N00024_22030.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001 IN REPLY REFER TO

CJ&A Number: 22,030 Code: 02244 P.R. Number: 23NR57051

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

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

2. Description of the Action Being Approved

Award of contract actions on a sole source basis to Huntington Ingalls Incorporated, acting through its Ingalls Shipbuilding division (“Ingalls”), 1000 Access Road, Pascagoula, MS 39567, for the Long Lead Time Material procurement (LLTM) and Detail Design and Construction (DD&C) of the SAN ANTONIO Class (LPD) 34 and 35 Amphibious Transport Dock Ships and for SAN ANTONIO Class Life Cycle Engineering and Support (LCE&S).

The planned contracts are supported by NAVSEA Program Acquisition Plan No. 317-19-001 approved 1 October 2019 by Program Executive Officer, Ships RADM William Galinis.

The Department of the Navy’s award of LPD 34 and 35 are subject to Section 129 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023 (H.R. 7776/P.L.

117-263 of December 23, 2022) which permits the Navy to enter into one or more contracts for procuring up to five SAN ANTONIO Class (LPD) or AMERICA Class (LHA) type amphibious ships if the Secretary of the Navy makes written certification of the seven items noted in Section 129(b) to the congressional defense committees.

Authority to act under this Class Justification and Approval (CJ&A) expires with the Obligation Work Limiting Date (OWLD) of LPD 35, estimated to occur in 30 April 2037.

3. Description of Supplies/Services

The proposed contract actions will provide for the LLTM and DD&C of up to two SAN ANTONIO Class Flight II ships; including associated technical manuals, post-delivery availability planning, systems integration and engineering support, design, material readiness, logistics support, and miscellaneous material, such as Coordinated Onboard Shipboard Allowance List (COSAL) material, and shore based spare parts. The contemplated contract actions will also contain an ordering provision for material to support this effort.

Naval forces will continue to require amphibious ship capabilities to support Marine Air- Ground Task Force operations across the full range of military operations from forward presence, engagement, humanitarian assistance/disaster relief to forcible entry and major combat operations. Flight II ships will be built with a derivative of the LPD 17 hull form to

In accordance with FAR Subpart 6.302-1(a)(2)(ii), this procurement is a follow-on contract for the continued development or production of a major system that is available only from the original source. Based on full and open competition, the original contract for detail design, construction, integration and testing of the first three SAN ANTONIO Class Flight I ships was awarded to Avondale Industries, Inc. (AII) (now Ingalls) in 1996. Ingalls has since been awarded ten additional SAN ANTONIO Class Flight I ships and three additional Flight II ships using other than full and open competition. Despite the Navy’s efforts to solicit offers from as many sources as possible under the LX(R) Amphibious Ship Replacement Program (see paragraph 6), Ingalls remains the only responsible source for the LPD 34 and

35 DD&C.

Award to any other source would result in an unacceptable delay in fulfilling the agency’s requirement to replace retiring LSD 41/49 Class ships. Adapting another shipyard resources and processes to be able to design and construct LPD 34 and 35 is anticipated to delay the delivery date over two years which is an unacceptable risk to the U.S. Navy’s amphibious fleet. Ingalls is the only company possessing the requisite expertise, equipment, facilities, trained personnel, and knowledge of the unique complex characteristics of the Class to efficiently provide life cycle support without significant delay and substantial duplication of costs.

Award to any other source would also result in substantial duplication of cost that is not expected to be recovered through competition. Based on the detailed LX(R) Amphibious Ship Replacement Program analysis involving studies from the two potential sources, it is estimated that just the non-recurring engineering associated with an alternative source could be as high as The cost to the Government to acquire an alternative source to perform the DD&C of LPD 34 and 35 would be prohibitive relative to the current and forecasted budgets.

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

Four SAN ANTONIO Class Flight II ships and two previous LCE&S contracts for LPD 17 Class ships have been previously synopsized on the System for Award Management (SAM.gov) website. To date, only Ingalls has expressed an interest in the DD&C of any SAN ANTONIO Class Flight II ship and the LPD 17 Class LCE&S. An additional two SAN ANTONIO Class Flight II ships were synopsized on SAM.gov on 04 August 2023. All additional contracts resulting from this J&A will be synopsized per FAR 5.201(b). A sources sought waiver was approved for LPD 34 and LPD 35 on 18 August 2023.

The Navy conducted market research as part of the LX(R) Amphibious Ship Replacement Program, now named LPD Flight II. From the limited number of U.S. shipyards with the facilities and resources to design and subsequently construct a ship the size of a large deck amphibious ship, the Navy narrowed down the potential sources to Ingalls and General Dynamics NASSCO (“NASSCO”). During the timeframe of FY14-FY17, they were each awarded a contract for early industry involvement, design engineering services, and special studies including support of the LX(R) Analysis of Alternatives and follow on ship design and affordability efforts. In July 2017, NASSCO notified the Secretary of the Navy that they will not bid on the LX(R) program. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Ingalls to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For reasons set forth in paragraph 5, the Naval Sea Systems Command, Shipbuilding Contracts Division (SEA 022) has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, SEA 022 will assess whether competition for future requirements is feasible. As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior CJ&A was 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)(S-70)(ii).