SSP Justification and Approval 22005.pdf

DEPARTMENT OF THE NAVY

DIRECTOR, STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD DC 20374-5127

J&A No. 22,005

Code: SPN101

JUSTIFICATION AND APPROVAL (J&A) FOR USE OF OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity. Strategic Systems Programs (SSP).

2. Description of the Action Being Approved. Award of a contract on a sole-source basis for the procurement of technical engineering services and tactical underwater Launcher hardware production during Fiscal Year (FY) 2022 through FY26 to support the Common Missile

Compartment (CMC) production to Northrop Grumman Systems Corporation-Marine Systems

(NGSC-MS), P.O. Box 3712, 401 E. Hendy Avenue, Mail Stop 71-6, Sunnyvale, CA, 94088-

3712.

3. Description of Supplies/Services

a. The following provides a brief description of the requirements of, and a funding profile for, the subject contract. Note that all quantities set forth below are conditional upon

Congressional authorization and appropriations of funds and quantities.

b. NGSC-MS will be required to produce tactical hardware, associated support equipment, necessary documentation, and spares to support COLUMBIA class shipyard delivery dates.

NGSC-MS will also provide field operations support during the installation and system verification of Launcher hardware in accordance with the Shipyard Installation and Test

Program.

c. This effort requires procuring Launcher subsystem hardware for the COLUMBIA class of ships in support of the sea-based strategic deterrent. In addition, the effort requires field operations, engineering, test support and installation and test equipment specific to the Launcher subsystem be provided to the build yards. This contracting action will involve multiple years of

Advanced Procurement (AP) funding for long lead hardware spread across multiple hulls. Final delivery will occur in FY24 through FY27.

d. The table below details the estimated dollar value and appropriations for this effort. The contract is based on a 5-year completion effort that will result in the production and delivery of qualified Launcher subsystem hardware. The contract will also contain a base year and four

Option Years of Level of Effort (LOE) service line items that will support the production, delivery, installation, and test of the Launcher subsystem.

e. The estimated dollar value below includes the value of all options, including the 30% increase in LOE options. The J&A total value is lower than the net estimated values of funding cited from the aggregate amounts in the applicable Acquisition Plan as a result of the omission of an effort that is outside of the scope of this justification.

APPROPRIATION FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Total

SCN ($M) $69.911 $129.776 $166.263 $35.528 $1.506 $402.984

SCN 30% ($M)* $4.310 $5.193 $8.710 $10.348 $10.526 $39.087

Total w/ 30% ($M)** $74.221 $134.969 $174.973 $45.876 $12.032 $442.071

* Potential value if 30% LOE options are executed

** Total value if all 30% LOE options are executed

Note: The contract will include text permitting an Increase in the Level of Effort (LOE) intended to provide a vehicle for the Government to acquire additional man-hours to address emergent issues within the scope of the contract. This option contract text allows for an increase not to exceed 30 percent of the approved dollars associated with each applicable LOE contract line item. The Contractor shall provide additional man-hours in the quantity described in the contract at the original cost and fee amounts negotiated. This increase of not to exceed 30 percent of the total contract value is indicated in the above table. The period of performance of this procurement is from 28 February 2022 to 27 February 2027.

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

a. SSP’s requirements for the Launcher subsystem and program capabilities are available from only one responsible source. Only NGSC-MS has the capabilities, facilities, and expertise required for the Launcher production effort. Therefore, SSP intends to contract with NGSC-MS in accordance with 10 U.S.C. 2304(c)(1). The following provides further background and details which contribute to the decision to contract with NGSC-MS, including cost and schedule impacts of contracting with an alternative source.

b. Adequate performance of the effort to be acquired within the time frame required by this contracting action necessitates a contractor with fundamental knowledge of the Strategic

Weapons System (SWS) Launcher subsystem and its hardware production as well as technology, engineering, logistics, documentation, reliability, quality assurance, documentation, and program management services.

c. Due to the complexity of the SWS Launcher subsystem, the contractor must possess the following unique capabilities:

(1) Extensive knowledge of the legacy SWS Launcher subsystem specifications and the engineering and design features of the legacy Launcher subsystem and its support equipment currently in use. Expertise in all facets of the Launcher subsystem including knowledge of the subsystem performance specification and systems engineering, design requirements, manufacturing, reliability, maintainability, installation, and maintenance support is required to successfully meet the requirements of SSP for the COLUMBIA class.

(2) 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 SWS Launcher subsystem.

(3) Comprehensive knowledge of underwater launch technology, extensive underwater launch modeling capability, the Launcher subsystem design disclosure, safety factors, interfaces, industry base, and SSP policies and procedures as it relates to system level requirements, configuration management, systems engineering guidelines, and associated contractors for activities pertaining to COLUMBIA class Launcher hardware procurement, production, installation, test, and spares.

(4) An established relationship with approved suppliers from the industry base required to manufacture COLUMBIA components and hardware who are qualified vendors per SSP technical program management requirements and Systems Engineering policies. There must be a trained workforce that is capable to manufacture these unique items.

(5) A manufacturing facility with fabrication and machining capabilities for large, complex, and tight tolerance hardware items. Unique equipment and tooling must be installed and operational to make the Launcher specific hardware items such as the TRIDENT II (D5)

Launcher Tubes. The contractor facility must have processes and procedures that are approved by the Navy and a quality system that is able to meet government standards. There must be a trained workforce that is capable of manufacturing unique and specialized items.

(6) Modeling, Simulation and Analysis capabilities with tools capable of predicting

Launcher performance for submarine Launcher Fleet Ballistic Missiles (FBM).

(7) In depth knowledge of SSP’s integrated underwater launch risk mitigation efforts for the COLUMBIA class.

d. Considering the foregoing requirements, SSP has determined that NGSC-MS, Sunnyvale, CA is the only known source qualified to provide the services required. As the only SSP

Launcher subsystem prime contractor for more than 50 years, NGSC-MS is the only contractor that has the unique experience, expertise, technical knowledge, equipment, and insight to design a new, reliable, and vital SWS Launcher subsystem with the fiscal and schedule constraints of the COLUMBIA class.

e. NGSC-MS is the only known source with extensive in-depth experience as it relates to both the physical equipment, design disclosure, and modeling tools used to analyze the physics and performance of underwater launch hardware.

f. If another contractor were selected to perform this work, the government would encounter substantial duplication of cost and schedule delay that cannot be recovered through competition. To quantify those costs and delays, the government looked to the last contract within SSP that had development and vendor qualification costs and schedules. The costs paid under the Advanced Launcher Development Contract were used to form the basis of an estimate.

The government anticipates that similar activities to the scope of work under previous development contracts would need to be performed by a new contractor.

g. In current year dollars, the cost to educate and qualify a new contractor and the associated vendor base would be approximately $604,209,375. This figure was calculated by summating costs for historical tasks provided by NGSC-MS to SSP through contracted efforts that were assumed to be equivalent in scope to those required for a new contractor to gain the necessary underwater Launcher technology expertise and experience, as well as outfit a new contractor with the necessary equipment and facilities to perform the work.

h. The summation of the actual dollars spent on these equivalent scopes were then converted to 2022 dollars by adjusting for inflation using the consumer price index (CPI) in order to arrive at the final estimate. By using the CPI to adjust for inflation, the estimate is by its nature conservative, as SSP has experienced escalation of rates at NGSC-MS greater than those calculated using the CPI since the conduct of the efforts. Additionally, this same analysis was performed in relation to the Launcher development costs for the CMC with similar cost results.

Actual costs would likely be greater.

i. Unacceptable schedule delays would also result if another contractor were selected. The past efforts period of performance was five years. Based upon the period of performance of the efforts, and the time it would take to perform the above mentioned activities, it is estimated it would take three to five years to qualify a new source and build a qualified production line. This delay is unacceptable due to the crucial need for qualified Launcher subsystem components to support the COLUMBIA shipyard build schedule. A break in Launcher support would jeopardize timely delivery of Launcher hardware to the shipyard. Furthermore, the delay is unacceptable because it would likely impact the submarine delivery schedules. To meet

COLUMBIA schedule requirements, there is not adequate lead time to fully educate and qualify an alternative source. NGSC-MS is considered 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.

j. In summary, failure to contract with NGSC-MS 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-MS instructing a new contractor on the Underwater Launcher System (ULS), with additional assistance and oversight from government engineers. For the above reasons, NGSC-MS 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

a. Research was conducted to identify a contractor that could serve as the subsystem manager/integrator of the SWS non-Launcher tactical and trainer equipment, could support development for the COLUMBIA class program, and already has both the necessary production, test, maintenance, and repair facilities, as well as the existing work force, to provide support to

SSP with respect to COLUMBIA class SSBN Launcher subsystem development with no identifiable break in service or degradation in performance of the strategic deterrence mission.

b. A search was conducted on the Small Business Administration Quick Market Search using North American Industry Classification System (NAICS) Code #541330 with the keywords "Navy, TRIDENT, and Launcher Subsystem", and 85 potential firms were identified.

Out of the potential firms identified, none meet the requirements as they pertain to:

(1) Extensive knowledge of underwater launch physics utilizing rocket motor propelled fluid and gas streams.

(2) Knowledge of design, construction, maintenance, and repair of existing TRIDENT II

D5 Underwater Launch Subsystem.

(3) Extensive knowledge of existing SSP internal instructions, processes, documentation requirements, and quality control guidelines.

(4) Existing production, test, maintenance, and repair facilities to meet requirements without break in service.

(5) Multiple other requirements as outlined previously.

c. A search was conducted in the Federal Procurement Data System (FPDS) and SAM.gov under NAICS 541330-Engineering Services and the description "TRIDENT Launcher". The top three vendors identified using such criteria are:

(1) Northrop Grumman Systems Corporation - Marine Systems (NGSC-MS).

(2) Lockheed Martin Corporation.

(3) Electric Boat Corporation.

d. After reviewing the companies' business capabilities and business profiles, along with personal knowledge as the subject matter expert as clarified above, only NGSC-MS was evaluated as being able to meet the procurement needs. That conclusion was reached because only NGSC-MS meets the requirements, including the following:

(1) Extensive knowledge of underwater launch physics utilizing rocket motor propelled fluid and gas streams (they are the only company in business today with an existing product line that uses such phenomena).

(2) Knowledge of design, construction, maintenance, and repair of existing TRIDENT II

D5 Underwater Launch Subsystem (they are the design agent, as well as the existing production/deployed support agent and systems integrator for the OHIO Class SSBN Fleet), Existing production, test, maintenance, and repair facilities to meet requirements without break in service.

(3) Qualified to handle all Controlled Unclassified Information (CUI), and classified information.

(4) Extensive knowledge of and capability to comply with all applicable SSP Instructions and Ordnance Documents

e. Additionally, they have a network of qualified vendors that are already producing the necessary hardware and meeting the schedule needs of the program.

f. A Source Sought Notice (SSN) for the scope of this contract in support of the

COLUMBIA Fleet Ballistic Missile (FBM) program was posted on SAM.gov on 5 February

2021 and closed on 20 February 2021 with no responses received. Furthermore, a pre-solicitation notice was posted using the same SSN on March 5, 2021, notifying of the plan to pursue a sole source effort with NGSC-MS, and that notice was closed on 22 March 2021 with no response received.

g. Lastly, the SSP Launcher Technical Branch engineers visit prime and subcontractor facilities to better understand work scope and the capabilities of our supply chain. SSP staff read trade journals and attend events such as the Sea-Air-Space Expo to get a broader sense of capabilities in the marketplace. SSP’s engineers interact with independent experts in their fields and talk directly with subcontractors. Such informal market research confirms the accuracy of the above market research and consistently confirms that it is not practical, for the reasons discussed in paragraph 5 above, for any company other than NGSC-MS to provide the required supplies and services.

h. Given the complexity of the efforts being procured, SSP’s experience procuring similar efforts, and the extensive knowledge of SSP’s technical personnel regarding all sources for the efforts, the summarized market research was determined by SSP personnel to be adequate consideration of all possible sources in this essentially closed discipline. No other sources have expressed interest in this requirement.

7. Determination of Fair and Reasonable Cost. 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 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. Because this is a follow-on for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI

206.304(a)(i), the prior J&A was provided to the approval authority for review. Approval of this

J&A signifies the approval authority has made the determination required by DFARS PGI

206.304(a)(ii).

GONZALEZ.STEP t,'8'��:lw.NlE.A.13

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

Code: SPNlOl

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 ofmy knowledge and belief.

Technical Cognizance:

Signature CAPT. Juan Hines 202-451-3022 Name (Printed) Phone No.

ADM Johnn R. Wolfe Jr. 202-451-3000 Name (Printed) Phone No.

12/2/21

12/22/21

Date

Date

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient. 12/2/21

HANIE.A.1392271 0

m 1•

313 211202 12

.." Stephanie Gonzalez 571-481-7448

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

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

Signature

Olgltaly �ned by

WALL.ACE.ALEXANDER.

D.111. t 100184140

Date: 2021.12.08

1 1 :57:02 -05'00'

CAPT, A.D. Wallace

Name (Printed) Phone No. Date

STEFANY.FREDERICK.J.III.1228 Digitally signed by

931531

STEFANY.FREDERICK.J.III.1228931531

Date: 2022.03.04 17:50:46 -05'00'

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 10 U.S.C. 2304 (c) (1), One source or limited sources.

APPROVED:

Mr. Frederick J. Stefany Date Principal Civilian Deputy Assistant Secretary of the Navy (Research, Development and

Acquisition)

Performing the Duties of the Assistant Secretary of the Navy

(Research, Development and Acquisition