15. JA RRMNA Block F BOA Signed Redacted_Ready for Review.pdf

CUI

CUI

J&A Number: N00167-24-RFPREQ-CD-808-0101.02

Code: 808 P.R. Number: TBD

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Surface Warfare Center, Carderock Division (NSWCCD), Contracting and Acquisitions Department.

2. Description of Action Being Approved

NSWCCD intends to use other than full and open competition to award a Basic Ordering Agreement (BOA) with Rolls Royce Marine North America (RRMNA) in support of both the “Block E” RRMNA production contract (N00021-21-C-4111) and the VIRGINIA Class “Block F” contract (planned award in Fiscal Year (FY) 2026). This BOA will be established as a support contract for advanced propulsor efforts.

3. Description of Supplies/Services

The BOA will support the Propulsor Program for inspection, repair, alteration of Government-Furnished Property (GFP), propulsor hardware, tooling and associated support equipment in support of in-service and new construction VIRGINIA Class submarines. The ordering period for this BOA will conclude five years after award.

The estimated total dollar value is Million as shown in Table 1.

The funding used for this BOA may be Shipbuilding and Conversion, Navy (SCN) and/or Other Procurement, Navy (OPN) funds. SCN funds will be used for BOA orders in support of new construction submarines and OPN will be used in support of sparing and in-service requirements.

This table updates the estimated values identified with Acquisition Plan N00167-24-RFPREQ-CD-808-0001.01 approved on 2 October 2023.

4. Statutory Authority Permitting Other Than Full and Open Competition

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CARDEROCK DIVISION

9500 MACARTHUR BOULEVARD

WEST BETHESDA MD 20817-5700

IN REPLY REFER TO:

10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Currently, the Naval Foundry and Propeller Center (NFPC), a Government-owned facility, is and will continue to be the primary manufacturing agent of VIRGINIA Class rotors and stators. An alternate source for rotors and stators is required due to accelerating manufacturing schedules, capacity limitations at NFPC, and for risk reduction at NFPC to mitigate increased future workload demands for VIRGINIA Class propulsors. To address these concerns, the VIRGINIA Class propulsor program issued Broad Agency Announcement (N0016703BAA01) to identify alternate sources capable of meeting the exacting requirements of the Propulsor Program. RRMNA was selected because of its capability and experience in the casting of Nickel- Aluminum-Bronze (NAB) propellers and propeller blades. Other than NFPC, RRMNA is the only facility in the United States with the capability and capacity to produce castings in the size necessary to meet VIRGINIA Class propulsor requirements. RRMNA also possesses the requisite skills and equipment to machine rotors, stator blades, and has continually demonstrated that capability via contracts awarded by Naval Sea Systems Command (NAVSEA) and NSWCCD.

Since 2005, RRMNA has been awarded rotor production contracts on a sole-source basis. These awards include contracts N00024-12-C-4158 and the currently active N00024-21-C-4111. BOAs N00024-11-G-4405, N00024-16-G-4104 and the currently active N00024-21-G-0002 have been awarded in support of the RRMNA production contracts for VIRGINIA Class hardware and support services.

The prerequisite of an unproven source would, at a minimum, require adequate facilities and process development before any other source could begin production. Based upon engineering estimates, the Government anticipates that a new source would incur a cost of approximately $30M to $50M to obtain the requisite facilities, equipment, and personnel in order to satisfy the Government’s rapid production needs. Additionally, like NFPC’s facility upgrades which took five years to complete, an alternate source would also be expected to undergo significant similar foundation and building structural enhancements or new construction efforts to support component and equipment weight. Procurement of machines would proceed at least partially in parallel, though post-foundation installation of these machines (>6 months) and the demonstration/validation of casting processes (>1 year) followed by satisfactory machining and destructive testing (>1 year) results in a total delay of at least three years.

The exact duration of the delay is highly dependent on factors that cannot be assessed until the facility improvements are in progress; in particular, foundation and building enhancements carry a high risk of problem discovery once the project has begun, resulting in a high schedule risk to the program. The benefits of competition do not outweigh the immense cost and schedule delays that would be encumbered by an unproven source.

In the Fall of 2021, NFPC identified the need to offload some stator blade work as soon as practicable due to the increase in workload, thereby causing their inability to meet in-yard-need-dates. The Propulsor Program anticipated this need, which led to the award of Order N00024-19-F-4133 under BOA N00024-16-G-4104. Order N00024-19-F-4133 provided funding to RRMNA to become qualified to cast, machine and paint VIRGINIA Class propulsor stator blades. This qualification effort required the completion of two stators; one through casting which was destructively tested and the second that has been delivered as a ready-for-issue stator blade to BAE Systems for integration into propulsor forward subassemblies.

Based upon NFPC’s production data at the time of the J&A and acquisition plan development for the Block E production contract (N00024-21-C-411) and support BOA (N00167-21-G-0002), the Propulsor Program planned for the potential to procure one full set of stator blades at most, under BOA N00167-21-G-0002, as funding was not identified for stator efforts. In 2022, the VIRGINIA Class program office identified $6M for stator blade procurement efforts, which has resulted in an Order to RRMNA for half of a set of stator blades which was awarded in May 2024 as Order N0016724F0121. The procurement of this set, in addition to the other orders placed under BOA N00167-21- G-0002 has utilized the significant majority of ceiling authorized ($15M).

In FY23, NFPC identified the need to offload additional stator blades much sooner than anticipated (award need in Q1 of FY25), which has expedited the need to issue the follow-on BOA to N00167-21-G-0002.

This follow-on BOA will support both the current N00024-21-C-4111 production contract, as well as the follow-on production contract to be awarded to RRMNA in FY26.

Based on the foregoing, RRMNA is the only responsible alternate source to NFPC and no other supplier will satisfy the Navy’s needs. An award to any other source would result in a substantial duplication of cost to the Government, which would not be recovered through competition, and unacceptable delays in fulfilling the Navy’s requirements.

6. Description of Efforts Made to Solicit Offers from as Many Sources as

Practicable

Previous procurements with RRMNA were advertised in the Government point of entry, with no other qualified commercial vendor being identified. An Industry Day for propulsor component manufacturing was held at NSWCCD in August 2017. This Industry Day has been augmented by extensive site visits at commercial and Government facilities. RRMNA is the only vendor other than NFPC that possesses the capability, qualifications, and capacity to cast NAB rotors and stators for VIRGINIA Class. Although there are other vendors being qualified to machine NAB rotors for the VIRGINIA Class program, they have limited capacity and are unable to support the throughput required to meet shipyard delivery dates. No other supplier is qualified to machine stators.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 15.402, the Procuring Contracting Officer (PCO) shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The contractor’s proposal will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. Assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) may be utilized to analyze, evaluate, and negotiate. The PCO will use cost and price analysis, including historical cost estimating relationships from previous procurements, to determine that the final price to the Government is fair and reasonable.

8. Actions to Remove Barriers to Competition

At this time, RRMNA is the only identified source capable of meeting the Navy’s needs within the specified period of time. If another potential source emerges, NSWCCD will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, that are included in this justification and its supporting data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

APPROVAL BLOCK

Upon the basis of the above justification, I hereby approve, as Technical Director and Senior Executive of Naval Surface Warfare Center, Carderock Division (NSWCCD), the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1).

Technical Director, Naval Surface Warfare Center Carderock Division

Signature Name (Print) Date