JandA Redacted.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 Number: 64,245 Code: 02645

PR: N00024-20-NR-99505

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Undersea & Unmanned Systems Contract Division, SEA 026.

2. Description of the Action Being Approved

NAVSEA will use other than full and open competition to award a sole source contract to Northrop Grumman Aeronautics Systems (NGAS), Melbourne, FL, for FY21–FY28 production of Airborne Laser Mine Detection System (ALMDS), associated Engineering Support Services (ESS), Support Equipment, Depot Services, and Software Support.

3. Description of Supplies/Services

The proposed contract is for FY21–FY28 production, test, and delivery of ALMDS units and yearly ESS, Depot Services, and Software Support for one (1) base year and seven (7) one-year options. Yearly system quantities procured may fluctuate based on funds availability, but the total aggregate amount will not exceed seven (7) ALMDS units. This contract action will complete ALMDS production procurements as these systems will fully satisfy the Fleet’s requirement. The ALMDS AN/AES- 1 is a Light Detection and Ranging (LIDAR) Airborne Mine Countermeasures (AMCM) high area coverage system that detects, classifies, and localizes surface and near-surface moored sea mines. The ALMDS final production contract will be Firm-Fixed-Price (FFP) for production units and Peculiar Support Equipment (PSE); Cost-Plus Fixed-Fee (CPFF) Level of Effort (LOE) for Depot Services, Software Support, and ESS;

and Cost-Only for Other Direct Costs (ODCs).

The estimated value of this acquisition is as shown in the funding profile below.

J&A Number: 64,245

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. § 2304(c)(1), One or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority

The ALMDS provides mine detection for use in the LCS Mission Modules in order to deliver mine countermeasure capability to the Fleet. NGAS is the sole developer and original equipment manufacturer (OEM) of the ALMDS and related equipment. The FY15 contract was competitively solicited and only one Offeror, NGAS, responded. Consequently, only NGAS, as the OEM, has the existing manufacturing processes, production line, and requisite knowledge of the ALMDS design and LIDAR technology to meet the Government’s technical requirements and schedule.

The Program Executive Office for Unmanned Surface Combatants (PEO USC), Program Management Ships for Mine Warfare (PMS

495) possesses the requisite data rights, as well as a Level 3 Technical Data Package. Notwithstanding the Government’s data rights, transitioning to another contractor is not practical given costly start up, production readiness testing, loss of learning and other cost factors nor is it viable given the schedule constraints of responding to immediate fleet requirements such as field support, repairs, and test. To satisfy these fleet support requirements a contractor needs functionally similar capabilities as are needed to deliver production units, such as the capability to fabricate repair and spare parts, and including the depot-level, laser-safe production and test facility addressed below.

Therefore, pursuant to 10 U.S.C. § 2304(c)(1), NGAS is the only responsible source that possesses the necessary expertise to fabricate, assemble, and deliver the ALMDS and related technical services without causing substantial duplication of cost that is not expected to be recovered through competition and unacceptable delays in fulfilling the Navy’s requirements.

Programmatic cost estimates and analysis conclude that it would cost the Government a minimum of in duplicative cost to bring an alternative source, other than NGAS, up to a level capable of satisfying production and in-service system support requirements. These duplicative costs are to attain a Capability Maturity Model Integration (CMMI) certified depot level laser-safe production and test facility. The scope and cost estimates provided above are based on historical actual costs and ongoing efforts including the current contract, N00024-15-C-6318. These costs would not be readily recovered by competing this sole remaining contract that brings the ALMDS to its end of life.

PMS 495 estimates that the time required for an alternative source to develop the requisite capabilities to manufacture and support ALMDS would exceed three years. This time estimate was derived from the amount of time determined by subject matter experts to perform these tasks, including NGAS’s production and delivery times. The unacceptable delays would severely impact the Government’s need date.

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

This procurement was synopsized on 06 February 2020 and again on 8 December 2020. To date, no expressions of interest have been received. Market research indicates that no other viable candidates are likely to participate if this requirement were competed.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. The Contracting Officer will use cost and price analysis to determine that the final price is fair and reasonable. NGAS has a significant history of producing the ALMDS, providing the cost/price evaluators the historical cost data required for the Navy to negotiate a fair and reasonable contract price for this procurement.

Assistance from the Defense Contract Audit Agency (DCAA) and

Defense Contract Management Agency (DCMA), and cognizant NAVSEA Technical Experts will be utilized as appropriate to analyze, evaluate, and negotiate based upon detailed cost and pricing data, which will be certified by NGAS at the conclusion of negotiations.

8. Actions to Remove Barriers to Competition

Not applicable since this contract action represents the final ALMDS production and in-service systems support procurement. The Navy is currently assessing competitive approaches for the ALMDS replacement systems, the COBRA Block

II.

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as the Senior Procurement Executive of the Navy, 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)(1).

Frederick J. Stefany Date Acting Assistant Secretary of the Navy (Research, Development, and Acquisition)