TAB A_JA_SSTG__Redacted.pdf

J&A Number: 42,908

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

Pursuant to 10 U.S.C. 3204(a)(1), NGSC-MS is currently the only responsible source with the in-depth technical knowledge, expertise, and resources necessary to satisfy the Navy’s SSTG requirements. Award to any other company would result in unacceptable delays in fulfilling the Navy’s requirements.

The SSTG components covered by this justification were designed to not require regular maintenance or replacement during the service life of each submarine, so the original contracts for new-construction VIRGINIA-class submarines did not require the delivery of SSTG technical data. However, the Navy subsequently determined that the SSTG inboard and outboard thrust bearing stators would require regular maintenance after all. As a result, even though the Navy obtained at least Government Purpose Rights to technical data developed and delivered under the VIRGINIA-class submarine construction contracts, the Navy does not possess the technical data associated with the SSTG, and moreover, the technical data does not currently exist in a deliverable format that the Navy may readily use.

As the OEM for SSTG, NGSC-MS has accomplished the Navy’s SSTG requirements, including LLTM and installation efforts, via sole source contracts since 2015. Neither the original contract for SSTG support nor any follow-on contracts have been awarded using competitive procedures.

To date, NGSC-MS has refused to deliver to the Navy any SSTG technical data necessary to enable competitive procurement of SSTG requirements. NGSC-MS claims that SSTG data is proprietary, and that SSTG was developed exclusively at NGSC-MS expense. Although NAVSEA will work towards obtaining the SSTG technical data necessary to sustain a future competition, the timeline and costs associated with these efforts remain uncertain because a successful outcome requires cooperation from NGSC-MS.

The first VIRGINIA-class submarine availability for which the Navy intends to place an order under the planned IDIQ contract with NGSC-MS is the USS CALIFORNIA (SSN-781) extended docking selected restricted availability scheduled for fiscal year 2027. Even assuming if NGSC- MS were to agree in fiscal year 2025 to develop and deliver a useable technical data package (TDP) to the Navy, NAVSEA estimates that another source would not be able to fulfill SSTG requirements for approximately eight years, or equivalent to the ordering period for the contemplated IDIQ contract. This estimate includes two years for NGSC-MS to develop and deliver the TDP to the Navy, two years for NAVSEA to validate the TDP and execute a competitive procurement, and four years for qualification, training, and production lead time associated with a vendor other than NGSC-MS. A delay of this magnitude in fulfilling the Navy’s requirements is unacceptable because the SSTG is a critical component of VIRGINIA-

J&A Number: 42,908 class submarines. Such a delay would cause unacceptable impacts to the VIRGINIA-class availability schedule, and overall Fleet readiness and capability.

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

As required by FAR 5.201, NAVSEA synopsized this procurement via posting to the System for Award Management (SAM.gov) website on 17 October 2023. Additionally, the Naval Shipyards have issued sources sought notices via SAM.gov prior to previous sole source contracts for similar SSTG requirements. This includes notices posted by Norfolk Naval Shipyard in January 2022 and April 2023, Portsmouth Naval Shipyard in March 2023, and Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility in September 2023. These efforts did not identify any alternative sources capable of accomplishing the requirements described herein.

NAVSEA concluded that additional market research was not necessary given the lack of response from industry, and because it is not practicable for any company other than NGSC-MS to provide these requirements, as discussed in paragraph (5) above.

The Director (acting) of the NAVSEA Fleet Support Contracts Division has granted a waiver for the sources sought notice requirement under DFARS PGI 206.302-1 in connection with this contract action.

7. Determination of Fair and Reasonable Cost

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

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph (5), NAVSEA has no plans at this time to compete future SSTG requirements. Notwithstanding this, NAVSEA will continue to seek a TDP for the SSTG.

If these efforts in obtaining a TDP are successful, it is the intent of NAVSEA to support competition for future SSTG acquisitions.

As this action constitutes a follow-on contract for supplies and services previously awarded on a non-competitive basis, in accordance with DFARS PGI 206.304(a)(S-70)(i), the prior J&A was provided to the approval authority for review. Approval of this J&A signifies that the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).