20RJR80_JA_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

J&A Number: CR-20102 Code: 0232

P.R. Number: N0016420RJR80

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command Naval Surface Warfare Center, Crane Division (NSWC Crane), Expeditionary Contracts Division, 0232.

2. Description of the Action Being Approved

Award of a firm fixed price five (5) year Indefinite Delivery Indefinite Quantity (IDIQ), Supply type contract on a Sole Source basis for the procurement of Grenade, Hand, Diversionary, 6-Bang, MK 24 Mod 0 in support of requirements, to American Rheinmetall Munitions, INC, (ARMI).

3. Description of Supplies/Services

The supplies consist of the Grenade, Hand, Diversionary, 6- Bang, MK 24 Mod 0. Requirement also consists of First Article Tests, Lot Acceptance Tests, associated Test Data Reports, inerts, and cutaways. The anticipated minimum award amount is $300,000 and the maximum is $12,000,000. The table below identifies the estimated dollar values and appropriation type anticipated to be used for the procurement quantity.

Estimated Dollar Value FY21 FY22 FY23 FY24 FY25 Totals

O&MN 1,500,000 2,000,000 1,500,000 3,000,000 4,000,000 12,000,000

The estimates are based on the last contractual price of the item technical and requirements personnel.

To date, the only contract for this item (N00164-14-D-JR04) is complete. Due to the length of the qualification during this contract, only three production orders were able to be placed for a total of grenades. The orders were placed by two different services, and . procured grenades and procured .

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c(1). One responsible source and no other type of property or services will satisfy the needs of the agency, as implemented by FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The MK 24 Mod 0 6-Bang Diversionary Hand Grenade is an energetic device designed by ARMI. The basis for restricting competition is that the Government does not own the rights to the design of the MK 24 Mod 0. The Government owns the Performance Specification, ARMI owns the design.

The MK 24 Mod 0 requirement was competed and awarded in a previous contract (N00164-14-D-JR04). At the end of that competition, only one vendor provided a technically acceptable product that met the Performance Specification.

The MK 24 was required as a supplement to single bang diversionary hand grenades. The requirement was defined in a requirements document from the users. The MK 24 filled a capability gap that existed with single bang devices.

ARMI has been final type qualified through the Department of Navy Weapon Systems Explosives Safety Review Board process in accordance with NAVSEAINST 8020.6E and then fielded by multiple services in . Per NAVSEAINST 8020.5D, PROCEDURES FOR NAVY EXPLOSIVES (HIGH EXPLOSIVES, PROPELLANTS, AND PYROTECHNICS) granted when the qualification explosive has been assessed as part of the design of a specific munition operational or training use. The MK 24 Mod 0 is a fully qualified and fielded item, having successfully completed: developmental testing, safety testing, insensitive munitions testing and board approval, hazard classification testing and board approval, fuze testing and board approval, post-test reporting, joint safety board approvals, user evaluations, item manual updates, and user training. Inasmuch, this qualification does not co

Material List, or a Qualified Bidders List in accordance with FAR 9.2.

If the MK 24 Mod 0 was competed, any new device would also require the same qualification for the fielding process described in the paragraph above. The post-award qualification would take a minimum of three years and approximately $1.9 million dollars to achieve based on historical data from product qualification. This delay postpones the production of grenades for inventory.

This three year timeframe and associated duplication of cost does not account for any issues found during the qualification testing that could result in further delays or the expense of repeating tests prior to placing production units into inventory.

The current MK 24 Mod 0 designed by ARMI has been successfully fielded. User manuals show the current device the users have been trained to use the current device. The school houses have been training users for the current device. Explosive Ordnance Disposal (EOD) groups have been trained to handle the current device. Multiple services under have already procured the MK 24 Mod 0 and have it in inventory. Qualifying a new device would not only cost $1.9 million dollars and take an additional three years, but it would also require a new manual to be written and distributed, school houses to be retrained, users to be retrained, and EOD to be retrained.

Competing the item would require bid sample testing as part of the evaluation process as this item would be competed with a performance specification. It would also result in having two separate devices in inventory that do the same task.

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

In an effort to broaden competitive resources, a Request for Information (RFI) sources sought was posted on the FedBizOpps website on 19 September 2019 for the MK 24 Mod 0.

The RFI descr -year IDIQ contract. The RFI invited vendors to submit information on devices they have as well as express interest in proposing on the IDIQ. Four (4) responses were received from this RFI.

American Rheinmetall Munitions, INC. (ARMI).

The response submitted by the current manufacturer for the MK 24 Mod 0 design. This design has been tested, qualified, and fielded by . This manufacturer has successfully built, tested, and delivered the MK 24 Mod 0. This submission has the current design of the MK 24 Mod 0 and is owned by this manufacturer.

The four (4) vendors were notified on 28 April 2020 that they did not meet the requirement to make the MK 24 Mod 0 6- Bang Grenade, and that the Government has determined that award to any source other than AMRI would result in unacceptable delays that would occur in an effort to qualify

Expeditionary Contracts Division 0232 intends to proceed with a sole source Request for Proposal (RFP) to AMRI.

Three (3) Vendors acknowledged receipt of the RFI Response Letters: with an email response date of 29 April 2020, with an email response date of 30 April 2020, and with an email response date of 04 May 2020. confirmed that they received the RFI response letter via a phone conversation on 04 May 2020.

The proposed contract action was synopsized on the BETA SAM website on 04 March 2020. To date, no responses have been received.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by the J&A will be fair and reasonable. Significant quantities of this requirement have been purchased from this offeror in a past procurement and cost/pricing information was received on those past procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NSWC Crane, has no plans at this time to compete future contracts for the types of supplies covered by this document. If another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(c))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, including Acquisition Plan No. Not Required, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

REQUIREMENTS COGNIZANCE:

REVIEW FOR LEGAL SUFFICIENCY (NAPS 5206.303(90))

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12))

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

I certify that this justification is accurate and complete to the best of my

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

Competition Advocate for the Procuring Activity