N00024_40869.2_NECO.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC BULL AVE SE

~BINGTON NAVY YARD DC 20376-0001

CJ&A Number: 40,669.2 Code : NAVSEA 0243

PR No.: N00024-12-MR-11749

CLASS JUSTIFICATION AND APPROVAL

FOR USE FOR OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Fleet Support Contracts Division (SEA 024).

2 . Description of the Action Being Approved

The purposes of this revision to Class Justification and Approval (CJ&A) No. 40,869.1 are to: 1) increase the estimated ceiling under Basic Ordering Agreement (BOA) N00024-12-G-4330 with General Dynamics Bath Iron works (GD-BIW) for Littoral Combat Ships (LCS) post-Interim Support Plan (ISP) effort on LCS 2 variant ships; and 2) extend the BOA ordering period.

Authority to act under this CJ&A will expire 30 September 2015.

3. Description of Supplies/Services

GD-BIW provides Class Design Services, Continuous and Emergent Maintenance (CM/EM) and repair, Facility Maintenance (FM), and Planned Maintenance System (PMS) accomplishment under BOA N00024-12-G-4330. To continue supporting these requirements until the SEC West is awarded, an increase in ceiling and extension of the ordering period is required. This extension and ceiling increase accommodate a conservative transition period to ensure USS INDEPENDENCE (LCS 2) and USS CORONADO (LCS

4) have adequate and well-executed maintenance support through current and scheduled Initial Operational Test and Evaluation (IOT&E) exercises associated with the Mine Countermeasures (MCM) and Surface Warfare (SUW) Mission Packages (MPs), respectively, in order to achieve MP acquisition milestone credentials.

Services contracted via Fixed-Price and/or Cost Reimbursement type delivery orders issued under BOA N00024-12-G-4330 will assure production and associated support, crew training, as jane.thompson1 Typewritten Text

CJ&A 40,869.2

well as some planning efforts for LCS 2 and LCS 4. The scope of work authorized under the BOA includes the following.

• Accomplishing ship maintenance, repairs, corrective measures, and facility and planned maintenance;

• Testing, inspection, and performance evaluations of 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), and emergent repairs;

• On-site technical support and material for shipments to the installation site;

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

• Providing Crew Training through vendor-led training and Shore Based Trainer (SBT) efforts.

The following table includes the previously authorized ceiling amount of - for FY13 through the second quarter of FY15.

Actual funding for FY13, FY14, and FY15 through 10 February 2015 is documented. The estimate for FY15 is based on known sustainment requirements for LCS 2 and 4 until work for and on the ships is successfully transitioned to new competed contracts. The recommended ceiling increase accommodates an additional to continue the planned work associated with LCS 2 and LCS 4 through FY15. Known work will require O&MN;

however, as appropriate, RDT&E or OPN funds may be applied -not to exceed the ceiling - for unplanned but necessary maintenance or modernization work on LCS 2 or 4. This additional - brings the total ceiling to - ·

Actual and Estimated Dollar Value {$M)

The Government's minimum needs have been verified by the certifying technical and requirements personnel in the Program Office, PMS 505, and Southwest Regional Maintenance Center

{SWRMC) .

This CJ&A point change accommodates the costs associated with extending the BOA ordering period through September 2015 to ensure coverage of LCS 2 and 4 requirements until completion of the ships' IOT&E events, including minor schedule slips in the ships' testing and return to homeport dates .

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

All rationale contained in the original CJ&A remains applicable, with the exception of the extent of planning required. The LCS Planning Yard (PY} contract, N00024-14-C- 4313, awarded 22 August 2014, alleviates some of the cost and scope burden of the BOA by moving most of the Class Design Services work from the BOA to the LCS PY contract during the recommended period of performance . For example, the PY will perform advanced planning for FY16 LCS 2's SRA(d), as well as all out-year Maintenance Availability planning.

The SEC West contract is expected to be awarded in the third quarter of FY15, so it does not permit ample time for a transition period from one contractor to another prior to the start and completion of the MCM and SUW IOT&E events.

In accordance with the criteria provided in FAR Subpart 6.302-l(a) (2) (ii} and (iii}, the post-ISP effort has been accomplished via sole source orders issued to GD-BIW under BOA N00024-12-G-4330, which expires on 30 March 2015. GD-BIW is the only known source capable of satisfying the Navy's short term requirements for continued Post-ISP effort while competition for the SEC is being conducted . Due to the costs and efforts associated with and already expended to prepare for and sustain LCS 2 and 4 through their IOT&E events, and ensuring an orderly transition from GD-BIW to the long term engineering/maintenance providers (the PY and SEC West), neither the existing ceiling nor the ordering period are sufficient to meet the Government's requirement without a lapse in coverage and risk to the ships. Note: PMS 505/SWRMC considers the MCM MP IOT&E event a deployment; LCS 2 will need to transition from her homeport of San Diego via the Panama Canal to the IOT&E test area in the Gulf of Mexico. LCS 4's IOT&E will be executed in the Point Mugu vicinity of California's coast.

This extension reduces risk of inadequate planning and execution of maintenance and repairs for LCS 2 and LCS 4 during the conduct of the significant, high visibility test events outside of the ships' homeport (San Diego). Based on Program experience with LCS l's maiden deployment and Lockheed Martin, it will take the SEC West contractor at least three months to get material and personnel in place to conduct maintenance within and outside of the homeport area. So, the expected award of SEC West Coast in the third quarter of FY15 will not provide sufficient time for the awardee to assume maintenance planning and execution, and establish a Forward Operating Site (FOS) at Naval Air Station (NAS) Pensacola to support LCS 2, specifically, without adding significant risk to the MCM MP IOT&E test event.

Increasing the ceiling to cover the IOT&E events in FY15 is required because GD-BIW is already involved in the planning of installations and maintenance activities, and has procured the requisite material to support planned maintenance. The requested ceiling increase is deemed sufficient to support LCS 2 and 4 through their test events. Following the events and the associated hot washes, both ships will be fully under the support of the LCS PY and SEC West contracts.

Failure to increase the ceiling of this BOA would result in an unacceptable disruption, significantly impacting on the vessels' ability to perform their missions, especially with LCS 2 MCM MP IOT&E efforts in the Gulf of Mexico. Postponed maintenance could result in acceleration of structural and system degradation.

This sole source arrangement significantly reduces the risk to the LCS Program and takes advantage of GD-BIW's maintenance execution knowledge base. Increasing the BOA ceiling and extending the ordering period will ensure efforts to meet operational and maintenance requirements will not be interrupted. GD-BIW has experience planning multiple availabilities concurrently and integrating them with tasks associated with continuous, emergent, and facility maintenance requirements. GD-BIW has an infrastructure in-place in Pensacola, FL., and so offers proven support in the area. It is in the Navy's best interest to ensure that GD-BIW's effort, with its knowledge of the ships and lessons learned from LCS 2 variant, during this critical operational period, is available into FY15 in support of IOT&E effort.

Per NMCARS Annex 1, PMS 505 and SWRMC have determined, based on all contractual documents loaded in Electronic Document Access (EDA) and anticipated contract changes, there ~oximately lllllll remaining within the current ceiling of 11111111. Based on known maintenance requirements and the associated LLTM, the existing ceiling is expected to last through the second quarter of FY15. Failure to extend the ordering period and increase the ceiling will result in a maintenance gap for USS INDEPENDENCE and USS CORONADO, and degrade FY15 Crew's Vendor Training requirements for the LCS 2 variant.

Anticipating award of the SEC West in mid-FYlS, maintenance and modernization of LCS 5 and follow will be supported exclusively by the SEC West contractor.

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

This requirement was synopsized as sole source on 26 Jan 2015 on the Federal Business Opportunities (FedBizOpps) website http://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 practicable, for the reasons discussed in paragraph 5, for any company other than GD-BIW 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 GD-BIW at the conclusion of negotiations.

GD-BIW has provided similar efforts for LCS 2 and 4 under two construction contracts, (N00024-03-C-2310 and N00024-09-C- 2302), and LCS 2 and 4 Post Shakedown Availability (PSA) Basic Ordering Agreements (BOAs) (N00024-09-G-2301 and N00024-13-G-

2316) and is currently performing post-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 FY15 post ISP tasks.

8. Actions to Remove Barriers to Competition

Under the proposed changes to the BOA, orders will continue to be issued on a sole source basis to provide continued, post-ISP support for LCS 2 and LCS 4, which GD-BIW was performing under contracts N00024-03-C-2310 and N00024-09-C-2302. The Navy is conducting a full and open competition for future performance for all maintenance efforts of the type currently being procured under this BOA. This action will allow continued support under the identified GD-BIW BOA until the beginning of the competitively awarded SEC West, in order to meet the maintenance and repair requirements and support the rigorous deployment and maintenance cycle of the ships. The PY Contract, competitively awarded on 22 Aug 2014, includes the majority of the design and planning services currently performed under the BOA. The forecasted award of the competed SEC West is April 2015.

CERTIFICATIONS AND APPROVAL

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

CJ'A 40,869.2

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 02), except as noted herein, are complete and accurate to the best of my knowledge and belief.

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LEGAL SUFFICIENCY REVIEW (NHCARS 5206.303-90)

I have determined this justification is

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

I certify that this justification is accurate and complete to the '".a.+'a • II -• .... ::. • • - • • - .

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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 open t to the authority of 10 u.s.c. 2304(c) (1).

I D ltf/t.l f Name ( nt) Date

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