TAB A - FY25 LMS CJA Final_CLEAN_12AUG24_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR STRATEGIC SYSTEMS PROGRAMS

1250 10th STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

CUI

CJ&A No SPJA24-9

Code: SPN207

CLASS JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Department of the 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 Class Justification and Approval (CJ&A) is for the award of multiple contracts between fiscal years (FY) 25 and FY28 on a sole-source basis for the procurement of TRIDENT II (D5) Production and Deployed System Support (P&DSS), W93/Mk7, and D5 Life Extension 2 (D5LE2) requirements. The contractor is Lockheed Martin

Space Corporation (LMS), a subsidiary of Lockheed Martin Corporation. Authority to act under this CJ&A expires on September 30, 2028.

3. Description of Supplies/Services. LMS will be required, as the prime contractor, to manage the overarching program and system requirements of the P&DSS, W93/Mk7, and D5LE2 efforts.

a. This CJ&A covers the following anticipated contracts:

i. FY25 P&DSS, W93/Mk7, and D5LE2 Contract: The FY25 P&DSS and

W93/Mk7 efforts period of performance will begin on October 1, 2024, for and estimated total of $4.157B, inclusive of options. SSP requires all deliveries for

FY25 P&DSS by September 30, 2029, W93/Mk7 and related efforts by June 30, 2028, and D5LE2 and related efforts by March 31, 2030.

ii. FY26 P&DSS Annual Contract: The period of performance will begin on June 1, 2025, with Long Lead Material (LLM) for FY26 for an estimated total cost of

$2.055B. SSP requires all deliveries for FY26 P&DSS and related efforts by

September 30, 2030.

iii. FY27 P&DSS Annual Contract: The period of performance will begin on June 1, 2026, with LLM for FY27 for an estimated total cost of $2.315B. SSP requires all deliveries for FY27 P&DSS and related efforts by September 30, 2031.

iv. FY28 P&DSS Annual Contract: The period of performance will begin on June 1, 2027, with LLM for FY28 for $3.682B. SSP requires all deliveries for FY28

P&DSS and related efforts by September 30, 2032

b. The specific requirements include the following:

i. TRIDENT II (D5) P&DSS requirements:

(1) Production support for this effort includes procurement of missile production

LLM; production and field processing of missile bodies, Reentry Body (RB)

CUI CJ&A No SPJA24-9 builds, and D5 instrumentation systems; missile body segment and sub-segment; test missile kit (TMK); release assembly; Mk4B shape stable nose tip nose assembly hardware production; Mk5 ALT 370 production; and

Reentry Body Assembly (RBA) pipeline components, inclusive of all associated production support and support equipment.

(2) Engineering and operational support services for this effort include documentation maintenance; problem investigation; performance evaluation;

logistics and facility support; training; flight test planning and analysis; range support; arms control support; sustainment; reentry deployed systems support, including advanced reentry technology and Mk4B program requirements;

facilities modifications; safety assurance; and public affairs office support.

(3) Technical services and special studies support for this effort include Ready for

Issue (RFI) processing and facilities; aging program and modernization;

system safety; qualification/requalification management; Fleet Ballistic

Missile (FBM) strategic planning; motors and ordnance demilitarization support; propulsion viability; ballast system; D5 production shutdown; C4 asset dispositions and disposal; and Mk5 warhead replacement effort.

ii. W93/Mk7 requirements:

(1) W93/Mk7 Aeroshell design, development and production; support for planning and development/test of the RB builds for flight and ground test, as well as support of flight and ground test execution; Systems Engineering and

Integration Support as the flight system integrator for Navy reentry systems deployed on submarine launched ballistic missiles (SLBM); RBA integration of Department of Energy (DOE) / National Nuclear Security Agency (NNSA)

W93 sub-system components in a final RBA; together with other Government agencies, ensure component designs and compartments integrate into the

D5LE and D5LE2 missile system; planning and delivery of Support

Equipment; and related efforts.

iii. D5LE2 requirements:

(1) Strategic Weapon System (SWS) Flight Subsystem prime integration in coordination with SSP to ensure an overall Flight Subsystem solution; direct support of D5LE2 documentation for major SWS Flight Subsystem milestones events; providing architectures, requirements, and preliminary designs to alter and extend the D5LE missile life; planning initial phases of requalification for selected SLBM pull through components (e.g., rocket motors) and continuous production components; and management and integration of advanced development and requalification efforts, including activity definition and resource loaded schedules.

iv. Ancillary Efforts:

(1) Flight test data acquisition and analysis for the U.S. Air Force (USAF) and the

Missile Defense Agency (MDA); and missile system. The contractor must provide design and development services, long-term production, logistics support, including spares and repairs, training, operation of the missile assembly facilities, engineering support for fleet and field problems, flight and surveillance test programs, and ultimate retirement and disposal of assets. The program relies on a “factory in the field” concept wherein all operations, including missile assembly at the government facilities, are under the control of the contractor until the assembled missile is delivered to the Navy. This cradle-to-grave responsibility is part of SSP’s overall strategy to ensure comprehensive risk management, quality, and an exceptional track record for program success.

LMS has been intimately involved with the program from its inception, and has developed a technology base, manufacturing capability, infrastructure, and technical support uniquely suited for the support of TRIDENT program. LMS has the unique capability to model, analyze, verify, and validate underwater launch of large rocket motor and multistage missile systems. As the sole sea-based strategic weapon system, which accounts for 70% of the Nation’s Strategic

Deterrent, the TRIDENT II (D5) program cannot have a delay in production, sustainment and logistics support, or continued development without jeopardizing this critical capability. From the TRIDENT II (D5) program initiation to present, the Navy’s acquisition strategy did not procure and require delivery of a technical data or computer software package sufficient to compete production or logistical, technical, and test support for the program due to cost constraints for such a technical data and computer software package acquisition.

Given this experience, an alternate source would require at least six years to establish a sufficient level of technical expertise and the development, production, repair, and maintenance capabilities required to support the TRIDENT II systems. Escalating FY 1984 actual costs by two percent annually (estimated Consumer Price Index from April 1984-April 2020), the

Government would require an investment cost in excess of $1.4B to replicate the P&DSS missile system support capabilities with a second competitive source.

In addition, the P&DSS contract requires LMS to receive, handle, inspect, test, maintain, and load Tomahawk Land Attack Missiles (TLAMs) at SWFLANT for the SSGNs. The Navy utilizes existing SWFLANT facilities, systems, personnel, and equipment for both the TRIDENT

II and SSGN TLAM programs, rendering the work between the two programs at SWFLANT inseparable. In the mid-2000s when the Navy added the SSGN work at SWFLANT, it took approximately three years and $20M to establish this capability with LMS. Given this data, development of an alternate source would take three years and cost in excess of $27M (using two percent CPI inflation model described above). This additional time and funding would result in an unacceptable delay and result in a significant duplication of cost that would not be recovered through competition.

Requirement for Flight Test Data Capabilities: Further, LMS has developed Navy-unique instrumentation for flight test data acquisition system, and the Navy did not require delivery of related technical data or computer software to compete that effort. In the late 1990s, the actual time and cost to develop and deploy Navy-unique instrumentation was five years and $30M.

Given this data, developing a viable second source to compete flight test capability (hardware, software, and operational expertise) would require at least five years and $46M (using two percent CPI inflation model described above) to identify and develop another workforce;

develop, modify and/or construct adequate facilities; and develop and manufacture Navy-unique instrumentation. This additional time and funding would result in an unacceptable delay and result in a significant duplication of cost for the USAF, MDA, and Navy that would not be recovered through competition.

W93/Mk7 Capabilities: The W93/Mk7, like the current deployed systems (Mk4 and Mk5), is a

Joint Program with DOE/NNSA. DOE/NNSA is responsible for the physics package and firing of the weapon. LMS is the prime contractor for the design and production of the legacy Navy reentry systems (Mk4 and Mk5) currently deployed on SLBMs. As the flight system integrator of the TRIDENT II D5LE system, LMS possesses the unique knowledge, technical data and computer software, and capabilities to integrate flight test reentry bodies onto the D5LE flight test missile system. The W93/Mk7 will initially deploy on the D5LE system and then integrate into the D5LE2 system. As LMS is the only prime contractor with the technical integration data for DOE and Navy reentry requirements, LMS has a unique relationship with DOE to design, develop, and produce DoD/DOE integrated reentry systems. Given the extensive experience, inherent LMS knowledge of the TRIDENT II D5 and D5LE flight system and legacy Navy

RBA, and lack of a technical data package for the Government to compete this integration and test effort, standing up an equivalent capability to compete this effort would create an unacceptable delay to the deployment of the W93/Mk7 system. Additionally, there would be a significant duplication of cost as the Navy as well as LMS has recently invested $122M to move facilities from various locations to be co-located at Valley Forge, PA. This substantial investment would not be recovered via competition.

D5LE2 Capabilities: To meet the D5LE2 scheduled program acquisition milestones, including integration into the new COLUMBIA SSBN program arriving in the Fleet in 2042, the contractor will need to have existing technologies, technical data, computer software, and expertise applicable in developing and integrating D5LE2 into the existing D5LE design. D5LE2 is required to design/develop, restart, requalify, and produce SLBM technologies (including structures, avionics/flight electronics, parts, batteries, post boost control systems, TMK and test concepts, and ordnance) to extend the life of the SWS to provide an SLBM for the life of the

COLUMBIA Class Submarine (i.e., 2084). For the past six decades, LMS has been the prime contractor for the SWS SLBM missile subsystem (i.e., TRIDENT I and II D5). On a sole source basis for the past three decades, LMS designed, manufactured, repaired, serviced, and stored the

TRIDENT II D5 missiles. LMS alone possesses all technical data and computer software, and specialized facilities for the TRIDENT II D5 missiles. The Government did not purchase sufficient license rights or delivery of such technical data to enable a technical data package to be given to other sources for a competition.

D5LE2 leverages the TRIDENT II D5 development performed successfully by LMS on a sole source basis in the early 1980s, which amounted to, in Then Year (TY) 1986 funding cost, a total of $4.8B that included 36.7 million labor hours. Applying National Reconnaissance Office

(NRO) indices to escalate that funding to TY 2023 dollars, the cost to design TRIDENT D5 would be $10.9B.

Additionally, LMS was the prime contractor for the D5LE2 missile pre-development Research and Development contract (N00030-20-C-0101), where LMS performed D5LE2 trade study projects, reports, technology evaluations, risk mitigation tested technology with associated design models, missile architecture documentation and preliminary System Requirement Review

(SRR) documentation. LMS has developed multiple Modeling & Simulation tools and capabilities in collaboration with SSP’s Systems Engineering Transformation group to aid in the design for D5LE2. LMS has extensive experience of the SWS systems engineering process and has conducted a myriad of missile alterations and design efforts (over 200 since TRIDENT II D5 deployment) for SSP across historical SLBM efforts, which has allowed them to manage multiple technical baselines to ensure that the operational baseline is not impacted as capabilities are inserted for D5LE2. As part of D5LE2, LMS will be required to provide a combination of continuous production commodities, out of production items that require restarting the existing design, and modernization of technology and manufacturing capability due to obsolescence. Due to the fact that the Government does not own a technical data package to compete the continued development of the D5LE2 into production, and the lack of comparable experience in the

TRIDENT II D5 program, the Government would encounter unacceptable schedule delay in providing the TRIDENT II D5LE2 capabilities to the Fleet, to include meeting the COLUMBIA

Class Submarine schedule if this effort was competed.

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

a. SSP posted two Sources Sought Notices (SSN) in accordance with Defense Federal

Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and Information

(PGI) 206.302-1 to the System for Award Management site (SAM.gov). The first SSN was posted on March 3, 2023, applicable to all efforts associated for D5LE2, and included a closing date for a response on April 7, 2023, to which only LMS responded with a detailed summary of LMS capabilities, expertise, and experience as the TRIDENT

II D5 prime contractor for decades. The second SSN was posted on September 19, 2023, applicable to all efforts associated with P&DSS and W93/Mk7 and included a closing date for a response on October 19, 2023. SSP received three responses from the following firms: LMS, Valley Tech Systems, Inc., (VTS) and SRR International (SRRI).

LMS provided a detailed response as it did with the first SSN and a Government technical assessment determined that both VTS and SRRI (both small businesses) do not demonstrate the experience to meet all the Government’s requirements, specifically the requirements in manufacturing; field process; support equipment development and production; engineering, technical, and operational support; risk mitigation to technology, hardware, and architectures; and engineering support services for Reentry sub-system of the SWS. While no other sources have been identified to provide prime contractor support, LMS will be required to promote competition where opportunities exist in selecting subcontractors and suppliers.

b. The proposed efforts addressed by this CJ&A were synopsized on SAM.gov on May 1, 2024, and no responses were received.

c. Other strategic market research efforts have been ongoing, to include contractor site visits, researching trade journals, and researching government databases like AbilityOne, FPDS-NG, and SAM.gov. These market research efforts did not yield potential sources that could meet the overall breadth and depth of technical and unique work under this requirement due to a lack of the requisite technical knowledge, technical data, and specialized skills to ensure successful Strategic Weapon Facility Flight Missile

Subsystem prime integration, requalification, test support, and other technical services.

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

8. Actions to Remove Barriers to Future Competition. For the reasons set forth in paragraph 5 above, SSP has no plans at this time to compete future contracts for the types of supplies and services covered by this CJ&A. If another potential source emerges, SSP will assess whether competition for future requirements is feasible. As these are follow-on contracts for supplies and services previously awarded on non-competitive bases, in accordance with DFARS PGI

206.304(a)(S-70)(i), the prior J&As were 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).