CJA_SP23 Guidance FY23Production and FY24Omnibus_Redacted.pdf

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DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1210TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

CJ&A 22,035

Code: SPN303

CLASS JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Department of the Navy’s Strategic Systems Programs Office (SSP) located at the Washington Navy Yard, 1250 10th Street SE, Washington, D.C. 20374.

2. Description of the Action Being Approved. This Class Justification and Approval (CJ&A) is for the award of multiple contracts on a sole-source basis for the procurement of the SSP sustainment and development of the Guidance and Reentry subsystems, and production efforts for both the United States (U.S.) and United Kingdom (UK) TRIDENT II (D5) Strategic Weapon

System (SWS) Guidance Subsystem. The Fiscal Year (FY) 23 – FY25 Guidance production contract will include production and repair efforts for the current U.S. and UK TRIDENT II (D5)

SWS Guidance System. The FY24 – FY28 Guidance Omnibus contract will be the sustainment support for the current U.S. and UK TRIDENT II (D5) SWS Guidance Subsystem and development of the 2nd Life Extension (D5LE2) of the Navy’s Guidance Subsystem for the SWS.

The contractor is Charles Stark Draper Laboratory (CSDL). The authority to act under this class justification expires on 30 September 2028.

3. Description of Supplies/Services

a. CSDL will be required, as the prime contractor, to manage the overarching program and system requirements of the SWS Guidance and Reentry subsystems. This CJ&A covers the following anticipated contracts:

FY 23 – FY 25 Production Contract: The period of performance will begin upon execution of contract award and will continue through 31 July 2028 with a total contract value of $330M.

The FY23 – FY25 Guidance Production Contract will include MK6 MOD 1 Guidance

Subsystem production and Guidance Subsystem sensor repair efforts. The contract will consist of a base period plus two options.

FY 24 – FY 28 Omnibus Contract: The period of performance will begin on 01 October 2023 and will continue through 30 September 2030 with a total contract value of $2.53B. The FY24 –

FY28 Guidance Omnibus Contract will include the sustainment support for the current U.S. and

UK TRIDENT II (D5) SWS Guidance and Reentry Subsystems, Guidance Subsystem integration into COLUMBIA and Dreadnought construction, and development of the D5LE2 Guidance

Subsystem. The contract will consist of a base period plus four options.

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advanced GNE&C technologies directly related to Government programs. No other source has this level of capabilities or comprehensive knowledge of the TRIDENT II Guidance and Reentry

Subsystem in support of SSP strategic mission.

c. An analysis conducted by the Government shows competing these efforts would result in substantial, unrecoverable duplication of costs in the amount of ~$740M. The alternate source would have to duplicate the CSDL facility, and operation test and engineering evaluation equipment (~$350M), train the new workforce to generate internal documentation to implement established over-arching Government and CSDL-provided higher level documentation, and establish SSP engineering, quality, and reliability systems (~$390M). Currently, there is no other source capable of meeting these requirements without detrimental impacts to the MK6

MOD 1 transition schedule and it is not reasonable to expect these costs to be recovered through the competitive process.

d. If selected, another contractor would cause detrimental delays in the readiness of the

Fleet. Specifically, using another source would cause a delay to the MK 6 MOD 1 transition by a minimum of three (3) years as a result of efforts to get the new source qualified. This delay would impact Strategic Command (STRATCOM) planning factors and force the continued deployment of MK6 MOD 0 Guidance systems which are no longer repairable and risk being unable to meet fleet requirements until the MK6 MOD 1 transition is complete.

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

a. A sources sought notice was posted to the System for Award Management (SAM) website for efforts included in the FY23 – FY25 Guidance Production Contract requirements on 17

February 2022. No sources responded to this notice with any capability statements meeting the requirements of the posted draft Statement of Work (SOW). Additionally, a presolicitation synopsis for the FY23 – FY25 Guidance Production Contract was released on 15 March 2022 and no responses were received.

b. A separate sources sought notice was posted to the SAM website for efforts under the efforts included under the FY24 – FY28 Omnibus Contract requirements on 24 June 2022.

Honeywell and RV Global Solutions, Inc. responded to this notice. Both responses were reviewed by the SP23 technical team, with their capabilities identified and compared to the technical and programmatic requirements, and it was determined that neither have the necessary knowledge or experience to be a viable source for the TRIDENT II (D5) Guidance and Reentry

Subsystems contract. Neither demonstrate having the unique infrastructure in place to support ongoing TRIDENT II (D5) Guidance and Reentry programs. Selecting either Honeywell or RV

Global Solutions, Inc. would pose an unnecessary risk to current programs of record and to potentially meeting STRATCOM requirements. Additionally, a presolicitation synopsis for the

FY24 – FY28 Omnibus Contract was released on 05 August 2022 which received no responses.

c. Other strategic market research efforts have been ongoing, to include surveying Guidance and Reentry technologies and systems and actively monitoring relevant Department of Defense

(DoD) activities in the area of precision Guidance development. At this time, the strategic market research confirms that it is not practical, for the reasons discussed in paragraph 5 above, for any company other than CSDL to provide the required services and supplies in these

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contracts given the complexity of the efforts being procured in this highly specialized and unique

Guidance and Reentry Subsystems requirements. Furthermore, SSP conducted a Business Case

Analysis (SSP BCA #22,035.1) which provides further analysis on cost and schedule impacts the

Government would encounter in qualifying another contractor to perform the efforts under this

CJ&A.

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in Section 5, SSP has no plans to compete future contracts for the types of supplies/services covered by this

CJ&A. If another potential source emerges, as discovered through the continual tactical and strategic market research processes, sources sought notices, and synopses, SSP will assess whether competition for future requirements is feasible. Because these are follow-on contracts for supplies and services previously awarded on a non-competitive basis, in accordance with

DFARS PGI 206.304(a)(S-70)(i), the prior J&As were provided to the approval authority for review. Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).