120mm Mortar Shell Bodies JA Redacted SAM posting.pdf

Justification and Approval for Other Than Full and Open Competition – FAR Part 6

1. Contracting Activity: United States (U.S.) Army Contracting Command – New Jersey

(ACC-NJ)

2. Description of Action: ACC-NJ, on behalf of the Office of the Project Manager Combat Ammunition Systems (PM CAS) requests approval to limit competition to companies within the National Technology and Industrial Base (NTIB) for up to two new, Firm-Fixed-Price Indefinite Delivery, Indefinite Quantity (IDIQ) contracts with five (5) one-year ordering periods. Each contact will have an individual and combined maximum value of $334,000,000 for the manufacture, assembly, inspection, package and delivery of 120mm Shell Bodies for the M929 WP, the M930 VL, the M983 IR, the M931 FRPC and the M933A1/M934A1 HE cartridges. The NTIB includes the U.S., United Kingdom of Great Britain and Northern Ireland (UK), Australia, and Canada. A multiple-award strategy is being pursued to foster competition at the delivery order level and to strengthen the industrial base. One of these awards shall be reserved for small business and the projected requirements are not sufficient to support production for more than two contractors.

The 120mm HE Shell Bodies are used on the 120mm M933A1/M934A1 HE Mortar cartridges. The Mortar HE cartridges are intended for use against personnel and materiel targets, providing for fragmentation and blast effects.

The 120mm FRPC Shell Bodies are used on the 120mm M931 FRPC mortar cartridges.

The FRPCs provide a realistic training capability at a significantly lower cost than practicing with HE cartridges.

The 120mm Smoke Shell Bodies are used on the M929 WP mortar cartridge. The M929 cartridges provide screening capabilities.

The 120mm Illumination Shell Bodies are used on the M983 IR and M930 VL cartridges.

The illumination cartridges provide target illumination and identification capabilities.

These Shell Bodies are a critical component to the entire family of 120mm mortar ammunition. In accordance with 10 USC 3204(a)(3)(A), Public Law 105-261, and Secretary of the Army and Department of the Army Delegation Memorandums, the Joint Program Executive Officer of Armaments and Ammunition, in his capacity as the Single Manager for Conventional Ammunition (SMCA) , has determined that it is necessary to restrict the procurement of these critical items to the NTIB so to maintain the related skills/manufacturing facilities.

Fiscal Year (FY) 25-29 Procurement of Ammunition, Army (PAA), Procurement of Ammunition, United States Marine Corps (USMC), and Foreign Military Sales (FMS) funding will be used. The contract award is anticipated during the 4th Quarter of FY25.

CUI

The combined Acquisition Strategy Report/Acquisition Plan for the 120mm Shell Bodies is approved.

3. Description of Supplies/Services: The proposed procurement covers the requirements for the 120mm Mortar Shell Body configurations described below as well as any variants thereof.

The M933A1/M934A1 HE Cartridge NSN:1315-01-604-6483 utilizes a hot forged steel shell body that is 120mm in diameter, approximately 16 inches long with a weight of approximately 20 lbs.

The M931 FRPC NSN: 1315-01-604-6499 utilizes a shell body which matches the M934A1 HE shell body in size, shape and weight.

The M929 WP Smoke Cartridge utilizes a hot forged shell body that is 120mm in diameter, approximately 16 inches long with a weight of approximately 20 pounds (lbs.).

The M930 VL Illuminating and M983 IR Cartridges utilize a two-piece steel shell body (Front Body NSN: 1315-01-604-6494; Rear Body NSN: 1315-01-604-6495). The front shell body is approximately 10 inches long and 20 lbs. while the rear shell body is approximately 8 inches long and weighs approximately 5 lbs.; both halves are 120mm in diameter.

The total estimated maximum contract value for each contract is $334,000,000 with minimum guarantees of $6,000,000.00 for each awardee. In accordance with FAR 16.504(a), the minimum will be satisfied at the time of award. The total maximum amount is the total amount the Government can order encompassing all awardees. The table below illustrates planned and unplanned requirements for the 120mm Mortar Shell Bodies procurement as defined by Presidential Budget 2025 (PN25). The estimate includes an increase from the base to account for Total Army Munitions Requirements, USMC requirements, potential FMS quantities, and Surge throughout FY25-29.

bodies were procured from a foreign source, outside the NTIB, it would greatly jeopardize the viability of the shell body manufacturing within the NTIB.

The conventional ammunition production base has been steadily downsizing and consolidating over time in response to declining or uncertain DoD budget requirements.

Previously there were five available suppliers capable of producing these shell bodies.

Today, there is only U.S. source making 120mm Mortar Cartridge Shell Bodies. In addition, a second source within the NTIB has forged an array of projectile bodies similar to the required 120mm shell bodies for the Canadian Governments. The cost and scale of the necessary capital investment has, to date, prevented other sources from entering the shell body production market. Restricting competition within the NTIB will preserve the capability, generate competitive pricing, and encourage the manufacturing base to streamline and improve their processes in order to provide the best product to the Government.

There are unique Critical Processes/Skills, Specialized Facilities/ Equipment, and Testing Capabilities, related to Shell Body production that must be protected to preserve the production capability, which are detailed below:

Critical Processes/Skills: 120mm Mortar Shell Bodies must be forged before they are sent to LAP to become an end-cartridge. Forging mortar shell bodies is a complex process that requires over 20 operations. Critical processes/skills needed to produce the shell bodies include, but are not limited to, high capacity/high tonnage mechanical and hydraulic pressing, heat treating with the capability to austenitize, quench temper, and harden steel, Computer Numerical Control (CNC) machining, zinc phosphating, priming and painting, hydrostatic testing, ultrasonic testing, and engineering. The metal forming stage of body production requires personnel skilled in the use of high-capacity mechanical and hydraulic presses. Two-thousand-degree steel is extruded under pressure backwards over a water-cooled punch. In addition to the extrude operations, a nosing process is used further on in production to form the outer diameter of the forward end of the shell bodies. The heat-treating process used includes steel austenitizing, quenching, and tempering with the use of a controlled atmosphere hardening furnace.

This process is completely computer controlled, which requires personnel with production software capabilities. The metal machining and finishing operations require skills in computer CNC machining, zinc phosphating, and automated priming and painting. The inspection and testing phase requires lab technicians trained in hydrostatic testing, and ultrasonic testing.

Critical skills require engineers with experience in forging, heat-treating, nosing, and machining using the above unique equipment, forge operators, computer numerically controlled programming, machinists, production management and inspectors trained on the operation of non-destructive ultrasonic-test equipment.

Specialized Facilities/Equipment: The technical data requirements for 120mm Mortar Shell Body requires use of highly specialized inspection and testing equipment. The lathes and hydrostatic and ultrasonic test equipment need to be specifically designed around the machining and testing requirements for mortar shell bodies. Lathes in the standard commercial sector do not possess these capabilities. High volume body production requires unique forging, pressing, heating, machining, welding, and testing equipment. Production facilities require long-stroke, high-tonnage presses, and backward extrusion hydraulic forging presses. Presses need to be specifically designed for high-speed, hot forging of shell bodies. This type of heat treat furnace is unique to shell body production and does not have commercial applications. Large scale production requires heat treating furnaces capable of heating up to 10 tons per hour.

These metal parts require heat treat equipment with invert capability.

Testing Capabilities: Non-intrusive ultrasonic testing is required for each shell body delivered to the Government. Various metallurgical tests are also required, which include hardness testing, tensile testing, corrosion testing, and impact testing.

Additionally, high volume production operations are greatly aided by statistical process control software and methodologies.

Based on the above, awarding to a producer not located in the NTIB would pose an unacceptable risk to maintaining critical skills and specialized equipment for the manufacturing of shell bodies, which degrades the overall domestic capability for mortar readiness. Further, if this capability is lost, it would cost approximately $30M and take approximately 3.5 years to re-establish production within the NTIB. Restricting this requirement to the NTIB fully mitigates this risk as it ensures that critical skills and equipment are preserved.

6. Efforts to Obtain Competition:

a. Effective Competition: Effective Competition will be achieved within the NTIB by publishing a pre-solicitation notice required by FAR 5.201, Synopses of Proposed Contract Actions, via the SAM.gov website to alert interested contractors and subcontractors of the procurement opportunity and the strategy’s geographic restrictions. Any bids or proposals received will be considered. Based on current market research results, effective competition within the NTIB is anticipated.

b. Subcontracting Competition: Subcontracting competition will be achieved by ACC-NJ through the publication of the synopsis required by FAR 5.201 and the contract will include FAR 52.219-8, “Utilization of Small Business Concerns” and FAR 52.219-9, “Small Business Subcontracting Plan.” The prime contractor(s), as well as subcontractors and suppliers, may publish subcontracting opportunities in accordance with FAR 5.206, Notices of Subcontracting Opportunities, as appropriate.

7. Actions to Increase Competition: The 120mm Mortar Shell Bodies are currently restricted to the NTIB. For future requirements, the Government will continue to perform market research to seek sources capable of producing new or improved shell bodies which meet Warfighter requirements. The Government will continue to review the domestic industrial base and maintain awareness of industry capability by conducting market research in the form of sources sought notices posted on SAM.gov to ensure

10. Other Factors:

a. Procurement history:

(1) W15QKN-19-D-0084 awarded 30 July 2019

(2) Other than Full and Open Competition

(3) Restricted to U.S. and Canada under the authority of FAR 6.302-3, “Industrial mobilization; engineering, developmental, or research capability; or expert services.”

(4) The Government took actions to increase competition such as procurement of the Intellectual Property, tooling, and dies. In addition, analysis of the Industrial Base was to be completed to determine if the restrictions to the NTIB would still be necessary. That analysis was completed, and it was determined that the restrictions are still necessary in order to ensure adequate and affordable industrial capabilities to be met.

(5) No prior awards were made using Full and Open Competition

(6) No unusual patterns were revealed by the contract history.

(7) The justification that supported the previous procurement was to restrict competition to the NTIB (United States and Canada at that time) to maintain the required domestic capability for production of critical ammunition and to make it available in the event of a national emergency. The manufacturing of 120mm Mortar Shell Bodies requires critical skills and processes, and specialized facilities and equipment that must be protected to ensure that adequate and affordable industrial capabilities are available to meet future requirements. To date there have been no significant changes.

(1) W15QKN-13-C-0050 awarded 27 June 2013

(2) Other than Full and Open Competition

(3) Restricted to U.S. and Canada under the authority of FAR 6.302-3, “Industrial mobilization; engineering, developmental, or research capability; or expert services.”

(4) The Government took actions to increase competition such as analysis of the Industrial Base to determine if the restrictions to the NTIB would still be necessary.

That analysis was completed, and it was determined that the restrictions are still necessary in order to ensure adequate and affordable industrial capabilities to be met.

(5) No prior awards were made using Full and Open Competition

(6) No unusual patterns were revealed by the contract history.

(7) The justification that supported the previous procurement was to restrict competition to the NTIB (United States and Canada at that time) to maintain the required domestic capability for production of critical ammunition and to make it available in the event of a national emergency. The manufacturing of 120mm Mortar Shell Bodies requires critical skills and processes, and specialized facilities and equipment that must be protected to ensure that adequate and affordable