N00164_CR11045.1_FBO.pdf

CJ&A Number: CR-11-045.1 Code: CXN P.R. Number: N00164-11-G-PM04

ADDENDUM 1 TO

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Crane Division, Global, Spectrum, MSS Contracting Division CXN

2. Description of the Action Being Approved

The Government initially anticipated a three year Period of Performance (PoP) for engineering support and system software/firmware/support for Block 1A, 1B1, 1B2 and 1B3 in support of the AN/SLQ-32(V) Anti-ship Missile Defense (ASMD) system as set forth in Class Justification & Approval (CJ&A) CR- 11-045. Revised circumstances now indicate that the initial PoP was under estimated for the continuation of these services.

Funding has been under executed due to slips in installation schedules which were unforeseen at the time of the initial writing of CJ&A CR-11-045. Delays in fielding plans and installation schedules support a two year extension for these types of services. Therefore, authority to act under this CJ&A is extended for a period of two years and expires 31 July 2016.

3. Description of Supplies/Services

The services being procured on Basic Ordering Agreement (BOA) N00164-11-G-PM04 are for a continuation of systems engineering support and system software/firmware support for Blocks 1A, 1B1, 1B2 and 1B3 in support of AN/SLQ-32(V). These services will support upgrades to the system that was developed by General Dynamics-Advanced Information Systems (GD-AIS) as part of the SEWIP.

The BOA, N00164-11-G-PM04 was awarded with a ceiling of $9,916,846.00. As shown in Table 2 below the Government awarded $3,143,017.00 to date. This CJ&A Addendum will not increase the estimated value of the BOA. Table 2 below shows the revised funding table for the two year extension.

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

J&A Number: CR-11-045.1

The original CJ&A was approved with the estimated dollar value as shown below.

Table 1

Estimated Dollar Value

FY11 FY12 FY13 FY14 TOTAL

RDT&E 50,000 50,000 100,000 100,000 300,000

SCN 50,000 134,663 77,757 150,000 412,420

OPN 1,500,000 1,500,000 2,400,000 2,051,339 7,451,339

O&MN 253,087 500,000 500,000 500,000 1,753,087

TOTAL 1,853,087 2,184,663 3,077,757 2,801,339 9,916,846

The estimated funding for the two-year extension is as follows:

Table 2

Revised Estimated Dollar Value Expended

FY 11-14

FY14

FY15

FY16

TOTAL

RDT&E 733,716 200,000 164,829 175,000 1,273,545

SCN 00.00 75,000 75,000 75,000 225,000

OPN 2,178,376 2,000,000 2,000,000 1,000,000 7,178,376

O&MN 230,925 266,000 365,000 378,000 1,239,925

TOTAL 3,143,017 2,541,000 2,604,829 1,628,000 9,916,846

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(C)(1), Only one responsible source in accordance with FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

Block 1A is now complete, with total installations on 80 U.S.

Navy and Coast Guard ships. Many of these systems have since been converted to Block 1B2 configuration, but engineering support for Block 1A configuration support will be required for several more years.

Block 1B1 has been installed on 53 U.S. Navy and Coast Guard ships, with 6 planned installs remaining. These systems are planned to remain in service for at least 10 more years. It is critical to maintain installation, training and other engineering support with a minimum of interruption.

Sixty-six Block 1B2 systems have been installed and 5 additional installations are currently planned. Although the majority of these systems will eventually be replaced by SEWIP Block 2, that replacement has just started in 2014 and Block 1B2 systems will not be completely replaced until 2023.

Installation of the first SEWIP Block 1B3 system began in February 2014. Initial Operational Test and Evaluation (IOT&E) will take place in July 2014. Under current planning, Block 1B3 will primarily be fielded in conjunction with SEWIP Block 2. The capability provided by SEWIP 1B3 will remain in the fleet for many years and it is critical to maintain these types of services to ensure uninterrupted engineering support.

Based on the above, the sole source justification shall remain in effect. A two year extension will allow for a continuation of critical SEWIP Block 1 engineering support services to the Fleet, with no break in period of performance.

It is not advantageous to the Government to seek competition for Block 1 engineering support at this time. No company other than GD-AIS currently has the knowledge and expertise to perform these types of required support services. The time required to enable another company up to perform the required support would result in a break in service. Also, it is anticipated that enabling a new source would cost an additional $4.6M over the period of the requested contract extension. This additional cost would be attributed to the labor involved with a learning curve for a new contractor to provide the same support for the existing system hardware and software. Additionally, this cost would also include the procurement of new equipment and hardware that a new source would require in order to provide the required services.

GD-AIS currently has the necessary Government Furnished Property for use under this BOA and another Government contract; thus, the Government would be unable to transfer the existing Property to another source. It is very unlikely the associated costs could be recouped through competition.

It is anticipated that a follow-on sole source contract will not be required for these services after this two year extension. The next contract for SEWIP Block 1 engineering support services will be competitively awarded. During the two year period of this extension, the Government In-Service Engineering Agent (ISEA) and Government Software Support Activity (SSA) will absorb some of these services in–house. The ISEA and SSA both have SEWIP Block 1 experience, but are not currently prepared to fully support these types of efforts. Upon completion of the two year extension some of the services will be awarded on competitive basis via Seaport.

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

The proposed modification to extend the BOA’s ordering period was synopsized on March 24, 2014. Any responses received will be considered. The original BOA was synopsized 22 March 2011.

There were no sources that expressed an interest to the announcement. Individual job orders will be synopsized 30 days prior to award.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will determine the anticipated cost to the Government of the supplies/services covered by this class justification and approval fair and reasonable. The Crane contracting office will use cost and price analysis to determine a fair and reasonable price. Assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will be used to analyze, evaluate, and negotiate based upon detailed cost and pricing data, as required per order, which will be certified by GD-AIS at the conclusion of negotiations, if required, in accordance with Federal Acquisition Regulations.

8. Actions to Remove Barriers to Competition

It is anticipated that a follow-on sole source contract will not be required for these services after this two year extension. The next contract for SEWIP Block 1 engineering support services will be competitively awarded. As stated earlier this two year period of performance extension will allow the Government In-Service Engineering Agent (ISEA) and Government Software Support Activity (SSA) to absorb some of these services in–house. The ISEA and SSA both have SEWIP Block 1 experience, but are not currently prepared to fully support these types of efforts. Upon completion of the two year extension some of the services will be awarded on competitive basis via Seaport.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I 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:

Signature Name (Print) and Title (Code) Phone No. Date

REQUIREMENTS COGNIZANCE:

Signature Name (Print) and Title (Code) Phone No. Date

REVIEW FOR LEGAL SUFFICIENCY (MCARS 5206.303(90))

This justification is determined legally sufficient.

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Signature Name (Print) and Title (Code) Phone No. Date

CRANE DIVISION COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve, as Crane Division Competition Advocate, the solicitation of the proposed procurement (s) described herein using the other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1)