JA Redacted.pdf

J&A No. 23,003 SSP Code (SPN208)

DEPARTMENT OF THE NAVY

STRATEGIC SYSTEMS PROGRAMS

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Strategic Systems Programs (SSP)

2. Description of the Action Being Approved.

Award of a contract on a sole source basis to Northrop Grumman Innovation Systems (NGIS) for the capital maintenance of equipment and facilities at the Naval Industrial Reserve Ordnance Plant (NIROP) Magna, Utah in support of the TRIDENT II (D5) Missile Program.

3. Description of Supplies/Services.

Provision of services to complete capital maintenance projects and related capital maintenance studies. Capital maintenance is that work which is in excess of normal maintenance, that is major rehabilitation or repair work, which is not repetitive in nature and has a relatively long life span.

Projects completed as part of this effort are limited to non-severable improvements, repair, or modifications of Navy-owned land, buildings, and support utilities. The Capital Maintenance of NIROP facilities is considered essential for support of the D5 program and other on-going FBM programs at the Magna, Utah facility. The period of performance of this acquisition is anticipated to be 1 April 2023 to 31 March 2026.

Estimated Dollar Value: FY23 WPN

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), One source.

DEPARTMENT OF THE NAVY

DIRECTOR STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127 IN REPLY REFER TO:

J&A No. 22,009

5. Rationale Justifying Use of Cited Statutory Authority.

In order to maintain safe and reliable operations at its NIROP facilities, SSP’s Enterprise Infrastructure and Capabilities Branch (SP25) representatives have determined that only the entity having custody and use of the NIROP facilities can perform, or coordinate as the general contractor the performance of, the necessary capital maintenance of NIROP equipment and facilities in the secure, safe, efficient, reliable, and timely manner required by the Government.

For example, due the sensitive and dangerous nature of the work conducted within the facilities, sources operating in the facilities to carry out capital maintenance tasks must maintain secret security clearances and the requisite need-to-know, and have the functional and technical expertise to perform tasks in accordance with DoD and Navy specific specifications, such as the Naval Sea Systems Command’s OP5 Ammunition and Explosives Safety Ashore specifications.

Utilization of a third party contractor would require that contractor to have access to sensitive information, including the operating contractor’s schedule, capabilities, and other proprietary industrial information. Only NGIS possesses the requisite clearance, need-to-know, and technical expertise.

Although the operating contractor manages and schedules all capital maintenance, the majority of the projects utilize local subcontractors. That said, it is neither feasible nor practicable for the Government to arrange for third parties not under the control of the operating contractor to perform the above work without the attendant prohibitive difficulties discussed above concerning access to the site of the facilities and scheduling of work. Even if it were feasible for the Government to function as the general contractor, it would increase the risk of cost (e.g.

increased labor for escorts and project support), schedule (e.g. construction timelines overlapped w/ mission need dates), safety (e.g. ordnance/explosive safety), security (e.g. operational security and sensitive equipment/ mission data) for the Government to attempt to manage multiple individual capital maintenance contracts with these contractors

Finally, only performance by or on behalf of the entity having custody of and using the NIROP facilities will result in the certainty required by the Government in tracking responsibility and mitigating production risk related to the facilities and operations performed therein. Capital maintenance projects and related studies performed by another contractor not under the control of the operating contractor would increase uncertainty and complicate determinations of liability for damage should an accident occur, responsibility for work done should a problem arise at a later date, and responsibility for impact on the production schedule due to maintenance or related activities.

Consequently, the contractor with custody and overall responsibility of the operation of the NIROP, NGIS, is the only viable source from which the proposed capital maintenance and related studies can be procured.

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

A Sources Sought Notice (SSN), which is required by the Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information (PGI), was posted to the Government-wide Point of Entry ( .gov) on 09 November 2022 in an effort to promote competition. The SSN sought to identify businesses capable of managing and performing capital maintenance of equipment and facilities at the NIROP facilities located in Magna, Utah. SSP received three (3) responses to the referenced SSN. In addition to failing to address the concerns outlined in paragraph 5 above, the responses lacked or failed to provide sufficient examples of requisite explosive safety experience and familiarity with operations at Magna, NIROP. As a result, SP25 concluded that NGIS is the only company capable of satisfying the requirement.

A synopsis, which is required by the Federal Acquisition Regulation (FAR), was posted to .gov on 09 November 2022 publicizing SSP’s intent to award a sole source contract to NGIS to provide the required capital maintenance. The synopsis closed on 22 November 2022, no other potential sources expressed an interest in this requirement. As a result, it was determined that the requirement would be awarded on a sole source basis to NGIS.

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 J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5 and from the lack of results and interest obtained from the Sources Sought Notice, SSP has no plans at this time to compete future requirements for the types of services covered by this J&A. If another potential source emerges, SSP will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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

Technical Cognizance:

Signature/Date Name (Printed)

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CHIEF OF THE CONTRACTING OFFICE

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

COMPETITION ADVOCATE FOR THE CONTRACTING ACTIVITY

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Contracting Activity of Strategic Systems Programs, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C 2304(c)(6), National Security.

BIRMINGHAM.MATTHE

W.JAMES.1140307676

Digitally signed by

BIRMINGHAM.MATTHEW.JAMES.11403076

Date: 2022.12.27 13:47:52 -05'00'