N00024_51115.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVENUE SE

WASHINGTON NAVY YARD, DC 20376 IN REPLY REFER TO

J&A No.: 51,115 Code: 0251 P.R. No.: N0002421NR44020

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Surface Systems Contracts Division, (SEA 025).

2. Description of Action Being Approved

NAVSEA intends to award a single award Indefinite Delivery, Indefinite Quantity (IDIQ) contract on the basis of other than full and open competition to procure system engineering support for advanced studies and early start efforts for current and future AEGIS Foreign Military Sales (FMS) customers, from Lockheed Martin Rotary and Mission Systems (LM RMS), located at 199 Borton Landing Road, Moorestown NJ, 08057. The IDIQ will have an ordering period of five years.

3. Description of Supplies/Services

NAVSEA has a requirement to procure system engineering support for the advance studies and the early start efforts for the development of the AEGIS Combat System architecture to generate required technical and design information that can be utilized as Government Furnished Information for any future Combat System development contract for current and future international partners employing AEGIS during Fiscal Years (FY) . LM RMS performed similar requirements in support of this effort under FMS Lifetime Support (LTS) Contract N00024-16-C-5103 and currently on the follow-on LTS contract N00024-21-C-5119 as described in contract line items (CLINs) for Advance Studies and Early Start efforts and approved with Justification and Approval (J&A) number 51,906. The planned ceiling hours on the follow-on LTS contract N00024-21-C-5119 for these efforts are projected to run out in 2022. This new IDIQ contract action will provide future advance studies and early start requirements. Work will be based on FMS customer requirements under the cognizance of the Program Executive Office for Integrated Warfare Systems 4.0 (PEO IWS 4.0).

J&A No.: 51,115

The scope of work requires the contractor to provide engineering and technical support for the following:

Planning activities, including trade-off studies and preliminary evaluation and analysis of planned capabilities for inclusion into the Combat System architecture.

Development of AEGIS Weapon System-level design requirements and specifications, system security requirements analysis, refactoring of software code, documentation development, and engineering support through Preliminary Design Review (PDR).

AEGIS Combat System sites (Naval System Computing Center (NSCC) and US Navy Combat System Engineering Development Site (CSEDS)) facility design and establishment. Effort for the infrastructure design, layout, and installation of Government Furnished Equipment.

Initial computer program development with software coding through level 3 element testing.

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

The estimated value of this J&A for the proposed IDIQ contract is based on the anticipated planned requirements. The Independent Government Cost Estimate (IGCE) for the labor rates was conducted using data gathered from the historical FMS LTS contract N00024-16-C- 5103 CLIN 0024 (Advance Studies and Early Start) and negotiated labor rates for the similar effort under contract N00024-21-C-5119 CLINs 0022 and 0023. The IGCE specific to each Task Order (TO) will be developed separately and based on historical cost actuals for similar requirements, Subject Matter Experts (SME), and program assumptions.

in which LM RMS alone has expertise.

As the original developer of these software baselines, LM RMS is the only existing source with the in-depth technical expertise, requisite engineering knowledge, resources, and infrastructure to perform advanced studies and early development.

In order to successfully meet the FMS customers' requirements, a contractor other than LM RMS would need time to gain a working knowledge of AEGIS Weapon System (AWS) software design and associated hardware.

Specifically, familiarity with the CMS-2 software language is required to assess the performance of the proposed capability under advanced studies and to perform the system level design and specification development under the early engineering effort. The Government does not possess complete Technical Data Packages (TDPs) for the entire AEGIS Baseline configuration for all international AEGIS partners. Because the international AEGIS partners have neither requested nor provided funding for TDP deliverables, the Government is not pursuing a contract to develop and validate such TDPs.

Since the inception of AEGIS FMS Programs, LM RMS has been the only source for AEGIS FMS efforts. Based on actual costs and schedule for similar programs conducted by LM RMS, the Government estimates that negotiation of a contract modification for the development and validation of a TDP for a particular AEGIS Baseline, and the subsequent creation and validation of the TDP, would take 8 to 12 months and cost greater than . In addition, a new contractor would require 18 to 24 months, for each of the current six FMS country baselines, from receipt of a validated TDP to: develop the technical understanding of the AWS and the corresponding engineering capabilities to conduct the Navy's FMS requirements; and to develop the necessary relationships with each of the FMS countries due to presence of indigenous systems working in conjunction with the FMS AWS configuration.

Based on the foregoing, award to a source other than LM RMS is likely to result in a delay of 26 to 36 months, for each FMS country baseline, from the date a FMS case is established until a new source is capable of meeting the requirements, which would not support the anticipated FMS customer requirements.

As noted in section 3, the AEGIS FMS customers Australia, , and Korea, , have directed that LM RMS be the Combat System Engineering Agent. This request has been accepted in the respective LOAs, supporting use of the authority in 10 U.S.C. 2304 (c)(4), and therefore the work under those FMS cases is not included in this justification. With respect to effort for the FMS customers addressed in this justification, based on cases for similar requirements it is expected that they will request LM RMS as the source for this work.

Typically, under such a scenario, 10 U.S.C. 2304(c)(4) provides authority to award a sole source contract to LM RMS based upon the terms of an international agreement. In this instance, the anticipated timelines for execution of FMS cases with the appropriate sole source designations do not support the projected procurement schedule for the contract discussed in this J&A. The absence of FMS cases allowing for use of the 10 U.S.C. 2304(c)(4) authority requires the approval of this J&A to support timely procurement of the FMS requirements.

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

Offerors as Practicable

In accordance with Federal Acquisition Regulation (FAR) 5.2, a synopsis of this solicitation was posted on the BETA.SAM website on 23 March 2021. 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 in Paragraph 5 above, for any company other than LM RMS to provide the required supplies/services.

In accordance with Defense Federal Acquisition Regulation Procedures, Guidance, and Information 206.302-1, a Request for Information and/or Sources Sought Notice waiver has been approved by SEA 025.

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 J&A will be fair and reasonable. The NAVSEA contracting office will use cost and price analysis to determine a fair and reasonable price. Assistance from the Defense Contract Audit Agency and the Defense Contract Management Agency will be utilized to analyze, evaluate, and negotiate based upon detailed cost or pricing data, which will be certified by LM RMS at the conclusion of negotiations.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NAVSEA has no plans at this time to compete future contracts for the continuing support of the future capability growth to the legacy AEGIS Baselines used by FMS customers described in this J&A. If another potential source emerges, NAVSEA will assess whether competition for future requirements is feasible and the FMS contracts will remain consistent with the USN acquisition decisions.