N63394_24061.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PORT HUENEME DIVISION

4363 MISSILE WAY

PORT HUENEME, CA 93043-4307

J&A No. NSWC-PHD-JA-24-061

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD).

2. Description of the Action Being Approved.

Award of a modification on a sole source basis to Contract No. N6339423C0009 to increase the estimated cost ceiling for Other Direct Costs (ODCs) Material Contract line Item Numbers

(CLINs). The ODC CLINs are cost-only. The base contract was awarded competitively to

General Dynamics Information Technology, Inc. (GDIT) on 29 September 2023 for MK 41

Vertical Launching System (VLS) In-Service Engineering Agent (ISEA) Support Services.

3. Description of Supplies/Services.

NSWC PHD is the ISEA for the MK 41 VLS. As the ISEA, NSWC PHD is required to provide engineering and technical support services, including removing, installation, modification, obsolescence management and upgrades for all configuration baselines for MK

41 VLS.

During the competitive solicitation phase, the Government provided plug number values for each contract period to represent estimated costs (unburdened) for ODC Material CLINs. The solicitation instructed offerors to apply indirect burdens to the plug numbers to derive the estimated ODC Material CLIN ceilings as awarded. The following table summarizes the additional estimated ODCs by appropriation:

Estimated Dollar Value

APPN FY24 FY25 FY26 FY27 FY28 Total

FMS

OMN

OPN

PDA

SCN

Total $2,000,000 $2,000,000 $3,000,000 $4,000,000 $4,000,000 $15,000,000

The estimated material ODCs to complete the required services have increased due to an increase in the average material costs, more cell hatches and deluge valves to be refurbished from both US and Foreign Military Sales (FMS) due to aging materials, more Launch Control

Units conversion to match the US or FMS ship configurations, and obsolescence of volatile electronics components markets. Engineering analysis and testing are required to find suitable alternates or replacement to mitigate long lead time of the materials.

The increase in estimated material ODCs is also the result of the general inflation experienced over the last year since the contract was awarded. The new estimates reflect current estimated costs to complete the original statement of work as competitively solicited and awarded. The additional ODC ceiling is not being requested for additional work not contemplated at time of award. The period of performance is through 30 September 2028 if all options are exercised.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

It is not reasonable to re-compete all the labor hours simply to address the ODC issue. Re-competing this requirement due to the need for additional ODCs would incur offeror expenditures related to proposal preparation and cause a delay of 30 to 36 months in the

Government receiving services. As a result, ships would not receive the upgrades required to resolve obsolescence issues the MK 41 VLS requires to perform its intended mission. As stated in paragraph 3, the increase in ceiling is due to an increase in the component cost and amount of material required per overhaul, resulting in greater-than-anticipated costs. Tasking remains consistent with the statement of work. No new types of repairs or tasking for additional ship classes are anticipated.

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

The solicitation was posted to the Government Point of Entry, SAM.gov, on 4 January 2023 with a closing date of 10 April 2023. In addition to GDIT, four other offerors submitted proposals and were evaluated to determine the best value to the Government. No additional market research was conducted because it is not practicable, for the reason discussed in paragraph 5 above, for any company other than GDIT to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated costs to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5, any future contracts will continue to be competed and will take into account the changes that occurred on this contract as it relates to estimated

ODCs.