J&A - Aegis MK 99 5 year PBL renewal -redacted.pdf

DEPARTMENT OF THE NAVY

NAVSUP WEAPON SYSTEMS SUPPORT

700 ROBBINS AVENUE 5450 CARLISLE PIKE - PO BOX 2020

PHILADELPHIA PA 19111-5098 MECHANICSBURG PA 17055-0788

JUSTIFICATION AND APPROVAL FOR USE OF OTHER THAN FULL

AND OPEN COMPETITION

REQUISITION NUMBER: N0010418Y2527 BUYERS CODE:

ΝΑΜΕ: TEL:

Justification and Approval (J&A) 14772

1. CONTRACTING ACTIVITY:

The Naval Supply Systems Command, Weapon Systems Support (NAVSUP WSS), Mechanicsburg, PA.

2. DESCRIPTION OF THE ACTION BEING APPROVED:

This J&A is for the negotiation and award of a five-year Performance Based Logistics (PBL) contract for supply support of National Item Identification Numbers (NIINs) for the supply and support for two of the thirteen major subsystems of the Aegis Weapon System (AWS): the MK99 Fire Control System (FCS) and AN-SPY-1 (AN – Army Navy Joint Electronics Type Designation Systems; S – Water/Surface Ship; P – Radar; Y – Surveillance and Control) Transmitter Group. This J&A covers a contract term of a five-year base period from November 2019 – November 2024. There are no option years. The proposed action will replace PBL contract N00104-13-D-ZD00, which expires November 2019. The proposed contract will be an Indefinite Delivery Requirements type contract with Firm Fixed Price (FFP) provisions and include Supply Response Time (SRT) metrics which establish time definite delivery dates. In addition, the contract includes demand bands which will be implemented in a risk-sharing arrangement between NAVSUP WSS and the Raytheon Company (Cage Code 7Y193).

The Aegis Program Office (PEO IWS 1.0) confirms that the Aegis Weapon System (AWS) is in compliance with the Core depot-level maintenance requirements identified in 10 U.S.C. 2464 and as such no depot level repair is included within this proposed acquisition.

This PBL will be contracted with Raytheon Company, Marlborough, MA (Cage Code 7Y193) with repair occurring at Raytheon Intelligence, Information, and Services (Raytheon ISS) in Chesapeake, VA and six NIINs repaired at the Raytheon San Diego Facility: Expeditionary Warfare Center (EWC), San Diego, CA.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This PBL contract will provide supply support for NIINs identified in Attachment "A". The total estimated contract amount to be funded by the Navy Working Capital Fund (NWCF) over the five-year Period of Performance (POP) is . Estimated dollar values for each year of this requirements contract are as follows:

Legend:

Current PBL = IGE for the NIINs currently on PBL contract N00104-13-D-ZD00.

New PBL = IGE for the additional NIINs

All the NIINs covered by this J&A are Navy specific items with no commercial uses, not customarily available in the commercial marketplace, and made to meet Navy requirements.

Under this proposed acquisition Raytheon will deliver Ready for Issue (RFI) units within the required time frames, which are dependent upon priority of the requisition being filled. In order to provide the required end items, in accordance with contractual requirements, the contractor will provide supply support to include: maintaining requisition support in accordance with availability and delivery metrics designed to improve Fleet readiness, material management, inventory modeling, configuration management, obsolescence management, engineering support, inventory warehousing, packaging, transportation and tracking. The outcome of the PBL is to meet Fleet readiness requirements. The PBL’s FFP is for delivery of an indefinite quantity of end items in response to requisitions received by the contractor during the period of performance and provides incentive to reduce demand by streamlining the logistics support process and providing improvements to the supply chain. This proposed acquisition will also include demand bands, and in an instance where the upper demand limit is exceeded the contractor will be measured against the shipboard failure rate to ensure that reliability is at a minimum maintained.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

This J&A is based upon the authority of 10 USC 2304(c)(1), only one or a limited number of responsible sources will satisfy agency requirements, as implemented by FAR 6.302-1. There is only one known responsible source, Raytheon Company (7Y193), and no other supplies or services will satisfy agency requirement.

POP 1

Nov 19-Nov 20

POP 2

Nov 20-Nov 21

POP 3

Nov 21-Nov 22

POP 4

Nov 22-Nov 23

POP 5

Nov 23-Nov 24 TOTAL

Current PBL

NWCF

New PBL

NWCF

TOTAL

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY

(a) Raytheon Company, Marlborough, MA (7Y193) is the only capable source for this procurement being the Lead Design Agent (LDA) and prime manufacturer for the MK-99 FCS and AN/SPY-1 Transmitter Group. As the LDA, Raytheon has the responsibility for the design of a given NIIN, and for the preparation and accuracy of engineering drawings and other technical data for that NIIN.

(b) There are test sets that are required to provide the supply support required under this proposed PBL for NIINs. These test sets are aged, obsolete, and require a unique set of knowledge to utilize. The test sets are currently on-site at Raytheon for use on the current PBL and are necessary for use on this proposed PBL contract. Raytheon funded, built, and maintains a Bench set that is required for of the NIINs and the remaining NIINs use NAVSEA owned and funded test sets.

(c) on this proposed acquisition are part of the

This capability shares tracking data to cue other missile defense sensors. Raytheon’s expertise and full management of that are part of the MK- 99 FCS and AN/SPY-1 Transmitter Group provides for the most efficient response to improving existing early intercept capability and enhancing terminal capability against short and medium range ballistic missiles. The is a rapidly changing program with continuous change and development.

. Navy engineering and technical personnel have determined that the critical nature of these system components impacts safety of the Fleet such that acquiring component replacement, component improvement and/or repair process, from a source other than Raytheon adds an unacceptable level of risk to keeping the operations functioning, reliable and durable.

(d) NAVSUP WSS has no indication that any other manufacturer has technical data rights essential to the manufacture or engineering tasks considered integral to the support of the contract components, and thus successful performance of the PBL contract. Naval Systems Warfare Center Port Hueneme (NSWC PHD), the Navy's In Service Engineering Activity for MK-99 FCS and AN/SPY-1 Transmitter maintains in-depth knowledge of the technology developments and the industrial base required to support MK-99 FCS and AN/SPY-1 Transmitter. NAVSEA has cognizance over the purchase of the technical data and data rights and has determined that it is cost prohibitive to procure the data.

(e) NSWC PHD is the authority to issue Designation of Overhaul Point (DOP) assignment to qualified contractors capable of repair of NIINs associated with the MK-99 FCS and AN/SPY-1 Transmitter Group. To date only Raytheon has received a DOP assignment for those NIINs covered by this proposed PBL. Without this DOP assignment a source other than Raytheon cannot provide the required PBL repair effort. Under this proposed PBL the purchase of a spare unit is only required when the demand exceeds the carcass availability.

NAVSEA is responsible for the DOP assignment and currently has no additional sources expressing interest in obtaining a DOP for these NIINs.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY

OFFERORS AS PRACTICABLE

A review was conducted for each proposed NIIN under this contract to identify all potential sources. Based on this review of available technical data and necessary capabilities to perform the full PBL requirements no contractor other than Raytheon has the full range of technical data, engineering expertise, and in-depth technical understanding of the components and their systems that is necessary to perform the full requirements covered by this proposed PBL acquisition and to ensure that items conform to the proper form, fit, function, and other technical requirements, which is essential to keeping these complex weapon systems operational, reliable and safe. All NIINs are identified as “7H” Repairable Items with no consumable parts included.

NAVSUP WSS will continue to coordinate with NSWC PHD and if a viable new potential source emerges, the NAVSUP WSS, in coordination with the NSWC PHD will facilitate efforts to have such sources qualified and assess whether competition for future requirements is feasible.

The NAVSUP WSS Contracting Officer issued a Sources Sought Notice to Navy Electronic Commerce Online (NECO) and Federal Business Opportunities (FedBizOpps) on 30 March 2018. No other offers expressed interest. Following approval of the DD2579, Small Business Coordination Record; a Synopsis was posted on 29 May 2018 to NECO and FedBizOpps. No other offers expressed interest.

7. DETERMINATION OF FAIR AND REASONABLE COST

The Contracting Officer will determine that any resulting contract price to the Government will be fair and reasonable based upon thorough price and cost evaluation. Assistance will be requested from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) and Price Fighter$ (PF$). Recommendations from these reviewing groups will be utilized to analyze, evaluate and negotiate the elements of the proposal such as material, labor hours and rates. This methodology will ensure negotiations conclude with a fully supported price reasonableness determination. Certified cost and pricing data will be obtained and used to ensure cost reasonableness, completeness and realism of proposed costs, as required.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION.

For the reasons set forth in paragraphs 5 and 6, NAVSUP WSS has no immediate plans to compete future contracts for this requirement. If another potential source of support emerges, the Navy will assess whether competition for future requirements is feasible.

• S&ANo.

CERTifICATIONS AND APPROVAL

• TECBNCAIJ REQO]REMENTS CERTISICATION

icertify that the facts and representations ‘mdcr my cogni2nnce which nrc included in thisjüstiflcation mtd ks supporting acquisition planning do~umerns, except as noted herein are complete and oceurate ta the best ofmy knowledge and bejiet.

TECR?~ICAL.COGNIZL4NCR

Si!nlatvi4 Name (Printed) Phpne No. Dale

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kr ame (Punted) Phone No. Date

CONTRACflNG OFFICER CERTifiCATION

I i~’ that tMsjustitication is accurate and compleLe to the best ofmy knowledge and belief.

ignature /~/1 ~ Name (Printed) PhoneNa. Z

SENIOR PROCUREMENT EXECUTWE APPROVAL •

Upon the basis of the abovojusLiflcation, I herebyapprove, as Senior Procurement Execulive o rihe Nacy, the solicitatIon ofthe proposed procurement(s) described herein using other thaa Ml and open

(RDA) Datc

J&A Signature Page