J and A for SPRRA2 22 R 0050 REDACTED.pdf

CUI

Source Selection Information IAW See FAR 2.101 and 3.104

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

The Government proposes an award of a 5-Year Indefinite Delivery Requirements (IDR) contract, on a sole-source basis, allowing for acquisition of the items in a holistic and strategic manner, which gives PEOMS the flexibility to meet customers known and emerging requirements for the life of the contract. This action will result in the contract to be awarded in Fiscal year 2023.

The overall objective of this effort is to improve material support by providing a consistent long-term vehicle to support the need for multiple specialized warhead parts that increase accuracy for warfighters in the field, and maximize the efficiency and effectiveness of warfighter support by improving material support, resulting in increased availability of various weapon systems. This requirements contract will provide a one-stop-shop for all future PEOMS TAGM ATI HELLFIRE and JAGM Warhead requirements, which will shorten the acquisition timeline and enable the customer to meet the program schedule. Historically, PEOMS TAGM ATI has procured these items through Department of Defense (DoD) Ordinance Technology Consortium (DOTC) and Aviation and Missile Technology Consortium (AMTC) Other Transaction Authority (OTA) contracts as one-time buys. By consolidating all requirements into one larger contract, cost reductions will be achieved through a decrease in the number of contracts awarded and administered, an increase in availability and reliability of parts supported, and a reduction to the cost of material supplied.

This requirement is for multiple specialized HELLFIRE and JAGM warhead parts that enhance the performance (range, lethal effects, and/or sensor and guidance technology) of existing aviation launched and ground launched missile systems. These warhead parts are needed for improved system performance, extended range, decreased vulnerability, and enhanced lethality, against air, ground, and surface threats. The technical data for this requirement is owned by the Government.

These multiple warhead parts are considered prototypes with limited production quantities. The Government shall own the data rights for all integration in support of this effort. The system itself does not contain classified information, but the information, capability, and drawings will be sensitive in nature.

Requirements are generated by PEO Missiles and Space (PEOMS) Tactical Aviation and Ground Munitions (TAGM) Advanced Technology Integration (ATI) Program Office and will not include any Foreign Military Sales (FMS). This action will result in the award of an IDR contract to be awarded in Fiscal year 2023. General Dynamics warhead delivery production lead time is currently 12 months after award of contract action, in quantities of 30 per month, which is estimated for future orders. Accelerated delivery of these warhead parts would be preferable but is not expected.

The Government anticipates execution of this contract with General Dynamics OTS, Inc. with subsequent award of a FFP, IDR contract containing terms and conditions, to be awarded in Fiscal year 2023.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. §3204(a)(1), as implemented by FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

ABOVE

This will be a sole source procurement based upon the authority of 10 U.S.C. §3204(a)(1), as implemented by Federal Acquisition Regulation 6.302-1. General Dynamics OTS, Inc. has been determined to be the only source with the engineering and logistical expertise, capability, and technical data to manufacture and deliver the material, and provide the design that will satisfy requirements generated by DLA and TAGM ATI in support of customers worldwide.

These warheads parts are prototypes and have only been produced in limited quantities for special customers. They have historically been purchased through OTA contracts, via the DOTC and AMTC consortiums. Although award has been made in these consortiums to both General Dynamics and Dynetics, General Dynamics is the only company who has the institutional knowledge and capability to produce the complex warhead parts. Dynetics only produces a component of one of the warheads (the tantalum sleeve) and does not produce the complex warhead components. Every historical award for these prototypes has been made to General Dynamics, with the exception of one. That one award was made to Dynetics as a pass through. Dynetics only provided the sleeve, and General Dynamics did the bulk of the complex work on that contract. Dynetics will continue to produce the sleeve as a subcontractor to General Dynamics, who is doing the complex work for this requirement.

The technical data for this requirement is owned by the Government. Although the technical data itself is not classified, the information, capability and drawings are sensitive in nature. Increased exposure to the technical data by competing the requirement would create an adverse impact on United States Government. Although the funding for this requirement is provided via Headquarters of the Department of the Army and United States Special Operations Command (USSOCOM), the ultimate source of funding cannot be divulged. In addition, the customer for this requirement is classified and cannot be divulged. Due to the sensitive nature of the capability, funding, and customer, this requirement should be restricted to General Dynamics, as they have the experience producing these requirements and exposure to the technical data. Limiting this acquisition to General Dynamics will limit dissemination of sensitive information.

Through market research report provided by the customer (see attachment) and contracting activity, the contracting officer determined the only approved source is General Dynamics OTS, Inc., a large business, who is capable of providing the parts/services, and the intent is to use this FFP, IDR.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Sources Sought notice in accordance with DFARS PGI 206.302-1(d) was posted in SAM.gov Contract Opportunities on 9/12/2022, with no responses received by the closing date of 9/15/2022.

A Synopsis notice was posted in SAM.gov Contract Opportunities on 9/15/2022, with no responses received by the closing date of 9/30/2022. As a result, this requirement is sole source per FAR 6.302-1(a)(2).

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer has determined the anticipated cost to the Government of the supplies and services covered by this J&A will be fair and reasonable. General Dynamics OTS, Inc. will be required to provide certified cost or pricing data in accordance with FAR Part 15 for non-commercial items. A review of the proposed prices will be conducted where the Government will review General Dynamics OTS, Inc. cost data, to include proposed labor hours, types and quantities of material, historical material prices and other direct costs. Profit will be negotiated using the Weighted Guidelines Method. TAGM ATI project office will be doing the technical evaluation on this effort. The Government may work with and utilize Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) assistance for individual requirements for review and provision of cost analysis, as appropriate.

Should data other than certified cost or pricing data be utilized, the Government's negotiation objective will be developed using local technical analysis, negotiated direct and indirect rates, and profit using the Weighted Guidelines Method. Detailed documentation and justification of price reasonableness will be disclosed in the official price negotiation memorandum, as required, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

Market research report (see attached), as defined in FAR 10.001 was conducted. These are parts for a special prototype warhead that have been historically purchased through Other Transaction Authority contracts exclusively.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

As detailed herein, General Dynamics OTS, Inc. is the only known source with the engineering and logistical expertise, capability, and technical data to manufacture and deliver the services and supplies described.

Specialized Prototype warheads are not available on the commercial marketplace. Since these warheads are prototypes that have only been produced in limited quantities for a special customer, there are not similar/identical items that have been produced. Historically, the ATI-B office has purchased these warheads through DOTC and AMTC OTAs, and a DLA contract. On a previous OTA, Tantalum, a material used for spares for warheads, was bought by the Government based off of warhead specifications, to be used for spares in building warheads. Dynetics produces one component of the warheads (sleeve) out of the GFM tantalum and will be a subcontractor to General Dynamics, who have the specialized expertise for the complex warhead components.

General Dynamics is the company with the institutional knowledge on the precision processes involved in producing these warheads, and the only company who has actually produced the warheads.

In addition to being the only supplier to produce these advanced warheads for the government, General Dynamics manufacturing includes proprietary design and processes, and specialized equipment specific to the warheads. These proprietary processes and equipment include assembly methods, procedures for the various materials, the liner interface process, roving impregnation equipment and procedures, resin formulation, equipment used to control roving tension, software and equipment associated with the development and control of filament winding patterns, and programs used in the design and analysis of filament wound composite structures. A significant amount of work was conducted by General Dynamics to tailor these technologies and equipment for application to the warhead specific applications.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

As stated in previous paragraphs, a Sources Sought notice in accordance with DFARS PGI 206.302-1(d) was posted in SAM.gov Contract Opportunities on 9/12/2022 with no responses received.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES

Firms are encouraged to seek source approval in order to compete for future solicitations by accessing the website https://www.avmc.army.mil/Directorates/SRD/SAR and looking under Source Approval Requests/AMCOM Spare SAR guidance. Currently, there are no outstanding qualification requests on this item; however, this is a continuous method of identifying potential new sources of supply. These are spare parts procured with approved part numbers and are a military unique requirement not available in the commercial marketplace. It has been determined that the Government's needs cannot be met by an item in the commercial marketplace; therefore, FAR Part 12 will not be used.

Future requirements will be advertised in the SAM.gov in order to ensure that potential alternate sources are aware of the requirement and can identify interest in support for these items.

XII. CONTRACTING OFFICER S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidence that they have determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.

Attachments:

Identification of Requirements (IOR) Market Research Report