N00024-14-R-5335_Redacted_J.A.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001 IN REPLY TO

J&A Number: 53,212 Code: SEA 02532

PR: N0002413NR42047

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Surface Systems Contracts Division, SEA 025.

2. Description of the Action Being Approved

NAVSEA will utilize other than full and open competition to award a Design Agent services contract to Raytheon Company, Integrated Defense Systems (Raytheon IDS) for the Dual Band Radar (DBR) system. This work will include various testing efforts, DBR software enhancement and modifications for several interfaces, and services.

3. Description of Supplies/Services

The DBR was originally designed as a part of the mission systems equipment (MSE) for DDG 1000 class ships. This radar suite is a single, integrated radar system combining the AN/SPY-3 Multi-Function Radar (MFR) at X-Band and AN/SPY-4 Volume Search Radar (VSR) at S-Band. This radar suite is a state of the art, high performance radar system with self-defense Anti-Aircraft Warfare (AAW) mission. It replaces several legacy rotating radars and is the future radar suite for performing Air Traffic Control (ATC) operations on platforms to include CVN 78 class ships. Now in the production life-cycle-phase, multiple services and supplies are required to complete the integration and interface requirements for ship installation.

The planned contract award will be a base contract awarded 4th quarter, (FY) 2014 on a sole-source basis with three additional 1 year options. In this contract, engineering services will be acquired for the following:

J&A Number: 53,212

• Wallops Island Engineering Test Center DBR testing,

• Enterprise integration and testing (including Self

Defense Test Ship),

• Environmental testing,

• At-Sea testing and shock testing,

• Logistics support,

• Information assurance,

• Refurbishment of production assets,

• Technical Studies,

• Signal Data Processor depopulation/repopulation, and

• Electro Magnetic Interference Mitigation.

The estimated contract value is $60,400,000. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

Total Estimated Dollar Value of this Acquisition Covered by this J&A

Estimated funding is summarized below (Millions).

Appropriation FY14 FY15 FY16 FY17 TOTAL

SCN

RDT&E

Total

* This J&A is in accordance with DBR Acquisition Plan (AP) number 2013-DBR-1 Rev:0 dated 06 JUN 2013 with the exception of fiscal years of contract performance. The AP articulates a FY13-FY17 period of performance, but the procurement will be FY14-FY17. Requisite estimated costs from FY13 have been redistributed to FY14-FY17.

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

Raytheon IDS is the only responsible source capable of satisfying the Navy’s requirements for the DBR and related engineering services.

Since April 2002, Raytheon has been the integrator for the DDG 1000 Class Mission System Equipment (MSE). Under the initial competitively awarded contract N00024-02-C-2302 (total contract value $2.9 billion) for Phase III of the DD

(X) program, Raytheon IDS was a major subcontractor with approximately 45% of the overall contract - valued at $1.3 billion. Acquisition Decision Memorandum dated 20 April 2005 and signed by the Under Secretary of Defense for Acquisition, Technology and Logistics authorized the Navy to continue system and software development. Pursuant to J&A number 52,513, approved by Assistant Secretary of the Navy (Research, Development and Acquisition) on 23 May 2005, Raytheon IDS was awarded contract N00024-05-C-5346 on a sole-source basis valued at $2.95 billion for follow-on detailed design and integration of MSE and the associated software development for the DDG 1000 Class. Subsequently, pursuant to J&A 53,086.10 approved on 27 October 2006, the contract was modified to require Raytheon IDS to produce DDG 1000 and DDG 1001 MSE. Subsequently, pursuant to J&A 51,903, approved on 16 December 2009, contract N00024-10-C- 5126 was awarded on a sole-source basis valued at $1.47 billion for follow-on procurement actions for DDG 1002 MSE and remaining elements of the DDG 1000 and 1001 MSE items.

CJ&A 51,903 also includes both DDG 1000 Class and hull specific associated supplies, services, as well as long-lead time materials.

As the systems integrator for DBR (VSR & MFR), Raytheon has established a unique and interdependent mixture of work agreements with subcontractors, work scope definitions, products and service expected outcomes, intellectual property agreements, technical and programmatic communication processes, configuration management and control processes, and subcontract management structures that are defined, maintained, and managed by Raytheon for the production of the MSE.

Raytheon has been the lead in designing the MFR, back-end electronics, and the common array power and cooling systems for the DBR. Additionally, Raytheon developed a unique capability which includes the hardware and software interfaces necessary to integrate the MFR with the VSR which established the DBR suite. This development included 1.3 million Equivalent Source Lines of Code (ESLOC). By integrating MFR and VSR into a common back-end signal processor, Raytheon has been successful to enable a unique waveform integration design increasing the tactical situational awareness for the war-fighter.

It is essential that the contractor performing Design Agent requirements has extensive familiarity with and knowledge of the ongoing production and integration efforts of the DBR program. The services provided will be used to support already ongoing DBR development and production delivery.

Award of the DBR DA to any company other than Raytheon IDS would result in significant schedule delay due to limited data rights. As of result of budgetary restrictions, the Navy does not own Government Purpose Rights (GPR) or Level-3 Technical Data Package (TOP) drawings for all of the DBR data. During early development of the DBR, several critical components which make up the DBR system were developed exclusively at private expense including the MFR (X-band) and VSR (S-band) radar arrays and associated subcomponents.

With no GPR for the proprietary DBR data, it would not be feasible for an alternate source to provide the required life-cycle support services (including engineering software upgrades or radar system repairs) for the current DBR system. The lack of GPR for the DBR would prevent a new contractor from providing technical services, repairs, spares, or obsolescence support for the parts for which the Government does not have GPR. This situation would in essence, require an alternate source to design and develop a completely original radar system. The estimated time to develop, procure and deliver a new radar system with DBR equivalent capabilities is a minimum of seventy-five (75) months based on the Navy’s previous experience with the DBR development. This estimate includes eighteen (18) months for competitive requirements definition, fifteen (15) months for source-selection and forty-two (42) months for the first full-rate production unit and is inclusive of first article testing on a single array face of that unit. In addition, the forty-two (42) months also includes approval and certification of the radar system’s performance parameters and specifications. Moreover, such a plan would be impractical given an In-Yard Need Date of 3rd Quarter FY 2018.

The potential benefits to be derived from competition are outweighed by the anticipated drawbacks from substantial schedule delay. First, the estimated delay in acquiring DBR (or similar system) life-cycle support would put the Navy’s ship availability and deployment schedules at risk of significant slippage, which is unacceptable to the Navy.

Alternatively, if ships deployed without the DBR (or similar radar) capabilities in lieu of being delayed, this would put the Navy’s mission readiness in jeopardy, which is also unacceptable to the Navy. For these reasons, Raytheon 105 is the only source with the technical expertise and experience capable of effectively providing the requisite life-cycle engineering support services and supplies for the DBR without substantial and unacceptable delay.

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

NAVSEA Program Executive Office Integrated Warfare Systems Above Water Sensors technical, logistics, and contracting personnel engage in market research, maintaining in-depth knowledge of the DBR system. It will continue to be a priority for NAVSEA personnel to stay up-to-date on industry technical, production, and Internal Research and Development efforts.

In accordance with FAR 5.201, a pre-solicitation synopsis for DBR Design Agent was announced on January 16, 2014 via posting to Federal Business Opportunities. This pre-synopsis articulated a sole source award to Raytheon Company, Integrated Defense Systems. No expressions of interest were received as of the date of this J&A.

For the reasons discussed above, it is not practicable for any company other than Raytheon IDS to provide the required 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. The Contracting Officer will compare negotiated pricing as well as actuals from similar engineering services procurements from this contractor to facilitate fair and reasonable price determination. In addition, field pricing assistance will be requested along with offeror’s certificate of current cost and pricing to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Competition

Currently, only the original equipment manufacturer has sufficient knowledge to perform this effort. The Government does not have a TDP or at least Government Purpose Rights (GPR) in all areas for DBR. However, the Government is pursuing a contract option for a TDP with GPR under another contract vehicle. If pricing for a TDP option with GPR is obtained and a business case analysis supports the exercise of a TDP option with GPR, IWS 2.0 will pursue Design Agent competition when feasible.

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 DBR Acquisition Plan Number 2013-DBR-1 Rev:0, 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:

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

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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

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 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 Procuring 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 SYSTEMS CONTRACTS DIVISION

James G. Lofgren_________________________________________6/6/2014_____ Signature Name (Print)