B08_Attachment 0008_Justification for Sole Source (KO Signed).pdf

Contractor: Estes Energetics/ GOEX Industries Supply/Service: Black Powder Class 3 and Black Powder Class

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: Crane Army Ammunition Activity (CAAA) requested a firm-fixed price contract W519TC-25-Q-POWD on 01 May 2025 with GOEX Industries LLC.

ACC-RI projects award for July 2025 and will obligate fiscal year 2025, army working capital funds (AWCF). An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d) (i)(B).

3. Description of Supplies/Services: A one-time supply purchase of 25 pounds of Black Powder, Class 6 and 75 pounds of Black Powder, Class 3 is required for MK140, MK141, and MK144 Signal, Smoke, Illumination and Marine Markers (SSIM’s)

4. Authority Cited: Federal Acquisition Regulation (FAR) 13.106-1(b)(1), Purchases not exceeding the simplified acquisition threshold, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reason for Authority Cited: CAAA currently uses GOEX Black Powder in all SSIM programs. Hodgdon Powder Company, who owned the GOEX Black Powder facility, decided to shut the production facility down in September of 2021. Estes Energetics, Inc acquired the GOEX facility in January of 2022. Once Estes Energetics began production of GOEX Black Powder, a First Article Test (FAT) and performance/safety testing was performed by Picatinny Arsenal (DEVCOM) and proved that all classes of GOEX Black Powder were acceptable for use in military operations.

Black Powder Class 3 and Black Powder Class 6 must be produced in accordance with MIL-DTL-223D. Estes Energetics is the only domestic manufacturer of GOEX Black Powder. Per CAAA AQA, all FAT samples can be waived due to the successful

Contractor: Estes Energetics/GOEX Industries Supply/Service: Black Powder Class 3 and Black Powder Class 6

FAT testing performed by Picatinny Arsenal (DEVCOM), which provided all classes of Black Powder are acceptable to use in military operations, therefore, providing cost savings overall for the U.S. Government.

6. Efforts to Obtain Competition: Two different bids on two separate solicitations recently with ACC-RI on SAM.gov came back with cost of over $100,000 for FAT.

ACC-RI and CAAA did not follow through with the bids due to costs. FAT through Estes Energetics can be waived, therefore, due to the cost savings to the Government, CAAA feels it’s best to sole source to Estes Energetics.

7. Market Research: Market research conducted by CAAA indicated that this is a one time requirement and due to cost savings for the Government, Estes Energetics is the only vendor with history and capability to provide Black Powder Class 3 and Black Powder 6.

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

DATE:

Contracting Officer

Text3: 15 May 2025