TAB A JA_SSP_20_PDSS_ 2020183 Signed 20200707 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 20,019 Code: SPN205

CLASS 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

This Class J&A seeks the approval to award multiple contracts, namely a Fiscal Year (FY) 21 Production and Deployed System Support (P&DSS) contract and a FY22 Long Lead Material (LLM) using other than full and open competition. Authority to act under this class justification expires on September 30, 2023. The contractor is Lockheed Martin Space LMS (LMS).

3. DESCRIPTION OF SUPPLIES/SERVICES

LMS will begin work on the FY21 P&DSS contract on October 1, 2020 and intends to complete all deliveries by September 30, 2025. LMS will begin work on the FY22 LLM contract on June 1, 2020. The following provides a brief description of the requirements of, and a funding profile for, both contracts. Further details are available in Attachment A. Note that all requirements set forth below and in the attachment are conditional upon Congressional authorization and appropriations of funds and quantities.

FY21 P&DSS Contract Requirements

TRIDENT II (D5) production and field processing of missile bodies, reentry bodies, D5 instrumentation systems, and support equipment.

D5 engineering and operational support services, including documentation maintenance, problem investigation, logistics and facility support, training, flight test planning and analysis, range support, and safety assurance.

D5 technical services related to the aging program, ballast system, 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 and technical services in support of the SSGN Attack Weapon System

CJ&A No 20,019 Code: SPN205

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. 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 "know-how" needed to provide continuing program technical support, as well as the infrastructure to produce and support the missile system. This ingrained programmatic history is unique and has afforded LMS with the capabilities and experience required for performance of 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. 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, an investment of nearly $1.4B would be required by the government to replicate at other sources the missile system support capabilities required for this contract.

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. 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. 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 was about three years and $20M. Given this data, development of an alternate source with SSGN capabilities would cost the government nearly $27M and a delay of up to three years. In addition, the use of an alternate source would create accountability and responsibility conflicts. In some instances, it would be impossible to determine responsibility for problems encountered during this effort due to the necessary interaction between the contractors.

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 21 P&DSS contract and the FY22 LLM contract. 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, applicable to both efforts, in accordance with the Federal Acquisition Regulation to Federal Business Opportunities (FedBizOps), on October 9, 2019. SSP did not receive any inquiries of interest. SSP also posted a pre-award synopsis on FedBizOps on October 9, 2019 and did not receive any inquiries of interest. Other market research is strategic in nature. Our 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 to get a broader sense of capabilities in the marketplace. Our 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 FY21 TRIDENT II (D5) P&DSS contract will be a combination fixed price incentive (FPI),cost plus incentive fee (CPIF), with incentives on cost and performance, and cost plus fixed fee (CPFF). The mature production effort under the FY21 P&DSS contract as well as the efforts under the FY22 LLM contract will be negotiated as a FPI contract with a cost share and ceiling price that accurately reflect confidence in cost estimates and the level of risk assumed by the contractor. We believe these contracting approaches will motivate the contractor to find year-to-year price improvements, while limiting the government’s cost risk in an overrun situation.

Additionally, the Contracting Officer will utilize various methods and analyses to determine that the cost to the government for the supplies and services covered by this J&A will be fair and reasonable. These include but are not limited to thorough technical analysis of hours by government subject matter experts, Defense Contract Audit Agency (DCAA) audits of the proposal, the use of Defense Contract Management Agency (DCMA) negotiated or recommended Forward Pricing Rates, and cost and price analyses.

Additionally, cost analyses, including DCAA assist audits or DCMA field pricing support, are performed for all major subcontractors over the certified cost or pricing data threshold. For subcontractors under the certified cost or pricing data threshold, various methods including but not limited to competitive pricing, commercial pricing comparisons, historical pricing reviews, and price analyses are utilized to determine fair and reasonable costs.

Based on the above, the Contracting Officer has determined that the anticipated cost to the Government of the supplies and services covered by this Class J&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.

Attachment A

1) SUMMARY OF FY21 TECHNICAL REQUIREMENTS

LMS shall be responsible for providing the following supplies in support of Missile Branch (SP27), Training Branch (SP205), and Reentry Branch (SP28) of Strategic Systems Programs.

Item 0001/ 0026 – Production

LMS shall provide missile body segment and sub-segment, test missile kit (TMK), Release Assembly, and Reentry Body Assembly pipeline components, inclusive of associated production support.

Item 0002 – Missile Deployed Systems Support (DSS)

During the one year period of performance, LMS shall provide the following services to meet the support needs of the TRIDENT I and TRIDENT II programs:

Technical engineering support (TES), including support for all missile configurations, test instrumentation, support equipment and D5 Life Extension program management and planning (less the guidance system, reentry systems, reentry system field support equipment, UK-unique support equipment, and UK-unique initiated discrepancy investigation and solution development)

Logistics support, including material management and government-owned equipment (GOE) repair management Program planning and integration, including technical program management, financial management, and program plans coordination Facility support planning and services, including product support engineering, support equipment minor repair and maintenance Flight test analysis and flight test plan instrumentation support Information systems and cyber security planning, infrastructure, and implementation

Item 0003 – SP27/202/100 Special Programs

During the one year period of performance, LMS shall provide services pertaining to the following special studies to meet and support the needs of the TRIDENT I and II programs:

Aging System Safety Qualification/requalification management FBM strategic planning Motors and ordnance demilitarization support Public Affairs Office support

Item 0004 – Ready for Issue (RFI) Processing and Facilities Studies

During the one year period of performance, LMS shall provide the following:

On-site processing and processing support to SWFPAC and SWFLANT Ready for Packaging

(RFP) to RFI operations Management of a Personnel Reliability Program On-call support for facilities studies Engineering support for Limited Area High Security Doors

Item 0005 – Strategic Weapons Systems (SWS) Support

During the one year period of performance, LMS shall provide engineering services in support of operational D5 Ballast Systems.

Item 0006 –Strategic Systems Programs Alterations (SPALTs), POMF Alteration Documents (PADs), Support Equipment Requirement (SER) Proposals and Nuclear Weapons Retrofit Orders (NWROs)

LMS shall provide development, qualification, documentation, proofing, manufacturing, kit production and initial spares for SPALTS, PADs, SERs and NWROs authorized by the Government during FY21.

Item 0007 – Arms Control Support

During the one year period of performance, LMS shall provide Arms Control Support.

Item 0008 – Reentry Flight Test Hardware Production

LMS shall deliver Extended Navy Test Bed (ENTB) Reentry Body Assemblies, Small Reentry Inertial Measurement Units (SRIMUs), and Power Initiation Module kit hardware for use in the Reentry flight test program.

Item 0009 – Reentry Deployed Systems Support (DSS)

During the one year period of performance, LMS shall provide level-of-effort support for the following activities in support of the MK4 and MK5 Reentry Systems:

Technical engineering and associated program management, including problem investigation and solution development; performance assessment; performance maintenance; flight test integration; drawing, documentation, and data maintenance; advanced planning; integration activities; classification management, and material management MK4/MK5 RB Integrated Surveillance Program

Item 0010 – System Support Completion (OMN (Operations & Maintenance, Navy))

LMS shall deliver the following:

Facility support equipment, miscellaneous support items and support equipment installations Inspection, test, and repair as necessary (ITRAN) of Government Owned Equipment inducted during FY21 and an inventory of Government Furnished Property Service life evaluation (SLE) testing of D5 items inducted during FY21

Item 0011 – System Support Completion (Weapons Procurement Navy (WPN))

LMS shall complete the following:

Maintain stock levels of and provide capability spares and repair parts for the missile system Provide and install support equipment and flight test instrumentation Complete support equipment refresh designs and alterations Develop support equipment modernization plans and missile processing building infrastructure development plans Complete D5 spares trade studies and studies pertaining to second stage motor investigation

Item 0012 – System Support Completion (OPN (Other Procurement, Navy))

LMS shall deliver the following:

IT products Support equipment hardware and software Support equipment refresh projects, including Missile Test and Readiness Equipment refresh

Item 0013 – Advanced Reentry Technology

During the one year period of performance, LMS shall provide program management and technical services in support of Navy/Air Force Commonality, advanced concepts for warhead replacement, and Life Extension Test Bed efforts.

Item 0014 – Production Shutdown

LMS shall complete shutdown activities for production areas and commodities that have completed production for the D5 program.

Item 0015 – Mk5 Alteration

During the one year period of performance, LMS shall provide system integration, planning and analysis for the Mk5 Alteration reentry body program.

Item 0016 - Facilities Modifications

LMS shall complete FBM facility projects, including modifications, installations, and repairs.

Item 0018 – Reentry Production Sustainment

During the one year period of performance, LMS shall provide technical services pertaining to the following: ENTB improvements and MOD-2 refresh, reentry production planning and support, Materials Qualification Tests (MQTs) and post flight analysis, and Thermal Protection System tactical requirements.

Item 0019 – TRIDENT II Fleet Training (U.S.)

During the one year period of performance, LMS shall provide the technical services to support trainer operation and training material maintenance for the TRIDENT Strategic Weapons System Missile Training System located at TRIDENT training facilities in Bangor, WA, Kings Bay, GA, and Cape Canaveral, FL.

Item 0023 – Strategic Weapons Facility (SWF) Operations and Missile Processing

LMS shall complete the following: fifty-three missile body and one Active Inert Missile (AIM) missile body sections, missile disassemblies, motor set service life evaluation x-rays, igniter exchanges, motor disposal preparation, and missile kit transfers between the SWFs.

Item 0024 –Contractor Acquired Property (CAP)

LMS shall deliver all residual CAP.

Item 0025 – Contract Data Requirements List (CDRL)

LMS shall deliver the data set forth in the Contract Data Requirements List.

Item 0027 – Equivalent Unit Items (Option)

LMS shall provide equivalent unit items amounts of production hardware.

Item 0031 – Requalifications

LMS shall conduct missile hardware requalification.

Item 0033 – Flight Test Data Acquisition Support-Air Force (Option)

LMS shall provide planning, coordination, engineering and technical services and deliver a data acquisition package for one Air Force flight test.

Item 0034 – Flight Test Data Acquisition Support- Missile Defense Agency (MDA) (Option)

LMS shall provide planning, coordination, engineering and technical services and deliver a data acquisition package for one MDA Flight Test.

Item 0035 – Governement Owned Equipment (GOE) Repairs (Option)

LMS shall provide GOE hardware repairs.

Item 0036 – Weapons Procurement Navy (WPN) Shipping (CLINs 0001 and 0011)

The Contractor shall complete all first destination shipping required to complete the Item 0001 and Item 0011 deliverables.

Item 0037 – UK Reentry Body Support Equipment

LMS shall deliver one radiation shield assembly and one reentry body assembly workstand.

Item 0038 – Fleet Ballistic Missile (FBM) Disposal and Reutilization

During FY21, LMS shall perform FBM disposal and reutilization program efforts and support.

Item 0040 – Ship, Submersible, Guided Missile, Nuclear (SSGN) Support

During FY21, LMS shall perform SSGN processing and support tasks and provide program management for the SSGN program.

Item 0041 – New Strategic Arms Reduction Treaty (START) Support Equipment

LMS shall deliver support equipment to comply with the requirements of the New START and Utah Test and Training Range D5 Facility Activation.

Item 0042 –SWFLANT Recertification (Option)

LMS shall complete one missile recertification at SWFLANT.

Item 0043 – SWFLANT Recertification (Option)

LMS shall complete one missile recertification at SWFLANT.

Item 0044 –SWFPAC Recertification (Option)

LMS shall complete one missile recertification at SWFPAC.

Item 0045 – SWFPAC Ki t Bui ld (Option)

LMS shall complete one missile kit build at SWFPAC.

Item 0046 - SSGN Reload (Option)

During FY21, LMS shall perform SSGN processing and support tasks.

Item 0047 – SWFLANT Missile Reassembly (Option)

LMS shall assemble and deliver one Missile Body Section.

Item 0060 – IT Technology Modernization, Optimization, Implementation, and Cyber Planning

LMS shall complete information systems end of service life and modernization planning and implementation. LMS shall also complete requirements analysis and implementation planning for FBM-unique cybersecurity improvements.

Item 0061 – Propulsion Viability Phase V

LMS shall deliver a Propulsion Viability Phase V Final Report.

Item 0064 – Propulsion Viability Phase V(A)

LMS shall deliver a Propulsion Viability Final Report.

Item 0076 – Research & Development Studies

During FY21, LMS shall conduct research and development studies and technology development plans related to advanced or future FBM applications and strategies.

Item 0078 – Age Management Studies

LMS shall maintain and document in a final report a current Age Management plan that prioritizes actions within projected program resources and identifies safety and reliability concerns, risk, and future required age management activities.

Item 0084 – Reentry- Next Navy Warhead (NNW)

During FY21, LMS shall perform the following in support of the Next Navy Warhead (NNW) program: program management, systems integration, design activities, logistics, surveillance, and operations support.

Item 0086 – MQT4.2 RBA

LMS shall complete one ENTB RBA.

Item 0089 – Mk4B Planning and Requirements

LMS shall update requirements and conduct program planning for the Mk4B program.

Item 0090 – Mk4A SSNT Billets

LMS shall deliver Mk4A SSNT billets.

Item 0091 – Mk4B Unique Identifier (UID)

During FY21, LMS shall perform program management, systems engineering, and design and test engineering to integrate the Sandia Netional Laboratoy UID into the Mk4B Reentry Body.

Item 0093 – Reentry Special Projects

LMS shall complete historical flight test analysis, specialized surveillance plans, Nuclear Ordnance Record Card (NORC) digitization, database integration, and specialized testing.

2. SUMMARY OF FY22 TECHNICAL REQUIREMENTS

Long lead material in support of FY22 Missile Production requirements.