JA No. 23014_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1210TH STREET SE SUITE 3600

WASHINGTON NAVY YARD DC 20374-5127

JUSTIFICATION AND APPROVAL (J &A)

J&A 23,014 Code: SPN301

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Department of Navy's Strategic Systems Programs Office (SSP) located at the Washington Navy Yard, 1250 10th Street SE, Washington, D.C. 20374.

2. Description of the Action Being Approved. This request seeks approval to issue a Cost Plus Fixed Fee (CPFF) contract to BAE Systems Technology Solutions & Services Inc. (herein referred to as BAE) using other than full and open competition for United States (U.S.) and United Kingdom (UK) Supply Suppo1t and Information Technology (IT) services in support of TRIDENT II Strategic Weapon System (SWS) and U.S. Attack Weapon System (AWS) Program and Ballistic Missile Submarine (SSBN) and Guided Missile Submarine (SSGN) Programs.

3. Description of Supplies/Services

a. During the period of performance of this contract, BAE will provide support services for the management and integration of: SSP's supply Automated Data Processing (ADP) systems, material and fleet support operations, and supply system analysis, which are detailed as follows:

(1) Supply ADP Systems Support. BAE performs as the configuration control agent for SSP Supply Management Systems (SMS) functions. SMS functions include automated logistics support systems for unique U.S. and UK TRIDENT SSBN Programs, the UK Dreadnought Program, and the SSGN Program, Nuclear Weapons Support (NWS), and services. BAE also maintains approximately 25 applications and other data processing systems associated with supply support operations in support of the Fleet Ballistic Missile community and the interface of those operations with worldwide standard Navy and Department of Defense logistics systems.

BAE is the Central Design Agent for: TRIDENT Logistics Data System (LDS) for TRIDENT platform maintenance planning, Strategic Weapons System Logistics Data Warehouse (SWS LDW) for performance monitoring and providing configuration and allowance data, Submarine Logistics Database (SLDB) to monitor requisitions for the entire Submarine fleet, and the UK's Comprehensive Logistics Automated Support Program (CLASP), the conduit for SWS logistics information between U.S. and UK supply systems. All of these systems are uniquely configured to support SSP and its high standard of requirements. These systems have been designated to continue to support the U.S. COLUMBIA and UK Dreadnought Class Submarines.

(2) Material and Fleet Support Operations. BAE performs physical distribution functions for SWS material including receiving, inspecting, identifying, storage and issuing, delivery and technical evaluation of SWS material within the Navy Enterprise Resource Planning (Navy ERP) application. BAE performs storage operations to ensure prevention of damage or deterioration of material and proper segregation of material and shelf life management. BAE plays a critical role in fleet support operations at SSP's Strategic Weapons Facilities in Kings Bay, Georgia and Bangor, Washington by facilitating the development of the Automated Shore Interface (ASI) and

J&A 23,014 Code: SPN301 delivering and physically loading ASls onboard the submarine. This effort requires knowledge of SSP IT support and warehouse/supply support, and close integration with Naval Supply Systems Command (NAVSUP) Weapons System Support (WSS), Mechanicsburg.

(3) Supply System Analysis. BAE provides technical support via supply analysis and monitoring of performance data in the multiple systems it maintains for SSP. Knowledge of the source of data, the logic of systems managing the data, relevant performance metrics, and having functional expertise in the integrated logistics processes enables BAE to assist SSP in managing activities that support the SWS and related sub-systems. SWS support activities that are monitored by BAE to include: Defense Logistics Agency (DLA); NA VSUP; Fleet Logistics Center, Puget Sound; NAVSUP Weapon System Support; Defense Information Systems Agency; and TRIDENT Refit Facilities (TRF) Kings Bay and Bangor in the U.S., as well as Ministry of Defense (MOD) activities in the UK.

b. The base period of performance will be from O 1 October 2023 to 30 September 2024 with three one-year options with a total period of performance from 01 October 2023 to 30 September 2027. The estimated dollar value for the total period of performance is provided below:

Estimated Dollar Value Appropriations FY 2024-2027

Total

O&MN* $82,651,975

RDT&E** $6,959,799

WPN $1,839,500

SCN $8,333,635

Total $99,784,910

* O&MN Funds include external funding ** RDT &E Funds include external funding

Note 1: The "Increase in Level of Effort (ILOE)" language contained in the contract is intended to provide a vehicle for the Government to acquire additional man-hours to address emergent issues that are within the scope of the contract and the acquisition plan during the awarded contract period. The option contract language allows for an increase not to exceed 30 percent of the approved dollars associated with certain Cost Reimbursement Contract Line Item Numbers only. The Contractor shall provide additional man-hours in the quantity described in the contract at the cost and fee amounts negotiated.

Note 2: In accordance with 10 U.S.C 3204(e)(4)(E), the July 2022 UK FY 2023 POLARIS/TRIDENT II Procurement Memo, and the January 1986 UK Memo, UK funding does not require J &A approval.

4. Statutory Authority Permitting Other Than Full and Open Competition. 10 U.S.C.

3204(a)(l). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Code: SPN301

a. Pursuant to 10 U.S.C. 3204(a)(l), BAE is the only responsible source that can provide the integrated logistics support services required to satisfy SSP's U.S. and UK requirements during this period of performance. For another vendor to become qualified to perform this work, it would require substantial duplication of costs to the government that would not be expected to be recovered through competition. BAE has developed a unique blend of functional expertise and information management skills that have been honed and adapted to SSP's processes over a period of more than 40 years. Furthermore, BAE has made capital investments in ADP systems to complement the unique requirements of SSP. If another vendor has invested or is willing to invest in ADP hardware, software, in the performance of its mission and network infrastructure to replace the systems used by BAE in support of SSP, it would be possible to transfer the data from the incumbent to another service provider. However, to transfer BAE's expert level of knowledge to another provider, it would take a significant period of time ( described below) and result in the duplication of cost to the government. Moreover, it would be impossible for another vendor to replicate BAE' s past experience as SSP' s supply systems support provider on all SWS, A WS, and NWS Logistics programs. The following paragraphs quantify the unrecoverable costs in terms of time, money, and risk to SSP's mission associated with using a source other than

BAE.

b. BAE is currently the only vendor capable of performing Central Design Agent (CDA) functions for TRIDENT LDS. In 2005 LDS was studied for cost savings and it was later determined significant savings would be gained to transfer from a government fee for service agency to BAE after it was determined that government Full-Time Employees (FTEs) could be reduced from 42 government FTEs to 22 contractor FTEs. BAE was provided $3M per year from FY07-FY09 to transition. BAE was the only vendor with the expertise to take over this function, because of its intimate previous knowledge of SSBN logistics IT system support and integrated support to the Program. Prior to the transition, BAE had provided limited support to NA VSUP BSC for several years. Since there is no other vendor with LDS experience, the transition would require a minimum of 3-5 year learning curve dependent on fulfilling specific requirements while BAE continued to maintain current operations. Additionally, it would require additional funding amounting into the millions in this year dollars in excess of the initial ($3M) investment in FY07.

c. BAE has been the CDA for SWS Logistics Data Warehouse (LDW) since 2004. The content of SWS-LDW is government data but the initial hardware and was purchased, as well as follow-on support, by BAE as a capital investment. SSP buys data management and analysis services as output of SWS-LDW from BAE. SWS-LDW is the principal logistics tool SSP uses to track, evaluate, and improve effectiveness of SWS supply chain operations. In 2010, SWS-LDW assumed the responsibility of the roles previously provided under a legacy system, Consolidated Data File - Next Generation (CDF-NG). SWS LDW has an automated interface with subsystem prime contractors' inventory management systems (i.e., SSP Advanced Inventory and Logistics System (SAIL) and Integrated SSP Acquisition Management System (ISAM)) and produces all allowance documentation for SWS.

Replacing SWS-LDW with Navy ERP to perform this same function is not possible at this time.

Navy ERP was not designed to perform shipboard configuration status accounting and other functions that were planned but have not been activated or funded. Even if there were seamless data connectivity between SAIL and Navy ERP, Navy ERP does not have the internal functional processes required to use that data to produce hull-specific SWS Consolidated Onboard Ships Allowance List (COSAL) as LDW does today. If another vendor had available computing power or were to invest in a data warehouse tool (original cost was approximately $250K in FY03), the data could be transferred to that system. However, the establishment of interfaces with the SSP community and development of SWS allowance products as an output would take considerable time. Although BAE was intimately familiar with SWS data and interfacing systems, the transition from CDF-NG to SWS-LDW still took more than four (4) years. SSP currently buys SWS-LDW services for approximately $2.6M. It is reasonable to expect SSP would need to fund the current production for the entire period while paying another vendor to become qualified and determine if the vendor is willing to make the same capital investment (approximately $300K-$350K) or if it would require additional government funds to purchase and support.

d. BAE has been the CDA on the UK CLASP System since 1985. CLASP provides the only method for the U.S. to provide SWS TRIDENT II logistical data as required under the Polaris Sales Agreement (PSA) in support of the UK Strategic Program. With more than 40 years of experience, BAE is the subject matter expert on CLASP as well as the UK logistics system, Comprehensive Royal Navy Inventory System Project (CRISP), which is used in the UK to receive CLASP logistics data. This type of expertise could only be gained through working with both the U.S. and the UK for another source to become qualified to provide this service, it would require a prolonged period of maintaining CLASP while also funding another vendor to become qualified since no other source currently provides this unique service. The UK has also determined that CLASP will be used to support the future DREADNOUGHT platform. BAE has coordinated functional requirements to meet critical ship dates that will occur during the course of this contract. If another vendor were to assume the work of CLASP, there would not be sufficient time to transition the system and have the system available to meet critical DREADNOUGHT build program requirements. Currently, CLASP and UK logistics support costs approximately $2.2M each year. Since there is no other vendor with CLASP experience, the transition would require a minimum of 3-5 year learning curve dependent on fulfilling specific requirements while BAE continued to maintain current operations.

e. BAE has more than 12 years of Navy ERP experience (two (2) years preparing/training and 10 years of operating) supporting all aspects of warehouse management module to include financial management processes. With this unique Navy ERP experience, BAE is one of the most qualified vendors available that has knowledge of all aspects of SWS Supply support requirements, and is currently the only contractor with hands-on operating knowledge of Navy ERP Warehouse Module with a successful history supporting the SWS Program. Additionally, BAE supply system analysts have been at the forefront identifying defects, testing ERP Program Office generated solutions, and using all aspects of the Navy ERP warehouse applications needed to support SWS supply support.

f. In conclusion, the above products and services discussed in subparagraphs (b) through ( e) supporting SSP's mission have a high degree of inter-relationship and are a composite of the evolutionary nature of SSP program support as a whole. This inter-relationship is critical in providing the needed SSP program support which includes SWS, AWS, NWS, Nuclear Weapons Related Material (NWRM), TRIDENT II (U.S.), TRIDENT II (UK) and next generation platforms (COLUMBIA CLASS and Dreadnought). The interdependencies of waterfront support to the nuclear enterprise is critical to the success of the program and demands the understanding of systems and processes that have been successfully implemented over time to ensure compliance and performance meet the high standard required to maintain the Nation's Nuclear Triad.

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 9 November 2022. Formal responses were received from two interested parties.

b. The following summarizes the results of a technical evaluation of the received formal responses:

(1) RV Global Solutions, Inc. does not possess the ability to perform as the prime contractor as RV Global Solutions, Inc. has not provided demonstrated abilities to complete the primary functions and critical requirements for this contract.

(2) BAE is currently serving as the prime contractor for these requirements and has demonstrated the ability to perform. BAE is the only capable and responsible source at this time.

c. The work performed on this contract was also synopsized as part of previous solicitations on the Federal Business Opportunities (FedBizOpps) website on 15 November 2017, 31 March 2014 and 14 March 2011. In these previous solicitations, only BAE expressed an interest in this requirement. No further market research was conducted, as BAE is the only responsible source identified at this time, as discussed in detail above.

d. A pre-solicitation notice required by the Federal Acquisition Regulation (FAR) will be published for the contract prior to release of the RFP. Any responses to the notice will be evaluated prior to release of the RFP.

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in paragraph 5, SSP has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, SSP will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATJON

J certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE (COR):

Signature Name (Printed) Phone No. Date

REQUIREMENTS COGNIZANCE (BRANCH HEAD):

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CHIEF OF CONTRACTING OFFICE CERTIFJCATJON:

J certify that this Justification is accurate and complete to the best ofmy knowledge and belief.

Signature Name (Printed) Phone No. Date

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS APPROVAL

Code: SPN301

Upon the basis of the above justification, I hereby approve, as Director, Strategic Systems Programs, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c) (1), One source or limited sources.

APPROVED:

Date