CJA_21-312_LCS_Austal_Planning_BOA_-_Redacted.pdf

DEPARTMENT OF THE NA VY

NAVAL SEA SYSTEMS COMMAND

ll.13 ISAAC HULL AVENUE, S.E., WASHINGTON NAVY YARD, DC20J76-2020

CJ&A No : 21 , 312 Code : 0223 PR No: N00024-19-NR-2308

CLASS 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 Action Being Approved

Award of a Basic Ordering Agreement (BOA) on a sole source basis for the support of Littoral Combat Ship (LCS) Post Delivery Test and Trial (PDT&T) efforts, including Pos t Shakedown Availability (PSA) planning and engineering efforts, emergent work, and Test and Evaluation (T&E) events. It is intended for this work to be performed on LCS 18 through the end of the LCS program INDEPENDENCE Variant ships on a sole soµrce basis to Austal USA of Mobile, AL . Authority to act under this CJ&A expires 30 September 2026 .

3 . Description of Supplies/ Services

The Government intends to issue a BOA against which multiple orders will be negotiated and issued to obtain the required PSA planning support services i .ncluding advanced planning, engineering support, production, management efforts , on-site engineering liaison, ordering and processing of required material in support of PSA, and emergent repairswhich may include the requirement to drydock. Additionally, logistics and provisional support will be required for changes and new equipment installations executed during the post delivery period. This work will support the INDEPENDENCE Variant ships, beginning with LCS 18 through the end of the class (LCS

18, LCS 20, LCS 22, LCS 24, LCS 26, LCS 28, LCS 30, LCS 32,

LCS 34, with the potential for LCS 36 and LCS 38 as Fiscal Year (FY)l9 ships) in successive PDT&T periods . In addition, the BOA will cover support for the Mission Package (MP) Test and Evaluation (T&B) events required for completion of Seaf rame integration testing with the Anti-Submarine Warfare

Au•tal:

(in $Mal

Estimated Cost (SCNl

Esti mated Cost (RDT&El Esti mated coat (O&M , Nl Es t imated Cos t (OPN)

Total

CJ&A Number: 21,312

(ASW) MP and the Mine Countermeasure (MCM) MPs . The post delivery period extends from ship delivery through the Obligation Work Limiting Date (OWLD), when the ships are transferred to the Fleet. The post delivery period provides the opportunity to resolve open Government and Contractor responsible trial cards, outstanding warranty items , correction of production- related defects, deferred work from ship construction and Ship Acquisition Program/ Project Manager (SHAPM) authorized changes . Additionally, the post delivery period will include the completion of emergent work items, which may include the requirement to drydock, ship and system certifications, Combat System Ship Qualification Test (CSSQT), Final contract Trial (PCT), and other test events to support completion of the approved Mission Package test plan where the seaframe is required to support i t .

The BOA provides the flexibility required to satisfy the post delivery requirements for LCS 18 through the end of the LCS class for this variant where specific schedules, locations, and tasking are of ten not clearly defined until immediately prior to or during the execution of ship availabilities and must be handled expeditiously in order to preclude impairment of Fleet operational commitments and potential impacts to PDT&T schedules .

This BOA will include an ordering period extending from BOA award through 30 September 2026 during which orders may be placed.

Estimated Dollar Value

The Government's minimum needs have been verified by the certifying technical and requirements personnel . This acquisition is to satisfy the requirements of the Program Executive Office, Unmanned and Small Combatants (PEO USC) .

CJ&A Number : 21,312

4. Statutory Authority Permitting Other Than Full and Open Competition

10 USC 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

In accordance with the criteria provided in FAR Subpart 6 . 302-l(a) (2) (iii) (A), the anticipated sole source agreement for LCS 18 through the end of the LCS class (INDEPENDENCE variant) PDT&T efforts will be limited to Austal. PSA planning effort, PDT&T support and emergent repairs must be handled expeditiously in order to preclude impairment of fleet operational commitments.

Austal, as the INDEPENDENCE Variant seaframe construction Prime Contractor and with the delivery of eight LCS is the only source with first-hand knowledge and experience in all aspects of the design and construction of LCS 18 through the end of the LCS INDEPENDENCE Variant hulls. Austal alone possesses all of the current as-built construction drawings and design specific build specifications for the LCS 18 through the end of the LCS INDEPENDENCE Variant Hull, Mechanical & Electrical (HM&E) and combat systems. Austal is the only source qualified to provide timelyPSA Planning, PDT&T Support, and emergent repairs as they alone have the detailed knowledge of each INDEPENDENCE Variant ship's delivered configuration, deferred work, and incomplete changes . In addition, Austal is the only source with first-hand experience with integrating the specific modules of the LCS MPs with the INDEPENDENCE Variant Seaframes and the inclusion of specific lessons learned from Austal facility and construction process improvements. In addition, Austal is the only source with first-hand knowledge of lessons learned from the multiple PDT&T events on the INDEPENDENCE variant ships, specifically including the results of Full Ship Shock Trial on LCS 6 .

Austal possesses a unique and comprehensive understanding of the open issues surrounding each of the hulls of the block buy beginning with LCS 6 as the prime contractor. Austal is uniquely qualified to complete the in-progress advanced planning, engineering design, material procurement, availability execution, emergent repairs, and other ancillary activities necessary to successfully execute the LCS 18 and follow hulls PDT&Ts. Any other contractor would not possess the equivalent in depth knowledge of the current state of LCS 18 through the end of the class hulls and would require additional time and significant involvement from the Navy to come up to speed to execute LCS 18 and follow hulls to the end of this variant

CJ&A Number: 21,312

PDT&Ts events. Additionally, an alternative shipyard would be required to immediately respond to problems or equipment failures that could .subsequently impact the ships ability to test and prepare for PSA. Without contracts in place with every major equipment vendor, any alternate shipyard would have difficulty providing timely support. Likewise, the shipyard would need to possess a thorough familiarization with equipment and systems in order to adequately troubleshoot and resolve problems, conduct PSA planning and associated material processing. Any delay would impact timely execution of testing resulting in schedule delays and associated costs . This would result in the need to require an extension of the OWLD, thereby delaying turnover of the ships to the Fleet as well as require the program to pursue additional budget to address the additional costs .

Austal was awarded Block Buy contract N00024-11-C-2301 for construction of LCS 6 through LCS 26 seaframes . In addition, Austal was awarded follow-on contract N00024-17-C-2301 in June 2017 for construction of LCS 28 and follow hulls. These create an opportunity for efficiencies of scale, as the shipbuilder developed and has a thorough understanding of the design and material required, constructed every LCS of this variant to date and has established vendor relationships that are part of the Block Buy that an alternate source would not possess. To award Post Delivery Planning to another source would create substantial duplication of cost, estimated at $16 million, to the Government that is not expected to be recovered through competition. Other sources are not considered viable because of high start-up costs to create the requisite technical capability, the cost of maintaining that capability, and the lead time to develop it .

6. Description of Efforts made to Solicit Offers from as Many Off erors as Practicable

In accordance with FAR 5.2and FAR Subpart 6.302-1, a combined sources ·sought and synopsis notice of this solicitation was posted on the Federal Business Opportunities (Fedbizopps) website on Sep 26, 2018 . 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 5 above, for any company other than Austal to provide the required supplies and services.

7. Determination of Fair and Reasonable Costs

Each order is separately negotiated by the cognizant administrative contracting activ ity who will make the determination of fair and reasonable that the anticipated cost to the Government for the supplies/services covered by the CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5 above, the Naval Sea Systems Command, Shipbuilding Contracts Division (SEA 022) has no plans at this time to compete the LCS 18 through the end of the LCS class INDEPENDENCE variant PDT&T requirements addressed herein . The circumstances surrounding the need to obtain LCS 20 through the end of the LCS INDEPENDENCE variant PDT&T requirements, without providing full and open competition, will be reviewed annually by the Procuring Contracting Officer (PCO) .

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENT 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 LCS Acquisition Plan PMS 501-18-018 Rev 0, except as noted herein, are complete and accurate to the best of my knowledge and belief.

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

1. - e- - II 1-. I - •• - •- - •

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

I certify that the best o f m accurate and complete to

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis o f the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) using other than full and open com etition ursuant to the au hority of 10 U.S.C. 2304(c) (1).