N0002425C6202_Justification_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-0001

IN REPLY REFER TO

CJ&A No.: 62610

Code: 02622

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Undersea and Unmanned Systems

Contracts Division, (SEA 026).

2. Description of the Action Being Approved

Award of a contract on a sole source basis to Lockheed Martin

Corporation (LMC) for the production of AN/BSD-2 Multifunction Modular

Mast (MMM) systems, spares and associated engineering and technical support. Authority to act under this class justification expires on 30

March 2029.

3. Description of Supplies/Services

The proposed contract will procure ten (10) production systems for

VIRGINIA New Construction Block VI and eight (8) production systems for in-service VIRGINIA modernization Blocks I and II along with PIO spares and will contain Fleet support, engineering and technical support, and data products for all Submarine Classes.

The contract will include one (1) base year and four (4) option years for a total of five (5) years.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel. The estimated cost for the contract actions is indicated in the following Table.

LMC is the only firm that can effectively provide the end items that will be procured in the first two years of the proposed contract in a timely manner as needed to meet Submarine Fleet requirements.

With respect to all requirements under the proposed contract, the

Government would also incur substantial duplication of costs that would not be recovered through competition if another source was selected to perform these efforts. There is significant complexity in the manufacturing of SUBSAFE components and the learning required for a new source to develop a baseline that meets all the MMM system performance specifications for VIRGINIA New Construction submarines. The qualification process includes the highly technical, potentially destructive Environmental Qualification Testing (EQT). In addition, increased Government oversight would be required in qualifying a new source to ensure this new source would be SUBSAFE qualified/certified.

This additional oversight would increase the risk of delays and associated costs, and even with this additional oversight, a qualifying contractor would incur a high probability of cost and technical risk.

Based on market research and assessment of the specialized requirements such as SUBSAFE, LM is currently the only responsible source and the only source interested in delivering the AN/BSD-2 MMM. If another source was to perform this work, based on historical cost incurred and programmatic estimates, NAVSEA conservatively estimates a duplication of costs of approximately $10.2 million for the pre-production system and related test equipment and another $0.8M for qualification testing and related test documentation, with a potential for greater costs due to the aforementioned qualification process. By contrast, the LM design for the MMM is mature, a significant number of systems have already been manufactured, and the required materials and pricing are well understood. Due to the limited number of systems to be procured under this contemplated contract, the $11M in non-recurring costs are not expected to be recovered via the competitive process.

As such, award to any other source would result in unacceptable delays in fulfilling the agency’s requirements and substantial duplication of costs not expected to be recovered through competition. Award to another source would not be cost effective, would lead to a significant loss in task proficiency, and would severely disrupt fulfilling the Navy’s requirements .

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

Practicable

A synopsis of the proposed sole-source contract was published in accordance with FAR 5.201 via the Government Point of Entry (GPE)

SAM.GOV, Contract Opportunities, on 07 February 2023 with responses due by 22 February 2023. No responses were received.

Previous Government market research was conducted via a review of companies in the market. PMS435 talked to several companies, including

Small Businesses, over the last several years about their interest in delivering AN/BSD-2 MMM. PMS 435’s efforts included outreach to companies visiting PMS435 offices as well as PMS435 doing site visits at contractor locations.

On 02 June 2022, the Government released a Sources Sought notice to the

GPE to determine if any other qualified sources were available to produce AN/BSD-2 MMM systems to support VIRGINIA Modernization and Block

VI Virginia New Construction. The notice closed on 08 July 2022 and the incumbent, LMC, was the only contractor that submitted a response.

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 this CJ&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

The AN/BSD-2 MMM program has GPR in the TDP, however, it is not a production-level TDP. If another potential source emerges, NAVSEA will assess whether competition for future requirements is 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 Acquisition Plan No. PEO UWS PMS435-AP-22-0049, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

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.