22RJN16_23GJN16_JA_REDACTED.pdf
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- Solicitation number
- N0016423GJN16
About this file
This document is a justification and approval for other than full and open competition for a federal contract. The Naval Sea Systems Command is seeking to award a sole source contract to Northrop Grumman Defense Systems (NGDS) for 30mm automatic guns in varying configurations, associated spare parts, special tooling/equipment, and engineering services from fiscal years 2023 through 2026. NGDS is the only responsible source as it owns the proprietary technical data for the 30mm chain-driven automatic gun, which has been integrated into all U.S. weapon systems that use 30mm ammunition and has undergone extensive governmental testing and certification. The estimated value of the contract is $79 million. Developing a new 30mm gun design and certifying it for use would cost at least $37.8 million in engineering and testing duplication costs alone, not including integration and delays, rendering competition impractical.
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J&A Number: CR-22331
Table 1: Estimated Dollar Value Funding Type FY23-FY26
RDT&E
WPN
SCN
PMC
PROC
O&M
TOTAL $79.0M
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 and services will satisfy agency requirements.
5. Rationale Justifying Use of Cited Statutory Authority
The 30mm chain-driven automatic gun was developed exclusively at private expense. The chain gun was originally developed by Hughes Helicopters and after a series of mergers and acquisitions, its detailed design is currently proprietary to NGDS. Through e-mail correspondence, the Government inquired on 23 May 2022 if the relevant technical data package was available for purchase. NGDS responded through e-mail correspondence that the technical data package was not for sale.
The NGDS chain-driven automatic gun is the 30mm design of choice for the United States (US) and many foreign users. All weapons systems that utilize the 30mm x 173mm ammunition in the US have integrated the NGDS 30mm chain-driven automatic gun. There are two other 30mm gun manufacturers, Mauser of Germany, which produces a gas operated gun and Denel Land Systems of South Africa, which produces a cam driven gun. Neither of these two guns have been through weapons certification programs for use by the US, and has significantly different design and operation characteristics which prevent them from fully meeting the Government’s requirement. If either of these guns were considered to be a suitable replacement for the NGDS gun, a large redesign effort would be required to integrate the gun into any of the existing weapon systems, test the system for operational suitability, and certify it for use. The NGDS 30mm Chain Gun System and related ammunition have undergone extensive testing, certification and approvals to verify all platform requirements were met to allow that system to be fielded on various platforms. Any other 30mm gun would require a significant investment in time and funding to develop, test and certify that item for fielding. Engineering costs to develop a 30mm gun that would meet all the Government’s requirements and integrate into the existing 30mm Gun System platforms would be significant (estimated at $37.8M).
An alternate 30mm gun would then be required to gain Weapons System Explosive Safety Review Board (WSESRB) approval. The costs for WSESRB certification testing and approval of a different 30mm gun, plus the gun related system level and platform testing is estimated at per weapon’s system platform and is based on previous certification and approval efforts associated with the 30mm chain gun. Additional costs would be involved with integrating a new gun into the weapon system and the individual platforms. The integration and testing costs are estimated at approximately and a minimum of one-year delay for each affected platform.
The total duplication of costs to complete the certification approval process for a new 30mm gun, allowing a different source to provide these requirements for additional guns, spare parts, and special tools/equipment, would be in excess of for each affected platform.
There are currently different weapon platforms that integrate the 30mm gun which would make the overall duplication of costs $37.8M. The estimated duplicated costs to the Government are so high that it is unrealistic for the costs to be recouped through competition.
Table 2 provides a breakdown of the duplication of cost to the Government.
Table 2: Duplication of Costs
TYPE OF COST AMOUNT
WSESRB (testing, technical analysis/reports, etc.)
Integration into Weapons System Platform & Testing Total Costs per Platform Total for all Platforms $37.8M
Based upon engineering estimates based on similar prior efforts, performing these tasks would also result in an estimated unacceptable time delay of approximately 117 weeks, which equates to approximately 2.3 years.
In summary, award of these requirements to any source of other than NGDS is likely to result in substantial duplication of cost to the Government that is not expected to be recovered through competition, and unacceptable delays in fulfilling the agency’s requirements.
6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable
A Request for Information was issued on 06 June 2022 and the proposed procurement was synopsized on 17 June 2022, both were posted on the Government Point of Entry (GPE), in accordance with (IAW) FAR Part 5.2. Individual or classes of orders to be issued under this BOA will be published on the GPE. Any responses received will be considered. It is not practicable, for the reasons discussed above, for any company other than NGDS to provide the required supplies and services. To date, two questions have been received in response to the Request For Information posting and answered by the Government. The first question pertained to the end user of the gun. The second question pertained to the use of suppressors on the gun. Neither reply questioned the planned solicitation of these requirements on an other than full and open competition basis to NGDS.
No firm challenged the Government’s intention to solicit for these requirements on a sole source basis to NGDS.
7. Determination of Fair and Reasonable Costs
The Contracting Officer has determined that the anticipated cost to the Government for the supplies and services covered by the CJ&A will be fair and reasonable.
8. Actions to Remove Barriers to Competition
For the reasons set forth in Paragraphs 5, NSWC-CR has no plans at this time to compete future contracts for the types of supplies and services covered by this document. If another potential source emerges, NSWC-CR will assess whether competition for future requirements is feasible.
As this is a follow-on 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 the approval authority has made the determination required by DFARS PGI 206.304(a)(S-70)(ii).
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