N00024_51904_FBO.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER TO

J&A Number: 51,904

Code: SEA 0251 PR No. N0002419NR41015

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

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

2. Description of the Action Being Approved

In accordance with FAR 6.302-2, award a contract on the basis of unusual and compelling urgency to Lockheed Martin Rotary and Mission System (LM RMS) for AEGIS equipment in support of the restoration of the USS Oscar Austin (DDG 79) following the onboard fire that occurred on 10 November 2018. Unusual and compelling urgency precludes full and open competition; delay in award of a contract would result in serious injury to the Government. It is impracticable to solicit offers from other sources because of the need to start work in Q2 FY19, and the results of the Navy’s review of the other potential sources’ capabilities establish that no other source can meet the Navy’s schedule requirements.

3. Description of Supplies/Services

This document provides the justification and approval to initiate restoration of DDG 79 leading to mission ready condition. The anticipated contract modification will provide for the production or repair of critical components of the AEGIS Weapon System (AWS) that were damaged in the onboard fire. Work will include either repair of or the production, test, and delivery of the following items directly to the shipyard:

a. AS-3851/SPY-1D Array (Qty 1)

b. Various SPY array waveguide and components

c. Additional combat system support equipment that may be identified in subsequent damage investigations (i.e. circuit breaker, air handling, distribution panel, etc.)

LM RMS shall also be responsible for related technical services to support element testing, shipyard installation, and other requirements, as required.

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

J&A Number 51,904

The cost of procuring the AWS elements identified above is $16,500,000. FY 2019 O&MN funds will be obligated in support of the requirement.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(2), Unusual and compelling urgency.

5. Rationale Justifying Use of Cited Statutory Authority

On 10 November 2018, USS Oscar Austin suffered significant mechanical, electrical, and combat systems damage as a result of a fire at the BAE Systems, Norfolk shipyard, during its modernization availability. The fire damaged thirty-eight compartments aboard DDG 79 with the most significant damage occurring in the Forward Deckhouse 02 level.

Significant damage to electronic equipment and components also resulted from firefighting water that was used to extinguish the fire. The damage to USS Oscar Austin is extensive and requires immediate and complex restoration.

The USS Oscar Austin’s expeditious return to the Fleet is required to support the national Ballistic Missile Defense (BMD) strategy, and it is essential that the Navy make an immediate contract award to return the USS Oscar Austin to a mission-ready condition as quickly as possible. The USS Oscar Austin is slated to be 1 of 4 Integrated Air and Missile Defense mission capable vessels forward deployed under Commander Sixth Fleet and she will be 1 of 37 vessels in the Fleet with BMD mission capability. Delay in award of a contract, together with any resulting delay in completing this critical work, would result in serious injury to the Government by not having one of its few operational assets with BMD capability available as quickly as possible to support the National BMD strategy and the Sixth Fleet mission requirements.

LM RMS and its predecessor companies have been involved in the development, production, and sustainment of AWS since its inception in the 1980s. Currently, it is the lead developer of new software baselines as well as the prime system level integrator of AWS for new construction DDGs, Foreign Military Sales, AEGIS Ashore, and AEGIS Modernization requirements.

LM RMS is the only existing source with the in-depth technical expertise, knowledge, resources, and infrastructure to produce, integrate, and repair these items without adverse impact to USS Oscar Austin repair schedule and deployment schedule. If this contract were to be awarded to a new offeror, NAVSEA estimates it would take 28 months to qualify a new vendor and another 24 months would be required to produce the array and supporting equipment; therefore, failing to return a mission ready DDG 79 to the Fleet expeditiously. Based on the facts presented above and due to the urgency of initiating immediate support for USS Oscar Austin, LM RMS is the only qualified source capable of providing the required supply/services in a timely manner.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable kelly.t.torres Highlight kelly.t.torres Highlight kelly.t.torres Highlight kelly.t.torres Highlight kelly.t.torres Highlight

J&A Number 51,904

This procurement was not synopsized pursuant to the authority of FAR 5.202(a)(2), due to the unusual and compelling urgency to provide support for the restoration of USS Oscar Austin (DDG 79).

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined the price to the Government for the supplies/services covered by this J&A will be fair and reasonable. For the AS-3851/SPY Array, the NAVSEA contracting office will use cost and price analysis to determine a fair and reasonable price. The Contracting Office, with assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will analyze, evaluate, and negotiate based upon detailed cost or pricing data, which will be certified by LM RMS at the conclusion of negotiations. For the waveguide and any other combat system support equipment identified in subsequent damage investigations, the NAVSEA contracting office will use purchase order history and actual incurred cost and pricing data from recently awarded negotiations to determine fair and reasonable pricing.

LM RMS has years of AWS production experience, which provides the Government visibility into actual production cost data and will allow the Navy to negotiate a fair and reasonable contract value for the additional equipment identified in this J&A.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NAVSEA has no plans at this time to compete future contacts for the types of supplies/services covered by this document. This contract will be a one-time buy due to the urgent and compelling requirement. Therefore, there are no barriers to competition that NAVSEA has to remove.