EB_FY17_JA17019REV4a_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

J&A NOsp 17,019

Code: SPN304

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY

Strategic Systems Programs (SSP)

2. DESCRIPTION OF ACTION BEING APPROVED

Authority to execute a Contract (Follow-on) consisting of Cost Plus Fixed Fee Contract Line Item Numbers (CLINs) with General Dynamics Electric Boat (GDEB) Corporation using other than full and open competition.

3. DESCRIPTION OF SUPPLIES/SERVICES

a. The Contractor shall:

(1) Produce Ship Alterations (SHIPALT) and United Kingdom (UK) Alterations (UKALT) for SSP Shipboard Integration (SSI) and support (SHIPALT/UKALT) installations.

(2) Conduct investigations and provide resolutions to problems associated with TRIDENT II Submarine Launched Ballistic Missile (SLBM) programs, OHIO Class Submersible Ship Guided Nuclear (SSGN) requirements, Attack Weapon System (AWS) Trainer requirements, and Advanced Weapons System Development requirements.

(3) Provide Strategic Weapon Systems (SWS) technical engineering support for ship systems and subsystems supporting U.S. SSBN weapon systems.

(4) Perform technical services for Trident Engineering, Refueling, and Overhaul (ERO) Maintenance Period and Demonstration and Shakedown Operation (DASO).

b. Estimated Dollar Value

(1) Base Contract N00030-17-C-0028: $11,025,000 of Fiscal Year FY17 O&MN, $5,213,000 OPN, $803,000 UK, and $1,244,000 RDT&E.

(2) Option FY18 on Contract N00030-17-C-0028: $11,084,000 of FY18 O&MN, $6,192,000 OPN, $318,000 UK, and $2,024,000 RDT&E.

(3) Option FY19 on Contract N000-17-C-0028: $8,579,000 of FY19 O&MN, $2,868,000 OPN, $325,000 UK, and $255,000 RDT&E.

Base (FY17) Option 1 (FY18) Option 2 (FY19) Total

O&MN $11,025,000 $11,084,000 $8,579,000 $30,688,000

OPN $5,213,000 $6,192,000 $2,868,000 $14,273,000

RDT&E $1,244,000 $2,024,000 $255,000 $ 3,523,000

UK 803,000 $318,000 $325,000 $1,446,000

Total $18,285,000 $ 19,618,000 $12,027,000 $49,930,000

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c)(1). Only one responsible source and no other suppliers or services will satisfy agency requirements.

5. RATIONALE SUPPORTING USE OF AUTHORITY CITED ABOVE

a. This effort is a follow-on acquisition of previously competed contract that was awarded in FY14.

b. GDEB has been building submarines for over 100 years and has been the Design Agent and Construction Activity for the Ballistic Missile Submarine since 1959. The Navy has invested billions over the past 50 years to sustain GDEB’s shipbuilding capabilities. The knowledge and expertise gained over that period of time is invaluable and could not possibly be replicated in the period time necessary to meet this requirement. Based on this experience, GDEB has been designated the TRIDENT Ship Design Agent (SDA) by the Department of the Navy. The proposed procurement provides for technical support for ship systems and subsystems supporting US SSBN weapon systems. Because of its decades of experience, GDEB is the only source capable of conducting investigations and resolution of problems associated with TRIDENT II SLBM programs, OHIO Class SSGN, AWS Trainer requirements, Advanced Weapons Systems Development, and SWS Modernization Early Concept Development Technical and Production Services. GDEB is also the only source that possesses the detailed platform integration and design knowledge of TRIDENT II submarine design, the Strategic Weapon Support System design, and the SWS necessary to provide the following required support:

(1) Shipboard testing, inspection, maintenance, calibration, and troubleshooting.

(2) The ability to repair hydraulics, pneumatic, mechanical, electrical, and electronic type systems requiring extensive knowledge of the Strategic Weapon System.

(3) Provide assistance and recommendations in processing Strategic Weapon Support System trouble and failure reports.

(4) Provide technical support in conducting post new construction and post engineering overhaul period inspection of the Strategic Weapon Support to ensure the submarine is ready for sea.

(5) Provide technical recommendations for the accomplishment of SSBN and SSGN submarine essential maintenance improvement repairs and instrumentation for data collection.

c. Based on the foregoing requirements, it is submitted that GDEB is the only known source having the in-depth knowledge and expertise of the TRIDENT ship design needed to provide the required services. Failure to utilize the expertise of GDEB would necessitate development and education of an alternative source(s). Development of an alternative source to meet the expertise and knowledge required of a ship design agent would require building a team from multiple sources. It is estimated that this would take three to five years at a cost of approximately $20,000,000, if it could be done at all. Procurement of the proposed effort from a contractor other than GDEB would present an unacceptable risk to the performance for the mission of the TRIDENT II Program. A three to five year delay would halt the ERO program and associated DASO which would create a risk to the fleet. A delay would create impacts in the fleet modernization programs due to the inability to implement the SSI program. The delay would also impact our PSA partners in the development of the Ohio Replacement Program.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY

OFFERORS AS PRACTICABLE

Based on market research performed in early FY17, the Government has determined that only GDEB is capable of performing the required effort. A Sources Sought Notice was published in FEDBIZOPS on November 8, 2016, for which only Lockheed Martin Corporation provided a response. Given the complexity and unique nature of the efforts being procured, (i.e.

technical support for TRIDENT ship systems and subsystems, in-depth knowledge in ship design and the SWSS systems, SSP’s past experience for procuring the same or similar efforts and the extensive knowledge of the technical personnel with regards to this source) it was determined that Lockheed Martin Corporation does not possess the knowledge or experience specific to the TRIDENT submarine required to perform this effort.

7. DETERMINATION OF FAIR AND REASONABLE COST

The contractor will be required to submit cost and pricing data in accordance with the requirements of the Federal Acquisition Regulation. Evaluation of the contractor’s proposal will also include technical recommendations, audit recommendations and previous cost history.

Therefore, sufficient information is considered available to determine a fair and reasonable cost.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION

For reasons set forth in paragraph 5, Strategic Systems Programs has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, Strategic Systems Programs will assess whether competition for future requirements is feasible.

9. OTHER INFORMATION

A data package that would enable companies other than GDEB to provide the required services satisfactorily does not exist. Therefore, data suitable for competition is not considered to be available.