N00024_20799.3_FBO.pdf

DEPARTMENT OF TUE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVENUE, S.E., MIS 2020

WASHINGTON NAVY YARD. DC 20376-2020

J&A Number: 20,799.3 Code: SEA 0223 PR No: N00024-14-FR-71446

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 the Action Being Approved

Award of a modification to previously awarded Contract N00024- 09-C-2302 for Class Design Services for Littoral Combat Ships (LC5) 2 and 4 for Fiscal Years (FY5) 2014 and 2015 on a sole source basis to Bath Iron Works (81W), Bath, ME.

3. Description of Supplies/Services

Justification and Approval (J&A) No. 20,799 approved by NAVSEA 022 on March 7, 2012 authorized the procurement of Fiscal Year (FY) 2012 and FY 2013 Class Design Services for LCS 2 and LCS

4 from BIW using other than full and open competition and was awarded via modification P00032 to contract N00024-09-C-2302.

At that time LCS 4 was under construction and was planned to deliver in March 2013. Accordingly, the Navy had no plans to require Class Design Services for LCS 2 and LCS 4 from 81W beyond FY 2013.

The FY 2014 and FY 2015 Class Design Services effort with 81W is required to accomplish the class baseline design for LCS 2 and LCS 4 only, including software development and engineering efforts necessary to support the implementation of changes that arise during the post delivery activities of LCS 2 and LCS 4. This effort will also provide for the efficient transfer of lessons learned from LCS 2 and LCS 4 Post Delivery Tests and Trials (PDT&T) period into the design and construction of LCS 6 and follow.

J&A Number: 20,799.3

This continuation of services is required due to the delayed delivery of LCS 4 which resulted in the associated PDT&T period and LCS 4 Obligation Work Limiting Date (OWLD) to be delayed. Additionally, this continuation of services supports the delayed LCS 2 Developmental and Operational Testing (DT/OT) efforts to achieve Initial Operational Test & Evaluation (IOT&E) and Initial Operational Capability (bC) with the Mine Countermeasure Mission Package (MCM MP) Specifically, the Class Design Services effort includes Class Baseline Design Services, Class Documentation Services, Class Engineering Studies, Cost Estimating Support, LCS Ship Transition, Interim Support Services, and Liaison for Ship Construction and Post Delivery with the Class Design Agent for LCS 6 and follow. These efforts do not include the production implementation of any resulting changes into LCS Class ships during construction. Such changes will be accomplished under the appropriate ship construction contract. The contract modification is planned to be negotiated on a sole source basis and is anticipated to be awarded in FY 2014 to cover efforts planned through FY 2015.

The estimated value of each year of service of this effort is $14,000,000, for a total of $56,000,000. This increased level of support is required to correct the unanticipated level of software issues that have arisen throughout the LCS 2 and LCS 4 PDT&T. These efforts are required to obtain combat system certification and the ability to fully test the mission package software.

Estimated Dollar Value

FY12 FY13 FY14 FY15 Totals

SCN $14,000,000 $14,000,000 $7,000,000 $7,000,000 $42,000,000

RDT&E $7,000,000 $7,000,000 $14,000,000

Total $14,000,000 $14,000,000 $14,000,000 $14,000,000 $56,000,000

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. This acquisition is required to satisfy the requirements of the Program Executive Office, Littoral Combat Ship (PEO LCS)

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.

Page 2 of S

5. Rationale Justifying Use of Cited Statutory Authority

In accordance with the criteria provided in FAR Subpart 6.302- 1 (b) , the anticipated sole source contract modification for LCS Class Design Services for LCS 2 & LCS 4 will be limited to BIW. BIW is the only source with first-hand knowledge and experience in all aspects of the design and construction of LCS 2 and LCS 4, which meets the entirety of the Government’s requirements. BIW possesses all of the current as-built construction drawings and design specific build specifications for the LCS 2 and LCS 4 Hull, Mechanical & Electrical (HM&E) and combat systems. In addition, BIW is the only source with first-hand knowledge and experience with integrating the LCS mission modules with LCS 2 and LCS 4, including lessons learned during PDT&T.

31W possesses a unique and comprehensive understanding of the open issues surrounding LCS 2 and LCS 4, particularly concerns which have been discovered during PDT&T and the various post delivery availabilities on LCS 2 for which 31W is the prime contractor. Any other contractor would not possess the equivalent in-depth knowledge of the current state of LCS 2 and LCS 4 and would require additional time and significant involvement from the Navy to come up to speed and be able to move forward. In addition, the loss of the established BIW engineering team would create disruption in the resolution of ongoing system wide issues, like the Launch Handling and Recovery System, creating the risk of costly schedule delays and rework.

By virtue of being the prime contractor on both LCS 2 and LCS 4 and currently performing class design services for the first two hulls of this design variant, 31W is the only source that already has the full knowledge and experience required. 31W is also best positioned to complete work in support of the LCS 2 and LCS 4 schedules.

On 29 December 2010, the Government awarded Contract N00024- 1].-C-230l to Austal USA for the construction and associated efforts for up to (10) LCS of the same design variant as LCS 2 and LCS 4. While that contract includes Class Services effort for the subject LCS design, the expertise developed by 31W concerning the specific issues presented with LCS 2 and LCS 4 make 31W the only practical contractor to perform the functions needed. In addition, 31W will continue to retain the prime role for the Post Shakedown Availability of LCS 4 and through the OWLD, which further supports the need to include LCS 4 in the subject action.

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

In accordance with FAR 5.2, a synopsis of this solicitation was posted on the Federal Business Opportunities (Fedbizopps) website on 21 Mar 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 BIW 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 the J&A will be fair and reasonable.

S. 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 requirements addressed herein. As discussed in paragraph 5 above, the Government awarded a contract to Austal USA where class services for the subject LCS design variant will be performed in the years FY 2010 - FY 2015. The specific effort associated with LCS 2 and LCS 4 is of a unique nature and there are no plans to require support as detailed herein beyond the FY 2012, FY 2013, FY 2014 and FY 2015 actions.

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 the Acquisition Plan No. PMS 501—11—005 Rev.2 approved on 25 March 2014, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHN CAL COGNIZANCE:

R QUIREMENTS COGNIZANCE:

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LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have determined this justification is legally sufficient.

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

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.

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)

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