TAB A-CJA 21037 (FY22PDSS)_FINAL_SIGNED REDACTED.pdf

DEPARTMENT OF THE NAVY

DIRECTOR STRATEGIC SYSTEMS PROGRAMS

1250 10TH STREET SE, SUITE 3600

WASHINGTON NAVY YARD, DC 20374-5127

CJ&A No 21,037 Code: SPN209

CLASS JUSTIFICATION AND APPROVAL (CJ&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY

Strategic Systems Programs (SSP)

2. DESCRIPTION OF THE ACTION BEING APPROVED

This Class J&A seeks the approval to use other than full and open competition to award multiple contracts namely, Fiscal Years (FY) 22 through FY26 Production and Deployed System Support (P&DSS) contracts and the associated Long Lead Material (LLM) contracts awarded through FY26. Authority to act under this class justification expires on September 30, 2028. The contractor is Lockheed Martin Space LMS (LMS).

3. DESCRIPTION OF SUPPLIES/SERVICES

FY22 P&DSS: LMS will begin work on the FY22 P&DSS contract on October 1, 2021 and intends to complete all deliveries by September 30, 2026.

FY23 P&DSS: LMS will begin work on the LLM portion of this contract on June 1, 2022 and the balance of the contract on October 1, 2022. SSP requires all deliveries by September 30, 2027.

FY24 P&DSS: LMS will begin work on the LLM portion of this contract on June 1, 2023 and the balance of the contract on October 1, 2023. SSP requires all deliveries by September 30, 2028.

FY25 P&DSS: LMS will begin work on the LLM portion of this contract on June 1, 2024 and the balance of the contract on October 1, 2024. SSP requires all deliveries by September 30, 2029.

FY26 P&DSS: LMS will begin work on the LLM portion of this contract on June 1, 2025 and the balance of the contract on October 1, 2025. SSP requires all deliveries by September 30, 2030.

FY26 LLM: LMS will begin work on the FY26 LLM contract on June 1, 2026 and intends to complete all deliveries by September 30, 2031.

The following provides a brief description of the requirements of, and a funding profile for all contracts. Further details are available below. Note that all requirements set forth below are conditional upon Congressional authorization and appropriations of funds and quantities.

Contract Requirements

LMS will complete advance procurement of missile production long lead materials.

TRIDENT II (D5) production and field processing of missile bodies, reentry bodies, and

D5 instrumentation systems. Production requirements include missile body segment and sub-segment; test missile kit (TMK); release assembly; Mk4B shape stable nose tip (SSNT) nose assembly hardware production; Mk5 ALT 370 production; and reentry body assembly pipeline components, inclusive of all associated production support and support equipment.

D5 engineering and operational support services: documentation maintenance; problem investigation; performance evaluation; logistics and facility support; training; flight test planning and analysis; range support; arms control support; D5 sustainment; reentry deployed systems support, including advanced reentry technology and Mk4B program requirements; facilities modifications; safety assurance; and public affairs office support.

D5 technical services and special studies related to meet and support the needs of the

TRIDENT I and II programs: Ready for Issue (RFI) processing and facilities; aging program and modernization; system safety; qualification/requalification management;

FBM strategic planning; motors and ordnance demilitarization support; propulsion viability; ballast system; D5 production shutdown; C4 asset dispositions and disposal; and Mk5 warhead replacement effort.

Flight test data acquisition and analysis for the Air Force (USAF) and the Missile Defense

Agency (MDA).

Field processing, missile recertifications, and technical services in support of the Submersible Ship Guided Missile Nuclear (SSGN) Attack Weapon System (AWS) at Strategic Weapons Facility Atlantic (SWFLANT).

Funding Profile

The estimated value of the FY22 P&DSS contract is approximately and is included in the appropriations table below. The FY22 through FY26 P&DSS contracts are expected to be awarded in October for each respective FY and are also included in the appropriations table below.

The estimated value of the LLM contracts included in the table below is approximately and utilizing WPN and . The P&DSS LLM contracts are expected to be awarded in June of each FY shown below.

($, in thousands) Funding FY21 Appn FY22 Appn FY23 Appn FY24 Appn FY25 Appn FY26 Appn Total

RDT&E $85,384 $127,180 $118,100 $132,900 $159,100 $622,664

OPN 5,700 6,800 5,300 2,500 1,900 22,200

O&MN 732,300 644,700 721,100 760,900 780,800 3,653,500

WPN $13,700 337,300 354,900 378,300 396,400 459,800 1,926,700

Total

The funding table in this CJ&A includes only the subject P&DSS and associated LLM contracts. The above numbers differ from the corresponding funding table in the acquisition plan because the acquisition plan also includes separate and distinct D5 Life Extension 2 and contracts in the total estimated funding amount.

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

SSP’s requirements for the missile system and program capabilities as well as flight test data support are available from only one responsible source. Only LMS has the capabilities, facilities, and expertise required for the P&DSS and LLM efforts. Therefore, SSP intends to contract with LMS in accordance with 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1 for P&DSS and associated LLM requirements through FY26. The following provides the rationale for contracting with LMS under these efforts, using other than full and open competition, including the cost and schedule impacts of contracting with an alternative source.

Requirement for TRIDENT Missile System and Program Capabilities

The P&DSS and LLM contracts require a contractor capable of assuming true cradle-to-grave responsibility for the TRIDENT II (D5) missile system. The contractor must provide design and development services, long-term production, logistics support, including spares and repairs, training, operation of the missile assembly facilities, engineering support for fleet and field problems, flight and surveillance test programs, and ultimate retirement and disposal of assets. The program relies on a “factory in the field” concept wherein all operations, including missile assembly at the government facilities, are under the control of the contractor until the assembled missile is delivered to the Navy. This cradle-to-grave responsibility is part of SSP’s overall strategy to ensure comprehensive risk management, quality, and an exceptional track record for program success.

Only LMS has the unique facilities, tooling, and equipment necessary for production and ongoing engineering and logistics support of the program. It is the only contractor possessing the depth and breadth of expertise and capabilities relative to the range of tasks required of the P&DSS contract. Additionally, LMS possesses personnel with the engineering and technical proficiencies uniquely required to successfully perform the scope of this contract.

LMS has gained and honed its capabilities over its long history with the TRIDENT program. The contractor developed and produced the TRIDENT I (C4) missile system and continues to serve as the primary contractor providing logistical support for ongoing disposition and disposal of the TRIDENT I (C4) program assets. LMS developed the TRIDENT II (D5) missile system in the 1980s and continues to produce it today. The Navy contracted for the initial, FY 1984 TRIDENT II Operation Systems Development and Production (OSDP) contract on a sole source basis, building on LMS’s capabilities demonstrated in production and deployed system support of the TRIDENT I, Poseidon, and Polaris predecessor strategic weapon systems.

As the TRIDENT II missile system prime contractor, LMS has been intimately involved with the program from its inception, and has developed a technology base and manufacturing capability uniquely suited for the support of TRIDENT program. The contractor has gained the necessary expertise to provide continuing program technical support, as well as the infrastructure to produce and support the missile system. This programmatic history is unique and has afforded LMS the capabilities and experience required for performance of this contract.

Beginning in FY 1984, the Navy spent $680M over six years to establish TRIDENT II facilities, capabilities, and technical expertise. Given this experience, an alternate source would require at least six years to establish a sufficient level of technical expertise and the production, repair, and maintenance capabilities required to support the TRIDENT II systems. Escalating FY 1984 actual costs by two percent annually (estimated CPI from April 1984-April 2020), an investment cost in excess of $1.4B would be required by the government to replicate at other sources the missile system support capabilities required for this contract. Therefore, LMS is the only source qualified to furnish the TRIDENT hardware without critically delaying and jeopardizing the missile program and the Navy’s part of the Strategic Deterrent.

Requirement for Flight Test Data Capabilities

The P&DSS contract requires Flight Test Data Acquisition System Support for both the Air

Force test and the Missile Defense Agency’s (MDAs) Broad Ocean Area (BOA) tests to provide critical back-up sensors support on an as-needed basis. This effort supports the Air Force Minuteman Program’s objective of accomplishing its extended range flight test requirement, and MDA’s need to maintain its missile defense development milestones.

LMS is the only contractor that has existing hardware, software, and experts readily available to support this effort. The contractor has developed Navy-unique instrumentation for the mobile application. It has experienced experts who can provide immediate support to minimize schedule delays. LMS gained these capabilities specifically for TRIDENT II on predecessor P&DSS contracts procured on a sole source basis. Utilizing the Navy’s capability with LMS’s support is considered the vital and most cost effective option to support Air Force and MDA flight test data acquisition system support needs.

In the late 1990s, the actual time and cost to develop and deploy Navy-unique instrumentation was five years and $30M. Given this data, development of this capability (hardware, software, and operational expertise) at an alternate source would require at least five years and an additional cost in excess of $46M (inflation adjusted). This would result in a significant cost increase to the government, a severe extended schedule delay to the Air Force and the MDA, and unexpected programmatic impacts.

Requirement for SSGN Processing Capabilities

The P&DSS contract requires the receipt, handling, inspection, test, maintenance, storage and loading of Tomahawk Land Attack Missiles (TLAMs) at SWFLANT. Kings Bay is the home port of SSGNs, and therefore conventional TLAM activities occur at the Strategic Weapons Facility. LMS is currently the prime, sole source contractor for SWF operations and the only contractor that can cost efficiently perform this SSGN work. Existing facilities, systems, personnel, and equipment at the SWF are cross utilized between TRIDENT and SSGN conventional TLAM programs, rendering the SSGN work impractical and inefficient to compete.

The actual time and cost for LMS to establish SSGN capabilities in mid-2000, on the sole-source P&DSS predecessor contract, was about three years and $20M. Given this data, development of an alternate source with SSGN capabilities would cost the government in excess of $27M (inflation adjusted) and a delay of up to three years.

Benefit to the Government of Contracting with LMS

In summary, the above information shows that it is in the best interest of the government to contract with LMS for the FY 22 through FY26 P&DSS and associated LLM contracts. The cost, delay, and risk associated with obtaining competition through qualification of an alternative source far outweigh any price or quality benefits that can be reasonably anticipated from a competitive contracting strategy.

6. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY

OFFERORS AS PRACTICABLE

SSP posted a sources sought notice on November 4, 2020, applicable to all efforts, in accordance with the Federal Acquisition Regulation to System for Award Management (beta.SAM.gov) for a response on November 19, 2020. SSP did not receive any inquiries of interest. Other market research is strategic in nature. SSP’s technical branch engineers and contract specialists 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, when available, 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 at an annual SSP supplier conference. Such market research confirms that it is not practicable, for the reasons discussed in paragraph five above, for any company other than LMS to provide the required supplies and services in the P&DSS contract.

7. DETERMINATION OF FAIR AND REASONABLE COST

The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this CJ&A will be fair and reasonable.

8. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION

SSP will continue to monitor the market in an attempt to identify potential sources of these supplies and services for future requirements, while analyzing any potential impact to cost, schedule, and program risk. Additionally, the prime contractor for this effort will continue to utilize competition and commercial item procurement when possible for component parts.

STEFANY.FREDERICK.J.III.1228

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Digitally signed by

STEFANY.FREDERICK.J.III.1228931531

Date: 2021.08.13 19:01:16 -04'00'