CAO-23-0346 - PGK Production JA 23 October 2023 - REDACTED.pdf

This document is a Justification and Approval (J&A) for a procurement action to award a five-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract with Firm-Fixed-Price (FFP) delivery orders for production of the M1156 Precision Guidance Kit (PGK) and variants. The contracting activity is Army Contracting Command – New Jersey (ACC-NJ), acting on behalf of the Office of the Project Manager Combat Ammunition Systems (PM CAS). This action represents a follow-on to the existing contract W15QKN-13-C-0074 for continued PGK production.

The procurement is being conducted on a sole source basis under the authority of 10 U.S.C. Section 3204(a)(1), citing that the identified contractor is the only responsible source capable of meeting government requirements without substantial duplication of cost. The justification identifies market research conducted through a Sources Sought Notice (SSN W15QKN-22-0QTO) posted on SAM.gov on September 7, 2022, which determined that no other sources expressed written interest in the acquisition. The government conducted a technical assessment of the single response received and determined the contractor possesses the necessary technical experience, production capabilities, skills, equipment, and facilities to serve as a capable, low-risk PGK production source. The procurement includes subcontracting competition requirements and efforts to increase competition for future similar requirements through continued market research and component-level competition initiatives. Certified Cost and Pricing Data will be obtained to ensure fair and reasonable pricing, utilizing cost analysis, price analysis, audits, Independent Government Estimate, and historical pricing comparisons.