N00024_40870.3_NECO.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

CJ&A Number : 40 , 870 . 3 Code : NAVSEA 0243

PR No .: N00024-13-MR-14829

CLASS JUSTIFICATION AND APPROVAL

FOR USE FOR OTHER THAN FULL AND OPEN COl"IPETITION

JUSTIFICATION

1 . Contracting Activity

The Nava l Sea Systems Command {NAVSEA) , Fleet Support Contracts Division {SEA 024) .

2 . Description of the Action Being Approved

The purpose of the revision to Class Justification and Approval {CJ&A) No . 40 , 870 . 2 is to increase the estimated ce iling under Basic Ordering Agreement (BOA) N00024 -1 2 - G- 4329 with Lockheed Martin Mission Systems & Training (LM) for the Littoral Combat Ship (LCS) Post-Interim Support Plan (ISP) effort on LCS 1 variant ships . The primary reason for this requested increase in authority is to ensure and rovide additional authority to support LCS 3 ' s deployment among other items as discussed in Paragraph 5 below . Authority to act under this CJ&A will expire 31 May 2016 .

3 . Description of Supplies/Services

LM has been providing Continuous and Emergent Maintenance (CM/EM) repairs , Facility Maintenance (FM) , and Planned Maintenance System (PMS) effort for the LCS 1 variant under BOA N0024 - 12-G-4329 . An increase in ceiling is required to continue supporting requirements for USS FORT WORTH (LCS 3) in accordance with LCS operational schedules and through its current deployment . Fixed-Price and/or Cost Reimbursement type delivery orders to be issued under BOA N00024-1 2-G-4 329 will provide for Preventive Ma i ntenance Ava ilabilities (PMAVs) , Restricted Availabilities (RAVs) while OCONUS , Emergent Maintenance , and planning effort for the LCS 3 through the end of March 2016 . This accommodates the planned April 2016 transition to the new LCS maintenance contract : Sustainment Execution Contract - West N00024-15 - C- 4313 competitively awarded to GD- NASCCO .

CJ&A 40,870.3

The following paragraphs describe the scope of work which was previously authorized under the BOA.

• Ship maintenance, repairs, corrective measures, facility maintenance, and PMS to restore ships to an operating condition;

• Testing, inspection, and performance evaluations o~ material conditions necessary to assess the reliability, safety, integrity, and effectiveness of ship systems;

• Planning, engineering, and management efforts necessary to accomplish, for example: Continuous Maintenance Availabilities (CMAVs), emergent repairs, corrective measures, facility maintenance, and planned maintenance;

• On-site technical support and material for shipments to the installation site and proof and test corrections and repair related modifications;

• Assemble hardware installation data packages for designated maintenance repair activities; and

PMS 505 and SWRMC have determined, under the advisement of NAVSEA 024, the value of delivery orders ~ed to be executed under this BOA is approximately lllllllover the lllllllllpreviously authorized ceiling. Utilizing a series of data points, including Electronic Document Access (EDA), Mechanization of Contract Administration Services (MOCAS), and Federal Procurement Data System-Next Generation (FPDS-NG), a detailed quantitative analysis was conducted to determine the full value of the of the amount

The follow~e includes the previously authorized ceiling amount of llllllllfor FY13 through the second quarter of FY16.

FY13 and FY14 reflect actuals documented through 14 Nov 2014.

FY15 reflects actuals to date, which includes unanticipated expenses for LCS 1 and the LCS 3 Deployment effort estimated values. COMNAVSURFPAC {CNSP) extended LCS 1's FY15 Selected Restricted Availability with drydocking {SRA(d)) due to failed Engineering Operations Certification qualifications, growth work items, and discovery of a crack to the Exhaust Ducts, which delayed the Production Completion Date Milestone. The additional effort accomplished du~ese extensions and delays resulted in approximately lllllllin additional costs in

FY15.

This BOA will include known work that will require O&MN;

however, as appropriate, RDT&E or funds may be applied - not to exceed the ceiling - for unplanned but necessary maintenance on

LCS 3.

LCS 1 & LCS 3

O&MN

RDT&E

TOTALS

Estimated Dollar Value

The Government's minimum needs have been verified by the certifying technical and requirements personnel in the Program Office, PMS 505, and SWRMC.

This CJ&A revision accommodates the estimated value associated with increasing the cost ceiling of the BOA, which will cover the anticipated maintenance requirements of LCS 3 through March 2016, while accommodating the planned transition to the new maintenance contract;

4. Statutory Authority Permitting Other Than Full and Open Competition

This acquisition is conducted under the authority of 10 USC 2304(c) (1), as implemented in FAR 6.302-1. Full and open competition need not be provided when the supplies or services are available from only one or a limited number of responsible sources and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

The work to be completed under this BOA is based on the requirements to support LCS 3 while she is deployed. The type of remaining work is conducting PMAVs and RAVs while OCONUS, Emergent Maintenance, and planning effort in support of LCS 3.

LM is the only known source capable of satisfying the Navy's short-term requirements. An essential purpose of this requirement is sustainment of an acceptable condition of readiness when LCS 3 is deployed so she can perform her missions. The need to sole source this requirement is intensified by the fact that LCS 3 continues to be deployed overseas -· LM has experience with planning multiple availabilities (PMAVs and RAVs) concurrently and integrating them with tasks associated with Emergent equirements. LM has an infrastructure in-place in which offers proven support in the area. It is avy's best interest to ensure that LM's effort, with its knowledge of the ships and lessons learned from LCS l's deployment, during this critical operational period, is available into FY16. This sole source arrangement significantly reduces the risk to the LCS Program and takes advantage of LM's maintenance execution knowledge base. Increasing the BOA ceiling will ensure efforts to meet operational and maintenance requirements will not be interrupted.

The LCS Planning Yard (PY) contract, N00024-14-C-4313, awarded 22 August 2014, alleviates the cost and scope burden of work previously accomplished under the BOA and transitioned the Class Design Services work to the PY contract. In addition, the award of the Sustainment Execution Contract - West Coast (SEC West), N00024-15-C-4313, dated 21 April 2015, to GD NASSCO allowed for transition of maintenance and planning efforts beginning with USS Independence (LCS 2), especially as it pertained to the Mine Countermeasure (MCM) Initial Operational Test and Evaluation (IOT&E) event in the Gulf of Mexico. The award of the SEC West in the 3~ quarter of FY15 did not permit ample time for a healthy transition from one contractor to another; this would be compounded by the ship operating overseas. However, the increase to this BOA would allow successful transition of LCS 3 dur~deployment, which is scheduled to complete in 111111111111111· Part of the tr eludes establishment of a footprint by GO NASSCO in

LCS 1 Deployment During USS FREEDOM's deployment, fly-away teams were used to troubleshoot and repair LCS l's repeated main propulsion issues (SSDGs and Lube Oil Coolers), contributing significantly to the erosion of the BOA ceiling. Since her deployment, there has been work to modernize and repair the ship.

LCS 3 Pre-Deployment Preparing for USS FORT WORTH's deployment, PMS 505 and the Type Commander (TYCOM) conducted a large Pre-Deployment CMAV (PDCMAV) and authorized the installation of high priority ship changes including Berthing modifications, Reverse Osmosis upgrades, Sensor Suite/Condition Based Maintenance-Plus (CBM+), and COMBATSS-21 upgrades.

Note: These much-needed ship changes cost approximately 111111 and were not scheduled when the BOA was awarded and updated. In addition, TYCOM directed and funded the painting of LCS 3, at a cost of approximately ....... These efforts contributed to the

LCS 3 Deployment While on deployment, fly-away teams will be utilized to perform maintenance on the ship, as intended ion, five full-time LM employees will be on-site in for approximately to manage operat ons, ~ oversee work while the ship is deployed in thelllllllllllllll·

. LCS 1 SRA(d) USS FREEDOM's SRA(d) has been a large driver in consumption of the ceiling and was not contemplated when C&JA 40 870.2 was approved . The SRA(d) was schedu b~until completion 111111111111111· The SEC West was awarded in April 2015 to GO NASSCO. However, the decision was made in Nov/Dec 2014 to use LM to perform the work based on Joint Fleet Maintenance Manual (JFFM) Milestones. Immediately following the post Availability Hot Wash and completion of SRA(d) close out documentation, LCS 1 will transition from the BOA to the SEC West. The estimate for this SRA(d), which includes maintenanc~lanned modernization activities, was originallylllllrnd is now estimated at

LCS Class and the Sustainment Execution Contract - West Coast The SEC West (N00024-15-C-4313) was awarded to GD NASSCO 21 April 2015. All maintenance efforts for LCS 5 and follow have been and will be executed under the SEC West contract.

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

This requirement was first synopsized as sole source on 02 August 2012 and modified on 11 December 2015 on the Federal Business Opportunities (FedBizOpps) website htt~://www.fbo.gov in accordance with FAR 5.201. To date, no written responses have been received. No additional market research was conducted because it is not pr,acticable, for the reasons discussed in paragraph 5, for any company other than LM to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 15.402(a), the Contracting Officer must ensure all supplies and services are procured at a fair and reasonable price. The contractor will submit cost and pricing data in accordance with FAR 15.403-4. The NAVSEA Contracting Office will use cost and/or price analysis to determine that the final price of the orders issued under the subject BOA are fair and reasonable.

Assistance from the Defense Contract Audit Agency (DCAA) and SWRMC will be utilized to analyze, evaluate, and negotiate based upon detailed cost or pricing data, which will be certified by LM at the conclusion of negotiations.

LM has provided similar efforts for LCS 1 and 3 under two construction contracts, (N00024-03-C-2311 and N00024-09-C- 2303), and LCS 1 and 3 Post Shakedown Availability (PSA) BOAs (N00024-09-G-2300 and N00024-12-G-2317) and is currently performing Post-Interim Support Plan (ISP) work under the BOA.

Performance of these efforts has generated cost return data that will allow the Navy to negotiate a fair and reasonable value for each delivery order issued in support of FY16 LCS 3 Post-ISP tasks.

8. Actions to Remove Barriers to Competition

Under the proposed revision to the BOA, orders will continue to be issued on a sole source basis to provide continued, Post-ISP support for LCS 3, which LM was previously performing under contracts N00024-03-C-2311 and N00024-09-C-2303. The Navy conducted a full and open competition for future LCS 3 maintenance efforts, which will be performed under the resulting SEC West. The increase to this CJ&A will allow continued support under the identified LM BOA until successful transition to GD NASSCO, the SEC West prime contractor, in order to meet the maintenance and repair requirements and support the rigorous deployment and maintenance cycle of LCS 3.

The PY Contract, competitively awarded on 22 August 2014, includes the majority of the design and planning services previously performed under the BOA.

CERTIFICATIONS AND APPROVAL

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

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. 505-12-011 (Rev 01), except as noted herein, are complete and accurate to the best of my knowledge and belief.

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

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have determined this justification is legal

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

I certify that this justification is accurate and complete to the

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(s) described herein using other than full and rsuant to the authority of 10 U.s.c. 2304(c) (1).

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