JA M72 LAW signed 17 Mar 2020 Redacted_20Dec2021.pdf

Control No:

FOR OFFICIAL USE ONLY

Justification and Approval for Other than Full and Open Competition

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

2. Description of Action: The Office of the Project Manager Close Combat Systems (PM CCS) requests approval to award a new five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract with Firm Fixed Price Delivery Orders. It is anticipated that delivery orders issued under this contract will utilize Procurement Ammunition Army and Procurement Ammunition funds from the United States Marine Corps (USMC). In the event that Foreign Military Sales (FMS) requirements arise, FMS funds will be utilized. Requirements from other services will utilize Procurement of Ammunition funds from that service.

3. Description of Supplies/Services: This acquisition is for the Full Rate Production of the M72 Light Assault Weapon (LAW) and components for the Shoulder Launched Munition (SLM) Training Systems. The M72 LAW is a 66mm man-portable, lightweight, Dependent on the M72 he M72A7 LAW with Graze Fuze Function and Night Vision

Device (NVD) Mount, M72A9 LAW Anti-Structure Munition (ASM), M72E8 LAW Fire from Enclosure (FFE) and NVD Mount, M72E10 LAW FFE ASM and NVD Mount, M72AS Trainer Launcher, M72AS 21mm Trainer Rocket, M72AS 21mm Sub-caliber Inert Trainer Rocket and Components for SLM Training Systems will be included in this contract action. For the duration of this document, the group of aforementioned items being acquired in support of this effort will be referred to as the M72 LAW and its variants.

The proposed IDIQ contract will contain five, one-year ordering periods. The maximum ceiling amount for this contract is for the combined five-year period. The minimum order guarantee will be provided on the first delivery order issued at the time of contract award. Anticipated award date is Table one identifies the totals based on the additional headspace for Potential Unfunded Requirements (Other Service, Other Service Supplemental, Congressional Plus-Ups, Army Urgent Requirements, Components for SLM Training Systems and FMS sales).

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

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Control No: CAO-20-0053

TABLE ONE:

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4. Authority Cited: Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(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)(ii)(B), when the supplies or services required by the agency are available from only 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. 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. The proposed contractor for this action is Nammo Defense Systems (NDS), formerly known as Nammo Talley, Inc. (NTI) Mesa, AZ 85215.

The M72 LAW and its variants is an . NDS designs and owns all of the intellectual property for the M72 LAW and its variants. NDS is the sole producer of the M72 LAW and its variants, as well as its major components, sub-systems, spare and repair parts. Therefore, they are the only source currently capable of meeting the Government’s requirement for continued production. NDS has the equipment, tooling and facilities to fabricate the M72 LAW and its variants and has proven that it meets both the knowledge and the technical capability required to meet the Government’s requirements. NDS has qualified technical personnel such as quality engineers, process engineers, manufacturing engineers, technicians, and inspectors to ensure production control. Personnel and facilities are already in place for the production of the M72 LAW and its variants. Recent market research indicates that an alternate system that would satisfy the current requirement does not currently exist. NDS owns all the intellectual property for the M72 LAW and its variants, so the Government would be required to develop and design a new system to satisfy the requirement.

A full and open competition acquisition approach for the M72 LAW would require

, which includes the time it would take for the initial decision to proceed with the replacement effort until the first delivery to a depot. Alternatively, a sole source award to NDS for the M72 LAW would only require , which is composed of to develop and award a sole source contract plus an additional from contract award to the first delivery to depot. Therefore, should award be made to any source other than NDS, assuming a similar configuration(s) was discovered, a delay of approximately would be incurred for the M72 LAW replacement effort. This delay is unacceptable as the delivery of requirements supported by this justification are projected for The will adversely impact mission readiness.

Table 2 below compares the time to complete the proposed source task description and a competitive award using full and open competition.

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TABLE TWO:

M72 LAW Sole Source (SS) versus Full & Open Competition (F&OC)

Task Description Duration

(SS)

Duration (F&OC) Delay

Solicitation and Award Lead Time for Initial Test Hardware Delivery Baseline Safety & Performance Testing Analyze Results of Initial Testing System Qualification Hardware Production and Testing

Completion of Required Reports and Documentation for Milestone C / Type Classification Standard Approval

Lead time of Initial Production and Delivery Total

Solicitation and Award The Project Management Office would take approximately for the requiring activity to complete preparation of the procurement package and an additional to execute an award to procure initial test hardware.

Lead Time for Initial Test Hardware Delivery Lead time for ordering initial testing hardware is approximately from time of contract award based on actual contractor lead times for the 84mm Anti-Tank & Bunker Defeat Munition (BDM) SLM programs.

Baseline Safety & Performance Testing Baseline Safety and Performance Testing for multiple components is expected to take approximately . Baseline Safety and Performance Testing consists of a series of tests to establish if the system meets the safety and performance criteria as identified by the user. Successful results would lead to the procurement of additional systems for the balance of the acquisition test programs to fulfill test requirements. These tests establish a performance baseline to support qualification efforts and reduce risk prior to low-rate initial production

Analyze Results of Initial Testing After baseline performance test completion, are required to review the data, prepare documentation, and provide a system evaluation report to the program office.

System Qualification Hardware Production and Testing Final Testing Qualification Hardware would be ordered and produced over a cumulative period of . Final qualification test hardware will be subject to all of the Army Test and Evaluation Command requirements to support a safety and performance evaluation of the system. These systems are in various configurations from fully inert to fully tactical in order to address specific test requirements as determined by the approved qualification test plan.

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Documentation for Milestone C / Type Classification The Project Management Office would require an additional after all testing is successfully completed to prepare and submit both regulatory and statutory documents required for Milestone C and Type Classification.

Lead time of Initial Production and Delivery Upon successful type classification, it is expected that the Government will spend an estimated of Engineering Support for Initial Production Requirement (e.g.

oversight of production, quality, and delivery issues, and failure analysis of contractor efforts to ensure products are acceptable and meets Government requirements).

As outlined above, the development of an alternative procurement method leading to full and open competition would lead to unacceptable delays in the Government’s requirement.

As such, at this time, it is in the Government’s best interest to pursue a sole-source award to NDS for the M72 LAW and its variants.

If the Government is unable to obtain deliveries by

The M72

LAW and its variants provide greater mission flexibility on the battlefield by allowing the user

These estimates are based upon engineering expertise and experience with the manufacturing, testing, and certification of similar shoulder launched munitions.

6. Efforts to Obtain Competition:

a. Effective Competition: Effective competition is not anticipated for this effort. The notice required by FAR 5.201 shall be posted and any bids or proposals received shall be considered.

b. Subcontracting Competition: The Government intends to ensure the awardee obtain subcontracting competition to the maximum extent possible. All appropriate clauses to include, FAR 52.219-8 “Utilization of Small Business Concerns”, FAR 52.219-9

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“Small Business Subcontracting Plan”, and FAR 52.244-5 “Competition in Subcontracting” will be included in the resultant contract.

7. Actions to Increase Competition: In order to increase competition for future requirements, the Government will continue to seek sources capable of producing new or improved Shoulder Fired Munitions which meet Warfighter requirements. The Government will continue to solicit industry by conducting market research in the form of surveys posted on beta.SAM.gov, attending ammunition conferences and having open communication with ammunition suppliers on their capabilities to produce this type of requirement to foster competition in the future. If future requirements arise, full and open competition procedures will be used to the greatest extent possible.

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-19-X- 04M5 was posted to Federal Business Opportunities (FBO) on 4 December 2018 and sources source notice W15QKN-19-X-07GD was posted to FBO on 19 July 2019 and the results are detailed below.

NDS, 4051 North Higley Road, Mesa AZ 85215 is the only firm that responded to the sources sought notices and meets all requirements for the M72 LAW and its variants.

NDS is the qualified U.S. Army manufacturer, as well as the designer and sole owner of all the intellectual property for the M72 LAW and its variants. NDS’s response to the source sought notices n addition this is also substantiated by NDS’s past contract history of development and production of the M72 LAW and its variants. NDS provided

Additionally, PM CCS continually researches SLM industry capabilities through:

attendance at Government/Industry conferences such as Association of the United States Army, monitoring innovative SLM prototype munitions and capabilities developed under the Defense Ordnance Technology Consortium, and utilizing Government resources (Subject Matter Expert personnel and facilities) within the Army Combat Capabilities Development Command Armaments Center in the research and design of new SLM capabilities based on their intimate knowledge of industry capabilities.

Currently, other than NDS, no new sources have been identified through the aforementioned forms of market research.

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

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10. Other Facts:

a. Procurement History:

(1) Contract No: W15QKN-14-D-0086, Awarded: 24 September 2014

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

(3) Authority previously cited: FAR 6.302-1(a)(2)(ii)(B) and FAR 6.302-3(b)(iv)(B)

(4) Summary of the contents of paragraph 7: NTI owns the intellectual property for the M72 LAW and its variants which prohibits the Government from competing the design.

The Government requested a ROM for GPR to assess the benefit and economic feasibility of procuring these items. As described in paragraph five and seven, the ROM was so significantly high that a cost benefit analysis was not performed. In addition, although the Government has considered the development of a performance specification, it has been determined that a performance specification is not appropriate for this item because any other product meeting the requirements would necessitate qualification testing, increase technical risk and result in unacceptable schedule delays as detailed in paragraph five and incur additional costs to the Government.

(5) If prior contract for this requirement was accomplished using Full and Open Competition, provide explanation of the changed circumstances: Not applicable as full and open competition was not utilized.

(6) No unusual patterns have been identified through previous procurements.

(7) Circumstances Justifying Previous Procurement: Market Research indicated that NDS was the only contractor to exist that was capable of performing this effort. A sole source was required in order to avoid unacceptable delays in fulfilling the Government’s requirements. There have been no changes as NDS is the only non-foreign supplier of the M72 LAW system; the M72 is their proprietary product. In addition, the following items were restricted to the National Technology and Industrial Base (NTIB)

(1) Contract No: M67854-09-D-1062, Awarded: 26 June 2009

(3) Authority previously cited: FAR 6.302-1

(4) Summary of the contents of paragraph 7: The contract was awarded by the USMC and the contract file to include the J&A is not available.

(5) If prior contract for this requirement was accomplished using Full and Open Competition, provide explanation of the changed circumstances: Not applicable as full and open competition was not utilized.

(6) No unusual patterns have been identified through previous procurements.

(7) Circumstances Justifying Previous Procurement: The contract was awarded by the USMC and the contract file to include the J&A is not available.

(1) Contract No: N000164-08-D-JN03, Awarded: 25 September 2008

(3) Authority previously cited: FAR 6.302-1

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Control No: CAO-20-0053

(4) Summary of the contents of paragraph 7: The contract was awarded by Crane Navy and they contract file to include the J&A is not available.

(5) If prior contract for this requirement was accomplished using Full and Open Competition, provide explanation of the changed circumstances: Not applicable as full and open competition was not utilized.

(6) No unusual patterns have been identified through previous procurements.

(7) Circumstances Justifying Previous Procurement: The contract was awarded by the USMC and the contract file to include the J&A is not available.

b. Other Facts: Secondary Authority: Title 10 U.S.C. Section 2304(c)(3), as implemented by FAR 6.302-3, Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services, for the following components:

In accordance with FAR 6.302-3(a)(2)(i), full and open competition need not be provided for when it is necessary to award the contract to a particular source or sources in order to maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization.

A Section 806 Analysis was completed on 26 August 2019 for the M72 LAW and Components for SLM Training Systems. The assessment evaluated the items to be procured and the proposed Acquisition Strategy for the program against the SMCA Section 806 Watch List Items. Based on the assessment, this procurement presents an overall low risk to the NTIB

Additionally, NDS owns the intellectual property for the item configuration; therefore, the Government has little leverage in requiring NDS to change sources or to establish new NTIB sources.

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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.

12. Requirements Certification: I certify ance, which are included in the justification are accurate and complete to the best of my knowledge and belief.

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. The resulting proposal will be subjected to a formal technical evaluation, costs analysis and comparison to the Independent Government Estimate to determine that the anticipated costs are fair and reasonable. Certified Cost or Pricing Data is required and will be obtained IAW FAR 15.403-4.

Typed Name: Date:

Title: Contracting Officer Signa

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

Typed Name: Date: 21

Title: Contracting Officer Signatur

Typed Name: J Title: Project M

Name:

Title: Project Manager, Close Combat Systems

Typed Name:

Title: Project Manager, Close Combat Systems

OR RE

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