N00024_52232.pdf

DEPARTMENT OF THE NAVY

PROGRAM EXECUTIVE OFFICE INTEGRATED WARFARE SYSTEMS

1333 ISAAC HULL AVENUE

WASHINGTON NAVY YARD DC 20376-2101

IN REPLY REFER TO

J&A Number: 52,227

Code: SEA 0252

PR Number: N0002422NR45000

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Surface Systems

Contracts Division, SEA 025.

2. Description of the Action Being Approved

Award of a contract modification on a sole source basis to

Lockheed Martin Rotary and Mission Systems (LM RMS) of

Manassas, Virginia, to increase contract ceiling under contract N00024-18-C-5218 for the procurement of supplies and services in support of the Surface Ship Undersea Warfare

Combat Systems (USWCS) AN/SQQ-89(V) program. The total value of the contract is currently $776M. This proposed contract ceiling increase will increase the contract value by $254.2M to a total value of $1,030.2M.

3. Description of Supplies/Services

The proposed contract ceiling increase will support the procurement of additional engineering efforts to include development, qualification, certification, integration initiatives, design agent support, training, systems studies, supply chain management, and technology insertion/refresh from Fiscal Year (FY) 2022 - FY 2026. The proposed action will increase the ceiling but will not extend the current contract’s original period of performance

(PoP) end date in FY 2026, nor will it increase the total quantity of AN/SQQ-89(V).

The total estimated dollar value of the proposed ceiling increase is approximately $254.2M as shown below in Table 1:

TABLE 1 – Estimated Dollar Value

Type of Funds

FY 2022 - 2026

Total

Research, Development, Test and Evaluation, Navy

Shipbuilding and Conversion, Navy

Foreign Military Sales (FMS)

Other Procurement, Navy

Operations and Maintenance, Navy

Total $254,225,902

Note: Ceiling is sufficient for planned procurements of AN/SQQ-89 systems through the PoP. The planned modification will not change the total quantities of systems currently included in the contract.

Table 1 is based on actual data from the current contract

N00024-18-C-5218. 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), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

At this time, LM RMS is the only qualified source than can provide the required supplies and services to the Government within the required schedule timelines. Award to any other source other than LM RMS would result in unacceptable delays in readiness.

LM RMS is the incumbent contractor currently providing

AN/SQQ-89(V) development and production efforts on subject contract, Contract No.: N00024-18-C-5218. These continuing efforts support the USWCS missions on Ticonderoga Cruisers

(CG-47), Arleigh Burke Destroyers (DDG-51), Constellation

Frigates (FFG-62), and FMS platforms. The 8-year contract

(one-year base period plus seven, one-year option periods) was awarded to LM RMS in FY 2018, using full and open competition procedures where only one offer was received, with the PoP ending in FY 2026.

The Government estimates that the contract will run out of ceiling by September 2022. Additional engineering efforts are required due to the AN/SQQ-89(V) program’s adaptation to

DevSecOps, virtualization, incorporation of increased cyber security resiliency to overcome system vulnerabilities, and the need to field more robust production systems to an increased number of platforms. As such, the level of effort required is substantially larger and more complex than originally estimated in the Independent Government Cost

Estimate (IGCE), developed in 2016, used to establish the contract ceiling threshold. Without the additional engineering efforts, there is significant risk to completion of required software baselines and associated hardware, which could negatively impact Fleet mission performance.

The LM RMS facility includes embedded contractor and

Government Furnished Equipment to support full integration of all the open software baselines in development and production. This equipment cannot be removed or transferred to another facility without jeopardizing the delivery of mature software to the Fleet within required timeframes. The

Government does not possess an alternate facility nor the knowledge to feasibly provide crucial land-based integration and test capability. The reconstitution of key lab infrastructure including lab square footage and power and cooling requirements in support of software development would require substantial lead time and unique power distribution and cabling runs. Complete reconstitution of all facilities would take a minimum of 36 months to transition to a new contractor facility, based on similar efforts.

Support for software baselines ACB-19, ACB-21, and initial advanced development for ACB-23 as well as TI-20 production and hardware development for HT0 (TI-22) are already underway. As such, award to any other source will negatively impact fielding of critical Anti-Submarine Warfare (ASW) capability to surface platforms. This would leave several of the platforms without ASW capability and others with aged technology that will be subject to severe obsolescence and high failure rates, thereby creating severe degradation in the Navy’s ability to pace the undersea threat.

Award to any other source other than LM RMS would result in unacceptable delays and adverse impact to the United States

Navy.

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

Offerors as Practicable

In accordance with DFARS PGI 206.302-1, NAVSEA posted a

Request for Information (RFI N00024-22-R-5208) via beta.SAM.gov on 17 December 2021, which closed on 28 January

2022. Two companies submitted responses, and

. was not considered a viable contractor for the stated requirement.

On 22 June 2022, the Government provided with a notification letter explaining the Government’s analysis and determination. The Government analysis of the responses determined that only is technically capable of meeting the necessary requirements to support Fleet needs in the allocated timeframe. In accordance with FAR 5.201, a synopsis notice was posted to the Government wide point of entry on 10 May 2022, with no responses received. No additional market research was conducted given it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than to provide the required supplies/services.

7. Determination of Fair and Reasonable Costs

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 Competition

Contract N00024-18-C-5218 currently combines procurement of both hardware and software requirements. However, market research has indicated, and NAVSEA agrees, that decoupling of hardware and software requirements will facilitate future competition.

As such, NAVSEA is in the process of planning and executing a full and open competition for hardware production efforts, with contract award expected in FY 2024. The acquisition strategy for Software requirements is under development, with award planned for FY 2025. The planned award dates support AN/SQQ-89(V) requirements, avoid disruption to the software and hardware builds, and support Fleet deliveries and installations.

As PEO IWS 5.0 efforts continue towards PEO alignment with the recently established Integrated Combat System (ICS) program office and eventual system-of-systems virtualization, the Government contemplates transitioning to a more modular software development, integration, and delivery approach via the Government software factory. This approach will use a common development environment for future systems in order to foster competition and enhance the Industrial base.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including NAVSEA ISTRAP-M No. PEO IWS 5.0 21-003, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Signature Name (Print) and Title (Code) Phone No.

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined that this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as 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 Principal Civilian Deputy Assistant Secretary of the Navy (Research, Development, and Acquisition)

STEFANY.FREDER

ICK.J.III.122893153

Digitally signed by

STEFANY.FREDERICK.J.III.1228

931531 Date: 2022.09.13 17:37:05 -04'00' 13-Sep-22