JA22-2134_FamilyOfScopes_Final Redacted.pdf

FOR OFFICIAL USE ONLY

United States Special Operations Command (USSOCOM)

Justification and Approval (J&A)

22-2134

Follow-On Family of Variable Power Scopes

20 May 2022

FOR OFFICIAL USE ONLY

J&A 22-2134

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

Authority: (10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1

Program Name: Follow-On Family of Day Scopes

Component/PEO/Other: PEO-SW Lethality Visual Augmentation Estimated Contract Cost (including options) : $17,674,500

Type J&A: (Individual or Class )

J&A No.

22-2134

1. Agency and Contracting Activity: (FAR 6.303-2(b)(1))

SOF AT&L – PEO Special Operations Forces (SOF) Warrior (SW) Systems, MacDill

AFB, FL 33621

2. Description of Action: (FAR 6.303-2(b)(2)) Bridge Action (Yes or No

This effort will result in a new contract being awarded to Lightforce USA, Inc. (holding company for Night Force Scopes) 336 Hazen Ln.

Orofino ID 83544-9616

This J&A is for supplies and sustainment/repair in support of the Family of Variable Power Scopes (VPS), and will fulfill the full operational capability (FOC) requirements for all USSOCOM components. The Family includes the Squad-Variable Power Scopes (S-VPS) SU-294/PVS, the Precision-Variable Power Scopes (P-VPS) SU- 295/PVS and SU-296/PVS. This effort is for the purchase of up to 3500 additional SU- 294/PVS Scopes (estimate $3401/scope=$11,903,500), 500 additional SU-295/PVS Scopes (estimate $4077/scope=$2,038,500), 750 additional SU-296/PVS Scopes (estimate $4470/scope=$3,352,500), spare parts, and replacements (estimate $50k for the first 5 years increasing by $10k each additional year for a total of $380k) to facilitate a shortened integration time to bring critical needed capability to meet operational requirements. This contract will utilize PROC and O&M funds. The PROC funds will be used to fulfill the BOI for MARSOC and NSW.

This is a follow on contract action. This effort is a continuance of competed contracts N00164-19-D-JQ31 and N00164-20-D-JQ57 respectively. This will be a five-year base contract with two, one-year options, for a total of seven years. The equipment in place has approximately seven to ten years left in its life cycle. This new contract will procure additional S-VPS and P-VPS systems and will sustain them for up to 7 years.

PM SOF Warrior Lethality has spoken significantly with Industry and does not anticipate a technological breakthrough of sufficient magnitude to make these scopes obsolete for at least another 5 years and additional time would be needed for testing and evaluation of a radical new product. Authority for contract length will be sought separately.

3. Description of Supplies/Services: (FAR 6.303-2(b)(3))

The S-VPS (SU-294/PVS) is a first focal plane (FFP) variable power 1-8x24mm scope with a T8 reticle. The system enables SOF operators to successfully engage targets 0-600 meters day-night (light caliber) rifle and machine gun engagements. The P-VPS are FFP variable power 5-25x56mm or 7-35x56mm long range sniper optics to provide the sniper the ability successfully engage targets 50-1500m. The devices are all used in theater by all SOCOM subordinate combat units for detection and risk assessment of insurgent threats to ground-based troops engaged in major combat operations, target engagement, irregular warfare, and military support of stability, security, transition, and reconstruction activities. These scopes are a critical requirement for the current operations. Currently, over 6000 SU-294/PVS devices, 130 SU-295/PVS, and 1500 SU-296/PVS are already deployed globally by multiple components of USSOCOM providing commonality of equipment across the command.

4. Authority Cited: 6.302-1(a)(2)(ii))

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

Lightforce USA, Incoporated (LF) is the original equipment manufacturer (OEM) for this equipment and all data associated with this equipment is proprietary. No other manufacturer produces an item that works exactly the same as these scopes. Any differences in optical performance, reticle type, mechanical performance, or ergonomics would neccesitate a significant training burden qualifying and re-qualifying operators on their equipment.

5. Reason for Authority Cited: (FAR 6.303-2(b)(5) and FAR 6.302-1(a)(2)(ii))

In FY19, LF was competitively awarded contract N00164-19-D-JQ31 for $21,172,435.00 five (5) year indefinite delivery indefinite quantity (IDIQ) with firm fixed price (FFP) delivery orders for the initial development purchase of Squad-Variable Power Scopes. In FY20, LF was competitively awarded a $53,735,930 five (5) year IDIQ for the P-VPS versions (a summary of this contract is explained in the 3rd paragraph of this section)

As mentioned before, Naval Surface Warfare Center Crane established a Night Force IDIQ contract (N00164-19-D-JQ31) in FY19 that procured scopes for Naval Special Warfare (NSW) and Air Force Special Operations Command (AFSOC). U.S Army Special Operations Command (USASOC) was not included in the JQ31 contract because they were invested into a different visual augmentation contract (N00164-18- D-JQ30). The JQ30 contract was delayed by a protest but USASOC still had a need for Night Force Scopes. Eventually, they were authorized to buy approximately 1600 of the scopes which used up much of the JQ31 ceiling. This left NSW and AFSOC short on their FOC numbers.

LF was also the vendor selected for the N00164-20-D-JQ57 FFP P-VPS contract.

While the current JQ57 contract ceiling is adequate, the shortened life of the contract will not provide out year support and sustainment which is required for the P-VPS.

Simply speaking, the JQ57 contract cannot support procurement of these scopes for an extended period of time nor the sustainment portion of this contract.

The Government is seeking to further procure these Night Force Scopes along with the required sustainment and repair services. These scopes have been in use by SOF for at least 10 years. These scopes are different from other variations (commercial) due to the SOF peculiar specifications in manufacturing and configuration; they are more durable due to the harsh environment that SOF operates in. All of these previous contracts mentioned were competitively awarded because of Night Force’s technical superiority. Procuring other similar products will result in duplication of acquisition, testing, fielding, and training costs, which will not be recovered through competition.

The total cost of conducting a source selection would be around $3M due to travel costs, testing and certification. A different scope would also require a significant logistics effort and retraining of the operators. The length of time to procure a different scope system would be at least 12-18 months followed with significant testing leading up to fielding and deployment release (12-24 months). This delay means that at least two years would be added to current schedule; it would cause catastrophic results for fielding and an unacceptable capabilities gap for our warfighters.

Training and re-training would be required for a different scope as this family of scopes provides an essential commonality of equipment and function across the commands.

This commonality allows ease of and effective use through extensive trained response to make the reactions instinctive. Attrition or non-availability of these units will result in degraded capability to Special Operations Forces with increased risk of mission failure, U.S. Forces casualties, and collateral damage (non-combatant casualties).

Further, Market Research shows that there are no real competitors in this market space as discussed/highlighted in section 7 below.

6. Efforts/Actions to Increase Competition: (FAR 6.303-2(b)(6) & (11))

In an effort to increase competition, the Contracting Office posted a Sources Sought notice on SAM.Gov to see if there were other manufacturers who could make a scope that was identical to the LF product. The notice was posted on 04 October 2021 and it expired on 04 November 2021.

USSOCOM could in theory procure the data rights to Night Force scopes in order to increase competition. However, this would be unpractical because the data rights would be too expensive. While these Night Force scopes are currently the best in the market, this may change in the future. The Government would have spent a large amount of funds on scopes that could in theory be phased out in 10 years. After 10 years or so, USSOCOM will more than likely compete for a new generation of scope.

At this point, any vendor will have the opportunity to propose on this new requirement.

A source selection will determine what scope will be used in USSOCOM.

In addition, members of USSOCOM (NSW Crane and Program Office) have participated in various industry tradeshows to include Shot Show, 2022 ISOF Range and SOFIC to investigate any alternatives to the Night Force scopes. Ultimately, no other vendor can satisfy USSOCOM’s requirements. The Market Research process is discussed in section 7 of this document.

7. Market Research: (FAR 6.303-2(b)(8)).

Representatives from NSW Crane maintain a close working relationship with industry throughout the world. This consistent interaction with industry facilitates continuous knowledge of the available technologies and manufacturing capabilities throughout the industry. This includes participating in industry tradeshows such as Shot Show and SOFIC. The most recent industry event that USSOCOM, NSW and Crane participated in is the 2022 ISOF Range event and 2022 SOFIC. These members conducted market research on the various scopes in the market. The Night Force scopes was still the dominant brand used by both SOF and firearms industry.

As mentioned before, a Sources Sought Notice was posted on SAM.Gov by the Contracting Office. In total, we received 4 white papers from various companies throughout the world. It did not yield any alternatives to the Night Force scopes. A summary of each submission is explained below:

Four (4) responses were received in response to the RFI:

Lightforce USA, Inc. Manufacturer

Sultan Erbil Company Foreign

Turkey Enterprises Company Foreign

Supply Core DLA Prime Vendor

Sultan Erbil Company (CAGE: SGFT0, DUNS: 559645461) is a foreign company located in Baghdad-Iraq. They submitted a flyer for a Chinese manufactured commercial scope that is not an acceptable replacement nor does it satisfy our requirements. Due to the company being foreign owned in Iraq, it’s subject to any policy restrictions that might be levied by that government which could result in problems importing/exporting equipment in support of certain missions.

A search of each Cage Code shows they were recently established on 4/29/19 with a 2 year SAM expiration date and shows they are a Non-Manufacturer and have the same POC and following info:

POC MUNTHER M. KAMEL

Phone 8728885401

International 096407824181065 Address ALEARASAT, HAYI BABIL STREET 929/2/28 City BAGHDAD Country IRAQ Zip/Postal 10003

Turkey Enterprises Company (CAGE: SKEH0, DUNS: 851779118 is a foreign company located in Baghdad-Iraq. They submitted a flyer for a Chinese manufactured commercial spotting scope that is not an acceptable replacement nor does it satisfy or address our requirements as we do not require a spotting scope. Due to the company being foreign owned in Iraq, it’s subject to any policy restrictions that might be levied by that government which could result in problems importing/exporting equipment in support of certain missions.

A search of each Cage Code shows they were recently established on 2/18/21 with a 1 year SAM expiration date and are a Non-Manufacturer and have the same POC and following info:

POC MUNTHER KAMIL

Phone 7832703268 International 09647832703268 Address ALKARKH BUILDING STREET 14 City BAGHDAD Country IRAQ Zip/Postal 00964 Corporate URL HTTPS://WWW.TURKEYENT.COM

Supply Core is a DLA prime vendor of various products, including ones similar but not equal to the products required. These scopes are different due to the SOF peculiar specifications in manufacturing and configuration; they are more durable due to the harsh environment that SOF operates in. However, DLA is only a pass through from the manufacturer and they would have no ability to repair, sustain, or improve the products. They generally attach a 10-20% profit to the price of the product they buy from the OEM. While DLA prime vendors such as Supply Core are a good resource for evaluation samples, they do not have manufacturing capability nor do they own the intellectual property (IP) to support and maintain the products they provide. Ultimately, Supply Core cannot provide the scopes and the sustainment/repair services needed by USSOCOM.

Lightforce USA, Inc. LF is the OEM for this equipment and all data associated with this equipment is proprietary. There are no authorized suppliers, dealers, or distributors that can provide sustainment and repairs. These items are only produced and maintained by one manufacturer, LF.

Finally, a Notice of Intent was posted on SAM.Gov for a total of 10 days. The Notice of Intent explained that this IDIQ would be a Sole Source to LF for the reasons stated in section 5 of this document. It did not yield any responses whatsoever. USSOCOM has taken every opportunity to increase competition and to thoroughly research any alternatives.

8. Other Authorities/Factors: (FAR 6.303-2(b)(9))

LF has proprietary rights to these systems. They used Independent Research and Development (IR&D) money to fund the development of these scopes and are highly sought after in the commercial market. These rights extend to critical components of the system including the windage and elevation turret adjusters, processes, and reticle. No other company produces a product exactly like LF, has the rights to the Intellectual Property (IP) for this product and has the capability to provide maintenance and sustainment services for these specific systems. If the system breaks, LF is the only company that can fix/replace these scopes.

9. Interested Sources: (FAR 6.303-2(b)(10))

Lightforce USA, Incorporated

Sultan Erbil Company

Turkey Enterprises Company

Supply Core

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 IAW Section 844 of NDAA 2009 as implemented via DPAP 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 that particular case the J&A will be posted within 30 days

10. Technical and Requirements Certification: (FAR 6.303-2(c))

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:

NAME: LTC John Lancaster TITLE: PM SOF Lethality LANCASTER.JOHN.MCINTOSH Digitally signed by

LANCASTER.JOHN.MCINTOSH.JR.1234267090

.JR.1234267090 Date: 2022.05.10 16:25:55 -04'00'

SIGNATURE: DATE:

11. Fair and Reasonable Cost Determination: (FAR 6.303-2(b)(7))

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based on adequate cost/price analysis

CONTRACTING OFFICER SIGNATURE IN SECTION 12 BELOW ALSO SERVES AS

THE PRICE FAIR AND REASONABLENESS DETERMINATION IN THIS SECTION.

12. Contracting Officer Certification: (FAR 6.303-2(b)(12))

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

NAME: Gregory T. Metty TITLE: Contracting Officer

METTY.GREGORY.T.1 Digitally signed by

093289354

METTY.GREGORY.T.1093289354

SIGNATURE: Date: 2022.05.13 10:53:51 -04'00' DATE:

13. Legal: SOFARS 5601-1

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

NAME: _Jorge Martinez TITLE: _Attorney-Advisor

MARTINEZ.JORGE.R Digitally signed by

MARTINEZ.JORGE.RAMON.1473636

SIGNATURE: AMON.1473636162 162

DATE: 24 May 2022 Date: 2022.05.24 11:29:14 -04'00'

14. Procuring Activity Advocate for Competition (PAAC). [see SOFARS 5601-1 for your component’s approval authorities], I have reviewed this document and find the J&A adequate to support other than full and open competition:

NAME: David Tenenbaum TITLE: SOF Warrior Contracting Div Chief

TENENBAUM.DAVI Digitally signed by

TENENBAUM.DAVID.M.1185887690

SIGNATURE: D.M.1185887690 Date: 2022.06.13 09:54:25 -04'00' DATE:

15. Agency Advocate for Competition (AAC). [see SOFARS 5601-1 for your component’s approval authorities], NAME: _Charles Bright TITLE: Deputy Director of Procurement

BRIGHT.CHARLES.E.1 Digitally signed by

BRIGHT.CHARLES.E.1230093896

SIGNATURE: 230093896 Date: 2022.06.13 14:37:39 -04'00' DATE:

16. Head Competition Advocate. [see SOFARS 5601-1 for your component’s approval authorities], Up to $93M

NAME: COL Constance Young TITLE: Director of Procurement

YOUNG.CONSTANCE.H Digitally signed by

YOUNG.CONSTANCE.H.1066107295

SIGNATURE: .1066107295 Date: 2022.06.22 08:10:31 -04'00' DATE: