J and A - M772-M776 MTSQ Fuze - redacted.pdf

CUI

Controlled by: Army Controlled by: Army Contracting Command - Rock Island CUI Categories: Controlled Technical Information, General Procurement and Acquisition, General Proprietary Business Information, Source Selection Limited Limited Dissemination Control: FED ONLY POC: Sabrina L. Lowe, (309) 782-1598, sabrina.l.lowe.civ@army.mil

Control No. 21-138 Contractor: Junghans Microtec GmbH Supply: M772/M776 MTSQ Fuze Dollar Amount:

JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

(U) Supply: M772/M776 Mechanical Time Super Quick (MTSQ) Fuze

(U) Authority: 10 U.S.C. 2304(c)(1)

Prepared by:

Contracting Officer:

Technical:

Requirements:

George R. Lingris Contract Specialist george.r.lingris.civ@mail.mil

Sabrina L. Lowe Contracting Officer sabrina.l.lowe.civ@mail.mil

DSN: 793-3855

DSN: 793-1598

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

Deputy Project Manager:

Legal Advisor:

Competition Advocate: Stephanie M. James

Signature: ~~~tsrEPHANIE. ~ : z.:~~! i ,E.MARIE

BOOZER.12754J5321

BOOZER.1275435321 oatoc2022.02.1• 12:•2:2• -06'00'

DSN: 793-0493

Control No. 21-138 Contractor: Junghans Microtec GmbH Supply: M772/M776 MTSQ Fuze Dollar Amount:

Department of the Army Justification and Approval for Other than

Full and Open Competition

1. (U) Contracting Activity: U.S. Army Contracting Command -Rock Island (ACC-RI), Rock Island Arsenal, IL 61299-8000.

2. (U) Description of Action: The Office of the Project Manager Combat Ammunition Systems (PM CAS) requests a firm-fixed-price (FFP) contract with Junghans Microtec GmbH, Dunningen, Germany for the production of the M772/M776 MTSQ Fuze program. ACC-RI projects award . Procurement Appropriation for Army, Procurement of Ammunition, Navy and Marine Corps, and Foreign Military Sales (FMS) funds may be used for the requirements procured under this contract effort. In accordance with Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B), an Acquisition Plan is not required for this procurement.

Junghans Microtec GmbH (Junghans), the current producer of the Army's M772/M776 MTSQ Fuze requirements, was awarded contract W52P1 J-17-C-0052 in September 2017, with a period of performance that extends through 21 September 2022. ACC-RI awarded the contract on a sole source basis under the authority of Federal Acquisition Regulation (FAR) 6.302-1, as supported by justification and approval (J&A) 16-098.

That justification's paragraph 7, Actions to Increase Competition, stated:

"The U.S. Government plans to discuss the possibility of purchasing data rights from Junghans. Additionally, there is ongoing effort to develop an electronic timing option to the existing Improved Multi-Option Fuze for Mortars which could be applied to Smoke and Illumination Mortars. This potential opportunity will leverage existing government developmental effort, however it is not expected to be Type Classified until FY20."

The Government completed those actions, but was not able to increase competition for the upcoming buy. In November 2021, the U.S. Government contacted Junghans to assess its' interest in selling the technical data rights for the M772 and M776 MTSQ Fuzes. Junghans indicated it was not interested in selling the data rights because its shareholders prefer to retain key components and know-how exclusively within their business. The FY20 effort to develop an electronic timing fuze option for Smoke and Illumination Mortars did not meet the integration and security feature requirements needed for the new proximity sensor. In addition , program funding was not available to incorporate these needed capabilities (i.e., timing) to develop and meet the required security features for this fuze sensor.

Market research has identified no potential additional sources. Therefore, awarding another sole source contract to Junghans is the only acquisition strategy available to the U.S. Government for purchasing the two required fuzes.

3. (U) Description of Supplies/Services: The M772 MTSQ Fuze, NSN: 1390-01-548- 0337, is used in production on the 81 mm M819 Red Phosphorous Smoke Mortar Cartridge, and the 81 mm M816/M853A 1 Illuminating Mortar Cartridges. The M776 MTSQ Fuze, NSN: 1390-01-560-1766, is used in production on the 60mm M721 /M767

Contractor: Junghans Microtec GmbH Supply: M772/M~ Dollar Amount: ----

Illuminating Mortar Cartridges, and the 120mm M930/M983 Illuminating Mortar Cartridges. The M772 and M776 are mechanical time fuzes with an additional impact mode, Point Detonating "PD" or safety "S" position, while also having the time setting to function within a range of 4 to 55 seconds. These fuzes are utilized by the Army, U.S. Marine Corps (USMC) and potential FMS customers for training and tactical operations. The required delivery date for the fuzes is

(CUI) The proposed acquisition will include a

The total contract quantity could exceed the total estimated quantity of- fuzes depending on unit prices offered, but the value of the contract will not exceed

. Additionally, PM CAS will structure this acquisition to allow ACC-RI to award quantities in any combination of the two configurations, as long as the value of the total quantity awarded does not exceed the total dollar value of the J&A.

The Joint Program Executive Officer, Armaments and Ammunition has been designated as the Single Manager for Conventional Ammunition Executor (SMCA) and is responsible for the management of this item for all of the Department of Defense and approved foreign military customers.

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

5. (U) Reason for Authority Cited: As described at FAR 6.302-1 (a)(2)(ii)(B), 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 unacceptable delays in fulfilling the agency's requirements.

a. (U) Other than full and open competition is necessary due to unavailability of a complete Technical Data Package (TDP) suitable for competitive solicitation of the M772/M776 MTSQ Fuzes. The current U.S. Government TDP dates back to 1986 when the U.S. Government worked with Junghans to convert its' DM93 mechanical fuze to a suitable use for Mortar Smoke and Illumination Cartridges

Contractor: Junghans Microtec GmbH Supply: M772JM~

CUI Dollar Amount: --due to issues with the XM768 fuze used at the time. The U.S. Government and Junghans agreed that Junghans would maintain technical rights and details of the mechanical timer and assemblies. The TOP contains only a top-level drawing, depicting the final assembly, fuze height, and thread size, to convert interface dimensions from German to U.S. Government ammunition specifications. Junghans, the original developer and sole producer of these fuzes, owns the complete proprietary TOP necessary to fabricate and assemble the M772/M776 MTSQ Fuze, and possesses unique manufacturing capabilities that make it the only source capable of fulfill ing the fuze requirement.

b. (CUI) Based on recent market research conducted in February 2021, and an industrial base assessment by Project Director for Joint Services, JPEO A&A, in July 2021, there are no known U.S. companies with the necessary facilities, automated assembly equipment, machining centers, plating and heat treating equipment, and die cast equipment to produce the M772/M776 MTSQ Fuze in accordance with the TOP. Successful production requires the highest level of competence due to state-of-the-art technology contained within the fuzes that requires specialized skills in precision mechanics, mechanical fuzes, and fuze components, including (micro-mechanical) sub-assemblies. Both the M772 and M776 fuzes contain unique elements such as the impact device, time setting device, clockwork, safety device, and firing train. These unique elements require the full range of modern metal working machines such as milling , turning, stamping, gearing, burnishing, polishing, heat treatment, and wire eroding. All internal specialized key components are produced or provided via Junghans in-house supply chain or through its' subcontractors. Inspection and test equipment for all phases of production are required and include 3-0 measuring machines, optical measuring equipment, gauges, special test equipment for fuze function during assembly, and the ability to conduct environmental tests for lot acceptance testing in accordance with the M772/M776 fuze specifications.

Contractor: Junghans Microtec GmbH Supply: M772/M776 MTSQ Fuze Dollar Amount: -

6. (U) Efforts to Obtain Competition: ACC-RI shall publish the notices required by FAR 5.201. As this action is a sole source action, effective competition is not applicable.

There is limited subcontracting competition anticipated for the M772/M776 MTSQ Fuze, and FAR Clause 52.244.5, Competition in Subcontracting will be incorporated into the M772/M776 MTSQ Fuze contract.

7. (U) Actions to Increase Competition: PM CAS is working with U.S. Army Combat Capabilities Development Command to test and evaluate the K568 Electronic Timing Fuze from South Korea, which could be a viable alternative for the M772/M776 MTSQ Fuze for the Smoke and Illumination Mortars. This potential opportunity will leverage the existing K568 Fuze produced by Hanwha Corporation located in Seoul, South Korea;

however, the validation of the manufacturer's performance claims and reliability of the K568 Fuze when used on the U.S. Smoke and Illumination Mortars cannot be achieved until after ballistic firing, which is not expected until calendar year 2023. A Limited User Assessment (LUA) to gather Warfighter feedback was performed at various times throughout 2021 to support the full-scale comparative testing for the K568 Fuze. Final user assessments notes on 28 October 2021, indicated the K568 is an improvement in terms of ease for time-setting, improved safety and duration. However, there are still additional improvements needed,

8. (U) Market Research: A Sources Sought Notice W52P1 J-22-R-MTSQ was published on beta.SAM.gov on 17 February 2021, to identify potential sources capable of manufacturing the M772/M776 MTSQ Fuze. Junghans was the sole response to this sources sought notice:

Contractor: Junghans Microtec GmbH Supply: M772/M776 MTSQ Fuze Dollar Amount:

Junghans is located in Dunnigen-Seedorf, Baden Wurttemberg, Germany and manufactures mechanical and electronic fuzes on a production surface of approximately 15,000 sqm. The high capacity state-of-the-art production facility has full range manufacturing machines that enable flexible manufacturing processes along with in house fuze testing and an energetic materials test center. It includes a full and modern range of metalworking machines used for milling, turning, stamping, gearing, burnishing, polishing, heat treatment, wire eroding, as well as metal and plastic injection molding.

Junghans' dedicated tool shop has manufacturing specialist precision machines that stay current with die tooling, along with injection molding tools. The production manufacturing process allows for a highly automated, modern and efficient mass production of components leading to the partly automated fuze assembly (including energetic materials) and packaging lines. Junghans possesses in-house inspection and test equipment for all phases of production to include 3-D measuring machines, optical measuring equipment, gauges, and special test equipment for fuze functions during assembly.

Junghans has been in the business of production for both the M772 and M776 Mortar fuzes for the U.S. Department of Defense since the 1980s. Since 2005, it has produced and supplie . In addition, Junghans has been in series production and, in most cases, continuous manufacturing of various wide-range of Artillery and Mortar fuzes. These fuzes include Multi-Option, and Electronic Time fuzes for Artillery, such as L 166A 1 and L 163A 1 , and Point Detonating and Mechanical Time Fuzes for Mortars, such as L 171 A2 and DM93, for the United Kingdom Armed Forces and other North Atlantic Treaty Organization customers.

9. (U) Interested Sources: To date, no other sources have expressed a written interest in the acquisition.

10. (U) Other Factors:

a. (U) Procurement History:

Contract: W52P1 J-17-C-0052 Contractor: Junghans Microtec GmbH Award Date: 22 September 2017 Competitive Status: Non-Competitive, J&A 16-098 Authority: FAR 6.302-1

Contract: LG-UJ/4600002293 Contractor: Junghans Feinwerktechnik Microtec GmBH Award Date: 20 July 2012

Control No. 21-138 Contractor: Junghans Microtec GmbH Supply: M772~ Dollar Amount: ----

Competitive Status: Non-Competitive, control number unknown Authority: Unknown

Contract: W52P1 J-05-C-0018 Contractor: Junghans Feinwerktechnik Microtec GmBH Award Date: 03 March 2005 Competitive Status: Non-Competitive, control number unknown Authority: Unknown

Contract: DAAE30-99-C-1101 Contractor: Junghans Feinwerktechnik Microtec GmBH Award Date: 3 September 1999 Competitive Status: Non-Competitive, control number unknown Authority: Unknown

Contractor: Junghans Microtec GmbH Supply: M772/M776 MTSQ Fuze Dollar Amount:

11. (U) 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 bel ief.

12. (U) Requirements Certification: I certify that the supporting data, under my cognizance, that are included in th is justification are accurate and complete to the best of my knowledge and belief.

13. (U) Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the U.S. Government for th is contract action will be fair and reasonable. Certified cost or price data will be required in accordance with FAR 15.404 and cost analysis will be utilized in accordance with FAR 15.404-1(c) resulting in the negotiation of a fair and reasonable price.

Date: 2/8/22

LOWE.SABRIN Digitallyslgnodby LOWE.SABRINA.L.12648a2997

A.L.1264882997 Dale:2022.02.0611:21:57-06-00-

Sabrina L. Lowe Contracting Officer

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

LQWE.SABRIN Digitallysignodby

Date:

LDWE.SABRINA.L. 1264a82997 2/8/22 A.L. 1264882997 Dale 2022.02.081122:20 -06'00'

CUI

Sabrina L. Lowe Contracting Officer

Approval

Control No. 21-138 Contractor: Junghans Microtec GmbH Supply: M77~ Dollar Amount:--

Based on the foregoing justification, I hereby approve the procurement of the M772/M776 MTSQ Fuze on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1 ), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.