M3A1 Revised JA _Increased Ceiling Public Release Redacted.pdf

Justification Review Document

For Other than Full and Open Competition – FAR PART 6

Program/Equipment: Carl Gustaf M3A1 variant of the Multi-Role Anti-Armor Anti- Personnel Weapon System (MAAWS).

Authority: Title 10 United States Code Section 3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1,“Only one responsible source and no other supplies or services will satisfy agency requirements”.

Amount:

Prepared by:

Contracting Officer:

Technical Representative:

Requirements Representative:

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

Project Manager:

Branch Chief:

Division Chief:

Legal Counsel:

Associate Director:

Advocate for Competition:

Senior Contracting Official:

Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for. As further authorized in FAR 6.302-1(a)(2)(ii)(A), 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 substantial duplication of cost to the Government that is not expected to be recovered through competition.

The Government intends to modify the current contract W15QKN-21-D-0002 with Saab, by increasing its contract ceiling by from to a new contract ceiling of . Saab is the only source capable of meeting the Government requirements for the ongoing production of the M3A1 MAAWS without substantial duplication of cost. The modification to the contract is required to be in place the exhaustion of the current contract ceiling amount is expected . Contract W15QKN-21-D-0002 was awarded with the intention of satisfying the ordering of M3A1 MAAWS program requirements for a period of five years and two option periods (i.e. Second Quarter FY21 through 1QFY27). However, due to a significant unforeseen surge in demand for the M3A1 MAAWS attributable to its benefits and its adaptability across multiple military services, the contract ceiling amount has been consumed at an accelerated rate.

is a new user and will be procuring the This new need is for their

Additionally, the re-structured how they employ the M3A1 MAAWS, which resulted in an increased requirement. Lastly, as a result of the geopolitical situation in Ukraine and Asia, there has been increased FMS interest.

The M3A1 MAAWS is a non-developmental item for which the Government does not own data rights. Saab is the sole producer of the M3A1 MAAWS and is the only source currently capable of meeting the Government’s production requirements. Personnel and facilities are in place to produce the M3A1 MAAWS. Saab developed, owns, and claims all data rights for the M3A1 MAAWS, as a result it cannot be procured competitively utilizing a technical data package.

If this requirement were competitively solicited and award made to a source other than Saab, it would result in substantial duplication of cost that would not be recovered through competition. AS detailed below, it is estimated that developing a new system to provide comparable capability would result in in duplication costs.

amount of to provide a license for the US Government to use the technical data package to produce the M3/M3A1 MAAWS weapon system for its own end use. At this time, the ROM is cost prohibitive, and the Government would not be able to recoup the associated license costs.

8. Market Research: In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance, and Information (PGI) 206.302-1(d), Government personnel attended the Association of the United States Army Event with vendors in October 2023. The Government technical personnel spent several days canvassing the various small arms vendors and manufacturers. No alternative items were found that could emulate the M3A1 MAAWS. Saab has been determined to be the only responsible source for the M3A1 MAAWS recoilless rifle. Based on the aforementioned forms of market research, there are currently no other sources other than Saab that meet the Government requirement. In addition, Sources Sought Notice W15QKN-23-X-OU7Y was posted on System for Award Management (SAM) on 7 February 2023 with a closing date of 22 February 2023 and the results are detailed below.

Saab is the only firm that responded to the sources sought notices and meets all requirements for the M3A1 MAAWS. Saab is the qualified manufacturer, as well as the designer and sole owner of all the intellectual property for the M3A1 MAAWS. Saab’s response to the source sought notices demonstrated qualified personnel, sub-vendors, and facilities are in place for production. In addition, this is also substantiated by Saab’s past contract history of development and production of the M3A1 MAAWS.

Saab provided capabilities for production output and a delivery time frame that fulfills the Government’s requirements.

Additionally, Government personnel have surveyed the market for potential sources beginning 09 October 2020 and ending on 01 April 2023 as follows:

Technical personnel reviewed Small Arms Defense Journal, Armed Forces Journal, and National Defense Magazine looking for any similar type weapons. No items were found which could emulate the performance of the M3A1 MAAWS.

Technical personnel conducted internet searches looking for similar shoulder-mounted recoilless rifles. These searches found the following:

- Several technical personnel attended the Association of the United States Army Event with vendors in October 2022. The attending technical personnel spent several days canvassing the various small arms vendors and manufacturers. No items were found, other than those offered by Saab, which could emulate the

M3A1 MAAWS.

- Technical personnel attended the Shooting, Hunting, and Outdoor Trade (SHOT)

Show in January 2023. The SHOT Show is sponsored by the trade association for the firearms, ammunition, hunting, and shooting sports industry and is the largest trade show of its kind in the world. The attending technical personnel spent several days canvassing the various small arms vendors and manufacturers. No items were found, other than those offered by Saab, which could emulate the

M3A1 MAAWS.

- Several technical personnel attended the Special Operations Command International Special Operation Forces Live Fire Event with vendors in March 2023. The attending technical personnel spent several days canvassing the various small arms vendors and manufacturers. No items were found, other than those offered by Saab, which could emulate the M3A1 MAAWS.

9. Interested Sources:

To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement History

(1) Contract Number: W15QKN-21-D-0002, 8 October 2020

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

(3) Authority previously cited: FAR 6.302-1 (a)(2)(ii) (A), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

(4) Summary of the contents of paragraph 7: The Government will continuously conduct market research to determine if other sources exist that may be able to provide an acceptable product to the Government with limited delays at a reasonable price.

Saab owns the intellectual property for the MAAWS which prohibits the Government from competing the design. The Government requested a ROM for licensing to assess the benefit and economic feasibility of procuring the MAAWS. As described in paragraph five and seven, the ROM would not have produced any cost savings.

(5) No prior contracts for this requirement have been accomplished using full and open competition.

(6) No unusual patterns have appeared based on the procurements.

(7) Significant Changes: There have been no significant changes to the requirement to justify a non-competitive requirement. Saab continues to hold all data rights with trade secret protection to the M3A1 MAAWS.

(1) Contract Number: W15QKN-18-D-0076, 21 December 2018,

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

(3) Authority previously cited: FAR 6.302-1 (a)(2)(ii) (B), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

(4) Summary of the contents of paragraph 7: The Government will continuously conduct market research to determine if other sources exist that may be able to provide an acceptable product to the Government with limited delays at a reasonable price.

Saab owns the intellectual property for the MAAWS which prohibits the Government from competing the design. The Government requested a ROM for licensing to assess the benefit and economic feasibility of procuring the MAAWS. As described in paragraph five and seven, the ROM would not have produced any cost savings.

(5) No prior contracts for this requirement have been accomplished using full and open competition.

(6) No unusual patterns have appeared based on the procurements.

(7) Significant Changes: There have been no significant changes to the requirement to justify a non-competitive requirement. Saab continues to hold all data rights with trade secret protection to the Carl Gustaf recoilless rifle.

(1) Contract Number: H92222-14-D-0008, 05 August 2014,

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

(3) Authority previously cited: FAR 6.302-1 (a)(2)(ii)(A) and (B), Only One Responsible

Source and No Other Supplies or Services will Satisfy Agency Requirements.

(4) Summary of the contents of paragraph 7: A solicitation was published, with the appropriate rational for Other Than Full and Open Competition. Responding firms were evaluated and considered for potential competition. Results of the Market Survey revealed that there were no other companies that possessed a Non- Developmental Item (NDI) weapon system that met all the requirements of the performance specifications. If this acquisition was competed, effective coemption was not anticipated. No further actions were taken to overcome the barriers to competition. This was due to the fact that there were no other sources of NDI systems that met the user’s performance and delivery requirements. It was anticipated at that time that should the MAAWS Joint Operation Requirements Document (JORD) change and other than an NDI strategy used; competition would be used to the maximum extent practicable. The MAAWS JORD and NDI strategy has not changed, and therefore, a non-competitive approach is still appropriate.

(5) No prior contracts for this requirement have been accomplished using full and open competition.

(6) No unusual patterns have appeared based on the procurements.

(7) Significant Changes: There have been no significant changes to the requirement to justify a non-competitive requirement. Saab continues to hold all data rights with trade secret protection to the Carl Gustaf recoilless rifle. Furthermore, Saab was determined to be the only current NDI system which could meet the operational requirements.

b. Other Facts: Not Applicable

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 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.

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. Certified cost or pricing data may be required. The resulting proposal will be subject to technical evaluation, cost/price analysis and independent government estimates will be used to determine the anticipated costs are fair and reasonable.

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

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Approval

Based on the foregoing justification, I hereby approve the modification to increase the ceiling on Contract W15QKN-21-D-0002 by for the procurement of the production of the Carl Gustaf M3A1 Multi- Role Anti-Armor Anti-Personnel Weapon System on an Other than Full and Open Competition basis pursuant to the authority of 10 United States Code 3204(a)(1) as implemented by Federal Acquisition Regulation 6.302-1, “Only One Responsible Source and No Other Suppliers or Services will satisfy agency requirements.” The approval is subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

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