REDACTION ANNEX-1 JA SEARANGER ADDL 12 QTY FMS EGYPT.pdf

J&A No. FY23-MAY02-39

Navy Marine Corps Acquisition Regulation Supplement APRIL 2018 (Change 18-24)

ANNEX 1 – JUSTIFICATION AND APPROVAL

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

INDIAN HEAD DIVISION

3767 STRAUSS AVENUE

SUITE 201

INDIAN HEAD, MD 20640-5150

Code: 022

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

The Naval Surface Warfare Center (NSWC), Indian Head Division (IHD), Contracts Division 022

2. Description of the Action Being Approved.

Award of a Firm Fixed Price (FFP) modification on a sole source basis under current contract N00174-21-C-0013 for the purchase of (12) Rheinmetall-Oerlikon Searanger, 20 millimeter Gun Systems from American Rheinmetall Systems, LLC, 15 Morin Street, Biddeford, ME 04005-4403.

The items have been requested and approved for acquisition under Foreign Military Sales (FMS) with EGYPT, case number EG-P-LGM (A1).

3. Description of Supplies/Services.

The Searanger 20 Gun System is a remotely controlled, fully stabilized, autonomous and automatic gun system. The system uses a cannon that is capable of firing 850 to 1050 rounds per minute.

Together with the 20mm x 128mm ammunition, the system is highly effective against small, high-speed boat threats. An initial quantity of 12 systems and spares were requested and approved for acquisition under FMS case EG-P-LGM via J&A No. FY21-Nov18-9, approved on 01-Mar-2021 (N00174-21-C-0013).

The FMS case was recently revised, EG-P-LGM (A1), to add an additional twelve (12) Rheinmetall- Oerlikon Searanger 20 millimeter Gun Systems, spare parts, special tools and equipment needed to maintain and operate the system in port or at sea and all cabling and connectors required to interface the Searanger with external equipment as defined by the shipyard. Newly established CLINs will be incorporated into the contract via modification.

Total estimated cost is $23,000,000.00, shipping included. The shipment is expected to be delivered within 820 days after receipt of order (ARO). The modification will use FMS case funds.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

FY23-FMS TOTAL

FMS - EG-P-LGM

(A1)

$23,000,000 $23,000,000

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(4), as implemented by FAR 6.302-4, International Agreement.

5. Rationale Justifying Use of Cited Statutory Authority.

Per Note 7 of FMS case EG-P-LGM (A1), the Egyptian Navy specifically requested that American Rheinmetall Systems, LLC be designated as prime contractor for the Oerlikon Searanger 20mm gun weapon system and all associated equipment and services.

Ordering a similar item from a different vendor will not meet the requirements set forth by the Egyptian Navy. The same equipment is necessary to be consistent with other systems in use by the country.

The Oerlikon division of Rheinmetall is the only company that manufactures, sells and provides support the requested Searanger 20 and supporting equipment. The Amendment 01 to the EG-P-LGM (A1) was approved by Defense Security Cooperation Agency on 8 Feb 2023 and by Brigadier General Ahmed Youssef, Director, Egyptian Procurement Office on 03-APR-2023.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Oerlikon is the sole manufacturer, distributor and provider of the Searanger 20 millimeter gun mount equipment and services. In addition, this action is using FMS funds and the Egyptian Navy specifically requested ARS be designated as prime contractor, no other Offerors are considered.

Under Per FAR 5.202(a)(3) regulatory exceptions to not synopsizing to Beta.SAM, this proposed contract action is under an international agreement between the United States and a foreign government. Therefore, a synopsis posting is not required.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer will determine that the anticipated cost to the Government for the supplies/services covered by this J&A will be fair and reasonable in accordance with FAR 15.4.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC IHD has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NSWC IHD will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

D. Rogers (NSWC IHD G) Date

Requirements Cognizance:

Ratliff (Program Executive Office, Ships-FMS (PMS 300F) Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

W. Wisniewski (NSWC IHD 00L) Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Polster (NSWC IHD 022) Date

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 3204(a)(4)

A. Johnson (NSWC IHD TD) Date