N00024_53191_FedBizOpps.PDF

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

133 5MG HLJLLAVE$E

WASHINGTON NAW YARD DC 20376-0001

NREPLVRErERTO

J&A Number: 53,191 Code: SEA 02531

P.R. Number: N00024—12—NR—43015

JUSTIFICATION AND APPROVAL

FOR USE OF 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 the Action Being Approved

-Award of a sole source contract to tockheed Martin Maritime Systems & Sensors (LMMS2) Baltimore, MD for design/system engineering, ship/missile integration services and Life Cycle Support Facility (LCSF) depot operations in support of the MR 4-1 Vertical Launch System (VLS) module electronics and Launch Control System (LCS)

3. Description of Supplies/Services

The MR 41 VLS is the primary missile launching system on Navy surface combatants used to store and launch multiple missile variants including all active STANDARD Missile (SM) versions and blocks (i.e. SM—2,3,and 6), TOMAHAWK, Vertical Launch Anti submarine Rocket (VL-ASROC), NATO SEASPARROW, and Evolved NATO SEASPARROW. The MR 41 VLS program provides launchers, canisters, and associated support equipment for CG 47 and DDG 51 class United States Navy (USN) surface combatants. MR 41 VLS has been sold and integrated into multij5le allied navies including Australia, Canada, Denmark, Germany, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Turkey, and Thailand. The tJSN provides launchers,- canisters, and associated support equipment to these allied navies.

NAVSEA has requirements to procure software design, systems engineering, and ship/missile integration services for MR 41 VLS module electronics/LCS within the FY13 — FY17 timeframe.

The contract will procure multi-discipline engineering, software development, logistics, and management services for new missile integration into MR 41 VLS including launcher design, launcher integration into new ship classes and the new AEGIS shore based component (AEGIS Ashore), LCSF depot

J&A No. 53,191 operations, system product improvements, producibility enhancements, reliability enhancements, and failure investigations.

This effort also includes systems engineering, integration support, software development and ancillary material (i.e.

development/qualification assets required for integration testinq) for the Navy’s high priority integration into MK 41 VLS which

Therefore, the contractor shall be a technical expert and key member of the MR 41 VLS engineering team that consists of the Technical Direction Agent, System Integration Agent and the In—Service Engineering Agent.

The anticipated contract period of performance for this requirement will be from the date of contract award for one

(1) year with four (4) one—year options. The total period of performance, if all options are exercised, will be sixty (60) months.

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

Acquisition Plan No. NAVSEA 141—88 REV 17/11 incorporates this effort. The estimated cost and funding source is shown in the following table. The total estimated value of these requirements is $227.SM as follows:

LNMS2 Estimated Cost of Engineering Services ($M)

FY13 FY14 FY15 FY16 FY17 TOTAL

Cost ScN $6.0 $6.0 $6.0 $6.0 $6.0 $30.0 opii $0.3 $0.3 $0.3 $0.3 $0.3 $1.5

SPARES oni $0.5 $0.5 $0.5 $0.5 $0.5 $2.5

WPN $0.5 $0.5 $0.5 $0.5 $0.5 $2.5

0&MN $2.0 $2.2 $2.2 $2.2 $2.2 $10.8

RDT&Z $32.8 $26.8 $25.2 $20.3 $2143 $126.4

WMS $6.0 $3.5 $3.5 $3.5 $3.5 $20.0

CG MOD OPN $4.5 $3.7 $3.0 $2.5 $2.Q $15.7

DDG MOD OPN $3.5 $3.5 $3.6 $3.7 $3.8 $18.1

TOTAL $56.1 $47.0 $44.8 $39.5 $40.1 -$227.5

I

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

The original MK 41 VLS design and development effort was competitively awarded to LNMS2 (then known as Martin Marietta Aerospace) in 1977. Approval for MX 41 VLS limited production of launchers and canisters was granted in June 1982 and a sole source production contract was awarded to LMMS2. Full rate production was approved on 14 December 1988.

BAE Systems (formerly FMC Northern Ordnance Division) became a second source for MX 41 VLS launcher and canister production in 1983 and subsequently qualified as a producer in 1985. That year the Navy issued limited competition solicitations to LMMS2 and BAE Systems for launcher and canister requirements, dividing the annual requirements between the two contractors based on proposed prices.

However by FY94, declining requirements and budgets made it prohibitively expensive to maintain two launcher producers and the USN moved to a sole source procurement strategy wherein LMMS2 became the prime contractor and BAE Systems, the major subcontractor. This procurement strategy, which was maintained until FY10, was beneficial to the Navy because it assured both qualified sources remained active in the MK 41 VLS program and leveraged each contractor’s areas of expertise (i.e. software, electronics and launch control system integration for LMMS2 and launcher mechanical structures and canisters for BAE Systems) The FY1O—12 VLS production requirements were fulfilled via a major component breakout strategy with LMMS2 producing the electrical components and BAE Systems producing the mechanical components. The FY13—17 requirements will be fulfilled by one sole source contract to LMMS2 for the LMMS2—owned, proprietary software components and one full and open competitive contract for the remaining electrical components, the mechanical components, and integration of the system.

Since FY95, RAE has been the sole source producer of the MK 41 VLS Canisters. The FY13—17 canister production requirements will be procured via full and open competition.

In the area of design agent engineering/system integration requirements, the Navy competed MR 41 VLS design agent engineering tasks between BAE and LMMS2 for several years with LM MS2 eventually becoming the lead system and design engineer for all electronics, LCS, and software engineering/integration tasks resulting from their demonstrated subject matter expertise and efficiency in these areas. Thus, LMMS2 is currently the design agent for the MR 41 VLS module/LCS electronics and software.

This procurement is a contract for the continued provision of highly specialized services currently provided under contract N00024—lO—C—5347, as described in FAR Part 6.302— 1(a) (2) (iii). As a result, this proposed effort is fully derived from work performed under the previous MR 41 VLS launcher electronics and software design agent contract. It is essential that the contractor performing this work have extensive familiarity with ongoing MR 41 VLS program system engineering efforts to ensure dependable ship, system, and ordnance safety requirements are met and high MR 41 VLS performance reliability is maintained. The design agent must fully understand the MK 41 VLS specifications, requirements, multiple ship systems, combat control system, missile electronics, and digital interface requirements. The design agent must also understand. the approved MR 41 VLS Baseline VII Technical Data Package (TDP), which contains some proprietary elements that ct

As the current MR 41 VLS systems engineering and electronics design agent, LMMS2 is the only source capable of fulfilling the Navy’s requirements without incurring unacceptable delays.

The cognizant Program Of f ice, Program Executive Office Integrated Warfare Systems (PEO IWS) 3.0, estimates that award to any source other than LMMS2 would create a schedule delay of approximately . Based on historical contract performance (i.e. BAE required with substantial assistance to become a viable MR 41 VLS subject matter expert under their first design engineering support contract), PEO IWS 3.0 estimates it would take at least ___________ from the contract award date for a new source to sufficiently obtain MR 41 VLS launcher/LCS electronics, software, and design engineering expertise.

This _________ period includes the time required to hire sufficient personnel to perform system and design engineering aOtivities required to integrate new missiles, design new electronics and software, modify launcher electronics and software designs, perform launcher—to—ship integration, perform failure investigations, and provide all associated life cycle support to the MK 41 VLS fleet.

In addition to the estimated delay associated with the non—recurring activities described above, it will take approximately to conduct a competitive source selection based on the duration of the average competitive source selection. Therefore, if a competitive solicitation is initiated in and awarded in , a new source would not be able to complete all required non recurring activities described above until The current VLS systems engineering and LCS electronics and software design agent contract period of performance ends in the . Thus, awarding this VLS system engineering and LCS electronics and software design agent effort to another source will cause insurmountable delays in supporting future MK 41 VLS fleet deployments, AEGIS shore—based operations, and will ultimately impact overall Ballistic Missile Defense (BMD) readiness and USN Battle Group operations.

Furthermore, LNNS2 is the only source currently capable of completing the lanncher electronics and software integration portion of the r I integration mt

Over the past six years LMMS2 has been performing BMD electronics and software design integration efforts under contracts N00024— 04—C—5453 and N00024—lO—C—5347. During this period LMMS2 gained unique subject—matter expertise to design, develop;

and manage the launcher electronics and software integration program to ensure the launcher meets all performance, interface, and safety requirements necessary to successfully integrate into t4K 41 VLS.

Awarding this integration effort to another source would create unacceptable delays integration, which is currently scheduled to be completed in

_____ The Navy requires seamless design ageflt support through the completion of this integration effort.

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

The proposed contract was synopsized via posting on the Federal Business Opportunities (FedsizOps) and Navy Electronic Commerce Online (NECO) website on 14 May. 2012 in accordance with FAR

5.201. To date no industry responses have been received. If

any responses are received, they will be evaluated prior to award. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph (5), for any company other than LMMS2 to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by this 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 (DCAA) and the Defense Contract Management Agency (DCMA) will be utilized to analyze, evaluate, and negotiate based upon detailed cost or pricing data, which will be certified by LMMS2 at the conclusion of negotiations.

LMMS2 has carried out a significant amount of design agent engineering services supporting the MK41 VLS Program, which will provide actual cost data in~this future proposal that will allow the Navy to negotiate a fair and reasonable contract value for this procurement.

S. Actions Taken to Remove Barriers to Competition:

In accordance with the Competition in Contracting Act and the Office of the Secretary of Defense’s guidance associated ~iith the “better buying power” acquisition initiative, PEO IWS 3.0 has begun its phased plan to introduce full and open competition to VLS. NAVSSA is currently releasing solicitations for the competitive procurement of the launcher and canister production requirements for FY 13 —17. If the Navy obtains sufficient funding to complete a Baseline VII electronics redesign and eliminate proprietary components that would inhibit effective competition, then NAVSEA intends to competitively procure FY18 and following launcher electronics design agent and integration services via full and open competition under the premise that alternative producers participating in the current, build—to—print VLS competitions will be able to develop the necessary system knowledge and specialized skill set required to perform the electrical design agent services as described in paragraph 5.

The launcher production contract is scheduled to be awarded in with completion of the first system delivery in

It is anticipated that after the first delivery of the system, a new producer would have sufficient knowledge to compete for the design agent services commencing with FY18 requirements.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS cTh~RTIFICATION (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. NAVSEA 141-88 Rev 17/11, except as noted herein, are complete and accurate to the best of thy knowledge and belief.

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

Date

I have determined 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.

Signature (Pri~nt5 acid Title (Code) Phone No. Date

10 U.S.C. 2304(c) (1).

Acquisition)

LZ~ I19LIãtULIJ ~ • Name (Print)

S’igna\jure Name (Print) and Title (Code) Phone No.

Name (Print) and Title (Code) PhoneNT date

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

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 competition, pursuant to the authority of

Assistant Secretary of the Navy, (Research, Development and

Sean J. Stacklev Phone No. Date