21RJR85_22DJR85_redacted_non-comp.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-21106 Code: 0232

P.R. Number: N0016421RJR85

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-CR), 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, Offensive, Scalable, MK 21 Mod 0 in support of

, to Nammo Talley, Inc.

3. Description of Supplies/Services

The supplies consist of the Grenade, Hand, Offensive, Scalable, MK 21 Mod 0. Requirement also consists of First Article Tests, Lot Acceptance Tests, associated Test Data Reports, inerts, cutaways, and fuzes. The anticipated minimum award amount is 1,000 units, and the maximum is $22,000,000. The table below identifies the estimated dollar values and appropriation type anticipated.

Estimated Dollar Values FY21 FY22 FY23 FY24 FY25 Totals

O&MN 1,345,000 4,110,000 6,500,000 4,780,000 5,265,000 22,000,000

The estimates are based on historical pricing (based on the last contractual price of the item). The Government’s minimum need has been verified by technical and requirements personnel.

J&A Number: CR-21106

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1). One responsible source and no other supplies will satisfy the needs of the agency, as implemented by

FAR 6.302-1.

5. Rationale Justifying Use of Cited Statutory Authority

The MK 21 Mod 0 Scalable Offensive Hand Grenade is an explosive device designed by Nammo Talley.

The MK 21 has been awarded on a previous contract, (N00164-13-D- JR26). The initial award was competed with only one vendor providing a technically acceptable product to the Performance Specification. The MK 21 was required as a replacement to the M3A2 Offensive Hand Grenade, which contained asbestos in the outer casing. With this being a known carcinogen, the use of this device was restricted and in some cases forbidden. The MK 21 also fulfills additional user requirements that were not achieved with the M3A2.

Nammo Talley’s design 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, entitled “QUALIFICATION AND FINAL (TYPE)

QUALIFICATION PROCEDURES FOR NAVY EXPLOSIVES (HIGH

EXPLOSIVES, PROPELLANTS, AND PYROTECHNICS),” this qualification is granted when the qualified explosive has been assessed as part of the design of a specific munition and is predicted to be safe and suitable for military operational or training use. The MK 21 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 constitute the MK 21’s or its producer’s inclusion on a Qualified Product List, Qualified Material List, or a Qualified Bidders List in accordance with FAR 9.2.

If the MK21 was competed, any new device would also require the same qualification for fielding described in the paragraph above.

The qualification would take a minimum of three years and approximately $1.9 million dollars to achieve based on historical data from Nammo Talley’s 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 MK 21 Mod 0 has been fielded. User manuals show the current device for the user’s reference. Instructors in school houses for 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 21 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.

Since the completion of the N00164-13-D-JR26 contract, an additional service has a requirement for the MK

21. Due to the lengthy original qualification/fielding effort of the MK 21, production units were only able to be procured at the end of the contract for This resulted in a small amount of inventory currently available. The small amount of inventory does not allow for sharing units across services. The requirements of the , in addition to other planned requirements, do not allow for an additional three years required to qualify a new item.

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 Beta SAM website on 17 November 2020 for the MK 21 Mod 0. The RFI described the Government’s intention to award a 5-year IDIQ contract. The RFI invited vendors to submit information on devices they have as well as express interest in proposing on the IDIQ. One response was received from on this

RFI.

was notified on 22 January 2021 that the Government has determined that award to any source other than Nammo Talley would result in unacceptable delays that would occur in an effort to qualify another manufacturer’s design. Within the letter to this vendor, it was explained that NSWC Crane intends to proceed with a sole source Request for Proposal (RFP) to Nammo Talley. The vendor acknowledged receipt of the RFI Response Letter without rebuttal with an email response date of 23 January 2021.

The proposed contract action has been synopsized on the BETA SAM website on 25 January 2021. 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. 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. In addition, the contracting office will perform cost analysis and utilize DCMA pricing assistance as needed.

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.