AEGIS_Shortfall_JA_51121_Rev 1_Redacted.pdf

J&A Number: 51,121.1

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

This J&A revision clarifies the intended scope to include both AEGIS Capability Package 2023 (CP23) and Capability Package 2024 (CP24) and general requirements scope. Award of a modification to the Combat Systems Engineering Agent (CSEA) Contract N00024-13-C-5116 on a sole source basis to Lockheed Martin Rotary and Mission Systems (LM RMS), 199 Borton Landing Road, Moorestown, NJ, 08057. The modification will support general requirements tasking and AEGIS CP23 and CP24 engineering, development, integration, and fielding to continue delivering incremental capabilities to modernized destroyers.

3. Description of Supplies/Services

The AEGIS Weapon System (AWS) is the automated segment of the AEGIS Combat System (ACS), which satisfies the Integrated Air Missile Defense, Anti-Air Warfare, and Ballistic Missile Defense mission requirements on AEGIS Cruisers and Destroyers . As the CSEA, LM RMS performs the integration, testing and delivery of software upgrades known as Capability Packages (CPs). Additionally, LM RMS performs the integration of CPs on the appropriate computer equipment and verifies system level performance of the AEGIS Combat System for fielding and operational use.

NAVSEA has a requirement, which was not known at CSEA contract award, to deliver incremental capability builds of combat system functionality to support fielding of the Surface Electronic Warfare Improvement Program (SEWIP) BLK 3, Evolved Sea Sparrow Missile BLK 2 optimized, Agile Sundog

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001

IN REPLY REFER TO

Part 2, Agile Silent Squall Part 2, Next Generation Surface Search Radar (NGSSR) Integration, Elevated Radar Advanced Calibration Experiment (ERACE), Technical Insertion 16 MOD 1 Integration, and BMD 5.1.5.

Additional hours are needed to support general requirements to avoid a stop work. Without additional hours in support of general requirements, tasking in support of would be negatively impacted. Additionally, the hours on contract are not sufficient to support

The estimated period of performance of this contract action is January 2022 through December 2022 and falls within the existing period of performance of contract N00024-13-C-5116, which is expected to end in December 2022. This J&A allows LM RMS to continue supporting general requirements and commence capability builds and delivery of CP23 and CP24 scope. The current value under contract N00024-13-C-5116 is the hours required to continue supporting general requirements and commence CP23 and CP24 scope is estimated to increase the total value of contract N00024-13-C-5116 .

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

In accordance with 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, there is only one responsible source, and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

AEGIS Combat System Engineering Agent was competed for the first time in 2013, with award to the incumbent, LM RMS. The resultant contract is a 10-year vehicle running from MAR 2013 – DEC 2022 and is the base contract under which this proposed modification will be awarded.

Pursuant to 10 U.S.C. 2304(c)(1), LM RMS is the only source capable of providing the continued general requirements support and the required combat systems development effort for the incremental capability deliveries of CP23 and CP24 without unacceptable schedule delays in fulfilling the Navy’s requirements.

If another company were to develop the CP23 incremental capability, the Government would provide the current Common Source Library (CSL) code base as the starting point for development. The new company would need to deliver a functioning computer program encompassing the new capabilities by September 2023 to support system level testing in advance of the

Furthermore, if another company were to develop the CP24 incremental capability, an early functional computer program would be required by January 2023 to support the Government acceptance of computing hardware supporting the

It is estimated that it would take a new company at least twenty-eight (28) months to implement the CP23 and CP24 additional capabilities: four (4) months to establish a CSL development capability at the new company’s facility, twelve

(12) months for the new company to develop the required technical competency, and twelve (12) months to implement the new capabilities. The earliest delivery of CP23 or CP24 capability would therefore be 2QFY24, resulting in the program’s failure to support the

Therefore, LM RMS is the only source capable of meeting the Government's requirements without unacceptable schedule delay. Award to a source other than LM RMS would compromise the effectiveness and reliability of the fleet-critical ACS capability brought by the CP23 and CP24 incremental capabilities scheduled for installation

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

In accordance with FAR 5.2, a Sources Sought of this contract action was posted on the System for Award Management (SAM.GOV) website on 6 July 2021.

On 16 September 2021, NAVSEA posted a pre-award synopsis on SAM.GOV stating the decision to utilize other than full-and-open competition to award a contract modification under existing AEGIS CSEA contract N00024-13-C-5116 for AEGIS CP23 and 24 efforts. No responses to the pre award synopsis were received. Additionally, a supplemental synopsis was released on 20 January 2022 to address the general tasking requirements tasking which were inadvertently omitted from the initial synopsis. No responses have been received to date and any responses received in response to the synopsis will be considered.

No additional market research was conducted because it was not practicable, for the reasons discussed in paragraph 5 above, for any company other than LM RMS to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will use cost and price analysis, including historical cost estimating relationships from previous AEGIS development efforts, to determine that the final price for the contract supplies/services covered by this J&A will be fair and reasonable. Assistance from Defense Contract Audit Agency and Defense Contract Management Agency will be utilized as appropriate to analyze, evaluate, and negotiate based upon detailed cost data, which will be certified by LM RMS at the conclusion of negotiations.

8. Actions to Remove Barriers to Competition

NAVSEA intends to compete the future engineering and integration of additional capabilities beginning with Capability Package 2025 (CP25) via a competitive Systems Engineering and Software Integration (SE/SI) contract planned for award in late FY22 prior to the end of the CSEA contract. Furthermore, NAVSEA has awarded multiple Other Transaction Authority (OTA) agreements via the Marine Corps Systems Command C5I Consortium to provide Agile software development teams, which has increased the industry base of combat system engineering, and which will enable high quality and affordable software development in a Government managed Development, Security, and Operations (DevSecOps) pipeline. The Government ownership of the development environment removes a critical barrier to previous AEGIS competitions, specifically the software development environment being owned and stored on prime contractor systems.

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. PEO IWS 1.0-CSEA 21-001, 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. Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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

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

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 Designee of the Head of the Contracting Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1).

(Director, Surface System Contracts Division, SEA 025)

Signature Name (Print) Date