N63394_23091.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-23-091 Code:

PR No.:

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 cost-plus-fixed-fee (CPFF) term and CPFF completion contract on a sole source basis to Lockheed Martin Corporation for Aegis Design Agent field engineering services in support of the Aegis Guided Missile Cruisers and Guided Missile Destroyers (DDG), Allied Aegis ships, and United States (US) Coast Guard Aegis-configured ships.

3. Description of Supplies/Services.

Procurement of Aegis Design Agent field engineering services to support the NSWC PHD In- Service Engineering Agent (ISEA) mission. NSWC PHD is the designated ISEA for the Aegis Combat System (ACS). Services include: 1) test and evaluation; 2) engineering change development; 3) ordnance alteration (ORDALT); ship alteration; and modernization engineering, logistics, and technical support; 4) ORDALT kit development, integration, and test support; 5) AN/SPY-1 Series Radar Antenna resurfacing; 6) Aegis equipment refurbishment and depot support; 7) US Coast Guard Program Design Agent field engineering support; 8) Multi-Mission Signal Processors (MMSP-R)/Low Noise Amplifier support; and 9) Directed Energy.

The resultant contract will include a 12-month base period and four 12-month option periods from April 2025 through April 2030 if all options are exercised. The contract will also include H-216-H002 LEVEL OF EFFORT--ALTERNATE I (NAVSEA), which enables the Contracting Officer to extend the period of performance and increase the estimated cost in order to permit the contractor to provide all of the labor hours specified in the contract; thus, the contract may be extended beyond five years if unused labor hours are remaining at the end of the original base and four option years.

The table below provides a breakdown of the estimated annual costs by appropriation type for certifying technical and requirements personnel.

knowledge, expertise, and personnel required to sustain the HELIOS test units as required by this effort.

Lockheed Martin Corporation is the only known source that possesses the expertise and certifications required to perform AN/SPY-1 Series Radar Antenna resurfacing. The antenna resurfacing requirement represents a substantial portion of this effort as a whole and is inextricably enmeshed with the other ACS support requirements. Lockheed Martin Corporation has developed the capacity to support two teams with the ability to resurface radar antenna for 10 ships per year. Execution of antenna resurfacing services will directly and immediately impact the operations of ACS as a system and, with the very narrow timeframes within which docking ships must be serviced, antenna resurfacing must be coordinated extremely closely with the other support services under this effort. Therefore, the contractor must be highly proficient in the AN/SPY-1 Radar Antenna resurfacing process. A contractor lacking this expertise may jeopardize ship schedules and ultimately impact US Navy fleet operations.

It is estimated that the Government would incur delays of 30 to 36 months and $60,000,000 in duplicated cost to award a competitive procurement for these services to a contractor other than Lockheed Martin Corporation. At least 18 months would be required for another contractor to obtain all of the required certifications for AN/SPY-1 Series Radar Antenna resurfacing and an additional 12 to 18 months to conduct a competitive procurement based on average timelines to procure similar services, resulting in a schedule delay of at least 30 to 36 months. This includes developing methods and processes to comply with pollution regulations and access to shipyards, developing two teams to resurface arrays for up to 10 ships per year, and refining the process for faster turnaround times. This would be an unacceptable delay that negatively impacts fleet readiness. Award to any other contractor would also involve significant investment to gain the expertise and technical capability to achieve programmatic milestones at the same level of proficiency as Lockheed Martin Corporation, which is not expected to be recovered through competition.

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

A Sources Sought Notice was posted to the Governmentwide point of entry (GPE), SAM.gov, on 31 July 2023 with a closing date of 15 August 2023. The only response received was from Lockheed Martin Rotary and Mission Systems (LM RMS). LM RMS was determined to be capable to perform the requirements since LM RMS has the technical capability, the ability to manage, and the capacity to support Aegis Design Agent requirements. LM RMS also owns the intellectual property rights necessary to perform the configuration and calibration of

MMSP-R.

A synopsis was subsequently posted on the GPE website on 5 October 2023 to notify industry of the intent to sole source, with a closing date of 20 October 2023. No additional potential sources expressed an interest in the procurement. No additional market research was conducted since it is not practicable, based on the reasons discussed in paragraph five above, for any company other than LM RMS to provide the required 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, 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.

J&A No. NSWC-PHD-JA-23-091

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

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:

Phone No. Date

REQUIREMENTS COGNIZANCE:

Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

Phone No. Date

CHIEF OF CONTRACTING OFFICE CERTIFICATION

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

Phone No. Date