P11 NMR Individiual Waiver Approval VA Ammunition.pdf

Office of Government Contracting and Business Development | 409 3rd Street SW | Washington DC 20416

July 17, 2024

VIA EMAIL: Jeffrey.Hansen2@va.gov

Mr. Jeffrey Hansen, Contracting Officer U.S. Department of Veterans Affairs, NCO 20 1601 East Fourth Plain Boulevard Vancouver, WA 98661

RE: NMR Individual Waiver Approval Law Enforcement Duty, Training, and Frangible Ammunition

Dear Mr. Hansen:

On June 28, 2024, the U.S. Department of Veteran’s Affairs (VA) submitted a request to the U.S. Small Business Administration (SBA) for an individual waiver of the Nonmanufacturer Rule (NMR) for specific items under a multi-item procurement. The anticipated solicitation number is 36C26023AP0613. The applicable North American Industry Classification System (NAICS) code is 332992, Small Arms Manufacturing, and the estimated dollar value of this procurement is $7,500,000.00.

The items being procured under this solicitation include five types of ammunition:

• Golden Saber LE 124 GR Mfg Item#-GS9MMB Category- AMMO CENTERFIRE Caliber – 9mm Bullet Type – BJHP-Brass Jacket Hollow Point Bullet Weight – 124 GR Muzzle Energy – 349 ft. lbs.

• Speer LE Gold Dot 124 GR (Product #53618) Mfg Item# 53618 Caliber- 9mm

Bullet Weight – 124 GR Bullet Type – GDHP Muzzle Energy- 364 Muzzle Velocity- 1150 Rounds/1000 per case

• Federal Premium HST 124 GR (Product #P9HST1) Mfg Item # P9HST1 Caliber- 9mm Bullet Weight- 124 GR Bullet Type- HST Muzzle Energy- 364 Muzzle Velocity- 1150 Rounds/1000 per case

• Speer Gold Dot SP Caliber - .223/5.56mm Bullet Weight – 62 GR Bullet Type – Soft Point Rounds/500 per case

• Federal Tactical Bonded Caliber - .223/5.56mm Bullet Weight – 62 GR Bullet Type – Soft Point Rounds/500 per case

The specific items for which an individual NMR waiver is requested include all solicitation items listed above, hereinafter collectively referred to as “Ammunition.” SBA may grant the waiver in full, deny it in full, or grant the waiver for some but not all of the items for which the waiver is sought. The total estimated dollar value of the specific items for which the waiver is requested is $7,500,000.00.

The waiver of the NMR on an individual procurement is provided for in section 8(a)(17) of the Small Business Act, 15 U.S.C. § 637(a)(17), and section 121.406(b)(5) of title 13 of the Code of Federal Regulations, 13 C.F.R. § 121.406(b)(5). At a minimum, an individual NMR waiver request must include a definitive statement of the specific items sought to be waived, a justification as to why the specific items are required, the proposed solicitation number, the NAICS code, the dollar amount of the procurement, the dollar amount of the item(s) for which a waiver is sought, a brief statement of the procurement history, and a Statement of Work (for contracts expected to exceed $500,000). 13 C.F.R.

§ 121.1204(b)(1).

In addition, the contracting officer must provide a determination that no small business manufacturer can reasonably be expected to offer each of the items meeting the specifications (including period of performance) for which a waiver is being requested. This determination must be supported by a narrative of market research and supporting documentation. 13 C.F.R. § 121.1204(b)(1)(iii).

According to your submission, the VA seeks an individual NMR waiver for the Ammunition.

The VA has identified that these are the only items that will meet its needs and that no small business manufacturer can reasonably be expected to offer each of these specific items. This is because the Ammunition is required in accordance with the VA Training guide for Law Enforcement Officers, and the manufacturers of the Ammunition are other- than-small business concerns such as Remington, Winchester, Federal, and CCI.

The agency’s supporting market research included:

• A search of the Veteran Small Business Certification (VetCert) database to identify verified capable Service-Disabled Veteran-Owned Small Businesses (SDVOSB) and Veteran-Owned Small Businesses (VOSB) under NAICS 332992. Collectively, 132 SDVOSBs and VOSBs were identified.

• A query of the GSA and NAC Federal Supply Schedules indicated that the Ammunition is not available on either.

• The issuance of a Request for Information, published on SAM.gov (36C26023Q418), resulting in responses from 5 SDVOSB, 3 VOSB, and 3 small businesses which were capable of reselling, but not manufacturing the required Ammunition.

The VA has also located several small businesses that can provide the required items as resellers or distributors, which include:

1. InteliChoice1 Arms (SDVOSB)

2. Skips Defense Solutions, LLC. (SDVOSB)

3. Airborne Outfitters (SDVOSB)

4. Pride/Fowler Industries, Inc. (SDVOSB)

5. FireWatch Solutions, Inc. (SDVOSB)

As the VA has demonstrated no small business manufacturer can reasonably be expected to offer each of these specific items, the individual NMR waiver is being granted in full. This waiver only applies to these specific items.

This individual waiver applies to this one-time award only and does not apply to modifications to the scope of the contract or other procurement actions. Modifications determined by the contracting officer to be within the scope of the contract will require an additional waiver. 13 C.F.R. § 121.1203(b).

This individual waiver is good for the duration of the contract provided that it does not exceed five years. At the end of the fifth year, whether the contract is in the base period or an option period, the agency must request and receive a new waiver before entering into the contract’s sixth year.

Notice that an individual waiver has been granted must be published with the solicitation so that potential offerors are aware of the waiver and the specific item(s) covered. 13 C.F.R.

§ 121.1206. The effect of this waiver is to allow an otherwise qualified small business to supply the item of an other- than-small manufacturer or processor on this intended SDVOSB set-aside contract. However, it must be emphasized that this waiver of the NMR does not waive other legal requirements applicable to Government procurements, such as the Buy American Act and the Trade Agreements Act.

This individual waiver must be used within one year of issuance. If that time period expires, the agency may request a waiver extension by contacting nmrwaivers@sba.gov. Please inform SBA of the date you enter a contract using this waiver, the contract number, the award value of the contract, the awardee and its size status. Should you have any questions or require any additional information, please contact Yuri Dyson at (503) 593- 8733, yuri.dyson@sba.gov or Dwayne Pugh at (916) 735-1720, dwayne.pugh@sba.gov.

Sincerely, For Francine H. Morris Director, Office of Government Contracting mailto:nmrwaivers@sba.gov mailto:yuri.dyson@sba.gov mailto:dwayne.pugh@sba.gov