SSP JA NOsp 20024_Final_Redacted.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1250 1 orH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

J&A NOsp 20,024

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

I. Contracting Activity. Department of the Navy ' s Strategic Systems Programs Office (SSP).

2. Description of the Action Being Approved. Award of a contract on a sole source basis for Fiscal Year (FY) 2021 through 2023 TRIDENT II (D5) Strategic Weapons System (SWS) MK6 Life Extension (LE) MOD I Guidance Subsystem Strategic Systems Programs Alteration (SPAL T) hardware production to the Charles Stark Draper Laboratory (CSDL) located in Cambridge, MA.

3. Description of Supplies/Services

a. This contract will provide SSP with design, analysis, testing, procurement and manufacturing of Circuit Card Assemblies (CCA), Interferometric Fiber Optic Gyros (!FOG), Accelerometers (Alt-PIGA), and material for service life related upgrades of Inertial Measurement Units (IMU), Electronic Assemblies (EA), Electronic Modules (EM) and MK6·Guidance System related components in FY21 , plus three option items for FY22 (I option), and FY23 (2 options). The contract will provide the labor and consumable material required to meet approved drawings for the Guidance Subsystem's ongoing SP ALT of MK6 MOD I Guidance Systems and MK6 MOD I SPAL T material procurements. The contract will also provide for the procurement of end item material required to perform the MOD I SPAL T of the MOD O Guidance systems and the failure verification, test, repair, and re-certification (R&R) of IMUs, EAs, EMs, and other MK 6 Guidance System related components.

b. The contract will include an option item for the close-out of CCA Production Facilities upon completion of CCA-related deliveries in FY2 I.

c. The contract will include an option item for the close-out of the Inertial Sensor (Alt-PI GA and !FOG) Production Facilities upon completion of the final sensor-related deliveries in FY23.

d. The efforts are planned to start I February 2021 with completion through 31 January 2026. This procurement plans to utilize FY2 I through FY23 Weapons, Navy (WPN) and United Kingdom (UK) funds as follows:

Estimated Dollar Value

FY 2021 FY 2022 FY 2023 Total

WPN

UK*

Total $ $450,000,000

J&A NOsp 20,024

*In accordance with 10 U.S. C 2304 (t)(2)(E), the United Kingdom FY20 POLARIS/TRIDENT II Procurement Memo, and the Jan 86 UK Memo, identifies UK funding as non-appropriated and not requiring J&A approval.

4. Statutory Authority Permitting Other Than Full and Open Competition. 10 U.S.C.

2304(c)(l), One source or limited sources.

5. Rationale Justifying Use of Cited Statutory Authority

a. CSDL has been the design agent for Navy Strategic Missile Guidance Systems since inception of the Fleet Ballistic Missile (FBM) Program in the late 1950's. CSDL is the prime contractor responsible for all aspects of the TRIDENT II Guidance Subsystem cradle-to-grave.

CSDL possesses unique knowledge of the overall MK6 Guidance system which includes the Design/Development, Production, Fleet Support, Functional Operation, and closeout of the TRIDENT II SWS. The purpose of the MK6 MOD I Guidance System production effort is to manufacture tactical guidance system hardware which will provide a credible strategic deterrent throughout the extended service life of the TRIDENT II weapons system. The goals of the MK6 MOD 1 upgrades are to meet currently demonstrated accuracy and reliability performance, and to minimize impacts on current weapon system interfaces while extending the operational life of the LE MK6 MOD 1 Guidance System to the year 2042. CSDL's FBM experience on the POLARIS, POSEIDON, and TRIDENT programs makes it uniquely qualified to perform the prime contractor role for Guidance Production.

b. CSDL is currently responsible for ensuring that the Guidance Subsystem functionality is sustained throughout its product life-cycle. CSDL performs detailed analysis of all factory and fleet performance data, leads the development of alternative technologies to mitigate product obsolescence, and leads the development of the MK6 MOD I LE, including design and establishing the supplier base for production. CSDL has invested significant corporate funds to advanced Guidance, Navigation, & Control (GN&C) technologies. This background provides CSDL with the specialized knowledge and facilities needed to manage the capability for EA, IMU Production (in a Government Owned, Contractor Operated system build factory), and management of major subcontractors for sensor, electronic parts, and circuit card assemblies. No source other than CSDL has the technical capacity, facilities (contractor owned that directly support production), and critical expertise, including comprehensive knowledge and understanding of the design and resources, to provide the engineering and program management in support of the production and repair of FBM Guidance Systems.

c. CSDL's non-for-profit and non-competitive chatter allows access to proprietary information for contractors such as General Dynamics, Raytheon, Honeywell, and Lockheed Martin Space Systems Company, providing CSDL the opportunity to tailor a design and production solution, which optimizes performance and cost to the government. This is critical to the continued performance of the Navy's strategic deterrent. While each support subcontractor may possess knowledge at its individual Guidance subsystem or component level, no other contractor possesses the knowledge or skills at the system and operational levels required to integrate an acceptable system solution.

d. The FY21 through FY23 efforts represent the 13th, 14th, and 15th years of production in the planned 17 year LE production cycle. The sub-assembly factories for CCA and Inertial Sensors will be shutdown after the production builds in FY21 and FY23, respectively.

e. As stated in paragraph 5a, CSDL is the production manager for the MK6 guidance system.

In order to perform the efforts covered by this production contract, alternate sources would have to duplicate the CSDL production support design facilities and resources. This would require duplication of efforts (multiple contracting years in process at the production factories) and at a minimum, a cost to the government, in excess of $21 million. The Government would have to replicate the special tooling systems and work instructions designed by CSDL, which would cost the government over $43 million. In addition, the training of personnel to operate such tooling which would be in excess of $70 million. The time to establish a production capability and support of the supply chain would require a minimum of three years from the date of contract award and would in a best-case scenario, produce systems at a rate comparable to low rate initial production easily setting the program back five years. This would have an adverse impact in the support of the SLBM. These estimates have been derived based on land, equipment, and personnel costs from previous contracts to establish the production focused capability and supply chain of the MK6 Guidance System.

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

a. Given the complexity of the unique production management, production engineering, mission assurance, quality engineering and logistical support of the U.S. TRIDENT II Guidance Subsystem, market research was limited to a high level, informal analysis by SSP technical personnel. The analysis included review of Air Force facilities with Lockheed Martin Space Systems located in Sunnyvale, CA, The Boeing Company located in Anaheim, CA, and Northrop Grumman located in Linthicum, MD. In addition, a Sources Sought Notice was published through SAM.gov on 13 March 2020.

b. The alternate sources with Air Force were found to be unqualified to replicate or produce a revised MK6 Guidance Subsystem for the TRIDENT II D5 program as each potential source did not have the necessary facilities, system understanding, or the specialized equipment needed to develop a comparable production capability for a MK6 Guidance System. No responses were received from interested vendors or frotn the industry base from the Sources Sought Notice.

Based on the market research, The Charles Stark Draper Laboratories is the only contractor who had the necessary facilities, equipment, and expertise to produce the MK6 Guidance System.

7. Detennination of Fair and Reasonable Cost. By using such tools as the SSP technical analysis, the Defense Contract Audit Agency (DCAA) audit reports, Defense Contract Management Agency (DCMA) Pricing Report, and SSP cost and price analysis from previous contracts, including the use of actual costs on SSP Contracts N0003017C0008 and N00030 l 9C0008 with CSDL, the Contracting Officer has determined that the anticipated cost to the government of the supplies and services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition. For the reasons discussed in paragraph 5 above, SSP does not have plans to compete future contracts for the types of supplies/services covered by this J&A. After the final MK6 MOD 1 LE productions effort are completed, SSP will shift focus from the current production efforts to Sustainment and LE2 Design/Development. Competing additional sources this late in the LE production cycle would create unacceptable delay and risk to the SLBM program. However, if other potential sources emerge, including those that could support LE2, SSP will assess whether competition for future acquisitions 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 acqui sition planning documents, except as noted herein are complete and accurate to the be t of my knowledge and belief.

TECHNICAL COGNIZANCE

Signature

Name (Printed) Code

REQUIREMENTS COGNIZANCE

Name (Pri nted)

Code

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally suffic ient.

Name (Printed)

Date

Phone No.

J&A NO sp. 20,024

CONTRACTING OFFICER CERTIFICATION

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

COMPETITION ADVOCATE

HEAD OF THE CONTRACTING ACTIVITY

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

· s justification are complete and accurate.

J&A NO sp. 20,024

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(s) described herein using other than full and open competition, pursuant to the authority of 10 U .S.C. 2304 ( c )(1 ), One source or limited sources.

APPROVED:

Honorable Mr. James F. Geurts Assistant Secretary of the Navy (ASN) Research, Development & Acquisition (RDA)