ACC-NJ JA 5.56mm CCMCK FINAL Redacted.pdf

Control No.:

FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: 5.56mm M1071 Linked & M1042 Loose Marking Cartridges for use in the Close Combat Mission Capability Kit (CCMCK) in support of Project Manager Maneuver Ammunition Systems (PM-MAS)

Authority: Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount:

Prepared by:

Typed Name: DSN:

Title: Contracting Officer Date:

Email:

Contracting Officer:

Typed Name: DSN:

Email: Date:

Technical Representative:

Typed Name: DSN:

Title: Date:

Requirements Representative:

Typed Name: DSN:

Title: Date:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Typed Name:

Signature: Date: __

Typed Name:

Signature: Date:

Date:

Date: ___

Date: _

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command - New Jersey

2. Description of Action: The Project Manager for Maneuver Ammunition Systems (PM-MAS) requests approval for a new five-year Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (ID/IQ) production contract.

will be utilized.

The other service funding utilized will be

In the event that Foreign Military Sales

(FMS) requirements arise, FMS funds will be utilized.

3. Description of Supplies/Services: This acquisition is for the Full Rate Production of the 5.56mm marking ammunition, M1042 and M1071. The M1042 is fired in the M4/M4A1, M16A2/A3/A4 Rifle converted with the Close Combat Mission Capability Kit (CCMCK) Conversion Bolt, National Stock Number (NSN) 1005-99-132-2616. The M1071 is fired in the M249 Squad Automatic Weapon (SAW) converted with the CCMCK Conversion Bolt, NSN 1005-99-848-0609. The CCMCK is a user installed weapons modification system that will allow the soldier to employ an individual weapon (M16/M4/M249 SAW) at short range using low velocity marking ammunition while precluding the weapon from firing standard service ammunition. The system will provide normal environmental/weapon employment cues (aiming, firing, ejection, immediate action, load, re-load and immediate target feedback) through Force-on-Force interactive live fire scenario tasks and mission execution.

The marking ammunition is a reduced-energy, non-lethal cartridge that leaves a bright, water-soluble color marking compound on target upon impact, without penetrating the soldiers Operational Camouflage Pattern on their Army Combat Uniforms or Personnel Protective Equipment. The visible impact left by the marking compound allows for an accurate assessment of simulated lethality and shot placement.

These conversion kits convert the weapons from gas to blow back operation by using marking ammunition that have cases of telescopic nature and have no propellant, only a unique dual small caliber primer system. is the only known manufacturer that has a rim-fired, telescopic case compatible with the M1042 and M1071 munitions.

The proposed IDIQ contract will contain five one-year ordering periods. The maximum ceiling amount for this contract is for the combined five-year period.

Anticipated award date is 2nd Quarter FY21.

The following chart provides the total based on the President’s Budget FY20 and additional headspace to accommodate any unplanned requirements from Army, or other Services, should a future need arise:

Joint Program Executive Office Armaments and Ammunition has been designated as the Single Manager for Conventional Ammunition Executor and is responsible for the management of this item for all of the Department of Defense and approved foreign military customers.

4. Authority Cited: Title 10 United States Code (U.S.C) Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2)(ii)(A), When the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

The proposed contractor for the requirement to procure the 5.56mm M1071 Linked and M1042 Loose Marking Cartridges for use in the CCMCK is

Recent market research indicates that an alternate system that would satisfy the current requirement does not exist. is the only contractor that is currently capable of performing this effort. Competition for this effort is not feasible and would result in substantial duplication of costs to the Government. If the Government does not procure the 5.56mm CCMCK marking ammunition from to support FY21-26

5.56 CCMCK

deliveries, the Government would be forced to develop and qualify a new CCMCK design compatible with the M4, M16, and M249 SAW guns and replace the existing kits, The cost associated with qualifying a new marking ammunition design includes a full Design Verification Testing (DVT) and Full Material Release (FMR), which is estimated at . This estimate is based on both previous and recent history. DVT and FMR are required because the ammunition is procured to a performance specification and any new designs have to be DVT qualified and go through FMR in order to prove the design meets all of the requirements and is safe for use. Additionally, there is no guarantee that another design will pass DVT and that could potentially leave the Government without a fully qualified end product.

In addition to qualifying a new marking ammunition design, the Army would have to replace the conversion kit, which precludes the firing of live combat ammunition, for the marking ammunition. The conversion kit converts the weapon from firing live ammunition to a marking cartridge. Each vendors’ system requires the use of a vendor specific weapon conversion kit to fire the marking ammunition. The Army’s cost to replace the conversion kits would be . This cost includes conversion kits in use at the Training Support Centers (TSC) around the globe. In addition, the logistical support cost includes to conduct the test and evaluations associated with qualifying a new conversion kit and for the engineering labor costs associated with those tests and evaluations. There is also for the cost to establish the logistical deployment of swapping out kits on a one-for-one basis at the TSC locations for all the commands. This equates to an approximate in duplication costs for logistical support in rolling out the new solution. The Army would also have to supply marking ammunition for the testing and qualification of the new conversion kits. The unit cost of the ammunition for testing is

Furthermore, the is currently in the process of switching to the current 5.56mm system no longer meets the requirements and safety required by the . The has purchased

. Should the award be made to any source other than would incur an additional to replace their conversion kits. This cost includes conversion kits. There would also be similar qualification and fielding costs incurred for the , however those amounts have not been included in this estimate since the exact qualification requirements are unknown and

The duplication cost of is considered substantial and is not expected to be recovered through competition.

6. Efforts to Obtain Competition:

a. Effective Competition: Since this is a sole source action, effective competition is not anticipated. The notice required by FAR 5.201 shall be posted and any bids or proposals received shall be considered.

b. Subcontracting competition: In accordance with FAR 19.702(b)(3), the Subcontracting Plan is not required when a Contract is performed entirely outside the U.S. and its outlying areas. Since the requirement for the 5.56mm marking ammunition, M1042 and M1071will be performed by

7. Actions to Increase Competition: In order to increase competition, the Government will issue another market survey in 1QFY21 to seek sources interested in verifying their design for 5.56mm marking ammunition. If there are interested sources who have a design potentially capable of meeting the performance specification, PM-MAS will seek funding for qualification testing. If funding is obtained, PM-MAS will enter into a Cooperative Research and Development Agreement (CRADA) with potential sources and perform qualification testing. PM-MAS has historically sought competition for this round. In April 2012 a sources sought notice was issued to seek sources interested in entering into a CRADA with the Government where the Offeror would provide the marking cartridges and the Government would pay to test the marking cartridges in accordance with the performance specification requirements.

In December 2018, PM-MAS issued a new market survey for a CRADA for both 5.56mm and 9mm. There were no responses for 5.56mm.

Since Government funding was not used in the Research and Development of this item, the contractor owns all of the intellectual property. A Contract Line Item Number (CLIN) requesting a price for Government Purpose Rights (GPR) to the TDP from the Offeror was incorporated into the Request for Proposal (RFP) for Contract W15QKN-10-D- 0020, since the Government hoped to promote competition for this item in the future.

proposed a price of

The Government will continue to explore competition in the future by conducting market research in the form of market surveys posted on beta.sam.gov and by having open communication with suppliers on their capabilities to provide this type of requirement.

When future requirements arise, a determination will be made on whether restricting competition on a sole source basis to is still warranted. If circumstances permit, full and open competition (F&OC) procedures will be used to the greatest extent possible.

The industrial base is constantly being reassessed in an effort to enhance competition.

Representatives from PM-MAS and Combat Capabilities Development Command – Armaments Center attend trade shows and conferences, e.g. National Defense Industrial Association and Association of the United States Army Annual Meeting, in an effort to stay abreast of contractors’ capabilities and development efforts.

8. Market Research: In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a sources sought notice (W15QKN-19-X- 080X) was posted to the Beta.Sam.gov website on 27 August 2019 and responses were received and are detailed below.

The Government requested that potential offerors provide information supporting their design’s capabilities as they relate to the requirements of Performance Specification MIL-PRF-32313 and MIL-PRF-32315. Offerors were advised that the marking ammunition shall fit mechanically inside the same standard magazines used with the 5.56mm weapon systems (M16, M4, and M249 SAW). The contractors were asked to provide a summary of their capabilities, facilities, personnel, and previous small caliber manufacturing experience and testing. They were also required to submit monthly and annual production capacities with assumptions about the number of shifts and any other production factors that may affect monthly capacities and evidence of a proven monthly production at a minimum rate of 700,000. Sources not having a previously verified design were also asked to submit an outline of their plans and schedule to verify their design, in addition to any contractor performed testing results and data, to support claims that their design will conform to the MIL-PRF-32313 and MIL-PRF-32315 requirements. Additionally, contractors were requested to submit drawings, specifications, brochures and current estimated unit cost per million.

Control No.: CAO-20-0447

Control No.: CAO-20-0447

A second sources sought notice (W15QKN-20-X-0DB2) was released on Beta.SAM on 18 August 2020. The same requirements were utilized as outlined in W15QKN-19-X- 080X. responses were received, however

As per schedule, has consistently delivered in support of the CCMCK program for over . In rounds with an average of , with a high of .

of the requirement of this solicitation.

has been the sole producer of the 5.56mm CCMCK cartridges for the past During this time frame rounds for the CCMCK program. is considered a low risk due to their capabilities and previous contract experience. should be capable of meeting the U.S. Government requirements for this acquisition.

No commercial items, which could potentially meet the requirements, were identified during market research.

9. Interested Sources: To date, no other sources have written to express interest.

10. Other Facts:

a. Procurement History::

Contract #1:

Contract #2:

b. Other Facts: N/A

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Date:

Title:

12. Requirement Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Title:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be based on a technical evaluation, price analysis, IGE, and cost analysis. Certified cost and pricing data will be required in accordance with FAR 15.403-1(b)(1).

Title: Signatur

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Date:

Title: Signature: