustainment of the LSS and test/support equipment, the PS-BCA resulted in the recommendation for the current sustainment contractor (Boeing) to be sourced.

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

See Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

This contract award will be for the life of the MMIII OTL Program; therefore, there will not be a subsequent acquisition.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

March 2020 CONTROLLED UNCLASSIFIED INFORMATION Page 6 of 6

Remove the Guidance pages below. Remove the IACR pages below.

March 2020 Page of International Agreement Competitive Restrictions (IACR) Page of March 2020 Was a J&A approved for the preceding acquisition?

!! Attach the preceding J&A in the staff package for this J&A. The preceding J&A will be used as a reference document.

Is this a new or amended J&A Document?

Is this a Bridge Action as defined at AFFARS 5302.101?

Dollar Value of this Acquisition:

J&A Type:

!! Provide estimated cost of all contracts.

COORDINATION ( AFFARS 5306.304(a)) ** The text in the signature blocks below is editable, including the title.

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APPROVAL ( AFFARS 5306.304(a)) NOTE: A signature block will appear here based on the "Dollar Value of this Acquisition" selected above.

(See "Specific Guidance for Completing this Template" below.)

I. Agency and Contracting Activity.

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

III. Description of supplies/services required to meet agency needs (including the estimated value).

IV. Statutory authority permitting other than full and open competition.

V. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

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

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

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

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

XII. Certification by the Contracting Officer.

XIII. Certification by the technical/requirements personnel.

Specific Guidance for Completing this Template I. Agency and Contracting Activity.

II. Nature and/or description of the action being processed. (FAR 6.303-2(b)(2)) State whether the action is a new contract or a modification to an existing contract (identify contract number) and identify the contract type planned (e.g., firm-fixed-price, cost-plus-incentive-fee, hybrid etc.). If exception 2 is cited (unusual or compelling urgency), include the date of UCA/contract/modification issuance and amount.

For class J&As, where the number of contracts in the class can be identified: Provide the nature and/or description of each contract action and contract type. If the same information applies to more than one contract, it need only be stated once.

III. Description of the supplies/services required to meet agency needs (including the estimated value).

(FAR 6.303-2(b)(3)) Describe the supplies and/or services to be acquired and include the total estimated value of the acquisition and, for class J&As, by contract action, and the estimated periods of performance.

For ID/IQ or requirements contracts, use the maximum dollar value of the total estimated orders as the estimated J&A dollar value.

IV. Statutory authority permitting other than full and open competition. (FAR 6.303-2(b)(4)) 10 USC 2304(c)(?) (see Note 1), as implemented by FAR 6.302-? (see Note 2), and required by FAR 6.303-2(b)(4).

Note 1: Complete the 10 USC 2304(c) citation with the statutory subparagraph cited in the (a) Authority (1) Citations portion of the Competition exception used for your J&A. Do not provide more than one citation.

Note 2: Complete the FAR citation with the appropriate subparagraph.

Note 3: For class J&As, all contracts within the class must fall within the same statutory authority.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above. (FAR 6.303-2(b)(5)) Provide an explanation to support the use of the authority cited. The explanation should tie back to the conditions described in the FAR for using the particular authority cited.

A. Only One Responsible Source (FAR 6.302-1) (DFARS 206.302-1 and DFARS PGI 206.302-1) When using this authority, thoroughly describe the contractor's unique/highly specialized capabilities and/or qualifications (e.g., facilities, personnel, special tooling acquired), and why no other type of supplies or services will satisfy the agency requirements. This authority shall be used, if appropriate, in preference to the authority in FAR 6.302-7. This authority shall not be used when any of the other authorities apply.

For example, in the case of a follow-on contract for continued development or production of a major system or highly specialized equipment/services, the rationale must first justify the supplies/services as being a “major system” or “highly specialized.” The rationale must then justify “either” substantial duplication of cost to the government that is not expected to be recovered through competition, or unacceptable delays in fulfilling the agency's requirements, whichever situation applies.

In accordance with DFARS 206.302-1(c)(2) Application for brand-name descriptions. Notwithstanding FAR 6.302-1(c)(2), in accordance with section 888(a) of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-328), the justification and approval addressed in FAR 6.303 is required in order to use brand name or equal descriptions.

B. Unusual and Compelling Urgency (FAR 6.302-2, DFARS 206.302-2, and DFARS PGI 206.302-2) Contracting Officers must notify SAF/AQC as soon as practicable when contemplating the use of this authority for a J&A requiring SPE approval.

Provide an explanation why (1) the supplies or services are needed at once and/or (2) essential equipment or repairs to that equipment are needed at once to preclude the ability to meet critical mission needs of the USAF and Defense of the Nation. In other words, identify the anticipated serious injury to the Government, the nature of the urgency, the reasons for it occurring and why it is “urgent and compelling” to preclude adverse impact to military readiness. Merely citing a Joint Urgent Operational Need (JUON), Force Activity Designator (FAD) rating, Program Management Directive (PMD)/Program Action Directive (PAD) guidance, or DX priority rating is not in and of itself sufficient reason to use this exception from the requirement to obtain full and open competition. Note that only the minimum quantity required to satisfy the unusual and compelling urgency qualifies for this exception. In addition, the period of performance may not exceed one year, including all options [FAR 6.302-2(d)(ii)]; thus, the inclusion of options, when using this authority, is not advised.

Note: This statutory authority requires that agencies request offers from as many potential sources as is practicable under the circumstances.

C. Industrial Mobilization; or Engineering, Developmental, or Research Capability (FAR 6.302-3) Justifications citing this authority must demonstrate the need to establish or maintain an essential capability, or a contract for supplies or services incidental to establishing or maintaining an essential capability, possessed by the identified source(s). Some form of market survey must support the need to establish or maintain the capability being procured.

D. Authorized or Required by Statute (FAR 6.302-5) Identify what is being acquired and the applicable statute authorizing other than full and open competition in accordance with FAR 6.302-5(b).

Note: Some statutes do not require a written J&A.

E. National Security (FAR 6.302-6) This authority may be used for any acquisition when disclosure of the Government's needs would compromise the national security (e.g., would violate security requirements); it shall not be used merely because the acquisition is classified, or merely because access to classified material will be necessary to submit a proposal or to perform the contract. Full and open competition need not be provided for when the disclosure of the agency's needs would compromise the national security unless the agency is permitted to limit the number of sources from which it solicits bids or proposals. This statutory authority requires that agencies shall request offers from as many potential sources as dis practicable under the circumstances.

F. Public Interest (FAR 6.302-7 and DFARS 206.302-7) The use of this authority requires a written Determination and Finding (D&F) in accordance with FAR 1.7 in lieu of J&A. The D&F shall not be made on a class basis.

This authority may only be used when none of the other authorities apply. Provide detail addressing the reasons full and open competition is not in the public interest and why no other authority is appropriate for use.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR 5.2 and, if not, which exception under FAR 5.202 applies. (FAR 6.303-2(b)(6)) Describe all efforts taken, or to be to be taken, to ensure that offers are solicited from as many potential sources as practicable under the circumstances. Although market research is covered in Section VIII, the information in Section VI should correlate with the market research described in Section VIII. To ensure completeness, it is best to provide information such as the following:

If a sources sought synopsis or an RFI was issued, provide the date the synopsis was issued along with a brief description of its content. Identify the number of responses received, the results of the screening process, and the rationale for determining the unacceptability of any respondents. Note: An RFI or Sources Sought Synopsis is mandatory IAW DFARS PGI 206.303-2(b)(i) when citing the authority of 10 USC 2304(c)(1), “Only one (or a limited number of) responsible source(s)”.

Specify whether this acquisition will require a Notice of proposed Contract Action (NOCA) IAW FAR 5.201 and if not, provide the exception IAW FAR 5.202. If a NOCA was or will be publicized provide the dates or expected dates of publication of the NOCA. Address any other actions taken or planned to facilitate competition for this acquisition.

Qualifying Country Sources. If qualifying country sources have expressed interest, but are to be excluded, provide supporting rationale.

VII. Determination by the contracting officer that the anticipated cost to the government will be fair and reasonable. (FAR 6.303-2(b)(7)) Provide the basis for this determination.

VIII. Description of the market research conducted and the results, or explain why market research was not conducted. (FAR 6.303-2(b)(8)) Discuss any market research conducted pursuant to FAR Part 10 and describe results of that research.

When other exceptions from the requirement to obtain full and open competition are relied upon, the market research might be limited to an examination of the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items.

If market research was not conducted, so state and provide the rationale.

IX. Any other facts supporting the use of Other Than Full and Open Competition. (FAR 6.303-2(b)(9)(i)) X. List of sources, if any, that expressed interest in the acquisition. (FAR 6.303-2(b)(10)) If a sources sought synopsis or RFI was issued and all interested sources are included in Section VI, it is acceptable to state, “See Section VI above.”

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required. (FAR 6.303-2(b)(11)) If no actions are planned, provide rationale (i.e., sole-source to OEM, unable to compete due to inability to procure data rights, etc.) IAW DFARS PGI 206.304(a)(S-70)(ii), for a non-competitive follow-on acquisition to a previous award for the same supply or service supported by a J&A citing the authority at FAR 6.302-1. Include a copy of the previous J&A and include a discussion of the actions planned to overcome barriers to competition established in the previous justification, the status of those actions, and the results of those actions; and The approval authority shall determine whether the planned actions were completed. If the planned actions were not completed, the justification for the follow-on acquisition shall be approved by the approval authority one-level above the approval authority for the previous justification (see DFARS 206.304). If the previous justification was approved by the Senior Procurement Executive (SPE), the approval remains at the SPE level.

XII. Certification by the Contracting Officer. (FAR 6.303-2(b)(12)) As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the technical/requirements personnel. (FAR 6.303-2(c)) As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

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The following page contains a suggested template for “International Agreement Competitive Restrictions (IACR)”.

The authority to prepare an IACR has been delegated from the HCA to the Contracting Officer.

(AFFARS 5306.302-4)

IV. Statutory Authority: 10 USC 2304(c)(4) as implemented by FAR 6.302-4, International Agreement.

VI. Certification of Accuracy and Completeness:

As evidenced by his/her signature, the contracting officer has determined the IACR to be both accurate and complete to the best of his/her knowledge and belief. The CO also approves the IACR.

As evidenced by his/her signature, the program/technical/requirements manager(s) have/has determined that any supporting data contained in the IACR, which is his/her responsibility, is both accurate and complete.

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