N00024_20981_FBO.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

13331SAAC HULL AVE, SE

WASHINGTON NAVY YARD, DC 20376-0001 INREPLYTO

CJ&A Number: 20,981 Code: 0224 P.R. Number: N00024-15-NR-51017

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF THER 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 contract on a sole source basis to Huntington Ingalls Industries, Ingalls Shipbuilding (Ingalls), 1000 Access Road, Pascagoula, MS 39567 for the long lead time material (LLTM) for the LPD 28 Amphibious Transport Docking Ship. The LPD 28 is the 12th and final ship of the LPD 17 Class Amphibious Dock Program. Authority to place orders under this class J&A for LPD 28 LLTM expires 30 September 2016.

3. Description of Supplies/Services

The proposed contract action will provide for the LLTM and associated non-recurring engineering (NRE) for one (1) LPD 17 Class ship. The LPD 17 Class Ships are diesel powered amphibious transport dock ships used to transport and land as many as marines, their equipment and supplies, by embarked air cushion (LCAC) , conventional landing craft and Expeditionary Fighting Vehicles (EFV), augmented by helicopters or vertical take-off amphibious assault, special operations, or expeditionary warfare missions.

LPD 28 LLTM and associated NRE will be awarded as a cost type contract CLIN. If in the future Ingalls is awarded the LPD 28 Detail Design & Construction (DD&C) work, then the LLTM CLIN will be subsumed into a fixed-price-incentive (firm target) contract CLIN. If the DD&C award is delayed the LLTM may be increased to procure additional material to maintain/protect schedule.

The period of performance for the LPD 28 LLTM procurement effort will be from FY 15 through FY 16. The Government's

CJ&A Number: 20,981 minimum needs have been verified by certifying technical and requirements personnel.

The estimated total value for LPD 28 LLTM is . This requirement will be funded with SCN (FY13 Advanced Procurement) appropriations.

4. Statutory Authority Permitting Other than Full and Open Competition

10 u.s.c. 2304(c) (1) implemented at FAR 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Based on full and open competition, Avondale Industries, Inc.

(AII) (now Ingalls) was awarded the cost-plus-award-fee contract for detail design, construction, integration and testing of the first three LPD 17 Class ships in December 1996.

AII was the prime contractor of a team including Bath Iron Works (BIW) , Intergraph and Hughes Aircraft Company (now Raytheon Systems Corporation) . This team was commonly referred to as the Alliance. A contract modification in fiscal year 2000 added the LPD 20, the fourth ship of the LPD 17 Class to the same contract. J&A 20,331, signed on 2 October 2000, authorized procurement of LPD 21, LPD 22, and two follow ships (LPD 23 and LPD 24) from NGSB (now Ingalls) on a sole source basis. In July 2002, the Navy, NGSB and BIW signed the

"MEMORANDUM OF UNDERSTANDING CONCERNING THE REALLOCATION OF

LPD-17 AND DDG-51 SHIP CONSTRUCTION WORKLOAD" that included the transfer of all current and future LPD 17 Class ship construction efforts to NGSB. In November 2003, a new cost plus-incentive-fee contract for the fifth ship of the class (LPD 21) was awarded to NGSB. This contract was later converted from cost-plus- incentive-fee to a fixed-price incentive (firm target) contract in May 2008.

CJ&A 20,512(E), signed on 5 December 2005, authorized procurement of the ninth and tenth follow-on ships (LPD 25 and LPD 26) from NGSB on a sole source basis. In June 2006, a new fixed-price-incentive (firm target) contract for LPD 22 and LPD 23 (with options for LPD 24 and LPD 25) was awarded to NGSB on a sole source basis. The LPD 24 option was exercised in November 2006. The LPD 25 option was exercised in December 2007. The LPD 26 option was exercised in April 2011.

CJ&A 20,331.19, signed on 30 November 2010, authorized procurement of the eleventh follow-on ship (LPD 27) from NGSB on a sole source basis. The LPD 27 was added as an option on the existing LPD 22-26 contract and was exercised in July 2012.

As the contractor responsible for the performance execution on contracts for detail design and construction of the first eleven ships of the LPD 17 Class, Ingalls (spun off from NGSB Gulf Coast) , is the only source with the requisite knowledge of the design and construction of the LPD 17 Class ships to efficiently and effectively procure LLTM for the final LPD 17 Class ship identified in the LPD 17 Program Acquisition Strategy. Ingalls has the requisite financial, technical, labor and facility resources to procure the LLTM for LPD 28.

The experience and resources gained by Ingalls and their existing LPD 26 and 27 vendor relationships are intended to be leveraged to the maximum extent possible, to meet the schedule and budget constraints imposed on this LLTM procurement.

Existing LPD acquisition documentation will be used to minimize the time required to award LLTM.

In accordance with FAR Subpart 6.302-1(a) (ii), this procurement is deemed to be a follow-on contract for the continued development or production of a major system that is available only from the original source. It is likely that award of LLTM to any other source would result in substantial duplication of cost and at least a year's delay in procurement to the Government that is not expected to be recovered through competition. As previously stated in the LPD 27 LLTM J&A, the estimate of the cost to the Government that would be duplicated resulting from this inefficient use of resources is

, which was derived based on inefficiencies, errors, and schedule delays likely to result from a new entity attempting to review and implement the Purchase Technical Specifications (PTS) for the complex systems on an LPD 17 Class Ship without assistance from Ingalls. The cost to the Government to acquire an alternative source to perform the LPD 28 LLTM procurement would be prohibitive. Furthermore, numerous cost saving initiatives are being incorporated into the LPD 28 which affect the LLTM being procured. This J&A includes the NRE required to complete incorporation of these cost saving initiatives into the LLTM components as well as the ship design package. Only Ingalls is capable of performing this task without causing significant delay and cost to the program.

NAVSEA Acquisition Plan (AP) 15-002 Revision 0 (LPD 17 Amphibious Transport Dock) , ACAT IC, was approved on 6 March 2015. LPD 28 will be the last ship in the LPD 17 Class.

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

The proposed contract was synopsized on the Federal Business Opportunities (FEDBIZOPS) website on 4 February 2015. One inquiry was received from a foreign company which has been determined to not be a qualified source of supply or services.

A market survey will not be conducted for this effort because this procurement is considered sole-source for the reasons specified in paragraph 5 above. The Federal Business Opportunities (FBO) synopsis will function as a market survey for subcontracting opportunities.

7. Determination of Fair and Reasonable Costs

In accordance with FAR 15.402(a), th~ 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 15.402-4. Analysis of the proposal will be performed by technical analysts and the contract specialist, with the assistance of the Supervisor of Shipbuilding, Gulf Coast and DCAA rate analysts. The Contracting Officer will use cost and pricing analysis to determine that the final price is fair and reasonable.

8. Actions to Remove Barriers to Competition

For reasons set forth in paragraph 5, the Naval Sea Systems Command, Shipbuilding Contracts Division (SEA 022) has no plans at this time to compete future contracts for the types of supplies/services covered by this document. The LPD 28 will be the last ship of the LPD 17 Class.

TECHNICAL AND 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. 15-002 Revision o, 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

(Print) and Title (Code) Phone No. Oate

LEGAL SUFFICIENCY REVIEW (NMCAG 5206.303(90))

CONTRACTING OFFICER CERTIFICATION !FAR 6.303-2(al (12})

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

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 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).

THE NAVY (RD&A)

~APt?. IS Signature Name (Print) and Title (Code) Phone No. Date