N00024_20934_FBO.PDF

DEPARTMENT OF TUE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC WiLL AVENUE, StE., WASHINGTON NAVY YARD, DC 20376-2020

CJ&AN0: 20,934

Code: 0223 PR No: N00024-14-NR-71452

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Shipbuilding Contracts Division

(SEA 022)

2. Description of Action Being Approved

Award of a Basic Ordering Agreement (BOA) on a sole source basis for the support of Littoral Combat Ship (LCS) Post Delivery Test and Trial (PDT&T) efforts, including Post Shakedown Availability (PSA) planning and engineering efforts, emergent work, and Test and Evaluation (T&E) events. It is intended for this work to be performed on LCS 6 through LCS 20, INDEPENDENCE Variant, ships on a sole source basis to Austal USA of Mobile, AL. Authority to act under this CJ&A expires 30 september 2019.

3. Desq4ption of Supplies/Services

The Government intends to issue a BOA against which multiple orddrs will be negotiated and issued to obtain the required PSA planning support services including advanced planning, engineering support, production, management efforts, on-site engineering liaison, ordering and processing of required material in support of PSA, and emergent repairs.

Additionally, logistics and provisional support will be required for changes and new equipment installations executed during the post delivery period. This work will support the INDEPENDENCE Variant ships LCS 6 through LCS 20 (LCS 6, LCS 8, LCS 10, LCS 12, LCS 14, LCS 16, LCS 18, and LCS 20) in successive PDT&T periods. In addition, the BOA will cover support for the test and evaluation events required for completion of the Seaframe and Anti-Submarine Warfare (ASW) Mission Package (lw) Developmental Test (DT), Technical Evaluation (TECHEVAL) and Initial Operational Test and Evaluation (lOnE), Mine Countermeasure MP TECHEVAL and IOT&E

CJ&A Numbers 20,934 as well as support for the Full Ship Shock Trial (FSST), and post FSST support. The post delivery period extends from ship delivery through theOb].igation Work Limiting Date (OWLD), when the ships are transferred to the Fleet. The post delivery period provides an opportunity to resolve open Government and Contractor responsible trial cards, outstanding warranty items, correction of production-related defects, deferred work from ship construction, Ship Acquisition Program/Project Manager (SHAPM) authorized changes, emergent work items, certifications, Combat System Ship Qualification Test (CSSQT), Final Contract Trial (FCT), and other test events. TECHEVALs, IOT&E and FSST related scope will continue past OWLDs into the following fiscal years (FYs) to support testing events for each increment of each of the MPs on these even numbered Seaframes in accordance with the approved test schedule.

The BOA provides the flexibility required to satisfy the post delivery requirements for LCS 6 through LCS 20 where specific schedules, locations, and tasking are often not clearly defined until immediately prior to or during the execution of ship availabilities and must be handled expeditiously in order to preclude impairment of Fleet operational commitments and potential impacts to PDT&T schedules.

This BOA will include a period of performance extending from BOA award through 30 September 2019 during which orders may be placed.

Austal:

LCS 6

through LOS 20 (in N) I

Estimated Cost (SCN) Estimated Cost

(RDT&E)

Estimated Cost (O&M,N) Estimated Cost (OPN) Total

Eitira.ted Dollar Value~J~M)

CJ&A Number: 20,934

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

acquisition is to satisfy the requirements of the Program Executive Office, Littoral Combat Ships (PEO LCS).

4. Statutory Authority Permitting Other Than Full and Open Competition

10 Usc 2304 Cc) (1). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

In accordance with the criteria provided in FAR Subpart 6.302- 1(a) (2) (iii), the anticipated sole source agreement for LCS S through LCS 20 (INDEPENDENCE variant) PDT&T efforts will be limited to Austal. PSA planning effort, PDT&T support and emergent repairs must be handled expeditiously in order to preclude impairment of fleet operational commitments. Austal, as the INDEPENDENCE Variant seaframe construction Prime Contractor is the only source with first-hand knowledge and experience in all aspects of the design and construction of LCS S through LCS 20 hulls. Austal alone possesses all of the current as-built construction drawings and design specific build specifications for the LCS S through LCS 20 Hull, Mechanical & Electrical (H14&E) and combat systems. Austal is the only source qualified to provide timely PSA Planning, PDT&T Support, and emergent repairs as they alone have the detailed knowledge of each INDEPENDENCE Variant ship’s delivered configuration, deferred work, and incomplete changes. In addition, Austal is the only source with first-hand experience with integrating the specific modules of the LCS MPs with the LCS 6 through LCS 20 Seaframes and the inclusion of specific lessons learned from Austal facility and construction process improvements as well as incorporation of lessons from LCS 2 and LCS 4 testing and operational time at sea into follow on ship design.

Austal possesses a unique and comprehensive understanding of the open issues surrounding each of the hulls of the block buy beginning with LCS S as the prime contractor. Austal is uniquely qualified to complete the in-progress advanced planning, engineering design, material procurement, availability execution, emergent repairs, and other ancillary activities necessary to successfully execute the LCS 6 through LCS 20 PDT&Ts. Any~ other contractor would not possess the equivalent in depth knd~1edge of the current state of LCS ~6 through LCS 20 hulls and would require additional time and significant involvement from the Navy to come up to speed to execute LCS S through LCS 20 PDT&Ts events. Additionally, an alternative shipyard would be required to immediately respond to problems or equipment failures that could subsequently impact the ships ability to test and prepare for PSA. Without contracts in place with every major equipment vendor, any alternate shipyard would have difficulty providing timely support. Likewise the shipyard would need to possess a thorough familiarization with equipment and systems in order to adequately troubleshoot and resolve problems, conduct PSA planning and associated material processing. Any delay would impact timely execution of testing resultincr in schedule delays of an additional s would

_____.o require an ex thereby delaying turnover of the ships to the Fleet as well as require the program to pursue additional budget to address the additional costs.

Austal was awarded Block Buy contract N00024-ll-C-230l for construction of LCS 6 through LCS 20 seaframes. This creates an opportunity for efficiencies of scale, as the shipbuilder developed and has a thorough understanding of the design and material required, constructed every LCS of this variant to date and has established vendor relationships that are part of the Block Buy that an alternate source would not possess. To award Post Delivery Planning to another source would create substantial duplication of cost; Any cost reduction anticipated with a competition for the post delivery planning effort, would be lost in the additional cost of accelerated learning by a third party for each Hull in the short post delivery window.

6. Description of Efforts made to Solicit Offers from as Many Of ferors as Practicable

In accordance with FAR 5.2, a synopsis of this solicitation was posted on the Federal Business Opportunities (Fedbizopps) website on Apr 17, 2014. No responses to the synopsis have been received to date. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph S above, for any company other than Austal to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

Each order is separately negotiated by the cognizant administrative contracting activity. The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph S above, the Naval Sea Systems Command, Shipbuilding Contracts Division (SEA 022) has no plans at this time to compete the LCS S through LCS 20 INDEPENDENCE variant PDT&T requirements addressed herein The circumstances surrounding the need to obtain LCS 6 through LCS 20 INDEPENDENCE variant PDT&T requirements, without providing full and open competition, will be reviewed annually by the Procuring Contracting Officer (PCD).

S

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENT 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 LCS Acquisition Plan PMS 501-11-005 Rev. 2 approved March 25, 2014, except as noted herein, are complete and accurate to the best of my knowledge and belief.

I certify that this justification is accurate and complete to the best of rv knnwlec9ne an~ beliefr 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) using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c) (1)

Sean J. Stackley q4u~ ~ Dat’e

1/

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

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