DEFENSE LOGISTICS AGENCY HEADQUARTERS 8725 JOHN J. KINGMAN ROAD FORT BELVOIR, VIRGINIA 22060-6221

Addendum to Justification and Approval for Other than Full and Open Competition (J&A), 10 U.S.C. 2304(c)(1)

1. Contracting Activity:

This J&A Addendum supports requirements generated by the Air Force, Army, Marine Corps, Navy, the Defense Logistics Agency, and Foreign Military. The contracting activity for this requirement is DLA Land at Aberdeen, Aberdeen Proving Ground, MD.

2. Description of the Action Being Approved:

Contract SPRBL1-15-D-0017 was awarded to Raytheon Company – 350 Lowell Street Andover, Massachusetts, Cage code 05716, on a firm-fixed-price basis including a three (3) year base followed by a three (3) year redeterminable option period. The contract anticipates performance by the following Raytheon Contractor and Government Entity (CAGE) Codes: 05716; 15090; 37695; 96214; 072E5; 2M191; 3B150; 4U884; 7Y193; 00724; 06845; 49956; 54X10; 5D744, K0268 and 9F358. Raytheon is a large business.

The original Justification and Approval for Other than Full and Open Competition (J&A), approved on July 23, 2014, Attachment 3, supported a six-year Indefinite-Delivery Indefinite-Quantity (IDIQ) contract on a sole-source basis for acquisition of Depot Level Repairable (DLR) and consumable spare parts associated with specific Raytheon manufactured systems and/or system components. The J&A scope included an attachment detailing a procedure, named the “add-on process,” for on-ramping items covered by an attached list of platforms, systems and subsystems for which Raytheon is the sole-source OEM.

This J&A Addendum is for a scope increase to contract SPRBL1-15-D-0017. This scope increase broadens DLA’s long term strategic sourcing contract with Raytheon to encompass repairs, engineering services and associated data that are sole source to Raytheon. This J&A Addendum also authorizes an increase in the base contract period from three (3) years to six (6) years, resulting in a nine (9) year contract. Additionally, the Government has identified more systems for which Raytheon is the sole-source OEM. Therefore, the list of platforms, systems and subsystems attached to the original J&A has been expanded and is provided herein as attachment 1, “List of Raytheon Sole-Source Systems/Platforms/Subsystems.”

The contract contains DLAD 52.216-9006, Addition/Deletion of Items, to allow for the addition of items of supply and their associated services within the contract scope. The intent is to ultimately subsume all spares, repairs, engineering services and associated data identified as sole source to Raytheon within this contract. This Evolutionary Acquisition approach assumes iterative contract modifications throughout the life of the

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contract to add-on required sole-source capabilities and requirements as they are identified.

This J&A Addendum ensures the comprehensive sustainment and support of critical sole- source Raytheon systems, platforms and subsystems within the Department of Defense (DoD). The contract extension included in this Addendum will help mitigate schedule risk in bringing these items and services to contract and will help reduce duplicative contracting efforts, resulting in greater value to DoD.

The estimated value of this contract is , based on a nine-year contract duration. The contract also has a maximum value. Approximately remains as of the date of this J&A Addendum, which is anticipated to sufficiently cover the roadmap of systems to be on-ramped. The contract is currently funded by Military Service working capital funds and Military Service operations and maintenance funding. Moving forward the contract will be funded by the Defense-Wide Working Capital Fund, Military Service working capital funds and Military Service operations and maintenance funding.

3. Description of Supplies/Services required to meet the Agency’s Need (10 U.S.C. 2304(f)(3)(A)):

To date, 35 sole-source spare parts have been priced under contract SPRBL1-15-D-0017 (as of add-on modification P0004). These 35 spare parts come from 3 Raytheon systems: The Secure Mobile Anti Jam Tactical Terminal (SMART-T), Air Traffic Navigation Coordination System (ATNAVICS) and Joint Tactical Terminal (JTT).

Attachment 1, “List of Raytheon Sole-Source Systems/Platforms/Subsystems,” identifies the systems, platforms and subsystems for which the Government anticipates the acquisition of spare parts and related repair, engineering services and associated data under this contract. This list is comprehensive including the initial 176 platforms, systems and subsystems from the base award plus an additional 68 platforms, systems and subsystems. The Government has identified Raytheon as the sole-source OEM for these systems, platforms and subsystems. Only items belonging to the systems, platforms and subsystems identified in Attachment 1 and only repair and engineering services related to those items will be considered for addition to the contract under this J&A Addendum. In accordance with DLAD Part 6.303-2(a)(S-90)(ii)(A), before addition to the contract, those items, repairs and engineering services must be determined to be sole- source in accordance with the add-on process described in attachment 2, “DLA Land and Maritime Process for Adding Sole-Source Items to the Raytheon Depot Level Repairable and Consumable Spare Parts Contract.”

4. Statutory Authority for Other than Full and Open Competition (10 U.S.C. 2304(f)(3)(B)):

Use of Other than Full and Open Competition is authorized by 10 U.S.C. 2304(c)(1) and FAR 6.302-1, as there is only one responsible source and no other supplies or services will satisfy agency requirements. The acquisition is restricted to the prime contractor and

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only source of supply known to have the capability of furnishing the required support, Raytheon.

5. Demonstration of the Contractor’s Unique Qualifications or Rationale for use of the Cited Statutory Authority:

This J&A covers support and related efforts for Raytheon systems, platforms and subsystems. Only Raytheon can provide the necessary expertise, capacity, capability and proficiency to perform this effort. Raytheon is the only company which possesses the requisite engineering expertise, configuration management, tooling, and management knowledge to ensure that items conform to the proper form, fit and function, thus keeping complex weapon systems reliable and safe. Raytheon is the only source that possesses the full range of technical data required to manufacture the sole-source items. Technical data and specialized knowledge is required to execute repairs to these complex weapons systems. As the designer, developer and manufacturer of the items to be supported, only Raytheon is uniquely qualified to provide the government with repair and engineering services for these items. Due to rapid technological changes and disruptive innovations, components may become outdated or reach the end of life. Engineering Services are required to complete obsolescence management and technical support efforts to the systems and associated items covered by this requirement. Only Raytheon possesses the technical data required to upgrade current system architecture by performing obsolescence management or technical support.

Additionally, Raytheon has established internal production processes and suppliers. The key overarching objective of the contract is to maximize the availability/use of the various weapons systems by providing timely material support. Only Raytheon has personnel with the requisite breadth and depth of experience and understanding of the totality of technical data necessary to fulfill this requirement and ensure the currency, accuracy, and completeness of the technical data.

For all existing items on the contract, the Government does not own the data or have sufficient rights to the data to solicit those parts on a competitive basis and guarantee the same form, fit and function which would be required to ensure compatibility of these parts with other system components. The Government will evaluate all future add-ons, identifying each part/item and the system to which it belongs and verifying through market research that the item is sole source. Additionally, the Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) assigned by the DOD must display that the item is sole-source in accordance with DFARS PGI 217.7056 - Spare Parts Breakout Program, 2-201.1 Acquisition Method Codes and 2-201.2 Acquisition Method Suffix Codes.

If any item or associated services belonging to the systems, platforms or subsystems identified in Attachment 1 are determined to be competitively available they will not be awarded under this contract vehicle. If any item is determined to be competitively available after contract award that item may be deleted from the contract and competitively re-solicited.

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6. Market Research/Efforts to Obtain Competition (10 U.S.C. 2304(f)(3)(D)):

Relative to the September 28, 2014, award of contract SPRBL1-15-D0117, a special notice, in the form of a market survey, was posted on the Federal Business Opportunities (FedBizOpps) web page on March 25, 2014. This market survey outlined a brief scope of work, including information about the possibility of adding future phases. The survey listed questions regarding potential sources’ abilities to satisfy the requrement. No vendors responded. In accordance with FAR 5.201, the proposed action was synopsized in FedBizOpps on April 4, 2014. A synopsis posting a draft Request For Proposal (RFP) was issued through FedBizOpps on April 24, 2014. Raytheon was the only contractor to respond. The J&A was made available for public inspection via FedBizOpps after award, in accordance with FAR 6.305.

Relative to this J&A Addendum, a Sources Sought Announcement outlining the proposed scope expansion including the addition of three (3) base contract years, repair and engineering services was publicized on FedBizOpps on May 25, 2016. Raytheon was the only contractor to respond. A synopsis was posted on June 8, 2016, summarizing the anticipated contract modification. This J&A Addendum will be made available for public inspection via FedBizOpps after contract modification.

7. Price/Cost Considerations (10 U.S.C. 2304(f)(3)(C)):

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A Addendum will be fair and reasonable. Certified cost and pricing data will be obtained as required and used to negotiate prices for both the base and option period. For those parts requiring certified cost and pricing data, a fully compliant audit will be performed and DCMA/DCAA assistance will be requested as necessary. For each add-on to this contract detailed documentation and justification of price reasonableness will be prepared and disclosed in an official price negotiation memorandum to be prepared upon completion of negotiations.

8. Interested Sources (10 U.S.C. 2304(f)(3)(E)):

Raytheon is the only known source possessing the requisite engineering expertise, configuration management, tooling, and management knowledge to provide these items and services. To date, no other sources have written to express an interest in providing these supplies or services. The notices required by FAR 5.201 have been published.

9. Actions Being Taken to Overcome Barriers to Future Competition (10 U.S.C. 2304(f)(3)(F):

As described in the Market Research/Efforts to Obtain Competition section above, market research has been performed and this proposed action was publicized on FedBizOpps. In accordance with the add-on process described in Attachment 2, all items will be synopsized by NSN or part number, where applicable, and all services will be synopsized prior to incorporation into the contract in order to investigate the possibility

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of competition. The Contracting Officer and DLA Competition Advocate will review all proposed additions to verify that all requirements are sole source. The procedures of DLAD 6.303-2(a)(S-90)(i), which are included in Attachment 2, will be followed for items coded AMSC H.

ATTACHMENTS: 1. List of Raytheon Sole-Source Systems/Platforms/Subsystems 2. DLA Land and Maritime Process for Adding Sole-Source Items to the Raytheon Depot Level Repairable and Consumable Spare Parts Contract 3. Original J&A for Solicitation SPE7MX-14-R-0131

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Justification and Approval - Attachment 1 SPRBL1-15-D-0017

Prime RTN Bus System/Sub-System/Platform IDS MK99 FCS & SPY-1 Transmitter IDS MK46 Torpedo - Upgrade Kits for all variants of MK46 IDS Firefinder IDS Standard Terminal Automation System (STARS) - STARS ELITE, STARS LITE IDS Wide Area Augmentation System (WAAS) IDS ASR-11 Digital Airport Surveillance Radar (DASR) IDS AN/TPN-31 Air Traffic Navigation, Integration and Coordination System (ATNAVICS) IDS AN/FPN-67 Fixed Base Precision Approach Radar (FBPAR) IDS Deployable Radar Approach Control (D-RAPCON) System IDS AutoTrac Family (AT1/2/3) of Integrated Air Traffic Management Systems IDS Precision Runway Monitor (PRM) IDS Air Traffic Control Beacon Interrogator 6 (ATCBI-6) IDS Integrated Terminal Weather System (ITWS) IDS Terminal Doppler Weather Radar (TDWR) IDS GPS Aided GEO Augmented Navigation (GAGAN) System IDS Joint Precision Approach and Landing System (JPALS) IDS ASR-23SS Long Range ATM Radar IDS ASR-10SS Terminal ATM Radar IDS Condor Series 300/400 Monopulse Secondary Surveillance Radar (MSSR) IDS Mobile Airport Surveillance Radar (MASR) IDS Battle Control System - Fixed (BCS-F) IDS Cooperative Engagement Capability (CEC) IDS SIVAM IDS PATRIOT IDS JLENS IDS SBX Radar IDS AN/TPY-2 Radar IDS THAAD - THAAD Radar IDS LPD-17 - MSTS, SSDS, SWAN, SPS-73 IDS AN/TPN-31 Precision Approach Radar IDS ALFS (AN/AQS-22) IDS EWR / UEWR IDS Cobra Dane IDS Cobra Judy Replacement IDS UHF Radar (i.e. Taiwan SRP) IDS HAWK IDS AN/AQS-20 Minehunting Sonar IDS AMNS (LCS Mine Countermeasures System) IDS RAID (80" and 107" Towers) IDS TPN24/25/19 IDS GPN22 IDS Mark 29/Mark 57 Seasparrow Missile Launchers IDS UYA4 IDS Q21 IDS SPS73 IDS TARTAR IDS ROTHR IDS JISCC (Joint Incident Site Communications Capability) - ACU-1000 Interoperability Gateway IDS JISCC (Joint Incident Site Communications Capability) - ACU-1000 Interoperability Gateway IDS WMD/UCS (Weapons Mass Destruction ACU 1000 Interoperability Gateway Unified Command Suite IDS EOV Type 1 (Emergency Operations Vehicle Type 1) - ACU-1000 Interoperability Gateway IDS MEOV (Mobile Emergency Operations Vehicle) - ACU-1000 Interoperability Gateway IDS MCP (Mobile Command Platform) - ACU-2000 Interoperability Gateway IDS ERV (Emergency Response Vehicle) - ACU-T Interoerability Gateway IDS Sentinel IDS TRP (Transportable Case) - ACU 2000 Interoperability Gateway IDS Zumwalt (TSCEi, AN/SQQ-90, MK-57 launcher, Dual Band Radar, CAPS/CACS, Ship Control, IFF, EOIR, EME) IDS AN/BYG-1 IDS LPD-17 - MSCS, SSDS, SWAN, SPS-73A(v)13, CIDS 23TV IDS GPNTS - Note: System is under development with IOC planned in 2018 IDS MFRFS IDS AFATDS (several variants) IDS FSSM&I IDS MK 48/MK56 GMVLS. Justification and Approval - Attachment 1 SPRBL1-15-D-0017

IDS AN/SQQ-32 - Minehunting sonar IDS AN/SLQ-48 - Mine Neutralization System IDS AN/SPY-3 Radar IDS MK54 Mod 0 Torpedo (including common parts) IIS V22 - EDM Mount IIS V22 - Troop Commander Panel IIS V22 - Troop Commander Cabin Situational Awareness Device (CSAD) IIS V22 - Weather Receiver enclosure IIS V22 - Avionics Functional V-22 Trainer (AFVT) IIS V22 - Trainer Fault Insertion System (TFIS) IIS F16 - F16 Center Display Unit (CDU) IIS F16/A10 - Helmet Mounted Integrated Target cueing system (HMIT) IIS F16, F15, P3, F18, etc -AWW-13 Data Link Pod IIS USN Large decks ships (CVN, LHA/LHD, LCC, etc) plus training/support systems - SMQ-11 Satellite Receiver IIS CH53 and HH60 -Smart Multifunction color display (SMFCD)

IIS M60 Main Battle Tank - Integrated Fire Control System (IFCS) IIS AN/SLQ-32 Surface Ship Electronic Warfare System IIS BRU-41/42/70 IIS AN/USC 38 (V) Navy Extremely High Frequency Satellite Program (NESP) IIS Long Range Line Up System (LRLS) IIS A/E26M-2A - Maintenance Facility, Nitrogen Receiver IIS LAU-127 Missile Launcher IIS AN/AIC-14 - Intercommunication Sets IIS Shipboard Electronic Countermeasure System IIS LAU-115 Missile Launcher IIS LAU-116 Missile Launcher IIS LAU-127 Missile Launcher - LAU-127 - Screw, Shoulder, Slotted IIS LAU-127 Missile Launcher - LAU-127F/A - Harness Assembly, Hippag Interface IIS LAU-115 Missile Launcher IIS LAU-116 Missile Launcher IIS SUU-63 Pylon IIS V22 - Avionics Functional V-22 Trainer (AFVT) IIS V22-Trainer Fault Insertion System (TFIS) IIS Air Warrior - Electronic Data Manager (EDM) IIS Air Warrior - Global Positioning System Message Router (GMR) IIS Air Warrior - Star Microrouter (UR) IIS Air Warrior - Interactive Situational Awareness System (ISAS) IIS Air Warrior - Air Soldier Ensemble Control Software (ASECS) IIS Air Soldier - Personal Electronics Computer Display System (PE CDS) IIS Air Soldier - Common Helmet Mounted Display (CHMD) IIS U2 - RAS-1R Airborne Sensor PME-1 IIS Air Force DCGS - Crew Comm IIS Air Force DCGS - Deployable Ground Intercept Facility (DGIF) IIS Munitions - Radio Activation Munitions System RAMS16 IIS Munitions - Radio Activation Munitions System RAMS17 IIS Munitions - TD-SYDET 6 IIS Munitions - Shock Tube Initiator XM 50 IIS U-2 GS RMS Standard Missile-3 (SM-3™) RMS Standard Missile-6 (SM-6™) RMS Exoatmospheric Kill Vehicle (EKV) RMS National Advanced Surface-to-Air Missile System (NASAMS) RMS Solid State Active Denial Technology (SSADT) Skid Plate RMS Semi-Active Infrared (SA'IR) Solid State System "FORECHECK" RMS Advanced Medium-Range Air-toAir Missile (AMRAAM®) RMS Tomahawk Missile RMS Small Diameter Bomb II (SDBII) RMS Miniature Air Launched Decoy (MALD®) RMS Griffin Guided Bomb RMS Maverick Missile RMS High-speed Anti-radiation Missile (HARM) RMS HARM Targeting System (HTS) Justification and Approval - Attachment 1 SPRBL1-15-D-0017

RMS Joint Standoff Weapon (JSOW) RMS AIM-9X® Sidewinder RMS PavewayTM Guided Bomb RMS AGM-154 Joint Standoff Weapon (JSOW) RMS AGM-65 Maverick™ Missile RMS Griffin Missile RMS TOW® Improved Target Acquisition System (ITAS™) RMS Modified Improved Target Acquisition System (MITAS) RMS Improved Thermal Sight System (ITSS) RMS Horizontal Technology Integration (HTI) RMS Firepower Enhancement Program (FEP) RMS Desert Warrior (GITS) RMS HIRE RMS ELITE RMS Commander's Independent Viewer (CIV) RMS Improved bradley Acquisition System (IBAS) RMS Long Range Advanced Scout Surveillance System (LRAS) RMS Tube-Launched, Optically-Tracked, Wireless-Guided (TOW®) Weapon System RMS Stinger™ Weapon System RMS Excalibur® Precision Guided Extended Range Artillery Projectile RMS Evolved Seasparrow Missile (ESSM™) RMS Rolling Airframe Missile (RAM®) Guided Missile System RMS SeaRAM™ Anti-Ship Missile Defense System RMS Standard Missile-2 (SM-2) RMS Standard Missile-2 (SM-3™) RMS Standard Missile-2 (SM-6™) RMS Phalanx Close-In Weapon System (CIWS) RMS Sparrow RMS AGM-88

RMS (ELCAN) Specter DR 1X4 Rifle Sight

RMS (ELCAN) Specter DR 1.5X6 Rifle Sight

RUK ADAP/GAS-1 SAS F18 - AN/APG-73 Multimode Airborne Radar System SAS N/A - APPLE (Adaptive Photonic Phased Array Elements) SAS N/A - Family of Advanced Beyond Line of Sight Terminals (FAB-T) SAS Global Aircrew Strategic Network Terminal (Global ASNT)

SAS High Capacity Beyond Line of Sight / Tactical Extension of Line of Sight Communication Terminals (HC BLOS / TELOS)

SAS Multiplexer Integration DCSS Automation System (MIDAS) SAS Minuteman MEECN (Minimum Essential Emergency Communications Network) Program (MMP) SAS Minuteman MEECN (Minimum Essential Emergency Communications Network) Program Upgrade (MMPU) SAS Multiple - Navy Multiband Terminal SAS E-2C/D - Mission Computer and Display SAS Multiple - Submarine High Data Rate Communications (SubHDR) SAS Secure Mobile Anti-Jam Reliable Tactical Terminal (SMART-T) SAS AN/ARC-231 Airborne Radio System SAS AN/PSC-5D MBMMR SAS Defense Red Switch Network (DRSN) SAS F18, AV8B, MV-22 - Miniature Airborne GPS Receiver (MAGR-2000) SAS F15 - AN/APG-82 AESA Multimode Airborne Radar System SAS F15 -AN/APG-63(V)3 AESA Multimode Airborne Radar System SAS U2 - Advanced Synthetic Aperture Radar (ASARS) SAS Sentinel R Mk1 - Airborne Stand Off Reconaissance (ASTOR) SAS MQ9 - SeaVue Suveillance Radar SAS H60 - AN/AAS-44C(V) Multispectral Targeting System (MTS) SAS MQ4 - DAS-3 Multispectral Targeting System (MTS) SAS MQ1 (Air Force) - AAS-52 Multispectral Targeting System (MTS) SAS MQ9 - DAS-3 & 4 Multispectral Targeting System (MTS) SAS MQ1 (Army) - AAS-53 Multispectral Targeting System (MTS) SAS MH47 - AN/ZSQ-2 Multispectral Targeting System Justification and Approval - Attachment 1 SPRBL1-15-D-0017

SAS B2 - AN/APQ-181 Airborne Radar System SAS CV-22 - AN/APQ-186 Multimode Airborne Radar System SAS AN/ARC-164(V) SAS RT-1614 (AN/ARC 164) SAS Q29-A SAS ALQ-172 SAS APX 119 SAS AAQ-17 SAS AAQ-18 SAS AAQ-26 SAS AAQ-27A SAS AAS-52A SAS DAS-1 SAS ALE-50 SAS ALQ-99 SAS ALQ-128 SAS ALQ-161 SAS ALQ-172 SAS ALQ-184 SAS ALQ-187 SAS ALR-69A SAS APQ-122 SAS APQ-158 SAS APQ-180 SAS ARC-187 SAS ARC-169/SSHPA SAS ARC-222 SAS MXF-626 SAS ARC-232 SAS AVQ-19 SAS TRC-170 SAS APQ-174 SAS ACES SAS APX 114 SAS TPX-57, SAS TPX-58, SAS KIV-77 SAS AS 4664 SAS Maingate SAS TacLink 3000 SAS TacLink 3100 SAS TacLink 3300 SAS RT-1915(C)/G SAS RT-1720D(C)/G SAS RT-1720E(C)/G SAS RT-1720F(C)/G SAS RT-1720G(C)/G SAS RT-1922(C)/G SAS APX-119 Digital Control Panel SAS APX-119 Control Panels SAS TPX-57 SAS TPX-58 SAS TPX-59 SAS MT-4811 Standard IFF Mount SAS F-16 Modular Mission Computer (MMC) SAS F-22 Processor Interface Controller and Communications (PICC) SAS F-22 Common Integrated Processor (PIC) SAS F-35 Integrated Core Processor (ICP) SAS Airborne Target Tracking System Justification and Approval – Attachment 2 SPRBL1-15-D-0017

DLA LAND AND MARITIME PROCESS FOR ADDING SOLE-SOURCE ITEMS TO THE RAYTHEON DEPOT LEVEL REPAIRABLE AND CONSUMABLE SPARE PARTS CONTRACT

The process for identifying, evaluating and adding items to the Raytheon sole source Depot Level Repairable (DLR) and consumable spare parts contract is prepared in accordance with Defense Logistics Agency Directive (DLAD) Part 6.303-2(a)(S-90)(ii).

The following steps detail the add-on process:

Step l - Determining the Potential Add-on Population

National Stock Number (NSN) technical data records are searched to identify items that have both • The contractor's Contractor and Government Entity (CAGE) code and • Acquisition Method Code (AMC) 3, 4, and 5, which generally designates sole source items in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) Policy Guidance and Information (PGI) 217.7506 - Spare Parts Break out Program, 2-201.1 Acquisition method codes (See DFARS PGI 217.7506 reference below).

These NSNs establish an estimate of the potential population that may be added to the contract, although other NSNs may be added to the contract if they pass steps 3-5.

Step 2 - Selecting the Add-on Population

Demand forecasting is prepared for NSNs identified in step 1, by product specialists. The NSNs are analyzed to ascertain the relationship between the items expected demand, the quantity on hand and the likelihood that items will be required during the contract life. Data examined includes stock on hand, stock due-in, unfulfilled order quantities, quarterly demand and annual demand.

The resulting NSNs deemed to have stock levels and demand requiring replenishment within the contract life become the add-on population.

Step 3 - Certification of Sole Source Assertion

A product specialist conducts a technical review of the items identified in step 2. The technical review may include a review of drawings, specifications, etc.; a view of procurement history; discussions with the sole source vendor to ascertain if technical data rights have been sold or licensed and details of the sale or licensure; or exchanges with potential manufacturing sources.

As a result of the technical review, the product specialist verifies the item records have the appropriate AMC and Acquisition Method Suffix Code (AMSC) in accordance with DFARS PGI 217.7506 - Spare Parts Break out Program, 2-201.2 Acquisition method suffix codes, and if necessary updates these codes to correct any inaccuracies (See DFARS PGI 217.7506 reference below).

If the product specialist concludes the items are indeed sole source to the contractor, the product specialist certifies that the items are sole source and explains the particular reason the NSN(s) is

Page 1 of 6 Justification and Approval – Attachment 2 SPRBL1-15-D-0017 sole source, usually by identifying the AMSC, which forms the basis for that conclusion.

Step 4-Small Business and Competition Advocate Review

If the product specialist certifies an item is sole source, the Defense Logistics Agency Land and Maritime (DLA Land and Maritime) Small Business Office and Competition Advocate will review the item to ensure that no alternate source is capable of producing the item.

Should a proposed add-on exceed the current basic contract ceiling value, a Justification and Approval (J&A) for other than full and open competition would need to be prepared to cover an increase to the basic contract ceiling for the inclusion of these add-on items. J&Aapproval shall be obtained in accordance with FAR Part 6.304 at the levels prescribed in DLAD Part 6.3 - Other than full and open competition. The review criterion for the dollar value applies to the cumulative value of the entire contract.

For Items: In accordance with FAR Part 5.2 – Synopsis of Proposed Contract Actions, the Contracting Officer will synopsize items that may be added to the contract in order to investigate the possibility of competition.

For Repair or Engineering Services: In accordance with FAR Part 5.2 – Synopsis of Proposed Contract Actions, the Contracting Officer will synopsize the item or part number requiring services and the scope of the task order to be awarded in order to investigate the possibility of competition.

Step 5 -Negotiating Price and Adding to the Contract

For Items: A Request for Proposal will be generated and submitted to Raytheon for the validated sole source add-on population (i.e. population passing step 4). The population will be added to the contract once fair and reasonable prices are negotiated.

For Repair or Engineering Services: A Task Order Request (TOR) will be issued against the basic contract for services related to the valid sole source population (i.e. population passing step 4). The task order will be issued once fair and reasonable prices are negotiated.

AMSC of A or H:

If items with an AMSC A or H are added to this contract, the results of the reviews and reclassification actions for AMSC A and H items will be reported by the contracting officer to the local competition advocate, and may be reported to DLA Competition Advocate in accordance with DLA Acquisition requirements. If an item considered for addition to the contract is review of an item classified as AMSC H does not result in the assignment of a more permanent AMSC within the later of one year of approval of this justification or one year of the item’s placement on a contract covered by this justification, the contracting officer will remove the item from the contract.

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References

Definitions:

Acquisition Method Code (AMC): A single digit numeric code, assigned by a Department of Defense (DoD) activity to describe to the Contracting Officer and other Government personnel the results of a technical review of a part and its substantiation for breakout. AMCs describe the results of the spare parts breakout screening performed by qualified product specialists. An AMC of 3 or 4 instructs the acquisition specialist to acquire the item directly from the actual manufacturer; and an AMC of 5 instructs the acquisition specialist to acquire the item directly from a sole source contractor, which is not the actual manufacturer.

Acquisition Method Suffix Code (AMSC): A single digit alpha code, assigned by a DoD activity which provides the Contracting Officer and other Government personnel with engineering, manufacturing and technical information.

National Stock Number: A 13-digit number assigned by the Defense Logistics Information Service (DLIS) to identify each item of material in the federal supply distribution system of the United States.

DFARS References:

Text from the DFARS PGI is provided below for reference purposes only. Should the DFARS PGI be amended, any updates in regulation will apply to the process for identifying, evaluating and adding items to the Raytheon sole source Depot Level Repairable (DLR) and consumable spare parts contract.

DFARS PGI 217.7506 Spare Parts Breakout Program PART 2--BREAKOUT CODING 2-200 Scope. This part provides parts breakout codes and prescribes responsibilities for their assignment and management. 2-201 Coding. Three types of codes are used in the breakout program. 2-201.1 Acquisition method codes. The following codes shall be assigned by DoD activities to describe the results of the spare parts breakout screening: (a) AMC 0. The part was not assigned AMC 1 through 5 when it entered the inventory, nor has it ever completed screening. Use of this code is sometimes necessary but discouraged. Maximum effort to determine the applicability of an alternate AMC is the objective. This code will never be used to recode a part that already has AMC 1 through 5 assigned, and shall never be assigned as a result of breakout screening. Maximum effort to determine the applicability of AMC 1 through 5 is the objective. (b) AMC 1. Suitable for competitive acquisition for the second or subsequent time. (c) AMC 2. Suitable for competitive acquisition for the first time. (d) AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer. (e) AMC 4. Acquire, for the first time, directly from the actual manufacturer.

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(f) AMC 5. Acquire directly from a sole source contractor which is not the actual manufacturer.

2-201.2 Acquisition method suffix codes. The following codes shall be assigned by DoD activities to further describe the acquisition method code. Valid combinations of AMCs/AMSCs are indicated in paragraphs (a) through (z) of this subsection and summarized in Exhibit I. (a) AMSC A. The Government's right to use data in its possession is questionable. This code is only applicable to parts under immediate buy requirements and for as long thereafter as rights to data are still under review for resolution and appropriate coding. This code is assigned only at the conclusion of limited screening, and it remains assigned until the full screening process resolves the Government's rights to use data and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, or if the data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid. (b) AMSC B. This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of DoD-STD-100. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by DoD-STD-100 definition, altered and selected items shall have an adequate technical data package, data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (c) AMSC C. This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity. The qualification procedures must be approved by the Government engineering activity having jurisdiction over the part in the intended application. If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved or if data is adequate for an alternate source to qualify in accordance with the design control activity's procedures, AMCs 1 or 2 are valid. (d) AMSC D. The data needed to acquire this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation. AMCS 3, 4, or 5 are valid. (e) AMSC E. (Reserved) (f) AMSC F. (Reserved) (g) AMSC G. The Government has rights to the technical data, the data package is complete, and there are no technical data, engineering, tooling or manufacturing restrictions. (This is the only AMSC that implies that parts are candidates for full and open competition. Other AMSCs such as K, M, N, Q, and S may imply limited competition when two or more independent sources exist yet the technical data package is inadequate for full and open

Page 4 of 6 Justification and Approval – Attachment 2 SPRBL1-15-D-0017 competition.) AMCs 1 or 2 are valid.

(h) AMSC H. The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (i) AMSC I. (Not authorized) (j) AMSC J. (Reserved) (k) AMSC K. This part must be produced from class 1 castings and similar type forgings as approved (controlled) by procedures contained in the current version of MIL-STD-2175. If one source has such castings and cannot provide them to other sources, AMCs 3, 4, or 5 are valid. If at least two sources have such castings or they can be provided to other sources AMCs 1 or 2 or valid. (l) AMSC L. The annual buy value of this part falls below the screening threshold established by DoD components and field activities. However, this part has been screened for additional known sources, resulting in either confirmation that the initial source exists or that other sources may supply the part. No additional screening was performed to identify the competitive or noncompetitive conditions that would result in assignment of a different AMSC. This code shall not be used when screening parts entering the inventory. This code shall be used only to replace AMSC O for parts under the established screening threshold. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (m) AMSC M. Manufacture of this part requires use of master or coordinated tooling. If only one set of tooling exists and cannot be made available to another source for manufacture of this part, AMCs 3, 4, or 5 are valid. When the availability of existent or refurbishable tooling is available to two or more sources, then AMCs 1 or 2 are valid. (n) AMSC N. Manufacture of this part requires special test and/or inspection facilities to determine and maintain ultra-precision quality for its function or system integrity. Substantiation and inspection of the precision or quality cannot be accomplished without such specialized test or inspection facilities. If the test cannot be made available for the competitive manufacture of the part, the required test or inspection knowledge cannot be documented for reliable replication, or the required physical test or inspection facilities and processes cannot be economically documented in a TDP, valid AMCs are 3, 4, or 5. If the facilities or tests can be made available to two or more competitive sources, AMCs 1 or 2 are valid. (o) AMSC O. The part was not assigned an AMSC when it entered the inventory, nor has it ever completed screening. Use of this code in conjunction with AMC 0 is sometimes necessary but discouraged. Maximum effort to determine the applicability of an alternate AMSC is the objective. Only AMC O is valid. (p) AMSC P. The rights to use the data needed to purchase this part from additional source(s) are not owned by the Government and cannot be purchased, developed, or otherwise obtained. It is uneconomical to reverse engineer this part. This code is used in situations where the Government has the data but does not own the rights to the data. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have

Page 5 of 6 Justification and Approval – Attachment 2 SPRBL1-15-D-0017 the rights or data to manufacture this item, AMCs 1 or 2 are valid. (q) AMSC Q. The Government does not have adequate data, lacks rights to data, or both needed to purchase this part from additional sources. The Government has been unable to economically buy the data or rights to the data, although the part has been undergoing full screening for 12 or more months. Breakout to competition has not been achieved, but current, continuing actions to obtain necessary rights to data or adequate, reprocurement technical data indicate breakout to competition is expected to be achieved. This part may be a candidate for reverse engineering or other techniques to obtain technical data. All AMSC Q items are required to be reviewed within the timeframes cited in 2-203(b). If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (r) AMSC R. The Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, AMCs 3, 4, or 5 are valid. If two or more sources have the rights or data to manufacture this item, AMCs 1 or 2 are valid. (s) AMSC S. Acquisition of this item is restricted to Government approved source(s) because the production of this item involves unclassified but militarily sensitive technology (see FAR Subpart 6.3). If one source is approved, AMCs 3, 4, or 5 are valid. If at least two sources are approved, AMCs 1 or 2 are valid. (t) AMSC T. Acquisition of this part is controlled by qualified products list (QPL) procedures. Competition for this part is limited to sources which are listed on or are qualified for listing on the QPL at the time of award (see FAR Part 9 and DFARS Part 209). AMCs 1 or 2 are valid. (u) AMSC U. The cost to the Government to breakout this part and acquire it competitively has been determined to exceed the projected savings over the life span of the part. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (v) AMSC V. This part has been designated a high reliability part under a formal reliability program. Probability of failure would be unacceptable from the standpoint of safety of personnel and/or equipment. The cognizant engineering activity has determined that data to define and control reliability limits cannot be obtained nor is it possible to draft adequate specifications for this purpose. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid. (w) AMSC W. (Reserved) (x) AMSC X. (Not authorized) (y) AMSC Y. The design of this part is unstable. Engineering, manufacturing, or performance characteristics indicate that the required design objectives have not been achieved. Major changes are contemplated because the part has a low process yield or has demonstrated marginal performance during tests or service use. These changes will render the present part obsolete and unusable in its present configuration. Limited acquisition from the present source is anticipated pending configuration changes. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (z) AMSC Z. This part is a commercial/no developmental/off-the-shelf item. Commercial item descriptions, commercial vendor catalog or price lists or commercial manuals assigned a technical manual number apply. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources are available, AMCs 1 or 2 are valid.

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