N00024_41 068.PDF

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER 70

Ser 02/315

5 Nov 14

J&A Number: 41,068 Code: 02434 P.R. Number: N0002414NR91627

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL MUD OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Contracts Division (SEA 02)

2. Description of the Action Being Approved

Award of a cost plus fixed fee (level of effort) contract on a sole source basis for repairs and modernization of USS Harry S Truman (CVN 75) during the FY15 Continuous Incremental Availability (CIA) scheduled to start on 1 December 2014. This availability is planned for accomplishment at Norfolk Naval Shipyard (NNSY)

3. Description of Supplies/Services

This document provides justification to execute a cost plus fixed fee (level of effort) contract with Huntington Ingalls Industries - Newport News Shipbuilding (HII-NNS) to accomplish maintenance and modernization on-board CVN 75 during the FY15 CIA. The work items under this contract action include nuclear propulsion and complex modernization work. The required completion date for all work items is

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

An estimated value of in FY15 O&MN from NNSY and

- 3 in FY15 O&MN funding from PMS 312 will be required to fund this contract. The total estimated value of this contract is

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c) (1), as implemented by the FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

NNSY has experienced significant growth and delay to the USS Eisenhower (CVN 69) FY13 Docking Planned Incremental Availability (DPIA), which has (1) exacerbated the pressure on NNSY resources during FY14, (2) created a FY15 carrier maintenance overlap between CVN 69 and CVN 75, (3) delayed undocking of USS Maryland (SSBN 738) FY13 Engineered Refueling Overhaul, (4) delayed undocking of USS Albany (SSN

753) FY14 Engineered Overhaul, and (5) postponed the start of the USS La Jolla (SSN 701) FY15 conversion to a moored training ship. Growth on the CVN 69 availability has created a ripple effect from FY14 into and through FY15 causing severe workload imbalances in key shops, including Shop 56 (Pipefitting) , Shop 57 (Insulating) , Shop 26 (welding) , Shop 11 (Shipfitting), and Shop 31 (Inside Machining) . These imbalances leave NNSY with insufficient capacity to complete all of the work on CVN 75 during the scheduled CIA, and will continue to impact future carrier and submarine operational schedules if not mitigated. NNSY has already taken mitigating actions to reduce this workload imbalance in several ways, including increasing touch labor and working with contracting partners through the existing Mid-Atlantic Multi-Ship Multi-Option (MSMO) contract to outsource more of their non-nuclear workload.

This requirement covers the nuclear propulsion and complex modernization work that NNSY is unable to accomplish and that the MSMO is not capable of completing. There are only three organizations that are capable of accomplishing nuclear maintenance and modernization on nuclear aircraft carriers:

two public shipyards and one private (HII-NNS). NNSY, the public shipyard with the core logistics mission to complete the CVN 75 CIA, does not have sufficient capacity to complete the work. The other public shipyard, Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF) is currently operating at full capacity. PSNS&IMF is executing a two aircraft carrier overlap between USS John C. Stennis (CVN 74) and USS Ronald Reagan (CVN 76), precluding any assistance with the CVN 75 CIA.

As a result, the government must rely on the unique expertise of HII-NNS as the nation’s only builder and refueler of nuclear-powered aircraft carriers to perform the specific nuclear propulsion and complex modernization work that NNSY is unable to accomplish during the scheduled FY15 CVN 75 CIA.

HII-NNS is the only commercial contractor with capability, extensive specialized experience, training, and qualifications in the nuclear and non-nuclear engineering and production processes to perform and meet the Government’s requirement.

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

This procurement was synopsized on 9 october 2014 and no other responses were received.

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.

8. Actions to Remove Barriers to Competition

Only one private shipyard exists that is capable of accomplishing nuclear maintenance and modernization on nuclear aircraft carriers; that shipyard is HII-NNS. In the unlikely event that another private source emerges in the future, NAVSEA 02 will compete future requirements of this nature.

CERTIFICATIONS AED APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6 • 303-2(c))

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. (N/A) except as noted herein, are complete and accurate to the best of my knowledge and belief.

TErflNTflAL_CCCThT~T4NcE (NNSY):r

REQUnENENTS. COGNIZANCE (NNSY):

lQdNtnCAL COGNIZANCE (PMS 312)

~ature - Name (~Print) and TitiJe (Code) Phone No.

•1 -—

Date

RESUIREMENTS COGNIZANCE (PMS 312):

b~ime (~flnt) &~id Title (Code)

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justificationi.s_legally sufficient.

Name (Print) and ~th1e (Cdae)

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

I certify that this justification is accurate and complete to the best of my knowledcre and belief.

r

Phone No.

‘S i~t?f/re

Date

Phone No. bate signaturer Name (Print) and Title (Code) Phone No. Date

APPROVAL BLOCK (FAR 6.304 for Approving Off icial)

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 described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c) (1).

SEA 0t~OVAL

T~0~ ~

___ •gnature Name (Print) Date