J-11-031 MAAWS Redacted.pdf

FOR OFFICIAL USE ONLY

United States Special Operations Command (USSOCOM)

Justification and Approval (J&A) for

Multi-Purpose Anti-Armor Anti-Personne!

Weapon System

(MAAWS)

July 2011

FOR OFFICIAL USE ONLY - J&A No.J-11-031

FOR OFFICIAL USE ONLY .

Justification for Other Than Full and Open Competition (J&A) .

Component/PEO/Other: PEO-SOF Warrior.

Obtained from Office

LogorKA

Project/Program Name: Multi-Role Anti-Armor Anti-Personnel Weapon J&~ No.

System (MAAWS).

J-1'1-031.

Estimated Contract Cost (including options): $187M.

Type J&A: (Individual [glor Class O)

1. A encyand ContractingActivity: (FAR 6.303-2(a)(1»

Program Office:

ARDEC

Shoulder Launched Munitions Branch, RDAR-MEM-L

Bldg 65 South Picatinny Arsenal, NJ 07806

Contracting Office:

USSOCOM

Special Operations Research Development & Acquisition Center (SORDAC)-KR 7701 Tampa Point Blvd MacDili AFB, FL 33621-5352

2. Descriptionof Action: (FAR 6.303-2(a)(2))

a. This Justification and Approval (J&A) is for a new five (5) year Indefinite-Delivery- Indefinite Quantity contract (IDIQ) to purchase required quantities of the Multi-Role Anti- Armor Anti-Personnel Weapon System (MAAWS)/Adaptors, 84mm Ammunition and Sub-caliber Training Ammunition from Saab Bofors Dynamics. The Period of Performance will be FY12-16.

b. The nature of this contractual action is production. The type of funds being used is Major Force Program (MFP11) - Procurement funds will be used the entire 5 year life of the contract.

Program Executive Officer, Special Programs, approved ng ment Plan 03. The SAMP was revised and signed on 21 Sept 2005 by TACOM-ARDEC Acquisition Center concurred with the The SAMP was revised again in 2010 and was approved by Program Executive Officer, SOF Warrior S stems.

3. Description of Su lies/Services: (FAR 6.303-2(a)(3»

This action is for the procurement of production quantities of Saab Dynamics M~~Carl Gustaf 84mm weapons, ammunition, and training systems as part of the Multi-Role Anti- Armor Anti-Personnel Weapon System (MAAWS). This effort supports a U.S. Special Operations Command (USSOCOM) joint service requirement for the MAAWS. MAAWS is used by the U.S. Army Rangers, U.S. Navy SEALS and U.S. Special Forces Command. The weapon items procured will be utilized for sustainment of the Saab Dynamics M3 Carl Gustaf Rifles currently fielded and replacement of weapons that have reached the end of their service life. The ammunition being procured under this effort will replenish operation and training ammunition stocks. Subcaliber adapters will be used for cost effective familiarization and marksmanship training. The Saab Dynamics M3 Carl Gustafis a shoulder-fired, lightweight, reusable, one-man less rifle m. The of ammunition described below

Weapon:

84mm Recoilless Carl Gustaf Gun (Saab Bofors Dynamics M3)

NATO NSN = 1015-01-314-1770

Complete with gun and the following accessories:

F1303-007830 = Bag #1, packed. marked F1303-007850 = Bag #2, packed, marked Bipod Sight, Saab Bofors Dynamics 556H3

FFV Sub-caliber Adapter (Saab Bofors Dynamics 553B)

NATO NSN = 1005-01-319-8997

Complete with the following accessories:

F1312-190460 = Wallet with contents F1312-360670 = Twin container, marked Saab Bofors Dynamics version w/label

Ammunition (Complete, packaged and packed for transport):

84mm HEAT Round (HEAT 551C RS)

NATO NSN= 1315-01-468-8838

84mm Anti-Structure Munition (ASM 509)

NATO NSN = 1315-01-528-1013

84mm Multi-Target (MT 756)

NATO NSN = 1315-01-558-1791

FOR OFFIC1AL USE ONLY

84mm High Explosive Round (HE 441D RS)

NATO NSN = 1315-01-492-9747

84mm High Explosive Dual Purpose Round (HEDP 502 RS)

NATO NSN=1315-01-468-8840

84mm Target Practice Round (TP 552)

NATO NSN = 1315-21-885-5294

84mm Illumination Round (ILLUM 545C)

NATO NSN = 1315-01-519-3136

84mm Smoke Round (SMOKE 469B)

NATO NSN = 1315-25-114-5323

84mm Smoke Round (SMOKE 469C)

NATO NSN = TBD

84mm Target Practicerrraining Round (TPT 141)

NATO NSN=1315-17-042-1449

84mm Area Deterrent Munition (ADM 401)

NATO NSN=1315-01-476-1057

84mm Area Deterrent Munition (ADM 401B)

NATO NSN=1315-01-546-3332

7.62mm Subcaliber Tracer Round (Saab Bofors Dynamics 553) w/back blast simulator charge (Saab Bofors Dynamics 5538) and cap with holder (Saab Bofors Dynamics 553B)

a. Tracer NATO NSN 1305-01-379-1539

b. Backblast Sim NATO NSN 1370-01-379-3617

c. Primer NATO NSN 1370-01-379-1540

Quantities for FY12 thru FY16 are summarized in the following table:

Note: MFP-11 Procurement funds will be used

ITEMS FV12 FY13 FV14 FV15 FV16 TOTAL

WEAPONS AND QUANTITY 24 24 24 24 24 120

ADAPTERS FUNDING (K) $600 $618 $636 $656 $675 $2,912

84mmAMMO

QUANTITY 12,000 10,800 12,300 14,300 24,300 73,700

FUNDING (K) $24,310 $26,028 $35,830 $37,337 $41,036 $164,814

TOTAL

FUNDING (K) $24,910 $26,646 $36,466 $37,993 $41,711 $,167,726

4. Authority Cited: (FAR6.303-2{a)(4)) tZI 10 U.S.C 2304(c)(1). Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requtrements, as implemented by FAR 6.302-1.

5. Reason for Authority Cited: (FAR6.303-2{a)(5» The authority of FAR 6.302-1 (a)(2)(ii)(A) and (B) applies when the agency's need for the 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 (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition or (8) Unacceptable delays in fulfilling the agency requirement.

In addition, the Saab Bofors Dynamics (SBD) Carl Gustaf gun and ammunition were determined to be the only current NDI system which could meet the operational requirements as stated in the Joint Operational Requirements Document (JORD) for MAAWS as prepared by USSOCOM. This determination was based on the results of a market survey conducted in 17 August 2010 using the MAAWS USSOCOM criteria, as SBO was the only respondent to the market survey that met the requirements. The JORO states that the weapon system and tactical ammunition load must be portable by an individual soldier, sailor, or airman. The weapon must be a line-of-sight, reloadable, salt water submersible, jumpable, and recoilless, day/night, anti-armor and anti-personnel weapon system which includes a family of fuzed fixed cartridge munitions nrr"",,,nn Obscuration Illumination in the visible r ht IR must accept a or training device without system modification. Award to any other source is not practicable, as demonstrated below.

MAAWS is a Non-Developmental Item (NOI) for which the Government does not own data rights. SAAB developed and owns the data rights. The MAAWS cannot be procured competitively utilizing a technical data package. According to the contractor, data rights for the system are estimated to be approximately $16M. This estimate does not include some subcontractors involved that have unique capabilities that would have to be licensed as well. Addition of the data rights of the subcontractors would bring the total for purchasing data rights to the system to well over $1QM. This estimate was a verbal estimate given by the contractor. The Government did not choose to pursue purchase of the data rights at the program's inception due not only to the cost of the ri hts themselves, but also the high cost, high risk and schedule delay to start up and o Cost Risk: Currently the Government does not own the data rights for the MAAWS weapon system and ammunition. The purchase of the maintain manufacture and production in the US. At this time, with a current delivery scheduled for December 2011 and future acquisitions planned from FY12-FY16, the cost/risk of moving production, plus the added delay to take delivery of the hardware (>3 years) is unacceptable.

An alternative that the Government could pursue is to obtain a complete replacement system. However, this alternative is not only expensive, according to the results of the market survey performed; there are no other NDI candidatesthat meet the requirements.

If an alternative solution did exist, the new configuration would require safety/production certification since the components (barrel, fuzing, etc.) would not have been tested previously by the U.S. Government. This qualification is required for all new weapons and ammunition and consists of a full test program which proves compliance with all standards of the Developmental Test Command, Operation Test Command, Army Fuze Safety Review Board, the Navy Weapons System Explosives Safety Review Board and the Joint System Safety Review Board. The cost of this re-certification is roughly $4M- $SM for the weapon and an additional $15M-$20M for the family of ammunition. These values are based on what the actual cost of certifying the MAAWS system in current dollars as well as by the known costs of other shoulder fired weapon system qualifications such as AT4, AT4CS, and BDM. These duplicated certification costs would not be recovered through competition, because they would have to be completed for every new configuration that was selected.

A streamlined acquisition process will require a minimum of three years. The first 12 months for testing followed by 12 months for compilation of data and processing for safety and production approvals. This is followed by 12 months for production. The current procurement process for USSOCOM is that every year ammunition orders are placed to replace what was consumed the previous year, which maintains a war reserve quantity in inventory. The additional delay for qualification of a new solution would deplete these war-stocks. Therefore, this delay is unacceptable to USSOCOM users, who require the ammunition expeditiously to avoid injury and loss of life. The above estimates are based upon engineering expertise and experience with similar weapon systems.

Analysis of Alternatives:

The following alternative(s) was/were considered:

- Alternative: Full and Open Competition:

data rights has an estimated value of $12M, which does not include any of the following necessary elements: licensing of the subcontractors, re-certification of the weapon and ammunition, which would have an estimated cost of an additional, $4M-5M forthe weapon and $15-20M for the ammunition. This level of cost risk would not be mitigated through competition because every new configuration would require a separate certification.

o Schedule Risk: The next scheduled delivery is December 2011. For a new contractor to setup production and move through the certification process, it is estimated to take 3 years, therefore pushing the future delivery of the item to December 2014. This Significant delivery delay constitutes an unacceptable level of schedule risk.

o Performance Risk: The Carl Gustaf Gun and Ammunition were determined to be the only current NDI system which could meet the operational requirements of the JORD which are stated on Page 5, Paragraph 5, Subparagraph 2. There are currently no other NDI systems which meet the user's performance and delivery requirements.

6. Efforts/Actions to Increase Competition: (FAR 6.303-2(a)(6» A notice was IZIor was not 0 publicized as required by FAR 5.202(a)(11).

a. As required by FAR 5.201, a solicitation notice will be published, with the appropriate rationale for Other Than Full and Open Competition. Responding firms will be evaluated and considered for potential competition.

b. Results of the Market Survey revealed that there presently are no other companies who possess a Non Developmental Item (NDI) weapon system that meets all the requirements of the performance specification. If this acquisition was to be competed, effective competition is not anticipated. Currently there are no further actions being taken to overcome the barriers to competition. This is due to the fact that there are no other sources of NDI systems that meet the user's performance and delivery requirements.

c. Due to the fact that there are no other sources of an available NDI system that meet the user's performance and delivery requirements, it is anticipated that there will be no further action to increase competition for this requirement Should the MAAWS Joint Operational Requirements Document (JORD) change and other than an NDI strategy used, competition will be used to the maximum extent practicable.

FOR OFFICIAL USE ONLY - J&A NO.JM11-031

7. Market Research: (FAR 6.303-2(a (8»

A Market Survey was published in the FEDBIZOPPS on August 17, 2010 (W15()KN-10- X-0368) seeking sources for man-portable shoulder launched munitions and systems capable of defeating multiple targets. Respondents were requested to describe in detail their Non Developmental Items (NDI) that would be able to meet the requirements of the user. They were instructed that the desired systems should include a single munition or a family of munitions with a re-usable launcher. This system should provide for the defeat of any combination of targets to include earth and timber bunkers, triple brick walls, reinforced concrete walls, advanced light armor, area targets, urban structures and personnel in the open or in protected positions. An additional requirement was the desired characteristic of being able to man fire the system from within enclosures.

Weight 8 Required Restrictions Sub Caliber Delivery Types of 22 lbs: weapon Training within 12 Munitions 101bs: ammo System Months

Yes

Yes Yes-Both Yes 3/8 Yes-Wea on Yes Yes 3/8 No No No

Vendor Saab Dynamics AB (Saab Bofors Dynamics)I _ I •

Three (3) companies responded to the Market Survey including Saab Bofors of Sweden.

Each company included their capabilities and the weapons and ammunition which they manufactured and which they felt most closely matched the requirements outlined in the Market Survey. When comparing the submittals of the three (3) respondents against the MAAWS requirements, only the Bofors Carl Gustav weapon system could satisfy all the requirements for a I htweight, reusable, multi-role shoulder fired weapon s~m. For system did not meet the multi-role requirement, •• not include a launcher, did not meet the multi-role requirement, a fielded training system nor did it have any ammunition that is currently qualified and in use by the U.S. military.

In addition to the Market Survey, searches were conducted on 21 September 2011 through the Technical Industrial Liaison Office (TILO) Database Support Tool and the SORDAC IDIQ listings to see if another source was available. The searches did 110t identify any other sources.

8. Interested Sources: (FAR 6.303-2(a)(10)&(11))

The three (3) companies which responded to the market survey are as follows:

- Saab Dynamics, Karlskoga, Sweden - 84 mm Carl Gustaf weapon system SE-691 80 Karlsko a, Sweden, The evaluation results of the Market Survey are outlined in paragraph 7 above. To date, no other potential sources have written to express interest. Should any other companies respond to the solicitation notice delineated in Section 6 above they will be evaluated and considered for at that time.

9.

Not Applicable.

NOTICE 1

Prior to approval, J&As will be screened to identify proprietary data and information exempted from disclosure by 5 U.S.C. 552, Freedom of Information Act, so that the final J&A may be prepared for required posting to FedBizOpps lAW Section 844 of NDM 2009 as implemented via OPAP Memo. Public Disclosure of Justification and Approval Documents for Noncompetitive Contracts, dated 13 February 2009. J&As shall be posted to FedBizOpps within 14 days unless 10 U.S.C 2304(c)(2), Unusual and Compelling Urgency is cited. In t/:"lat particular case the J&A will be posted within 30 days. Information selected for removal will be highlighted in yellow much like this statement so that

Ithr\nt"~"will know will be removed before

10. Technical and uirements Certification:

(This should be signed by a Requiring Activity Official (RAO) at a level commensurate with the ultimate approving authority:

a. If it does not require USSOCOM Competition Advocate General (CAG) approval, then an RAO commensurate with the Chief of the Contracting Office.)

b. If the CAG or Head of Contracting Activity (HCA) must approve, then the RAO must be an 0-6 or equivalent.

c. If the Acquisition Executive (AE) must approve, then the RAO must be at the level of Program Executive Officer, Director, Commander, Chief of Staff, or equivalent.)

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:

DATE: (f J Ui, {f

FOR OFFICIAL USE ONLY - J&A No. J-11-031

11. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. (Provide the basis for this determination, e.q., describe techniques to be used to determine fair and reasonable price, such as cost analysis, price analysis, audit, should cost independent Government estimate, etc. As part of this basis indicate whether certified cost or pricing data will be required or if one of the exceptions in FAR 15.403 will apply.)

CONTRACTING OFFICER SIGNATURE IN SECTION 12 BELOW ALSO SERVES AS

THE PRICE FAIR AND REASONABLENESS DETERMINATION IN THIS SECTION.

12. Contracting Officer Certification:

I hereby certify that this J&A is complete and accurate to the best of my know/edge and belief.

NAME: Contracting Officer

DATE: ZCJ«!p~//

: SOFARS 5601-113..

I have reviewed this document and find the J&A legally sufficient to support other than full and open competition:

NAME:

FOR OFFICIAL USE ONLY - J&A No. J-11~031

DATE: /c/? ell;,

14. Competition Advocate General Approval (CAG): (If over ComjPonenf Competition Advocate Approval Authority~[see SOFARS 56Q1f-1 for your component's approval authoritiesJ1 up to $12.5M. Note CAG must also above $12. SOFARS 5601-1

I have reviewed this document and find the J&A adequate to support other than full and open competition: '

NAME: TITLE: CAr;

FOR OFFICiAL USE ONLY

15. 2.5M to $8S.SM

Based upon the foregoing justification, I hereby approve the procurement of (state equipment/services being procured) in the estimated amount of (identify estimated total value of the contract action including options). The requirement will be released under solicitation (identify solicitation number) on an other than full and open competition basis. The action(s} pursuant to this J&A are subject to the availability of funds and the completion of all required statutory and regulatory reviews and approvals.

NAME:

DATE:

NOTICE 2

POST APPROVAL REOUIREMENT: lAW Section 844 of NDAA 2009 as implemented via DPAP Memo, Public Disclosure of Justffication and Approval Documents for Noncompetitive Contracts, dated 13 February 2009, this J&A will be posted to FedBiZOpps within 14 days unless 10 U.S.C 2304(c)(2), Unusual and Compelling Urgency is cited.

In that particular case the J&A will be posted within 30 days. Prior to posting. previously identified pro prieta data and infonnation exempted from disclosure by 5 U.S.C. 552, Freedom of Information Act, ~ha:has been :de:-::if:e:: lA":.

:\:;tice J via yeltow high;i;:;:;t'ng. will be removed in order to create a document1hat is no longer classified as "for official use only" and is thus, appropriate for public release. Redaction will be accomplished using a black marker on not

FOR OFFICIAL USE ONLY - J&A No. J-11-031!