Redacted J&A.pdf

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DEPARTMENT OF THE NAVY

NAVSUP WEAPON SYSTEMS SUPPORT

700 ROBBINS AVENUE 5450 CARLISLE PIKE-PO BOX 2020

PHILADELPHIA PA 19111-5098 MECFL4NICSBURG PA 17055-0788

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

REQUISITION NUMBER: NOOl 04-1 8-Y-2524 BUYER CODE:

NAME: TEL:

Justification and Approval (J&A) #:

1. CONTRACTING ACTIVITY:

The Naval Supply Systems Command (NAVSUP) Weapon Systems Support (WSS), Philadelphia, PA.

2. DESCRIPTION OF THE ACTION BEING APPROVED:

NAVSUP WSS intends to utilize other than flail and open competition to negotiate and award a

Launch System (VLS). This J&A covers a contract term of a five-year base period from 22 November 2019 through 21 November 2024 with no option periods. This contract will replace the one-year PBL NAVSUP WSS is currently pursuing to extend coverage until November 2019, with ). The proposed contract will be an Indefniite Delivery Requirements type contract with firm-fixed price provisions and include Supply Response Time (SRT) metrics. The use of SRT will establish time defmite delivery dates, with a contract disincentive for failure to meet the negotiated contract delivery schedule. In addition, the contract will include demand bands which will be implemented in a risk-sharing arrangement between NAVSUP WSS and .

A determination of core capability in accordance with 10 U.S.C. 2464 has been completed by the MK-VLS Program Office (PEO IWS3L) on 22 May 2018 and it has determined that core capabilities do not exist for the MK-41 VLS Program.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This J&A covers the acquisition of PBL support for the 341 NSNs associated with the MIC-4l VLS and . This contract will also support five (5) Foreign Military Sale (FMS) countries, specifically Germany, Japan, Australia, Spain, and Norway. The MK-41 VLS is a ship and shore based missile canister launching system which provides a rapid-fire launch capability against hostile threats in multiple mission environments. The weapon systems supports anti-aircraft, anti-submarine, anti-surface, land attack and ships’ self-defense missions while being an integral component of the Aegis weapon system supporting ballistic missile defense (BMD) programs. MK-41 VLS is combat proven, with more than 3,500 successful missile firings. The total estimated contract amount to be funded by the Navy Working Capital Funds (NWCF) is . Estimated dollar values for each year of this Requirements Contract are as follows:

All items covered by this J&A are Navy specific items with no commercial use, not customarily available in the commercial marketplace, and made to meet Navy requirements for all applications i.e. ship and shore based. Under the proposed acquisition, will deliver Ready for Issue (RFI) units within the required time frames, which are dependent upon priority of the requisition. In order to provide the required end items, in accordance with the contractual requirements, the contractor will provide PBL support that includes depot maintenance, material management, (i.e., procurement ofpiece parts for repair and attrition spares for units considered beyond repair), configuration management, obsolescence management, engineering support and sustainment elements, reliability sustainment or improvements, and packaging/storage. The PBL’s fixed price is for the delivery of an indefinite quantity of end items in response to requisitions received by the contractor during the period of performance and provides incentive to reduce demand by streamlining the logistics support process and providing improvements to the supply chain.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

This J&A is based upon the authority of 10 USC 2304(c) (1), only one responsible source and no other supplies or services will satisfy agency requirements, as implemented by FAR 6.302-1.

5. RATIONALE JUSTIFYING USE OF CITED STATUTORY AUTHORITY

The basis for not competing this requirement is:

a) is the Original Equipment Manufacturer (OEM) of the MK-41 VLS and the only source certified as a repair depot for the MK-41 VLS.

is the only responsible source with access to the full range of technical data (critical portions of which are proprietary), engineering expertise, extensive integration and testing facilities, prior experience, and in-depth technical understanding of the targeted components within the MK-41 VLS to perform the requirements covered by this contract. has intimate knowledge of each of the configurations and how the firmware interfaces with electronic components within the system. For the same reasons, only is able to repair or replace MK-41 VLS components while maintaining the form, fit, and function required to keep the entire system operational, reliable, and durable.

b) In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 209.270, the majority of the items covered in this contract are ship critical safety items.

Therefore, in order to maintain the quality of these parts, repair or overhaul of such items may be made only by sources approved by the Design Control Authority, in this case Naval Sea Systems Command (NAVSEA) Program Executive Office (PEO) Integrated Warfare Systems (IWS). is the only responsible source, with NAVSEA source approval.

c) NAVSUP WSS has no indication that any other manufacturer has technical data rights essential to the manufacture or engineering tasks considered integral to the support of the contract components, and thus successful performance of the PBL contract.

Based on the forgoing analysis, is the only source capable of providing the integrated logistics support requirements, for the entire scope of necessary performance, related to depot maintenance, availability, obsolescence management, engineering sustainment, and forecasting. For these reasons, pursuing competition is not feasible.

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

OFFERORS AS PRACTICABLE:

A review was conducted for each proposed NSNs under this contract to identi~’ all potential sources. The NAVSUP WSS Mechaniesburg Integrated Weapons System Team (IWST) reviewed the capabilities necessary to perform the full requirements of this PBL and all technical data available and have concluded it is not possible to compete this requirement based upon limited capabilities in the industrial base and a lack of Government-owned data. To promote competition, NAVSUP WSS will continue to encourage manufacturers with the expertise to repair/manufacture the subject items to submit a Source Approval Request per the (WSS) guidelines. All fliture requirements will be advertised on the NECO and FedBizOps websites in order to encourage potential suppliers to submit Source Approval Requests.

A sources-sought notice N00 104-1 8-Y-2524 was posted on 23 March 2018 via NECO and FedBizOpps. , expressed interest in the repair . is a small business and an approved source for repair . To foster participation of small businesses, NAVSUP WSS removed . NAVSUP WSS will contract for repair directly with DCI Technology for fixture requirements. Following approval of the DD2579, Small Business Coordination Record, a synopsis was posted on 07 August 2018 to NECO and FedBizOpps. No company, other than has indicated an interest in competing for the full MK-4l VLS PBL requirement. The PBL solicitation will also be posted through the Government-wide point of entry onNECO and FedBizOpps. If another source shows interest after the synopsis, they will be referred to the cognizant engineering activity as designated by PEO IWS3L to assess technical capabilities.

NAVSEA has cognizance over the purchase of the technical data and data rights. Acquiring the data necessary to compete future requirements (e.g., detailed drawings, drawings with proprietary rights to , repair specifications and processes, etc.) will not be made available at a cost-effective price. Absent this critical data, the Navy will be unable to solicit any competitor to take place as a source for these components and related systent Obtaining engineering approval for these components and related system would be an extensive process; however, ifNAVSEA decides to procure the total data rights and a viable new potential source emerges, NAVSUP wss, in coordination with the appropriate Program Office (PEO IWS3L), will facilitate efforts to have such sources qualified and assess whether competition for future requirements is feasible.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Contracting Officer will determine that any resulting contract price to the Government will be fair and reasonable based upon thorough price and cost evaluation. Assistance will be requested from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) and Price FighterS (PF$). Recommendations from these reviewing groups will be utilized to analyze, evaluate and negotiate the elements of the proposal such as material, labor hours and rates. This methodology will ensure negotiations conclude with a fully supported price reasonableness determination. Certified cost and pricing data will be obtained and used to ensure cost reasonableness, completeness and realism of proposed costs, as required.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION:

In order to facilitate depot level repair certification of additional vendors, both an improved Technical Data Package and depot level repair performance standards had to be developed by NAVSEA PEOIWS 3L in accordance with 48 CFR Part 9, Subpart 9.2 and OPNAVINST 4790. l4.B. The development of depot level repair performance standards has yet to be completed by NAVSEA PEOIWS 3L. If a new source shows interest, they will be placed in contact with the cogi±ant design activity that will provide available drawings and associated technical documentation in order to become a qualified source.

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CERTIFICATIONS AND APPROVAL

TECHNICALIREOUIREMENTS CERTIHCATION

I cenify that the facts and representations under my cognizance which are included in this Jusdf,carion and ha supporting acquisition planning documents, acept as noted herein are complete atid accunte to the best ofmy knowledge and belief.

Technical Coznizance:

Requirements Cognizanc~

COMPETUrION Al) OCATE REViEW AND CONCURRENCE coNTRAcTING OFFICER CERTISCATION

I cenitj that this Justification is accurate and complete to the best ofrny knowledge and belief.

APPROVAL REQUIRED BY FAR 6.304

i&A No, 14778

LEGAL SUFFICIENCY REVIEW

I have determin suficatton is legally sufficicaL