BAE JA 026 02102026 Redacted_Final.pdf

CUI

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER TO

Controlled by: Department of the Navy Controlled by: NSWCCD, Code 02 CUI Category: PROCURE Distribution/Dissemination Control: NOCON POC: Tariq Al-Agba, tariq.s.alagba.civ@us.navy.mil, 301-227-3364

J&A Number: N00167-25-RFPREQ-CD-0079.02

Code: 808 PR Number: TBD

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity

Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Carderock Division (NSWCCD), Contracting and Acquisitions Department (Code 02).

2. Description of Action Being Approved

NSWCCD intends to use other than full and open competition to award a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract with both Firm-Fixed-Price (FFP) and Cost-Plus-Fixed- Fee (CPFF) provisions on a sole source basis to BAE Systems Platforms & Services Division (BAE) for the procurement of material, manufacturing, assembly, delivery and support for the VIRGINIA Class Submarine (VCS) Propulsor

3. Description of Supplies/Services

NSWCCD�s Advanced Propulsor Management Office (APMO), in support of VCS Program Office (PMS450), requires procurement for material required to manufacture and deliver the VCS Propulsor for Fiscal Year (FY)26-FY28 VIRGINIA Class boats, the manufacture and delivery (M&D) of VCS for the FY26-FY27 VIRGINIA Class boats, and for procurement of advanced propulsor hardware, equipment, materials and engineering related services for propulsors as required by the program.

This IDIQ contract will be established as a follow-on to NSWCCD IDIQ Contract No. N00167-24- D-0004, which provides for the material, manufacturing, and delivery of VCS Propulsor

, as well as associated spares and engineering support services. This IDIQ contract will have an ordering period of 60-months from the date of award and the first delivery order (DO) will provide the material for two (2) VCS Propulsor .

The Product Service Code (PSC) for this procurement will be 2010 for Ship and Boat Propulsion Components and is aligned with Government taxonomy associated with the acquisition of services, supplies, and equipment.

J&A Number: N00167-25-RFPREQ-CD-0079.02

Code: 808 PR Number: TBD and associated equipment in support of existing in-service units, new construction ships and support needed for Large Scale Vehicle (LSV) testing efforts.

Due to mission needs, VCSs have continued to be constructed at an expedited rate and the Propulsor is in high demand. Construction of the VCS cannot be completed without the delivery of the Propulsor , and immediate follow-on contract support is required to prevent disruption of the FY26-30 Virginia Class boat construction schedule.

Further, an alternate source would be expected to undergo significant equipment, fixture, facility, training, and qualification upgrades, costing at a minimum $58M before being able to qualify to produce VCS Propulsor . Total equipment costs are dependent on what equipment an alternate supplier already possesses that can meet stringent VCS Propulsor manufacturing requirements. To maintain the work throughput necessary to meet schedule requirements, potential suppliers would need to either possess or procure either two large 5-axis multi-function Computer Numerical Controlled (CNC) machines with turn tables (~$25M each) or two CNC turning machines (~$12M each) and two horizontal boring mills (~$10m each), as well as weld positioners ($1M each), welders designed specifically to VCS propulsor welding requirements (~$300K each), layout areas (~$500K), paint booth (~$5M), and laser and test equipment (~$2M). Further, any potential supplier would need to either already possess or procure a cleared for classified building (~$5M-$7M) large enough to house all of the aforementioned equipment with adequate crane support. Both current and previous market research indicates that no other vendor has the capability, facilities and equipment to manufacture VCS Propulsor without significant Government investment.

The cost impact of a delay would result in the additional expenditures of taxpayer dollars that cannot be recovered through competition.

If the Government were to solicit the subject requirements, the estimated time frame for an alternate vendor to achieve the requisite qualifications and complete an approved first article unit would take at least two years. This time frame would encompass developing the vendor's necessary manufacturing capabilities; conducting preliminary technical meetings and briefs with the new vendor; inspecting the vendor's facilities and verifying clearance requirements; certifying the vendor's specialized equipment and necessary tooling; qualifying the vendors personnel and;

approving the vendor's processes and procedures. Even after the vendor obtains the requisite qualifications, the vendor would still require additional time for drawing review and analysis in anticipation of primary production and to establish supply sources for material requirements. In addition to the at least two-year new vendor ramp up, and based on standard procurement lead times, it would take approximately two additional years to complete a competitive source selection.

Mission needs require the vendor to be "ready-in-place" with all requisite certifications, specialized knowledge, trained personnel and appropriate facilities to seamlessly execute the subject efforts upon contract award. The rate at which the VCSs are being built simply does not leave a large enough window for a new vendor to complete the necessary qualifications without causing a substantial delay in the construction schedule. An award to any other source would result in inefficiencies, and unacceptable delays in fulfilling the Government's operational requirements.