JA 22018 FY22_FC_Production_JA_signed_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE SUITE 3600

WASHINGTON NAVY YARD DC 20374-5127

J&A 22,018 Code: SPN107

JUSTIFICATION AND APPROVAL (J&A) FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity. Strategic Systems Programs (SSP).

2. Description of Action Being Approved. Award of a contract on a sole-source basis for the procurement of technical engineering services, necessary for Strategic Weapons Systems (SWS) Fire Control Subsystem (FCS) production during Fiscal Year (FY) 2022 through FY24 to support the Common Missile Compartment (CMC) production, to General Dynamics Mission Systems (GDMS), 100 Plastics Avenue, Pittsfield, MA 01201.

3. Description of Supplies/Services

a. The following provides a brief description of the requirements of, and a funding profile for, the subject contract. Note that all quantities set forth below are conditional upon Congressional authorization and appropriations of funds and quantities.

b. GDMS will be required, as the prime contractor, to manage the overarching program vision and system requirements for the SWS FCS.

c. GDMS will procure the necessary components and efforts for the U.S. and UK SSBN FCS and the U.S. and UK SWS Data Systems (SDS).

d. GDMS will be responsible for the Long-term supportability and sustainment efforts, including research and development activities aimed at implementation of new technology within the FCS as required to offset obsolescence, meet emerging mission requirements, and avoid cost growth.

e. GDMS will be responsible for the procurement of technical engineering services, design and development engineering component, full scale test and evaluation engineering, and tactical underwater SWS FCS subsystem hardware production in support of the CMC development and production efforts for the U.S. COLUMBIA and UK DREADNOUGHT class submarines.

f. GDMS will procure, install and test SWS FCS subsystem hardware in support of the U.S.

OHIO and UK DREADNOUGHT platforms and land based facilities.

d. The following table delineates the estimated contract value, with an anticipated period of performance 01 July 2022 through 31 December 2025 with final completion scope being delivered on 30 June 2028. The table includes by appropriation the value of all options. The total value of the authority requested under this J&A in the table below is $237,959,000. Values are presented in Then-Year dollars.

APPROPRIATION

($ in Millions)

Total

SCN Total $196.881 OPN Total $37.078

RDT&E Total $4.000 Total $237.959

Note: The J&A total value is lower than the net estimated values of funding cited from the aggregate amounts in the applicable Acquisition Plan as a result of the omission of an effort that is outside of the scope of this justification.

4. Statutory Authority Permitting Other Than Full and Open Competition. 10 U.S.C.

2304(c)(1). There is only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying use of Cited Authority.

a. The contract will be for effort related solely to the SSBN TRIDENT II (D5) SWS FCS and the CMC Production of COLUMBIA platform that is predicated on the TRIDENT II (D5) SWS FCS, of which GDMS has had the responsibility for the design, development, production, installation, and documentation under prime contracts for these supplies and services with the Government. Due to the technical complexity of the programs and systems, a thorough knowledge of the design, production, and assembly is essential so that the various categories of work described within the contracts are performed in a timely and cost efficient manner.

b. The Pittsfield facility operated by GDMS has been the location of the prime contractor for the TRIDENT II (D5) SWS and AWCS Systems for over 50 years. GDMS-Pittsfield possesses the facilities, advanced development labs, detailed knowledge of the Equipment Technical Data Packages and SSP Requirements Documents needed for performance under the contract, including intimate knowledge of existing design elements pertaining to nuclear safety. Therefore, GDMS is the only source capable of fulfilling the Government’s requirements without causing unacceptable program delays and substantial increases in costs.

c. In selecting another contractor to perform this work, the Government would encounter substantial, unrecoverable duplication of cost. To quantify those costs, SP23 determined the expertise and infrastructure needed to perform the work required by using contractual/work history for TRIDENT I and TRIDENT II. Through this review, SP23 determined that selection of another source would require the Government to incur anticipated training, development, and qualifying of another contractor costs totaling approximately $260M in addition to the costs incurred of maintaining GDMS as the contractor until a viable new source is selected.

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

Based on meeting the requirements above, it would take two to three years to qualify and transition to a new contracted source. Furthermore, the Government would encounter additional costs as a result of maintaining and resourcing duplicative organizations while qualifying an alternative source during a transition. Any delay in qualifying another contractor would directly impact the ability to successfully sustain capabilities across the existing Fleet and further delay ongoing development, production, and installation of developed and emerging capabilities which would adversely affect Fleet readiness and national security.

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

A Sources Sought Notice was posted on Beta System for Award Management (SAM) on May 21, 2021. No responses to the Sources Sought Notice were received.

A Pre-Solicitation Notice was posted on SAM.gov on August 4, 2021. No responses to the Pre-Solicitation Notice were received.

Further, SP23 also relies on regular market research and survey reports conducted annually by Naval Surface Warfare Centers (NSWCs) to maintain an understanding of developments and capabilities within the industry.

As such, SP23 has determined, for reasons identified in this section and Section 5, that GDMS is uniquely qualified to provide the required supplies and services and that qualification of an alternative source would represent an untenable impact to the SSP mission and introduce an unacceptable level of risk to the program and subsequently national security.

7. Determination of Fair and Reasonable Cost

a. The Contracting Officer will utilize various methods and analyses to determine that the cost to the Government for the supplies and services covered by this J&A will be fair and reasonable in accordance with FAR 15.402(a). These methods include but are not limited to:

thorough technical analysis of hours and material by Government subject matter experts; DCAA audits of the proposal; the use of DCMA negotiated Forward Pricing Rate Agreements and/or Forward Pricing Rate Recommendations; and cost and price analyses using actual costs from previous Fire Control contracts. Additionally, cost analyses, to include DCAA assist audits, are performed for all major subcontractors over the certified cost or pricing data threshold. For subcontractors under the certified cost or pricing data threshold, various methods including but not limited to: competitive and commercial pricing comparisons; historical pricing reviews; and price analyses utilized to determine fair and reasonable cost.

b. Based on the above, the Contracting Officer has determined that the anticipated cost to the Government of the supplies and services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition

a. For the reasons set forth in Section 5, SSP has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, SSP will assess whether competition for future requirements is feasible. Due to the fact that this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(ii).