ALCS JA Redacted.pdf

J&A Number: NSWC-PHD-J&A-19-101-REV1 Code: NSWC PHD 0221 P.R. Number: N6339419NR10021

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command (NAVSEA), Naval Surface Warfare Center, Port Hueneme Division (NSWC PHD), Contracts Department, Code 0221.

2. Description of the Action Being Approved

Award of a single contract on a sole source basis for integrated logistics support (ILS) and Operations Center in support of Aegis Weapon System (AWS) Advanced Capability Build 16/Technical Insertion 12 Hybrid (ACB 16/TI-12H) and prior baselines to Lockheed Martin Rotary and Mission Systems

(LM RMS).

3. Description of Services

The purpose of this contract is to provide services as required by the United States Navy, Missile Defense Agency and foreign militaries for the following in support of the ACB 16/TI-12H and legacy baselines:

Reliability, maintainability, and availability;

Support and test equipment;

Configuration management;

Lifecycle engineering and technical services;

Maintenance planning and provisioning;

Resolving interim support and lifecycle diminishing manufacturing sources issues;

and Ship assessments.

The proposed contract will consist of a 12-month base period and three 12-month option periods. The Government's minimum needs have been verified by the certifying technical and requirements personnel. The estimated value of this proposed contract is as described in the table below.

Funding may be Research Development Test and Evaluation

(RDT&E); Shipbuilding and Conversion, Navy (SCN); Operation and Maintenance, Navy (O&MN); Other Procurement, Navy (OPN);

and Foreign Military Sales (FMS).

Estimated Dollar Value ($M)

Fund Type FY21 FY22 FY23 FY24 Total

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Pursuant to 10 U.S.C. 2304(c)(1), LM RMS is the only responsible source capable of satisfying the Navy's requirements for Aegis ILS sustainment services for ACB 16/TI-12H and prior baselines without causing unacceptable delays and substantial duplicative costs in fulfilling the Navy�s requirement. LM RMS is the current and only qualified source as the manufacturer, assembler and test agent for the ACB 16/TI-12H and prior baselines capable of performing within the required schedule and budget.

LM RMS is the only existing source that has the complete and indexed Level III Technical Data Package, expertise and proprietary software and equipment required to repair spares for piece parts of components manufactured by LM RMS for all fielded and in-process AWS baselines/ACBs/TIs through ACB 16/TI-12H. Due to the complexity of the AWS, a contractor must have intimate knowledge of all system requirements, weapon specifications, equipment design, and interfaces in order to provide effective and continuous ILS to all currently fielded AWS systems onboard ships, land-based test sites and shore sites. Delivery requirements are driven by AWS new baseline development, upgrades and incremental improvements, scheduled ship availabilities and operational ILS sustainment concerns across all baselines. As the Original Equipment Manufacturer, LM RMS is the only source with the expertise to maintain/sustain ACB 16/TI-12H equipment and any variations that follow for hardware baselines TI-12H and below in relation to development efforts for future baselines.

In accordance with FAR 6.302-1(a)(2)(iii)(A), for a contractor other than LM RMS to meet these requirements would take a minimum of 21 months and in substantial duplicative costs that is not expected to be recovered through competition. This includes a minimum of nine months to learn the Depot Operation and 12 months to acquire the knowledge and training necessary to engineer and redesign the AWS components. Much of the AWS equipment utilizes early- 1970s technology, which would require significant time and effort to examine and recreate. Furthermore, the Government does not have rights to the software used in the repair center and data management system. The Government funded the development of the custom applications, but did not obtain rights to the basic software. The cost estimate is based on the Aegis Depot Operation Business Case Analysis (BCA) completed in 2009. The BCA assessed the costs and benefits associated with five contracting alternatives (2 sole source and 3 full and open competition). The cost estimate is consisted of the average cost of the three (3) full and open competition alternatives plus software procurement cost.

The time and duplicative cost to procure this requirement using full and open competition creates an unacceptable risk to the Navy. LM RMS is the only source capable of meeting the Navy�s requirements without significant impact to operational availability and mission readiness.

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

The proposed contract was synopsized on the Federal Business Opportunities website on 13 June 2019. In addition to LM RMS, responses were received from DRS Laurel Technologies (DRS) and AECOM Management Services, Inc. (AECOM). These two companies described their experience in performing related work but neither of them claimed to have access to the intellectual property needed to perform the ILS function. No additional market research was conducted because it is not practicable for any contractor other than LM RMS to perform this work. LM RMS maintains proprietary rights to the software and data package required to perform the work. No other source is licensed by LM RMS to manufacture these items, including DRS and AECOM.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. The Contracting Officer will request Defense Contract Management Agency pricing assistance and/or Defense Contract Audit Agency audit of the contractor�s proposal along with the contractor�s certificate of current cost and pricing to support the fair and reasonable cost determination.

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph 5, NSWC PHD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWC PHD will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. NSWC-PHD-AP-19-075, except as noted herein, are complete and accurate to the best of my knowledge and belief.

MBINED TECHNICAL AND REQUIREMENTS COGNIZANCE:

Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have determined this justification is legally sufficient.

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

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

CHIEF OF THE CONTRACTING OFFICE CERTIFICATION

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

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Contracting Activity, the solicitation of the proposed procurements described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).