SSP JA 20035.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

J&A No 20,035

Code: SPN-101

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. Strategic Systems Programs (SSP)

2. Description of the Action Being Approved

a. This Justification and Approval (J&A) seeks approval for award of the Fiscal Year (FY)

2021 through FY24 contract associated with the procurement of technical engineering services and necessary equipment to provide sustainment support for the United States (U.S.) Fleet

Ballistic Missile (FBM) Underwater Launcher Subsystem (ULS) on a sole source basis to

Northrop Grumman Systems Corporation (NGSC). The contractor is Northrop Grumman

Systems Corporation, P.O. Box 3712, 401 E. Hendy Avenue, Mail Stop 71-6, Sunnyvale, CA, 94088-3712.

b. This acquisition will include a provision to increase the LOE contract line items up to thirty percent 30 percent (30%). Such options may be exercised only to the extent that exercising the options will not result in exceeding the total obligation authority of this J&A.

c. The United Kingdom (UK) portion of this proposed acquisition is covered under the

Polaris Sales Agreement between the U.S. and the UK signed on 6 April 1963 and made applicable to the TRIDENT II on 19 October 1982. Under 10 U.S.C. 2304(f)(2)(E) and FAR

6.302-4(c), the UK portion is not required to be supported by a J&A, because other than full and open competition for the UK portion is authorized under 10 U.S.C. 2304(c)(4). Accordingly, the

UK portion is not covered by this J&A, but its dollar values are included below for informational purposes.

3. Description of Supplies/Services. The following provides a brief description of program supplies/services, requirements, and funding profile for the subject acquisition. The contractor shall provide hardware and technical engineering support for sustainment of the Fleet Ballistic

Missile (FBM) Underwater Launcher Subsystem (ULS), SSP Shipboard Integration Increment

11 program, SSGN Attack Weapon System (AWS), trainer infrastructure and support equipment for the D5LE2 program launcher system. NGSC will provide refurbishment support of existing

U.S. and UK ULS hardware, including technical refreshes of Launcher Subsystem components to address obsolescence. The acquisition is for one one-year base period and three one-year option periods as follows:

Base Period 1 October 2020 – 30 September 2021

Option Period One 1 October 2021 – 30 September 2022

Option Period Two 1 October 2022 – 30 September 2023

Option Period Three 1 October 2023 – 30 September 2024

The estimated dollar value for this procurement is as follows:

FY21 FY22 FY23 FY24 Total

O&MN $29.7M $30.3M $31.0M $32.4M $123.4M

SCN $0 $0 $0 $0 $0

R&D $0 $0 $0 $0 $0

OPN $19.6M $9.1M $12.5M $16.8M $58.0M

WPN $0 $0 $0.90 $4.90 $5.8M

UK* $5.6M $6.1M $3.9M $4.0M $19.6M

O&MN

(30%)**

$11.7M

$10.7M

$10.8M

$10.8M

$44.0M

UK (30%)** $2.4M $2.7M $1.6M $1.8M $8.5M

Total $54.90M $45.5M $48.3M 58.10M $206.8M

Total

(30%)*** $69.0M $58.9M $60.7M $70.7M $259.3M

*In accordance with 10 U.S.C. 2304(f) (2) (E), a separate J&A for the UK portion is not required. UK amounts are listed for informational purposes only.

** Maximum potential total if all (US and UK) 30% LOE options are executed

*** Total including maximum execution of all (US and UK) 30% LOE options.

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, Federal Acquisition Regulation (FAR) part 6.302-1.

5. Rationale Supporting Use of Authority Cited Above

a. The scope of this acquisition will cover support for the ULS on the SSBN platform. A contractor that has the following abilities must be retained:

b. Extensive knowledge of the TRIDENT II (D5) ULS specification Weapons Specification

(WS) 29830 and the engineering and design features of the launcher system. This program requires preparation of detailed documentation, engineering drawings, and interface drawings that integrate the launcher system into the overall TRIDENT II (D5) Strategic Weapons System

(SWS). Expertise in all facets of the ULS, including detailed knowledge of the subsystem specification WS 25386, systems engineering, design requirements, manufacturing, reliability, maintainability, installation, and maintenance support is required.

c. Detailed knowledge of the installation planning, including resources required to execute the fleet installation and test schedules compatible with the FBM, ERO, and TRIDENT II (D5) program schedules.

d. Ability to provide engineering expertise in the conduct of Launcher Nuclear Safety and

Security studies to identify and resolve issues that could threaten or degrade safe operation of the

TRIDENT II (D5) ULS.

e. Comprehensive knowledge of underwater launch technology. This includes underwater flight physics from submarine-launched strategic missiles for gas generator ignition to initiation of powered flight.

f. NGSC in Sunnyvale, CA has been the only SSP ULS prime contractor for more than 60 years, and is the only known source qualified to provide the required services and supplies. If another contractor were selected to perform this work, the government would encounter substantial duplication of cost that is not likely to be recovered through competition. To quantify those costs, the government looked to the last contract within SSP that had development costs.

The costs paid under the TRIDENT II (D5) Program Operational System Development and

Production (OSDP) Contract was used to form the basis of an estimate. The OSDP effort period of performance was from FY84 to FY89. The government anticipates that the following activities, similar to the scope of work under N00030-84-C-0105, would need to be performed by a new contractor:

(1) The development and delivery of special tooling and test equipment. Qualifying of design, tooling, test equipment, and production processes by the production of qualification models, test, and examinations.

(2) Preparation of detailed program plans to include production, training, logistics, maintenance, follow on production contracts, and support of TRIDENT II (D5) facilities.

(3) Preparation of documentation for shipboard installation and test, and the operation, maintenance, and provisioning of the launcher subsystem.

g. In current year dollars, the cost to educate and qualify a new contractor would be at least

$324,275,800. This figure is significantly less than the figure in the previously approved CJ&A because the COLUMBIA launcher production and design work is being performed by NGSC-

MS in a different contract. This figure was calculated by assuming a third of the launcher subsystem development effort (6 of 18 requirements in the areas ULS design, as well as knowledge of data, documentation, and internal SSP processes and instructions, quality control requirements, working knowledge of handling, maintaining, repairing D5 equipment, and outfitting of NGSC shore facilities) would be required for a new contractor to gain the necessary underwater launcher technology and experience. The 1984 actual dollars for that scope were then converted to 2020 dollars by adjusting for inflation, using the Consumer Price Index (CPI) in order to arrive at the final estimate. Additionally, unacceptable schedule delays would also result if another contractor were selected. Based upon the period of performance of the OSDP effort, and the time it would take to perform the above-mentioned activities, it is estimated it would take two to three years to equip and qualify a new source. This delay is unacceptable due to the crucial need for continual launcher support to sustain the current TRIDENT II (D5) operations. A break in launcher support would jeopardize TRIDENT II (D5) capability. To meet FBM, ERO, and TRIDENT II (D5) schedule requirements, there is not adequate lead-time to fully educate, equip, and qualify an alternative source.

h. NGSC is the only contractor capable of fulfilling the upcoming needs within the time frame proposed. It would be impossible to procure the services of an alternate contractor within the lead-time proposed for this procurement, assuming that an alternative contractor capable of meeting this need was even available. Furthermore, the government would encounter additional costs as a result of schedule slippage during a transition. Failure to meet FBM, ERO, and

TRIDENT II (D5) schedules would result in schedule impacts to the fleet and the additional costs to purchase spares and perform repairs during non-ERO times. This slippage would require ships in the fleet to be out of service for extended, unscheduled time periods, which would adversely impact fleet readiness. In addition to readiness impacts, there would be FBM schedule disruptions and facility impacts involving additional Explosive Handling Wharf time for missile move requirements, the significant facility refit schedule, and resource impacts.

i. A failure to contract with NGSC would necessitate the total education and qualification of an alternative source, which would involve great duplication of cost and unacceptable schedule delays. This education process would entail NGSC instructing a new contractor on the ULS, with additional assistance and oversight from government engineers. For the above reasons, NGSC is the only contractor capable of fulfilling the Government’s minimum needs within the required time limits, without undue risk of delay, and without undue technical risk to the

TRIDENT II (D5) ULS. The cost, delay, and risk associated with obtaining competition through qualification of an alternative source far outweigh any price, quality, or schedule benefits that can be reasonably anticipated from a competition.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. As part of its market research, SSP posted a sources sought notice to the Federal Business Opportunities

(FBO) website in August 2019. No responses were received. SSP posted a pre-solicitation synopsis of the proposed contract to the Beta System for Award Management website (formerly

FBO) on December 3, 2019, and the synopsis closed on December 18, 2019. No responses were received. Given the complexity of the efforts being procured (i.e. specialized engineering support of U.S. TRIDENT II weapons systems, and the application of technologies to support

TRIDENT II (D5) deployed SSBN ULS), SSP’s past experience procuring the same or similar efforts, and the extensive knowledge of SSP’s technical personnel regarding all sources for the efforts, other market research was limited to internal technical analysis of the industry by SSP technical personnel in this essentially closed discipline.

7. Determination of Fair and Reasonable Cost. A determination of fair and reasonable cost will be based on a technical evaluation of the proposal, a detailed cost analysis utilizing audit and field recommendations, and previous cost history and actuals, where appropriate. This is considered sufficient to allow the Contracting Officer to determine a fair and reasonable cost for this acquisition.

8. Actions Taken to Remove Barriers to Future Competition. For the reasons set forth in

Paragraph 5, SSP 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, SSP will assess whether competition for future requirements is feasible.

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:

Signature Date

Requirements Cognizance:

Name (Printed)

Code Phone No.

Signature Date Name (Printed) Code Phone No.

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

COMPETITION ADVOCATE

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

CONTRACTING OFFICER CERTIFICATION

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

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this

Justification, are complete and accurate to the best of my knowledge and belief.

SENIOR PROCUREMENT EXECUTIVE APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of the 10 U.S.C. 2304 (c) (1), one source or limited sources.

APPROVED:

GEURTS.JAMES.F.10341852

Digitally signed by

GEURTS.JAMES.F.1034185286

Date: 2020.09.16 10:29:24 -04'00'

Mr. James F. Geurts Date

Assistant Secretary of the Navy

Research, Development & Acquisition