LMMS2 CMC Ohio Class JA for FedBiz.pdf

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Strategic Systems Programs (SSP)

2. Description of the Action Being Approved

The use of other than full and open competition to negotiate and award a contract to Lockheed Martin Maritime Systems and Sensors (LM MS2) of Mitchel Field, NY. Authority to act under this Class Justification and Approval (CJ&A) expires on 30 September 2013.

3. Description of Supplies/Services

This CJ&A authorizes the class of contractual actions associated with producing various technical reports, evaluations, and specifications for the development of tactical requirements and design studies for the Ohio Class Replacement Program. The procurement provides for FY12 requirements and will contain options for FY13 requirements.

The contract will include a provision to increase the level of effort (LOE) portion up to thirty percent (30%). Funds necessary to exercise a 30% clause may be internally allocated from funds available for obligation within current guidance or from funds provided by the external source driving the requirement. The addition of the 30% clause on LOE items substantially streamlines our ability to procure critical services and to respond to unforeseen emergent needs consistent with the original contract’s intent. The amounts in this CJ&A include the cost for the potential 30% increase in LOE items.

DEPARTMENT OF THE NAVY

DIRECTOR STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

IN REPLY REFER TO:

J&A Nosp 15,593 Code: SPN-102

Estimated Dollar Value

Appropriation FY12 (Basic) FY13 (Options) Total R&D $5,054,000 $9,535,000 $14,589,000 30% LOE Option $1,516,200 $2,860,500 $4,376,700 Total $6,570,200 $12,395,500 $18,965,700

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 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

LM MS2 of Mitchel Field, NY as the system integrator as well as the designer and developer of the non-inertial portions of the TRIDENT II navigation subsystem is the only known source who has the unique capabilities and facilities to perform the effort required under this contract.

Specifically, LM MS2 is the only known source with the following capabilities:

LM MS2 designed, developed, produced, installed, and supported each of the Fleet Ballistic Missile (FBM) SWS Navigation Subsystems over the past 50+ years. In addition, LM MS2 owns and operates specialized facilities such as the Ashore Navigation Center, the Inertial System Test Laboratory, and software development laboratories and program related top secret facilities. These unique facilities are crucial for the continued system evaluation, problem investigation, and resolution as they can duplicate and simulate events experienced in the fleet.

Also, LM MS2 designed and manufactured the specialized test equipment and simulators located within the facilities used to develop proposed solutions, which may require changes to hardware, software, and operating and maintenance documentation. These facilities are also used to perform formal acceptance of mission software, hardware, and documentation.

SSP estimates it would take approximately two years at a cost of $170 M to establish another source to perform this effort. This estimate consists of developing duplicate facilities as well as educating and training another workforce. Developing duplicate test facilities would include the following activities:

Development and delivery of special tooling and test equipment; qualifying of design, tooling, navigation equipment and production and recertification processes, by the production of qualification models, test and examinations;

Preparation of detailed program plans to include production, maintenance, training, logistics, and support of Trident II facilities;

Preparation of documentation for shipboard installation and test, and the operation, maintenance, and provisioning of the navigation subsystem;

Costs for engineering and sustainment.

However, since a duplicate set of tactical navigation equipments with which to populate these new facilities does not exist, it would have to produced. Transferring tactical equipment from one contractor to another would create an unacceptable period of non-support to the fleet for approximately 2 years during the installation, grooming, testing, and recertification process.

Therefore, new equipments would have to be produced. However, the sources for these equipments have been out-of-production for several years, and new source(s) would have to be established. Establishing these new sources would require significant start-up and qualification costs.

A contract award with any other firm would result in duplicative costs for engineering and sustainment. Only LM MS2 has the engineering personnel with specific in-depth knowledge of the design requirements, concepts, operations, and maintenance of the TRIDENT II Navigation Subsystem and its relationship with both the other portions of the FBM Strategic Weapon System and to the SSBN ship systems. Their knowledge and expertise have been acquired over years of experience and continuing evolution of the Navigation Subsystem. Educating and training another workforce is estimated to take a minimum of two years while impacting LM MS2’s ability to support its current requirements.

For reasons stated above, Strategic Systems Programs considers LM MS2 to be the only known source available with the background of design, knowledge, and operational experience relative to the TRIDENT II Navigation Subsystem to provide the quality and timeliness of required services without undue technical risk to the FBM Strategic Weapon System. No other source could provide these services within the lead time proposed for this procurement. In attempting to develop another source, the Government would encounter substantial duplication of cost that is not likely to be recovered through competition. Procuring these services from an alternative source would present an unacceptable technical, schedule, and cost risk to the TRIDENT Navigation Subsystem program.

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

Synopsis was published on 4 April 2011 in the Federal Business Opportunities as required by the Federal Acquisition Regulation. No responses were received to the published synopsis.

7. Determination of Fair and Reasonable Cost

In accordance with FAR 15.402(a), the 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 proposals will be performed by technical analysts and contract specialists, with the assistance of the Defense Contract Management Agency analysts and Defense Contract Audit Agency auditors. The Contracting Officer will use cost and price analysis to determine that the final price is fair and reasonable.

8. Actions to Remove Barriers to Future Competition

Procurement of additional development of tactical requirements and design studies for the Ohio Class Replacement Program is not planned. For the reasons set forth in paragraph 5, SSP has no plans at this time to compete future contracts for the types of supplies/services covered by this document. There is currently no requirement for additional development of tactical requirements and design studies for the Ohio Class Replacement Program beyond that required herein. If another potential source emerges, or further changes to the program are made, SSP will assess whether competition for future requirements is feasible.

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