N00024_40970_NECO.pdf

DEPARTMENT OF THE NAVY

~AVAL SEA SYSTEMS COMMAND

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WASHIN01'0111 NAVY YARO, 0C 20378-0001

CJ&A Number: 40,970 Code: 02433

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CLASS JUSTIPICATION ARD APPROVAL

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JUSTIFICATION

1. Contracting Activit~

The Naval Sea systems Command, Fleet Support Contracts Division, SEA 024.

2. Description of the Actions Being Approved

Awarding on a limited source basis, without providing for full and open competition, new Basic Ordering Agreements (BOAs) N00024-l4-G-4300 to General Dynamics Electric Boat (GDEB) and N00024-14-G-430l to Huntington Ingalls Industries - Newport News Shipbuilding (HII-NNS) and limiting competition for orders issued under these BOAs. This action is necessary to provide coverage for potential supplies and services submarine repair orders and for nuclear related trade labor support. Authority to act under this Class Justification & Approval (CJ&A) for BOAs N00024-14-G-4300 and N00024-14-G-430l expires 30 September 2016.

3. Description of Supplies/Services

The following paragraphs describe the specifics of this action.

The propoeed acquisition includes Fixed-Price and Cost Reimbursement orders to be issued under these BOAs with GDBB and HII-NNS. The scope of these efforts include:

• overhaul, maintenance and repair, and modernization upgrades of nuclear-powered and/or deep diving Submarines, Special Mission Submersibles (excluding the Advanced Seal Delivery System (ASDS)), Moored Training Shipe, and Submarine Support Facilitiee;

• Technical and engineering support for nuclear-powered and/or deep diving Submarine1, Sp&cial Mission Submareiblem (excluding ASDS), Moored Training Ships, and Submarine Support Facilities;

CJ&A Number; 40,970

• Supplies and/or ancillary services uniquely manufactured and/or provided by GDSB or HII-NNS in support of nuclear· powered and/or deep diving Submarines, Special Mission Submersibles (excluding ASDS), Moored Training Ships, and Submarine Support Facilities; and

• Nuclear-related trade labor eupport necessary to augment trades at Naval Shipyards that require the unique expertise of GDEB or HII-NNS, as fully explained in paragraph 5 below, in support of nuclear-powered Submarine maintenance.

This unique expertise entails personnel that are trained, qualified and authorized to perform maintenance involving radiological controls, SUBSAFE, hazardous materials handling, complex system testing, and Task Group Instruction execution. As to the GDEB or HII-NNS workers who are providing the nuclear-related trade labor, performance of non-nuclear trade labor support shall be restricted to the greatest extent practicable to minimize their non-productive time between assignments to provide nuclear-related trade labor support.

• Individual orders for nuclear-related trade labor support will comply with the N~val Sea Systems Command's Services Contracting Tripwires Memorandum 4200 Ser 00/072 dated 4 April 2012.

The estimated value of all orders to be placed under BOAs N00024-14-G-4300 and N00024-14-G-430l is It is anticipated that orders will be placed using OPN, O&MN and SCN funding. The estimated dollar amount, 'broken down 'by fiscal year, is set forth below:

Estimated Dollar Values under N00024-14-G-4300 (GDBB) And N00024-14-G-4301 (HII-NNS)

Ill OOJ/00 I

CJ&A Number: 40,970 tn accordance with FAR 6.302-l{b) {l) (ii), BOA N00024·14-G-4300 is a follow·on to BOA ~00024-10-G-4304 awarded on ~ october 3010 and will be effective from date of a~ard through 30 September 2016 and BOA N00024-14-G-4301 is a follow-on to BOA N00024-lO-G- 4305 awarded on 1 October 2010 and will be effective from date of award through 30 September 2016.

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

4. StatutofY Authority Permitting Other Than Full and Open f_2mpetition

The statutory authority permitting other than full and open competition for this effort is lO U.S.C. 2304(c) (l), from only one responsible source or only from a limited number of responsible sources and no other supplies or services will satisfy agency requirements.

S. Rationale Justifying Use of Cited Statutory Authori~

The procurement of the supplies and ancillary services described above using other than full and open competition is appropriate in accordance with Federal Acquisition Regulation (FAR) 6.302-l(b) (1) (ii): there are only two qualified sources with the unique capabilities to satisfy these requirements.

Contractors: General Dynamics Electric Boat Corporation (GDBB) 75 Eastern Point Road Groton. CT 06)40-4989

Huntington Ingalls Industries (HII) Newport News Shipbuilding (NNS) 4101 waehington Avenue Newport News~ v.A 23607

A fundamental objective underlying the submarine program is that of attaining and maintaining a maximum sustained level of depioyment of submarines and requisite personnel. The strategic importance of the submarine program and the direct relationship of efficient operation and the abips' readiness posture are of vital concern. Submarine systems are extremely complicated and require the use of highly technical expertise especially for

CJ&A Number: 40,970 ayatems that are electrical, hydraulic, or mechanical in nature.

To minimize the potential of having an undesirable schedule impA~~ A~A~~iA~~~ W~th unr~I~,~Ad ~ngin@oring and ~-~hn!e.\ problems, it is nece••ary to expeditiously restore or maintain submarines to a fully operational level at all timee.

Through ita extensive previous experience with nuclear-powered and deep diving submarine programs, GDEB and HII-NNS have developed unique expertise and facilities for the design, engineering, construction, and maintenance of theae aubmarinea.

GDEB is the Design Agent and the designated overhaul and planning yard contractor for TRIDBNT SSBNs, SSGNs, VIRGINIA SSNs, all unique SSN classes, and select Special Mission Submersibles (excluding ASOS) (e.g., Nuclear Reactor Submersible Research Vehicle NR-1), Moored Training Shipe, and Submarine Support Facilities. HII-NNS is the Design Agent and designated overhaul and planning yard contractor for the SSN 689 and SSN 21 classes as well as the Lead Yard contractor for the SSN 688 class. In addition, GDEB is the planning yard contractor for the Reactor Plant for SSN 688 and SSN 21 Class submarines while HII-NNS is the designated pl~nning yard and overhaul design support contractor for operational SSN Class submarines and maintains the repository for the associated as built data for SSN 688 and SSN 21 Class submarines. GDEB also maintains the repository for all as-built engineering data for TRIDENT SSBNs and SSGNs, all unique SSN Cl•••••· and select Speoial Mission Submersibles (excluding ASDS) (e.g., NR-1), Moored Training Ships, and Submarine Support Facilities. HII-NNS, as the eole designer and one of two builders (QOEB and HII~NNS) of LOS ANGELES Class SSNs, the eo-designer of the SEAWOLF Class, and the co•builder of the VIRGINIA Claee of submarines, possesses unique experience, technical knowledge, and required background to provide the supplies and services required by the submarine classes to be supported under BOA N00024-14-Q-4301. Only GDEB and HII-NNS have the knowledge and expertise required to perform submarine installation, checkouts, tests, an~ other short-term intermittent operational requirements of submarine systems during the operational phase.

GDEB and HII-NNS are the only private shipyards authorized in aecordance with N~VSEAINST 9210.12 to handle radioactive materia1 associated wit~ nava1 nuclear propulsion plants. These two contractors have developed extensive experience and facilities for the design, engineering, construction, and maintenance of nuclear submarines by their previous participation in nuclear-powered submarine programs. Both GDEB

N-;------ ----------------;=:;~"O"'O:r57/ 0"'0"7,...-----and HII-NNS have the highly technical and specialized research resources such as proprietary access, computer-aided design and mtnufA~~urine. Aftd JhA~@d altA @~Viranm@ftt~. FUrthArMO!!, they have the necessary manpower to provide the essential engineering ~nd design effort for these submarines. No other sources are capable of performing this work.

In order to fulfill the Navy•s requirement for overhaul, maintenance and repair, and modernization, as well as highly specialized engineering and technical support of nuclear-powered and deep diving submarines without duplication of coste, it is necessary eo contract with both PDEB and HII-NNS. To do otherwise would result in inefficiencies with possible impacts affecting mis&ion readiness posture, duplication of effort from repetitive work, possible diaruption in services and data flow, and substantial duplication of costs to the Government. Due to their extensive experience and resident capabilities, GDEB and HII-NNS are the only private contractors capable of providing support for SSNs, SSBNs, SSGNs, other submarines, and Special Mission Submersibles (excluding ASDS), Moored Training Ships, and Submarine Support Facilities. BOAs are currently in place with GDEB and HII-NNS for similar type efforts for SSN and SSBN Class submarines. Currently, the GOEB and HII-NNS BOAs have an end date o! 30 September 2013 and new BOAs are planned for award on l October 2013 under the authority of Class Justification and Approval for Use of Other Than Full and Open Competition CCJkA) 40,970 upon approval.

Predecessor BOAs N00024-l0-G-4J04 (GDEB) ana N00024-l0-G-4305 (HII-NNS) were not competed. Prior to this, predecessor BOAs N00024-05-G-4417 (GDEB) and N00024-05·G-4418 (HII-NNS) were not competed as well.

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

The proposed contract action• to establish BOA N00024-l4-G-4300 with GDEB was synopsized on the Federal Business Opportunities (FBO) webaite on 17 April 2013. GOES responded as to interest, and HII-NNS responded with no interest. The proposed contract action to establish BOA N00024-14-G-4301 was synopsized on the P!O w•~lit• On ~4 May ~01~. Rtt-NN~ responded ae to interest, and GDEB responded with no interest. Individual orders under BOAs N00024-14-G-4300 and N00024-l4-G-430l will be published on the FBO website in accordance with FAR Part s prior to placing llJOOS/007 be competed on a lowest price technically acceptable basis. If GDEB and HII-NNS both respond to a synopsis and the Navy intends to award the order on a sole source basis (for the requirement covered by the specific synopsis) • aepa•atc J~ shall be processed.

A formal market survey wa• not conducted. A market survey waa not conducted because it is not practicable to establish other than limited competition for the reasons stated in paragraph 5 above.

7. Determination of Pair and Rea•onable Coats

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, as required. Analysis of the proposals will be performed by technical analy•ta and contract specialists, with the assistance of the Supervisors of Shipbuilding Groton and Newport New• analy•t• and the Oefense Contract Audit Agency auditors. The Contracting Officer will use cost and price analysis to determine that the final price is fair and reasonable, as required.

B. Actions to Remove Barriers to Competition

During the time period of this CJ&A, the Naval sea Systems Command (PMS 392) will continue to review its acquisition strategy. If another potential source emerges, the Naval Sea systems Command will assess whether competition for future requirements ia feasible.

The circumstances surrounding the need to obtain the required eupplies and ancillary services without providing for full and open competition will be reviewed annually by the Procuring Contracting Officer (PCO) .

Ill 007/007

CERTIFtCATtONS AND APPROVAL

TECHNlCAL/R~QUIREMENTS CERTIFICATION (FAR 6.303-2(b))

1 certify that the facts and representations under my cognizance, which ~re included in this justi.fication and its supporting acquisition planning data, including Acquisjtion Plan No. 392-13-018, except as noted herein, are compLete and accurate to the best of my knowledge and belief.

T~CHNICAL COGNIZANCE and REQUIREMENTS COGNIZANCE:

Signature . Name (Print) and Title (Code)

Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have dAt~rmJned this justitication is leqally sufficient. _, Siqnntur~ Name (Print) and Title (Code) Phone No. Date

CONTRAC1ING OFFICER CERTIFICATION CFAR 6.303-2{b) (t2))

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

Siqnature Name (Pdnt) and Ti.tle (Code) Phone No.

APPROVAL BLOCK (FAR n.304 for Approving Offieiel)

Date

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

Asslst~nt Secretary of the Navy CRD&A)

Sean J. Stac~ley Date