Notification_JA NO 19006.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

J&A NOsp 19,006 Code: SPN201

JUSTIFICATION AND APPROVAL (J&A)

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Strategic Systems Programs (SSP)

2. Description of Action Being Approved. This request seeks approval to issue a Cost Plus Fixed Fee (CPFF) contract to Peraton, Inc. (herein also referred to as Peraton) using other than full and open competition for systems engineering, analysis, and program support services for the Navy’s Strategic Weapons Systems (SWS) Reentry subsystem, independent of the design or production agents.

3. Description of Supplies/Services a SSP is a unique organization with the cradle to grave responsibility for the development, production, and life cycle operational support of the nation's primary nuclear deterrent.

Performance of the tasks under this contract require a specific and unique combination of expertise, extensive and specific technical knowledge, and detailed understanding and experience with structure, business practices, mission, and history of the Reentry Systems Branch, SP28.

b. During the period of this contract, SSP intends to negotiate with Peraton Inc. for the technical, programmatic, and operational engineering services in support of the Navy Reentry Systems programs. The same forms of support will be provided to the United Kingdom (UK) and will include:

(1) Reentry Body systems assessment and vulnerability, and nuclear safety and surety support;

(2) Reentry Systems Development;

(3) Nuclear Weapons System Safety (SP20124);

(4) SSP Classification Management (SP2017);

(5) Weapons systems refurbishment programs.

c. The period of performance for this contract is October 1, 2020 through September 30, 2021, with additional 4 year follow-on options through September 30, 2025. The start and end of all UK efforts will be 6 months behind the U.S., to align with their fiscal year. A breakout of the estimated dollar value and funding appropriations for the pending contract are provided below:

J&A NOsp 19,006 Code: SPN201

Estimated Dollar Value($M)

APPROPRIATION FY21 FY22 FY23 FY24 FY25 GRAND TOTAL

O&MN 7.0$ 7.5$ 8.3$ 8.5$ 9.0$ 40.3$

RDT&E 2.0$ 2.2$ 2.4$ 2.6$ 2.8$ 12.0$

WPN 1.0$ 2.1$ 2.2$ 2.3$ 2.4$ 10.0$

TOTAL 10.0$ 11.8$ 12.9$ 13.4$ 14.2$ 62.3$

30% Increase Clause 3.0$ 3.5$ 3.9$ 4.0$ 4.3$ 18.7$

Total US w/ 30% Clause 13.0$ 15.3$ 16.8$ 17.4$ 18.5$ 81.0$

UK (for reference) 2.3$ 2.4$ 2.4$ 2.5$ 2.5$ 12.1$

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 cost-effectively satisfy agency requirements.

5. Rationale Supporting Use of Authority Cited Above

a. Per FAR 6.302-1, the support services required by SSP are available from only one responsible source, Peraton Inc. No other contractors will satisfy SSP's requirements.

b. Peraton Inc. possesses a unique depth of experience in all of the required areas. For more than five and a half decades supporting SSP Reentry Systems, Peraton has acquired unique and special knowledge and expertise regarding the conduct and management of Fleet Ballistic Missile (FBM) weapons systems acquisition, development, requirements generation, test and evaluation, systems engineering, refurbishments, nuclear safety assessments, independent nuclear safety assessments, and deployment and stockpile management. This depth and breadth of experience spans throughout the evolutionary development of 6 reentry systems and serves to complement Peraton's specialized capabilities.

c. Peraton Inc. has collected and maintains a database of the past Underground Testing (UGT) codes, and has a specialized ability and knowledge to process and understand the data.

The database can be accessed when needed to obtain data to predict impulse blow off for existing and future systems. In addition, Peraton has also developed and modified (commercial codes) many additional software codes, which are vital to the tasks on this contract. These codes are unique and essential to continue to support the current programs for all Navy Reentry Systems (W76-0/MK4, W76-l/MK4A, W76-2/MK4A, and W88/MK5 reentry systems) which include:

the development of the MK5Alt Fuze, USSTRATCOM targeting Navy assets, radiation response functions for Arming, Fuzing, and Firing and Nuclear Explosives Package, first principle fratricide calculations, predicting the response of materials exposed to hostile x-ray influence, predicting Stockpile-to-Target-Sequence (STS) hostile environments and assessment of reliability and safety of nuclear weapons. Without these codes, reliable test predictions, responses, and/or calculation cannot be obtained. These codes are essential for the continued evaluation of existing weapons and for planning of the life extension version of these weapons.

d. Throughout the years of Peraton's continuous support, a high percentage of the effort has been devoted to gaining the necessary skills, knowledge and expertise to develop, test, and verify data codes obtained from past UGT. In order for another contractor (with a general nuclear weapons development, nuclear weapons system safety and submarine nuclear weapons operational support knowledge) to develop the minimum extent of specialized experience required to support this effort, it would take a minimum of 4 years, which is the time required to train a Level 3 Engineer to an equivalent level. The Government will not receive the same type of support during those years. This training period to bring another contractor up to an equivalent level will require a 4-year overlap.

e. Based on the last contract's effort, the total cost for this overlap is estimated to be approximately $27 million. An award to another source for this effort would result in substantial duplication of cost to the Government in training, development, certifications, travel and initial start-up costs, and these costs are not expected to be recovered through competition and will result in unacceptable delay in fulfilling the government's requirements. In accordance with FAR 6.302-l(a)(2)(iii), "services may be deemed to be available only from the original source in the case of follow on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) unacceptable delays in fulfilling the agency 1 s requirements. (See 10 U.S.C. 2304 (d)(1)(B))."

f. Peraton Inc. has also acquired unique knowledge and expertise regarding both conventional and nuclear weapon system safety policies, directives, and standards. Throughout the support of numerous Nuclear Weapon System Safety Assessments, Special Safety Studies (SSS), Operational Safety Studies (OSS), Pre Operational Safety Studies (POSS), and Independent Assessments (required by DoD 3150.2-M DoD, "Nuclear Weapon System Safety Program Manual"), Peraton has been able to develop the necessary expertise to evaluate and identify any potential issues or concerns affecting conventional or nuclear weapon system safety/surety. In addition, Peraton has a proprietary methodology for modeling and probabilistic analysis of procedures by which they are able to perform comprehensive assessments, analyze technical malfunctions, acts of God, and human error that could result in an inadvertent use of a nuclear weapon, and analyze accidental or unintentional launch or release of a nuclear missile in either normal or credible abnormal environments.

g. Additionally, Peraton possesses the expertise to provide qualitative and/or quantitative risk assessments of a specific nuclear weapon system safety. The assessments reveal facts about a nuclear weapon system's design and the potential vulnerabilities of the design and its operation.

In order to integrate another contractor into the Nuclear Weapons System Safety efforts, it would require 4 years and at a $5 million cost.

h. Peraton provides highly specialized services in the form of expert advice pertaining to analysis and interpretation of overarching statutes, policy, directives, regulations, instructions, etc. as they specifically apply to SSP's Classification Management program based on their in depth knowledge of these requirements, the relevant organizational stakeholders, and past, current, and planned future states of this program.

i. Finally, Peraton provides expert classification determination support based on their unique knowledge & proper use of all security classification guides (both internal and external to the organization) that relate to all aspects of the Reentry System and the Submarine Launched Ballistic Missile (SLBM) Weapon System. Peraton possesses critical SSP corporate knowledge for Classification Management matters, and their in-depth understanding of the security classification guides is essential especially when decisions regarding classified information are not necessarily black and white. In order to integrate another contractor into SSP's Classification Management take at least 2 years and it would cost approximately $1 million. These costs are not expected to be recovered through competition and would result in unacceptable delays in fulfilling the Government's requirements.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. The proposed contract was synopsized on the FEDBIZOPPS website (www.fedbizopps.gov) on May 31, 2019 and no other potential sources expressed an interest in this requirement. Additional market research was conducted in June 2019 for individual Contract Line Item Number (CLIN) requirements. The findings resulted in a determination that no other contractor had the unique capabilities required to support and execute the high level SP28 requirements.

7. Determination of Fair and Reasonable Cost. The Contracting Officer shall determine the estimated cost to the Government of the services covered by this J&A will be fair and reasonable, which shall be accomplished through the development of a sound negotiation objective by ensuring that the contractor’s proposal is compliant with applicable cost/pricing regulations, industry best practices, and company disclosure statements. In addition, an in-depth cost analysis shall be performed utilizing historical trend analysis for labor hour verification;

using statistical sampling for rate validation; and applying Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) principles for elimination of unallowable cost elements. Assistance from Defense Contract Audit Agency (DCAA) will also be utilized.

8. Actions to Remove Barriers to Future Competition. It is necessary for the Navy to initiate this follow-on contract with a base period (FY21) and 4-year option period (FY22-25) with Peraton using other than full and open competition. However, SSP will make every effort to continue monitoring and reviewing this sole source contract to identify and evaluate potential efforts/tasks for full and open competition/small business set-aside as cost-effective and timely alternatives.