Final_J&A_ANTPQ-53_Redacted.pdf

Source Seleelion Information - See FAR 3.104 Control Number: 14-1 Ot

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Counter Fire Target Acquisition Radar System {ANFTPQ-53) Full Rate Production (FRP) and Deployment

Authority: 10 U.S.C. § 2304(c)(1) FAR 6.302-1(a)(2)(ii)

Amount:

Source Selection Information - See FAR 3.104 Control Number: 14-101

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM

(AN/TPQ-53)

FULL RATE PRODUCTION AND DEPLOYMENT

1. Contracting Activity: United States Army Contracting Command (ACC), Aberdeen Proving Ground (APG), 6001 Combat Drive, Aberdeen Proving Ground, MD 21005- 1846.

2. Description of Action: ACC-APG proposes to award, on an other than full and open competition basis, a new contract for Acquisition Category II (ACAT II) for the full rate production and deployment of up to AN!TPQ-53 Radar Systems and associated spare parts. The Milestone Decision Authority (MDA) is Brigadier General Neil Thurgood, Program Executive Officer Missiles and Space. The proposed action is limited to one responsible source, Lockheed Martin (LM), the original designer and developer. This contract is for the award of a five-year firm-fixed price (FFP) indefinite delivery/indefinite quantity (ID/IQ) and includes cost-plus-fixed fee (CPFF) provisions for services, which include fielding, testing, engineering and system support. The period of performance is estimated to be five (5) years from date of contract award which is estimated to be September 2015.

3. Description of Supplies/Services: The AN!TPQ-53 Radar System provides radar coverage by operating in a fixed 90-degree mode and a separate 360-degree rotating mode for locating mortar, artillery and rocket firing positions. The AN!TPQ-53 Radar System is highly mobile radar that automatically and accurately detects, classifies, tracks, and locates the point of origin of projectiles fired from mortar, artillery, and rocket systems. It mitigates close combat radar coverage gaps, supports fire brigade operations, and will ultimately replace the current AN!TPQ-36 and AN!TPQ-37 Firefinder Radar Systems that are fully supporting Brigade Combat Teams. The AN!TPQ-53 Radar System will complement the Firefinder Radar Systems until their retirement, estimated for FY2019, and will interoperate with future Battle Command Systems to provide increased counter fire radar capability. The AN!TPQ-53 Radar System will be capable of deployment as part of the Indirect Fire Protection Capability System of Systems to provide sensing and warning capability for fixed and semi-fixed sites.

This contract will include all incidental services, supplies, hardware, facilities and equipment to produce and procure up to AN!TPQ-53 Radar Systems.

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The total estimated value of the production effort of the contract is The total estimated value of the required services including fielding, testing, and engineering and system support of the contract is The purpose for providing this information is to delineate that the services are incidental to the production effort.

4. Authority Cited: The statutory authority permitting other than full and open competition for this action is 10 U.S.C. 2304(c)(1), pursuant to Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(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.

5. Reason for Authority Cited: Lockheed Martin is the original designer, developer, and producer of the AN!TPQ-53 Radar System, including the initial non-recurring engineering (NRE) development configurations to fulfill Quick Reaction Capability (QRC) requirements, Initial Production (IP) configurations, and the Low Rate Initial Production (LRIP) configuration. Lockheed Martin is the only known source that can produce the AN!TPQ-53 Radar System as evidenced by the Government not owning a build-to-print technical data package (TOP) or any production TOP that would support an AN!TPQ-53 Full Rate Production competitive action. The Government does have Government purpose rights for the TOP and will use the TOP to support competition for follow-on sustainment support.

Lockheed Martin is the only source that can produce a FRP system that meet the technical performance requirements of the System Specification, meet each of the discrete requirements identified in the Performance Work Statement (PWS), and deliver FRP AN!TPQ Radar Systems in FY17 to support fielding requirements and phase-out of the legacy systems.

Lockheed Martin, responded to the industry RFl/SSA. Of the sources, only Lockheed Martin provided satisfactory responses to the two Requests for information (RFls)/Sources Sought Announcements (SSA) the Government issued to industry the AN!TPQ-53 FRP Systems.

The AN!TPQ-53 Radar System FRP and Engineering Services and Support (ESS) (12 November 2013) evaluated fifteen systems against eight criteria: Long Range 90 Mode, 360 Coverage, Mobility, Survivability, Domestic Production, Schedule, Unit Price and Sustainment Cost. Only Lockheed Martin's AN!TPQ-53 Radar System complied with all criteria.

Lockheed Martin answered all relevant criteria, and addressed all technical specification and production/manufacturing capabilities necessary to perform the requirement, which included training, maintenance and repair, interim contractor support, studies and analysis, field service representatives, threat support upgrades, software maintenance and updates, technology insertion and fielding support, Pre-Planned Production Improvement (P31), and P31 integration. No other industry sources respond adequately addressed these engineering services either in whole or in part.

proposed an approach based upon utilizing a Government supplied production technical data package. approach is not viable, since the Government does not currently own a build-to-print TOP.

response was as a subcontractor; and as such, they would not be able to fulfill the requirements of a prime contractor.

Only Lockheed Martin can procure the engineering, production, and deployment maturity necessary to fulfill this requirement without the Government incurring substantial duplication of costs that are not expected to be recovered through competition and unacceptable delays to the program schedule.

Duplication of effort would result in an increase in the overall program cost of and an unacceptable delay in program schedule. This would severely impact the system's readiness posture and limit the Warfighter from performing the intended mission. The majority of the duplication of cost estimate is centered on the production learning curve and associated costs which another source would have to incur. If this requirement is solicited to a different supplier, this supplier will start with step one of the development process. Another source would begin production with their unit one, whereas LM would continue production . Based upon this learning curve, the cost difference at the end of FRP would project to be , valued in October 2015 inflation adjusted dollars.

Substantial investment in developing manufacturing processes and procedures, special tooling, special test equipment, special inspection equipment, and fixtures have been provided by the Government and are located at LM. Additionally, by the time FRP is ready to begin, LM will have produced 88 systems, resulting in production learning curve efficiencies the by government estimates, that no other source will be able to achieve in time to effectively provide cost efficiencies to support the FRP award. The ANfTPQ-53 Radar is a military specific major weapon system and the Government's needs cannot be met commercially. The Government at this time does not possess the technical data package that completely defines the form, fit and function of the systems being procured. Product Manager Radars procured Product Drawings/Models and Associated Lists Technical Data Package (TOP) in September 2013, under the ANfTPQ-53 LRIP contract W15P7T-12-C-C015 covering spare parts, repair parts, components and items. The Government anticipates delivery of the TOP 4QFY15.

The production of this major system will encounter major delays in fulfilling the agency's requirements. A new system development requires approximately five (5) years before production of the first unit can reasonably be expected which would introduce unacceptable delays in deliveries to the Warfighter. This acquisition has taken approximately five years to get where we are today. As stated above, another supplier will be starting with their first system and LM will be producing their 891 h radar system.

Given that prospective source suppliers do not have the same or similar ANfTPQ-53 product line experience as LM, their ability to achieve a faster production learning curve than LM is unlikely and the program will incur unacceptable schedule delays.

The duplication of running two programs would not be cost effective, could not be accomplished without a major impact to the program, and is not expected to be recovered through competition. This amount is not included in the program budget, which further substantiates the results and recommendations of the economic analysis indicating it is not economically feasible to compete this requirement within the current program baseline cost, schedule or performance constraints. As a result, development of an alternate source by means of competitive acquisition for this particular required effort would not provide cost savings to the Government and would incur unacceptable delays.

6. Efforts to Obtain Competition: Market research was conducted in accordance with FAR Part 10. Specific actions and findings are summarized in paragraph 8, Market Research. Market research was comprised of market surveillance and investigation of radar systems throughout the industry and market surveillance and investigation specific to the ANfTPQ-53 Radar System. Only one responsible source is anticipated for this acquisition. However, the TOP will be used to create competition in spares and services during the sustainment life cycle of the system.

7. Actions to Increase Competition: Product Manager Radars purchased the product drawings/models and associated lists TOP for spare parts, repair parts, and ancillary components on 27 September 2013 under the ANfTP0-53 LRIP contract W15P7T-12- C-C015. The Government anticipates delivery of the TOP 4QFY15. The TOP will facilitate transition of life cycle maintenance support to organic depot support. Upon delivery of the TOP, the Government will need time to effectively analyze the drawings.

Once the Government performs the analysis, the drawings may be used in future competitive actions for spare parts or repair efforts.

8. Market Research: Market research was comprised of market surveillance and investigation of radar systems throughout the industry and market surveillance and investigation specific to the ANfTPQ-53 Radar System. Market surveillance included the following:

• Army Test and Evaluation Command (ATEC) reports from counter fire rocket artillery and mortar (C-RAM) capability and limitation (C&L) tests -- LM's TPQ-53 radar performed according to TPQ-53 requirements. Other systems did not demonstrate performance which complies with TPQ-53 requirements.

• Attended the 2012 Tri-Service Radar Symposium. Other than LM, no company presented any information that indicated that they had a solution that would meet TPQ- 53 requirements.

• Attended the 2012 Association of the United States Army (AUSA). Product office visited booths for LM, . No company presented any information that indicated that they had a solution that would meet TPQ-53 requirements. spoke about their other products which are captured in the Market Research Report.

• Attended the 2013 AUSA. The product office did not encounter any company that presented any information that indicated that they had a solution that would meet TPQ- 53 requirements.

• Results of the LRIP Contract market investigation did not identify any company other than LM that was able to meet TPQ-53 requirements.

Additionally, two (2) RFls/SSAs were posted to Federal Business Opportunities (FedBizOps) on 19 December 2012 and 16 May 2013. Each RFl/SSA included detailed technical performance and schedule parameters. Potential offerers were asked to provide specific information regarding radar technology production capabilities and engineering services. Lockheed Martin responded to the first RFl/SSA notice.

The second RFl/SSA was released to industry on 16 May 2013. This RFl/SSA was issued due to the limited response from the previous RFl/SSA released 19 December 2012, and to clarify that the Government did not own a TOP or data rights sufficient to enable build-to-print production. The RFl/SSA requested interested sources provide information on the company's radar technology capabilities and the ability to meet the specification requirements of the AN/TPQ-53 Radar System. This RFl/SSA also requested industry to assess the risk associated with meeting AN/TPQ-53 performance specification requirements, and provide specific information on the company's production and manufacturing capabilities relative to the established schedule criteria.

Lockheed Martin responded to the second RFl/SSA notice.

Lockheed Martin, were the only contractors that responded to the RFI sources sought. The details are outlined below in paragraph 9 Interested Sources.

After evaluation of responses from the two (2) RFl/SSAs, a Notice of Intent to award a sole source AN/TPQ-53 Full Rate Production contract was issued on 26 August 2013.

No responses were received after the issuance of the notice of intent.

9. Interested Sources:

The Market Research as detailed in Paragraph 8 indicated that three vendors responded to the RFl/SSAs. Lockheed Martin, To date, no other sources have expressed an interest.

Details regarding submissions received from the RFl/SSA released to industry on 19 December 2012 and 16 May 2013 are summarized below.

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b. Acquisition Data Availability. A PWS and Performance Specification are available. Product Manager Radars procured a Product Drawings/Models and Associated Lists TOP for spare parts, repair parts and ancillary components on 27 September 2013 under the AN/TPQ-53 LRIP Contract W15P7T-12-C-C015. The Government anticipates delivery of the TOP no later than 18 months after Initial Operational Test & Evaluation (IOT&E), to provide time to incorporate changes from IOT&E and complete the physical configuration audit (tied to IOT&E execution). The IOT&E is expected to be conducted in 3QFY14.

c. Subcontracting Competition. All appropriate small business and subcontracting clauses will be incorporated into the resultant contract to include FAR 52.244-5, Competition in Subcontracting, which will require the contractor to select subcontractors on a competitive basis to the maximum practical extent. The resultant contract will also contain FAR 52.219-8, Utilization of Small Business Concerns and FAR 52.219-9, Small Business Subcontracting Plan of which DCMA will monitor.

Control Number 14-101

Control No: 14-101

APPROVAL

Based on the foregoing justification, I hereby approve the award of a contract for Full Rate Production and Deployment of 127 Counter Fire Target Acquisition Radar Systems (AN/TPQ-53) and associated spare parts on an other than full and open competition basis pursuant to the authority of Title 10, United States Code, Section 2304(c)(1 ), as implemented by Federal Acquisition Regulation 6.302-1 (a)(2)(ii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The total amount estimated for the contract is . The approval is subject to the availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.