JA 21506_3 August 2020 Approved_Redacted For Posting.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER TO

J&A No. 21,506 Code: 02233 P.R. No: N00024-20-MR-59047

JUSTIFICATION AND APPROVAL TO PROCURE USING OTHER

THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Shipbuilding Contracts Division (SEA 022).

2. Description of the Action Being Approved

This proposed sole source contract modification is to extend the ordering period by one (1) year and increase the ceiling under Indefinite Delivery Indefinite Quantity (IDIQ) Contract No.

N00024-17-D-2321 with BAE Systems, San Diego Ship Repair Inc., (BAE SDSR), 2205 E. Belt Street, San Diego, CA 92113. The modification will encompass execution yard work, maintenance and modernization efforts including, but not limited to post delivery, post shakedown, combat systems and continuous maintenance availabilities for DDG 1000 and DDG 1001. The current contract ceiling is and the current ordering period for this contract ends on 30 Sep 21. It is estimated that the current ordering ceiling will be reached prior to the end of the current ordering period.

3. Description of Supplies/Services

The DDG 1000 Class is a technology engine for the Fleet, an example of the Navy’s Open Architecture initiative that will deliver a broad range of capabilities to future and legacy ship classes, as well as to other enterprise platforms. The DDG 1000 Technology Development Strategy (TDS) is evolutionary by design and implementation. The DDG 1000 Program, which leveraged development work from the DD 21 Program, emphasizes advanced technology development and assessment process using Engineering Development Models (EDMs), disciplined systems engineering design reviews, and risk mitigation. The unique design of this ship involves compact and densely populated design and arrangements of combat systems and machinery spaces, a high ratio of integrated electronic systems and components, J&A No. 21,506 challenging habitability requirements, and highly technical testing and trial requirements.

The increase in ceiling and extension of the ordering period is to support DDG 1000 and 1001 to include program management, industrial efforts, and corrective and preventative maintenance. Additionally, work will include efforts required to support DDG 1000 and 1001 Post Delivery Availabilities (PDA), Combat System Availabilities (CSA), Post Shakedown Availabilities (PSA) and all other ship maintenance, modernization and availability windows that support DDG 1000 and 1001 Class Hull Mechanical and Electrical (HM&E) and Combat Systems.

Estimated costs for supplies and services to be procured during the remaining and extended ordering period are described below.

(Values in millions) FY20 FY21 FY22 Total

SCN

O&M,N

OPN

Total

4. Statutory Authority Permitting Other Than Full and Open Competition

10 United States Code (USC) 2304 (c)(1), as implemented by Federal Acquisition Regulation (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, BAE SDSR is under contract for the aforementioned support to DDG 1000 and DDG 1001. BAE SDSR, has invested resources and established themselves as the single point of contact for the various contractor and Government entities involved in CSA, industrial efforts and maintenance. BAE SDSR has installed equipment required for CSA for DDG 1000 and DDG 1001, gaining in depth and unique knowledge of the ships. Once installed, the ships’ combat systems rely upon a fully functioning and reliable power system in order for CSA to be completed successfully. BAE SDSR has maintained the HM&E plant for DDG 1000 and DDG 1001, gaining unique knowledge of the requirements for the system to function properly. Engaging a new contractor during the execution of CSA will result in an unacceptable schedule delay as a new contractor builds their experience with the newly installed combat system and HM&E plant on DDG 1000 and DDG 1001.

The time and resources required to provide continuity to the work already started by BAE SDSR on DDG 1000 and DDG 1001 described above are extensive. A broad spectrum of capabilities, requiring time to develop, are necessary to complete and maintain fully functional and fully integrated systems. The engineering, design, assembly, integration, testing and maintenance requirements across multiple systems require the prime contractor to invest a significant amount of effort to develop resources able to support DDG 1000 and DDG 1001. BAE SDSR, has invested these resources and established themselves as the single point of contact for the various contractor and Government entities involved in CSA, industrial efforts and maintenance. The time required for a new contractor to become familiar with DDG 1000 and DDG 1001 and create the necessary infrastructure is estimated at 21 months, which would result in unacceptable delays to the completion of combat systems activation scheduled for

, as well as significant impact to the DDG 1000 PSA that is scheduled for . Furthermore, this would then subsequently delay the ability to perform preventative and corrective maintenance, resulting in decreased fleet readiness and delays in delivery to the fleet. Therefore, BAE SDSR is the only qualified source with the requisite expertise and capabilities to complete execution yard work, maintenance and modernization efforts without significant disruption to the program schedule. Following the completion of the efforts under this IDIQ future work will be transitioned to the fleet, Southwest Regional Maintenance Center (SWRMC), and NAVSEA 21 for future management.

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

The requirement to issue a sources sought notice per Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI) 206.302-1 was waived because no other company has sufficient familiarly with the unique aspects of the DDG 1000 and 1001 for execution yard work, maintenance and modernization efforts.

In accordance with FAR 5.2, a synopsis of this solicitation was posted on the beta.sam.gov website on 14 May 2020. No responses to the synopsis have been received to date. No additional market research was conducted because it is not practicable for the reasons discussed above for any other company other than BAE SDSR to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs.

The Contracting Officer has determined that the anticipated cost to the Government for this contract action will be fair and reasonable. Pricing assistance will be required to facilitate analysis of costs proposed by the contractor.

8. Actions taken to remove barriers to competition.

For the reasons set forth in Paragraph 5, the Naval Sea Systems Command, Shipbuilding Contracts Division (SEA 022) has no plans at this time to compete contracts for execution yard work, maintenance and modernization efforts including post delivery, post shakedown, combat systems and continuous maintenance availabilities for the time period specified for DDG 1000 and

DDG 1001.