N0003023C6045 CJA 22021_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1210TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

CJ&A 22,021

Code: SPN301

CLASS JUSTIFICATION AND APPROVAL (CJ&A) FOR USE OF OTHER THAN FULL

AND OPEN COMPETITION

1. Contracting Activity. Strategic Systems Programs (SSP).

2. Description of the Action Being Approved. This Class Justification and Approval (CJ&A) is for the award of multiple contracts and a modification on a sole-source basis for the procurement of the development and production efforts for both the United States (US) and United Kingdom (UK) TRIDENT II (D5) Strategic Weapon System (SWS) Navigation Subsystems for Fiscal Year (FY) 2022 through FY 2026. The contractor is Lockheed Martin Rotary and Mission Systems (LMRMS). The authority to act under this class justification expires on September 30, 2026.

3. Description of Supplies/Services.

a. LMRMS will be required, as the prime contractor, to manage the overarching program and system requirements in the SWS Navigation subsystems. This CJ&A covers the following anticipated contracts:

1. FY22/FY23 Undefinitized Contract Action (UCA) modification for the FY22 and FY23 Option Years of the FY20 Omnibus Contract. LMRMS is anticipated to begin work on the FY22 UCA contract upon approval of the UCA package and intends to complete all deliveries by 30 September 2024 with a total contract value estimated to be .

2. FY23 Omnibus Contract: LM RMS is anticipated to begin work on 18 Nov 2022 and intends to complete all deliveries by 17 November 2023 with a total contract value estimated to be .

3. FY25 Omnibus Contract: LM RMS is anticipated to begin work on 18 Nov 2024 and intends to complete all deliveries by 30 September 2026 with a total contract value estimated to be .

b. The following table delineates the estimated values by appropriation and includes the value of options, not including the SSP “Increase in Level of Effort” special contract term. The Special contract term applies to Level-of-Effort (LOE) line items and is intended to provide a vehicle for the Government to acquire additional man-hours to address emergent issues that are within scope of the contract during the awarded contract period. This optional term allows for an increase not to exceed 30 percent of the approved dollars associated with each LOE contract line item. In such circumstances, the Contractor will provide additional man-hours in the quantity described in the contract within the cost and fee amounts negotiated.

FY20 Omnibus UCA

Appropriation ($ in Millions) FY 2022-2023 Total

RDT&E

US Total

FY23 Omnibus

Appropriation ($ in Millions) FY 2023-2024 Total

RDT&E

OPN

WPN

OMN

SCN

FY25 Omnibus

Appropriation ($ in Millions) FY 2025-2026 Total

RDT&E

OPN

WPN

OMN

SCN

In accordance with 10 U.S.C 2304(c)(1), the UK FY22 POLARIS/TRIDENT II Procurement Memo, and the Jan 1986 UK Memo, these documents identify UK funding as non-appropriated and do not require additional J&A approval. All values set forth above are conditional upon Congressional authorization and appropriation of funds.

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 Authority

a. The FY22 UCA, FY23 Omnibus, and FY25 Omnibus contracts will be for efforts related solely to the TRIDENT II (D5) SWS Navigation Subsystems which is a follow on from N0003010C0045 which was a competitive procurement awarded to LM RMS in FY2010. Due to the technical complexity of the programs and systems, a thorough knowledge of the design, production, and assembly is essential so the various categories of work described within the contract are performed in a timely and cost effective manner. Furthermore, SSP conducted a

Business Case Analysis (SSP BCA #22,021.1) which provides further analysis on cost and schedule impacts the Government would encounter in qualifying another contractor to perform the efforts under this CJ&A.

b. The facility operated by LMRMS has been the location of the prime contractor for the TRIDENT II (D5) SWS Navigation subsystems for over 25 years. LMRMS possesses the facilities, advanced development labs, detailed knowledge of the equipment technical data packages and SSP Requirements Documents needed for performance under the contract, including intimate knowledge of existing design elements pertaining to nuclear safety.

Therefore, LMRMS is the only source capable of fulfilling the Government’s requirements without causing detrimental program delays and substantial increases in cost.

c. In selecting another contractor to perform this work, the Government would encounter substantial, unrecoverable duplication of cost. To quantify those costs, the SSP Navigation Program Manager (SP24) determined the expertise and infrastructure needed to perform the work required by using contractual/work history for TRIDENT II. Through this review, SP24 determined that selection of another source would require the Government to incur additional training and development costs, as well as costs associated with qualifying another contractor. It is anticipated that these costs would total in excess of $198M and does not include any additional costs incurred for maintaining LMRMS as the contractor until a viable new source is selected.

d. If selected, another contractor would cause detrimental delays in the readiness of the Fleet. Based on the requirements above and as captured in SSP’s Business Case Analysis, it would take a minimum of two to three years to transition to a new contracted source as this ongoing effort is transitioning to sustainment and installation from previously performed efforts.

Furthermore, the Government would encounter additional costs as a result of maintaining and resourcing duplicative organizations while qualifying an alternative source during a transition.

Any delay in qualifying another contractor would directly impact the ability to successfully sustain capabilities across the existing Fleet and further delay ongoing development, production, and installation of developed and emerging capabilities which would adversely affect Fleet readiness and national security.

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

a. A sources sought notice was posted to the System for Award Management (SAM) on 16 July 2021. No sources responded to this notice with any capability statements meeting the requirements of the posted draft Statement of Work (SOW). Additionally, a presolicitation notice was released on 04 November 2021 which received no responses.

b. Further, other strategic market research has been an ongoing effort by surveying non-inertial Navigation System technologies and systems. The SP24 engineers actively monitor relevant Department of Defense activities in this area of precision navigation development. At this time, the strategic market research confirms that it is not practical, for the reasons discussed in paragraph 5 above and the aforementioned Business Case Analysis, for any company other than LMRMS to provide the required services and supplies in this contract given the complexity of the efforts being procured in this highly specialized and unique submerged inertial navigation subsystem requirements.

7. Determination of Fair and Reasonable Cost. By using such tools as the SSP technical analysis, the Defense Contract Audit Agency audit, Defense Contract Management Agency negotiated Forward Pricing Rate Agreements and/or Forward Pricing Rate Recommendations, and the use of past actuals where appropriate, the Contracting Officer has determined that the anticipated cost to the Government of the supplies and services covered by this CJ&A will be fair and reasonable in accordance with FAR 15.402(a).

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in paragraph 5, SSP has no plans to compete future contracts for the types of supplies/services covered by this document. If another viable source emerges, as discovered through the continual tactical and strategic market research processes, sources sought notices, and synopses, SSP will assess whether competition for future requirements is feasible. As this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior CJ&A was provided to the approval authority for review.

Approval of this CJ&A signifies the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).

TAB A1 - Signature Page SSP CJA.pdf