CAO-22-0267 Redacted For Release .pdf

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Justification and Approval For Other than Full and Open Competition – FAR Part 6

For M110 Semi-Automatic Sniper System

W15QKN-20-D-0044

Controlled by: Army Controlled by: Army Contracting Command-New Jersey

CUI Categories: General Procurement and Acquisition Source Selection

Limited Dissemination Control: FED ONLY

POC:

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Control No: CAO-22-0267

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JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION– FAR Part 6

Program/Equipment: M110 Semi-Automatic Sniper System (SASS)

Authority: Title 10 United States Code (U.S.C.) 3204(a)(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:

Contract Specialist:

DSN:

Date: 25 May 2022

Contracting Officer:

Date: 25 May 2022

Technical Representative:

Product Director Crew Served Weapons Date: 12 April 2022

Requirements Representative:

Product Director Crew Served Weapons Date: 12 April 2022

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

Product Director:

Typed Name: DSN:

Signature: Date: 12 April 2022

Branch Chief:

Typed Name: DSN:

Signature: Date: 25 May 2022

Division Chief:

Typed Name: DSN:

Signature: Date: 22 June 2022

Legal Counsel:

Signature: Date: 7 June 2022

Associate Director:

Signature: Date: 27 June 2022

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Justification and Approval for Other than Full and Open Competition – FAR Part 6

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

2. Description of Action: This action requests approval for a modification to increase the ceiling amount to Indefinite Delivery/Indefinite Quantity (IDIQ) Firm-Fixed Price (FFP) contract W15QKN-20- D-0044 with Knight’s Armament Company (hereinafter referred to as Knight’s), located at 701 Columbia Blvd, Titusville, FL 32780. The customer, Project Manager Soldier Lethality, will use Foreign Military Sales (FMS) and Other U.S. Government Appropriations including funding from Building Partner Capacity and Other Government Agencies to fund this requirement. The estimated award date for this modification is July 8, 2022.

3. Description of Supplies/Services: The requirement is for the M110 Caliber 7.62 Semi-Automatic Sniper System (SASS), a reliable, semi-automatic, shoulder-fired, man-portable weapon, capable of delivering precision and rapid fire on personnel targets at ranges out to 800 meters. The M110 SASS is equipped with the MIL-STD 1913 Rail System; a back-up iron sight (BUIS); an adjustable butt stock; a bipod; four 10 round magazines; four 20 round magazines; a rifle sling; a Leupold 3.5-10x variable power day optic scope; and a sound suppressor. The rifle is also supplied with a transportation case, deployment kit, and cleaning kit.

As of the staffing of this document, cumulative obligation against contract W15QKN-20-D-0044 is

. Currently, there are

Table One below depicts the forecasted requirements with the amounts unable to be accommodated with the aforementioned ceiling balance for the remainder of the contract performance period. The period of performance of the contract will remain the same from 23 September 2020 through 22 September 2025.

The anticipated total requirement is depicted below:

TABLE ONE - FORECASTED REQUIREMENTS

NOMENCLATURE QTY UNIT EXTENDED

Upper Receiver Varying* Lower Receiver Varying M110 16” Barrel Varying M110 Army Configuration Varying M110 Base FMS Configuration Varying M110 USMC Configuration Varying

7.62 PRT Suppressor Varying

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M110 10 Round Magazine Varying M110 20 Round Magazine Varying Spare Parts Kit (Rifle) Varying Spare Parts Kit (Carbine) Varying First Article Test Varying

*Unit Prices vary depending on year

This requirement will support FMS cases as well as other Services and Department of Defense Agencies.

4. Authority Cited: Title 10 United States Code (U.S.C.) 3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii)(B), 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), 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. As further described in FAR 6.302-1(c)(1), an acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer does not provide for full and open competition, regardless of the number of sources solicited. The Government intends to modify current Contract W15QKN-20-D-0044 with Knight’s, The M110 SASS is commonly used by the United States Government’s (USG’s) foreign military allies and partners because it provides essential performance characteristics that uniquely meet their specified needs. Using this common weapon platform increases military effectiveness by ensuring interoperability with United States (US) allies, and minimizing the capabilities gap with US and our coalition partners. These nations also look to leverage the economies of scale realized through USG contracting efforts. It is necessary to provide the USG’s military allies and coalition partners with systems that match their currently fielded M110 SASSs. Many foreign nations currently utilize the M110 SASS and now require additional weapons to either augment their security capabilities or replace degrading systems.

Knight’s design was competitively selected in 2005 for qualification to meet the Army’s requirements.

All subsequent acquisitions of this weapon were procured from Knight’s. Knight’s is the only source with a qualified design and the only source which possesses the expertise in the intricacies of the design, manufacturing, and function of the M110 SASS. The manufacturing process for the qualified design is proprietary to Knight’s and the USG does not have a license to use the Technical Data Package (TDP) for competitive procurements. Knight’s continues to have the engineering, production, quality assurance, and test personnel and facilities in place to manufacture, identify, and implement optimum solutions to any unforeseen problems associated with the M110 SASS. As a

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result of this continuing production of both M110’s and the commercial market variant, the SR-25, the engineering, production, quality assurance, and test personnel remain current at Knight’s. A First Article Test would be waived because of this continuing production and the fact that no design change is anticipated.

For FMS customers, the same weapon system is required in order to provide system and parts sustainment. In order to ensure the highest level of mission success and avoid degraded mission capability, M110 SASS weapons and parts are required to provide the FMS customer with consistent training and maintain competence on fielded M110 SASSs. As a result, a system other than the M110 SASS would not allow for this interchangeability among the parts. Fielding new systems would be logistically burdensome from a training and tactical stand-point.

Specifically, new training and maintenance procedures would have to be developed. Additionally, procuring weapon systems other than the M110 SASSs would lead to unacceptable delays in fulfilling FMS customer requirements. Based upon engineering expertise and experience with the testing and certification of similar firearms, replacing the fielded M110 SASS weapons and parts would create a breakdown in sustainment and

TABLE TWO – DELAYS ATTRIBUTED TO REPLACING THE M110 SASS

Activity Duration Requirements definition Solicitation and Award Delivery of test assets Baseline Safety & Performance Testing Analyze Results of Initial Testing

System Qualification Hardware Production and Testing Lead Time of Initial Production and Delivery

Delivery of Production Assets Fielding and Training Total Delays

Based on the above, Knight’s is the only qualified source with the requisite knowledge, technical experience, and production capability necessary to satisfy the requirements to manufacture the M110 SASS variants to meet customers’ requirements. In addition, the U.S. Army would provide customers with USG pricing and economies of scale through the utilization of a single contract vehicle. Lastly, due to customers’ frequent time sensitive requirements, award of this contract vehicle will allow the U.S. Army to provide a rapid response in fulfilling FMS customers’ requirements.

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6. Efforts to Obtain Competition:

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

b. Subcontracting Competition. Knight’s is a small business concern. In accordance with FAR 19.702(b)(1), small business contracting plans are not required from entities that are certified as small. Notwithstanding, US Ordnance continues to rely on other small businesses for material sourcing, business supplies and service support. US Ordnance will be required to select subcontractors to the maximum practical extent in accordance with FAR 52.244-5.

7. Actions to Increase Competition: Full and open competition is not practical at this time. The TDP for the M110 SASS is the property of Knight’s. Inquiries between the Government and Knight’s regarding acquiring the TDP have resulted in an estimated cost of . There is no known or realistic potential requirement large enough to justify the purchase of the TDP. Currently, there is no funding that can be made available to negotiate the purchase of the data rights. There have been several companies that have expressed an interest in qualifying their weapons. The Government has provided these companies with information on how to qualify their weapons and will follow-up with them regarding their interest in an effort to increase competition for future requirements.

The procurement of this item will remain sole source for the duration of this contract’s ordering periods. Potential sources (other than Knight’s) will have the opportunity to qualify their design in accordance with the approved performance specification. Potential vendors will be fully responsible for all costs and coordination associated with the qualification of their design. Currently, Knight’s is the only qualified source for manufacturing of this rifle. The Government’s interest in additional sources has been and will continue to be communicated to potential sources through sources sought announcements in the SAM.gov.

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), Sources Sought Notice W15QKN-20-R-0015 was posted to SAM.gov on 28 January 2022 to determine if there were any viable solutions to this requirement and to identify the contractors who are capable of meeting the requirement. One response was received, which lacked adequate information for a proper evaluation of their capability. When the required information was requested no response was received.

The previous Sources Sought Notice W15QKN-19-R-06K7 was posted to the SAM.gov on 28 May 2019 with a closing date of 28 June 2019 by Army Contracting Command-New Jersey. The request focused on potential suppliers of a 7.62mm SASS meeting the requirements of Performance Specification MIL-PRF-323216, dated 5 October 2009 (Rifle, 7.62mm Semi-Automatic Sniper System

(SASS)).

Nine responses were received with several companies expressing interest in qualifying their weapon.

These sources were notified as to what steps are necessary to qualify their weapon, via the performance specification electronically provided. To date, there has not been an answer from any of these companies concerning the qualification of their weapon.

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Additionally, personnel routinely contact and maintain cooperative working relationships with multiple industry and USG subject matter experts in regards to market capabilities and non-standard weapons. Periodic teleconferences via Teams platform are conducted with industry partners and USG stakeholders to define and refine requirements and assess the capability of the marketplace to meet these requirements. Review of technical materials published by prime contractors and Original Equipment Manufacturers are regularly reviewed for new product offerings, additional weapon system configurations and general marketplace trends.

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

10. Other Facts:

a. Procurement History

(1) Contract Number: W15QKN-20-D-0044

(2) Competitive Status: Other than Full and Open Competition

(3) Authority: FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements, brand name.

(4) The M110 SASS TDP is property of Knight’s and valued at , which is an unjustifiable cost for the USG. Other interested companies have been made aware of the requirements to qualify their weapon, to date none have undertaken the task. Knight’s is the only qualified source for manufacture of the M110.

(5) Since the award of Contract No. W15QKN-05-C-0689, the M110 SASS design from Knight’s has been qualified and the Government cannot compete the requirement as the rights to the TDP are proprietary. The Government would not recover the costs associated with procuring the rights to the TDP.

(6) There were no unusual patterns that were revealed in the history

(7) The circumstances justifying the non-competitive award of IDIQ contract W15QKN-20-D- 0044 were virtually identical to those provided herein for the award of a modification to this same contract.

(1) Contract Number: W15QKN-12-D-0029

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(2) Competitive Status: Other than Full and Open Competition

(3) Authority: FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements, brand name.

(4) Not Applicable

(5) Since the award of Contract No. W15QKN-05-C-0689, the M110 SASS design from Knight’s has been qualified and the Government cannot compete the requirement as the rights to the TDP are proprietary. The Government would not recover the costs associated with procuring the rights to the TDP.

(6) There are no unusual patterns

(7) There are no significant changes.

(1) Contract Number: W15QKN-05-C-0689

(2) Competitive Status: Full and Open Competition

(3) Authority: Not applicable

(4) Not applicable

(5) Previous Competition: Not applicable

(6) Not applicable.

(7) There are no significant changes.

b. Other facts: Not applicable.

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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.

DSN:

Product Director Crew Served Weapons

Typed Name: Date: 12 April 2022

Title: Product Director Crew Served Weapons Signature:

12. Requirements 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: 12 April 2022

Title: Product Director Crew Served Weapons Signature:

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. All pricing has previously been established for the five-year period of performance of this contract. The fair and reasonable determination was made using price analysis. Pricing data was requested to include history of sales to non-governmental and governmental entities and cost data, on sales of these same items. The price analysis consisted of a comparison of proposed prices to historical prices paid for the same items as well as a comparison with published market prices; which were also compared against the Independent Government estimate. Certified cost or pricing will not be required per FAR 15.403(a)(b)(5) when modifying a contract or subcontract for commercial items.

Typed Name: Date: 25 May 2022

Title: Contracting Officer Signature:

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

Typed Name: Date: 25 May 2022

Title: Contracting Officer Signature:

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Approval

Based on the foregoing justification, I hereby approve the modification to increase the ceiling of Contract W15QKN-20-D-0044 by for the procurement of the M110 Semi- Automatic Sniper System variants along with associated accessories and spare parts on an other than full and open competition basis pursuant to the authority of 10 United States Code 3204(c)(1) as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(ii)(B), Only one responsible source and no other suppliers or services will satisfy agency requirements, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date: 27 June 2022 Advocate for Competition Army Contracting Command – New Jersey

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