A02 TAB B 155mm M795 projectile LAP JA - Redacted.pdf

Control No.

CUI//SP-SSEL//FED ONLY

JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply/Service: 155mm M795 Projectile Load, Assemble, and Pack (LAP)

Authority: 10 U.S.C. 3204(a)(3), as implemented by Federal Acquisition Regulation (FAR) 6.302-3, Industrial Mobilization; engineering, developmental, or Research Capability; or Expert Services.

Amount:

Prepared By:

Contracting Officer:

Technical:

Requirements:

il

CUI//SP-PROCURE//FED ONLY

Department of Army Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command-Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: The Project Manager, Combat Ammunition Systems (PM CAS), requests the award of two five-year Firm Fixed Price with Economic Price Adjustment multiple award, Indefinite-Delivery Indefinite-Quantity (IDIQ) contracts, one to American Ordnance (AO) and one to General Dynamics -Ordnance & Tactical Systems (GD-OTS)

These contracts will support the 155mm M795 Projectile LAP used to replenish the U.S. Army stockpile, which has been depleted due to Presidential Drawdowns to support Ukrainian War efforts. The US Government (USG) will award by using Letter Contracts/Undefinitized Contract Actions (UCAs) in accordance with FAR 16.603.

. The projected delivery orders will utilize Procurement of Ammunition, Army funds and Procurement of Ammunition, U.S. Navy and U.S. Marine Corps (USMC) funds, as appropriate, as well as Foreign Military Sales (FMS) funds in the event FMS requirements arise.

3. Description of Supplies/Services:

The proposed action will procure 155mm M795 Projectiles to satisfy anticipated U.S.

Army, USMC, Ukraine War efforts, and potential FMS requirements. The 155mm M795 Projectile is an extended-range, high explosive (HE) artillery projectile used for anti-personnel and anti-material targets. The projectile is a hollow, high-fragmentation steel forged shell filled with Trinitrotoluene (TNT) explosive. The USG will provide the unloaded projectile as Government Furnished Material (GFM) to the LAP contractor.

The USG uses a TNT Supplementary Charge in the TNT-filled projectile, and the USG shall also provide the supplementary charge as GFM. The TNT explosive under these contracts, which the LAP contractor will use to fill the projectile, will be Contractor Furnished Material (CFM), however, there is a potential in the future that the USG will provide the TNT as GFM. There is no continental United States source for TNT as the only approved USG source for TNT is in Poland for the 155mm M795 Projectiles.

Explosively-loaded projectiles are packed eight per wooden pallet; the pallets are also provided as GFM.

The combined total estimated maximum value for the 155mm M795 Projectile acquisition is which includes all ordering periods under the planned contracts. The table below illustrates the forecasted requirements for the 155mm M795 Projectile procurement. The estimate considers all known Presidential Drawdowns and Ukraine Replenishment Tranche funding provided

The estimate also utilizes the Budget Estimate Submittal and includes a surge for USMC and

S requirements based on historical data and on recent events.

The annual requirements are estimated, and the total contract quantity could potentially exceed the total estimated quantity listed above, depending on the unit prices proposed.

Both AO and GD-OTS will receive a minimum guaranteed quantity at the time of the award.

4. Authority Cited: 10 U.S.C. 3204(a)(3), as implemented by Federal Acquisition Regulation (FAR) 6.302-3, Industrial mobilization; engineering, developmental, or research capability; or expert services.

5. Reason for Authority Cited:

a. As described in FAR 6.302-3(b)(1)(i), full and open competition need not be provided for when it is necessary to award the contract to a particular source or sources in order to keep vital facilities or suppliers in business or make them available in the event of a national emergency, and as further described in FAR 6.302-3(b)(vi), when there is a need to divide current production requirements among two or more contractors to provide an adequate industrial mobilization base.

b. To support the Ukrainian defenses in its ongoing war, the USG has sent significant quantities of 155mm Artillery Projectiles to Ukraine. As a result, the U.S. Army stockpiles for 155mm Artillery Projectiles, including the 155mm M795 projectile, have decreased to a dangerously low level. The JPEO A&A has been designated as the Single Manager for Conventional Ammunition (SMCA) and as the SMCA, it is responsible for ensuring there are critical and affordable industrial capabilities to meet requirements for artillery projectiles in the event of a national emergency.

c. The ability to Load, Assemble, and Pack (LAP) 15mm M795 projectiles requires specialized equipment, skills, and facilities that are not readily available in the commercial market. A thorough understanding of heating, melting, pouring, and cooling bulk explosive is an intricate process to understand and perfect. This requires extensive knowledge of heating and cooling profiles that help limit explosive cast rejects in order to optimize acceptable product. The controlled cooling process alone requires precise timing and temperature control because any deviation will result in excessive defects.

Additionally, instrumentation and experienced personnel in radiography are required to fully understand the multiple complex defects that may occur inside the explosive cast.

This equipment must be state of the art and operated by experienced personnel in order to detect and segregate any defective or non-compliant 155mm M795 projectiles.

f.

Based upon USG engineering expertise and statements provided by the other contractors in their Sources Sought responses, no other contractor could begin 155mm M795 projectile LAP deliveries that meet the USG TDP requirements

g. There is a need to divide current production requirements among two or more contractors to provide an adequate industrial mobilization base. Due to anticipated 155mm M795 projectile LAP quantities to support Army, USMC, FMS, and Surge requirements, it is not sustainable for one supplier to produce and deliver all of the required USG 155mm M795 projectile LAPs within a reasonable timeframe. Therefore, two or more contractors (in this case AO and GD-OTS) are required to meet this demand. Additionally, the increased quantity is sufficient to provide an adequate industrial mobilization base. The vital facilities are creating and maintaining the increased surge capacities at the CONUS locations the USG is awarding to. The USG currently does not have the facility or combination of facilities that can meet the USG surge need.

h. Although it is the DoD’s policy to use reliable foreign suppliers, it is also the DoD’s policy not to accept foreign vulnerability, which poses risks to national security.

Any award for these 155mm M795 projectiles LAPs to a non-domestic source (a supplier not located within the U.S. or Canada) would pose an unacceptable risk to national security. In the event of a national emergency, the 155mm M795 projectiles

LAP will be essential to ensure that the Warfighters are prepared and trained for combat. During a conflict, performance, and deliveries from Outside of the Continental United States (OCONUS) sources would be impossible to ensure. The reliability of offshore sources during a conflict would be vulnerable to the prevailing wartime policy of the foreign government state department. A possible realignment of foreign nationalistic priorities could place commitments to international customers significantly lower than national needs. Further, if these items were produced by OCONUS sources, shipments to Continental U.S. facilities could be extremely vulnerable, whether by air or sea, therefore, this procurement is restricted to these two known 155mm M795 projectile LAP producers.

i. The 155mm, M795 projectile LAP will be built in accordance with a USG-owned TDP.

j. Approval of this J&A for production of the 155mm M795 projectile to AO and GD-OTS will ensure the U.S. Army possesses the capability to replenish the depleted U.S. Army war reserves due to supporting Ukraine and future 155mm M795 projectile efforts.

Failure to approve this J&A to award to AO and GD-OTS for the 155mm M795 projectiles would delay the Army’s operational capability beyond based on lead times of other proposed contractor solutions. A delay in this capability and the fielded solution would be extremely detrimental to operational readiness and be a significant risk to the warfighter. The U.S. war reserves inventory would be at a dangerously low level.

6. Efforts to Obtain Competition:

a. ACC-RI shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

b. Effective Competition: Because this effort will be limited to only AO and GD-OTS, effective competition is not applicable. However, during the life of the 155mm M795 projectile IDIQ contracts, the contracting officer will issue competitive contemplation letters when a requirement is known. Each contemplation letter will contain evaluation criteria, and the USG will have the opportunity to evaluate each contemplation letter response to determine the best awardee(s).

c. Subcontracting Competition: Subcontracting competition will be achieved through the publication of the synopsis required by FAR 5.201, and the contracts will include FAR 52.244-5, Competition in Subcontracting, which states the contractor shall select subcontracts on a competitive basis to the maximum practicable extent. The prime contractor, 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 155mm M795 projectile acquisition will be restricted to only AO and GD-OTS. However, for future acquisitions of this item, PM CAS will review the industrial base to determine if other sources have the capability to manufacture and deliver the 155mm M795 projectile requirements. In addition, market research will be conducted periodically to determine if other sources exist that may be able to provide an acceptable product to the USG at a reasonable price.

8. Market Research: ACC-RI posted sources sought notice W52P1J-XX-R-XXX (XX- R-XXXX is accurate sources sought notice), to SAM.gov on 21 July 2022 with a response date no later than 22 August 2022 to identify potential sources within the U.S.

and Canada that can LAP and deliver the 155mm M795 HE Projectile. Six businesses responded to the sources sought notice and their detailed assessments are provided below:

9. Interest Sources: To date, no other sources have written to express interest in the acquisition.

10. Other Factors:

a. Procurement History:

Contract Number: W52P1J-20-C-0035 Contractor: AO/IAAAP Award Date: 28 September 2020 Competitive Status: Sole Source-Restricted to AO/IAAAP Authority: FAR 6.302-3, J&A 19-054 Items Awarded Under the Contract: M795 155mm Projectile IMX M795 155mm Projectile TNT

Contract Number: W52P1J-16-D-0050 (Requirements contract) Contractor: AO/IAAAP Award Date: 25 January 2016 Competitive Status: Sole Source – Restricted to AO/IAAAP Authority: FAR 6.302-3, J&A 13-055 Items Awarded Under the Contract: M795 155mm Projectile IMX

M795 155m Projectile TNT M337A2 75mm Blank Cartridge

Contract Number: W52P1J-09-D-0001 (Requirements contract) Contractor: AO/IAAAP and MLAAP Award Date: 02 October 2008 Competitive Status: Full and Open Competition – IAAAP/MLAAP Competition Items Awarded Under the Contract: M795 155mm Projectile IMX M795 155mm Projectile TNT M337A2 75mm Blank Cartridge M395 105mm Blank Cartridge M107 155mm Projectile M1 105mm Cartridge IMX 101 M1 105mm Cartridge TNT M888 60mm Cartridge M112 Demolition Charge M68A2 Mine Clearing Line Charge Inert 40 LB Cratering Charge Guaranteed Subcontract Workload, 40mm High

Velocity Cartridges

JA M795 LAP signature page.pdf