PPON - NQ Recrystallization.docx

Prototype Project Opportunity Notice (PPON)

For

Nitroguanidine (NQ) Recrystallization Technology Demonstration

Solicitation Number: W15QKN-24-R-0ZP7

Issued by:

U.S. Army Contracting Command – New Jersey Picatinny Arsenal, NJ 07806-5000

In Support of:

Project Manager Combat Ammunition Systems Picatinny Arsenal, NJ 07806-5000

PPON Issue Date: 21 June 2024

Proposal Due Date: 1500 EST on 17 July 2024

SECTION 1 – EXECUTIVE SUMMARY

Background

Large caliber artillery systems such as the M777 Howitzer, M109 Howitzer as well as next generation Field Artillery System, are using Solvent Extruded Triple Base (SETB) propellant formulations such M31A2 and the M30. With the current global conflict, the requirement for SETB propellant is stretching the current manufacturing capability to its limit.

One major limitation is that the SETB processing requires the use of large quantities of NQ, as these formulations contain approximately 50 percent by dry weight in a typical SETB formulation. NQ is a colorless, needle shaped crystalline energetic material. To be used as part of a SETB propellant formulation, the NQ average particle size must fall between a value of 3.4 to 6.0 μm (micromole) and exhibit a needle-like crystalline structure, which is much smaller than high bulk density NQ used in explosive formulations. NQ is currently purchased from Alzchem GmbH (Waldkraiburg, Germany) as there is currently no manufacturing capability of NQ within the National Technology and Industrial Base (NTIB). In order to mitigate the risk associated with supply chain issues, a strategic stockpile of NQ produced at Sunflower Army Ammunition Plant (SFAAP) in the late 1980s exists within the US DoD inventory (~17M pounds); however, this material does not meet specification requirements for propellant applications.

The objective of this effort is to build an NQ recrystallization process facility capable of reprocessing the material in US Department of Defense (DoD) inventory to make it suitable for SETB manufacturing on a best effort basis. It’s important to note that this effort is not an alternative to establishing a new a NQ production capability; within the NTIB; rather a risk mitigation to ensure continuity of NQ supply while a new NTIB NQ manufacturing capability is being established. As the DoD stockpile is finite, it does not serve as an enduring source of NQ. However, if successful, this recrystallization effort protects against an acute supply interruption from the sole existing supplier. It also mitigates the timing risk of propellant capacity expansion outpacing the establishment of additional virgin NQ production, which otherwise would result in a production bottleneck. Another ancillary benefit of this project’s success is an outlet for otherwise stagnant and aging US DoD stock of legacy NQ with little to no practical application.

Acquisition Approach

The purpose of this PPON is to competitively solicit and award of up to two (2) prototype Other Transaction Agreement (OTA) under the authority of 10 U.S.C.§4022 for sources capable of prototyping a process for recrystallizing NQ. The prototype OTA will be awarded on a Firm Fixed Price (FFP) basis and the duration for the prototype OTA is estimated to be twelve (12) months (in accordance with the SOW). This prototype OTA is anticipated for award no later than September 2024, pending availability of funding.

The overarching goal is for the contractor(s) to develop one prototype NQ recrystallization process and deliver 100 lbs of NQ recrystallized from USG stockpiled NQ from the SFAAP. The Government intends to conduct testing ten (10) months after agreement award.

Follow-On Production Contract or Transaction: In accordance with 10 U.S.C. §4022(f), competitive procedures will be used for the selection of parties in the transaction. Therefore, upon determination that the participant(s) in the transaction successfully completed the prototype project provided for in the transaction, or in the event that a particularly favorable or unexpected result is accomplished that justifies transition to production, this prototype project may result in the award of a follow-on production contract or transaction without the use of competitive procedures.

Should the Government pursue a follow-on production award, a production scope supporting this prototype project would be provided and a separate solicitation request would evaluate production pricing. The anticipated scale of a follow-on production contract or transaction resultant from this prototype project award is estimated to be the recrystallization of approx. 17.5M lbs. of USG stockpiled NQ from the SFAAP into the proper form factor of Type II, Class I (low bulk density) that meets MIL-N-494A.

For more information regarding Other Transaction (OT) regulations and policies, please refer to the DoD, Other Transactions Guide, Version 2.0, dated July 2023. A copy of the Guide can be obtained by contacting the PPON Points of Contact listed in Section 6.

Definitions

Reference Attachment 7- Terms and Conditions, Supplement 2: Definitions

Eligibility

In accordance with 10 U.S.C. §4022(d), Offerors shall meet one of the following conditions to be considered for an award:

(A) There is at least one nontraditional defense contractor or nonprofit research institution participating to a significant extent in the prototype project.

(B) All significant participants in the transaction other than the Federal Government are small businesses (including small businesses participating in a program described under section 9 of the Small Business Act (15 U.S.C. 638)) or nontraditional defense contractors.

(C) At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government.

The eligibility of proposals under conditions (A) and (B) above is subject to a determination by the Government that the significance of the proposed nontraditional defense contractor and/or nonprofit research institution participation satisfies the requirements of 10 U.S.C. § 4022(d). Offerors should refer to Attachment 5 - Supplement to Business Status Certification, for guidance on developing a proposal that can satisfy conditions (A) and (B).

If the Government determines that an Offeror’s proposal does not meet conditions (A) or (B) above, the Government may, at its sole discretion, request additional rationale and support or provide the Offeror with an opportunity to propose an alternative cost share arrangement that meets condition (C) above in accordance with § 4022(d).

In addition, Offerors must have a Dun and Bradstreet (DUNS) number and must register in the System for Award Management (SAM) to obtain a Commercial and Government Entity (CAGE) code. This system verifies identity and ensures that payment is sent to the right party. In general, to invoice and receive payment after award of an OTA, Offerors must register in Wide Area Work Flow (WAWF) through the Procurement Integrated Enterprise Environment (PIEE).

The Offeror is subject to a determination by the Agreements Officer that it is a responsible party that is not suspended or debarred by the Federal Government, and is not prohibited by Presidential Executive Order, or law from receiving such award. Additionally, Offerors who attempt to circumvent the eligibility requirements/conditions may be excluded from consideration at the Agreements Officer’s discretion.

Evaluators

Army Contracting Command – New Jersey (ACC-NJ) with the assistance of Government subject matter experts from Development Command Armament Center (DEVCOM AC) and Project Manager Combat Ammunition Systems (PM CAS), will review and evaluate proposals submitted in response to this PPON. There will be no Government contractor personnel involved in the evaluation of proposals submitted in response to this PPON.

SECTION 2 – CONTRACT LINE ITEM NUMBERS (CLINS)

*NSP = Not Separately Priced

SECTION 3 – PROPOSAL PREPARATION AND SUBMISSION INSTRUCTIONS

3.1 General Instructions

3.1.1 The costs of preparing, submitting, and participating in proposal efforts are not considered an allowable direct charge to any contract or agreement with the Government.

3.1.2 The Government does not anticipate negotiating the OTA Terms and Conditions, with the possible exception of minor deviations (reference Attachment 7). If the Offeror cannot accept the Government’s Terms and Conditions, then the Government reserves right to award to an alternative Offeror.

3.1.3 The Government also does not anticipate changes to the SOW prior to award that would result in additional costs or the need for the Contractor to resubmit a cost proposal.

3.1.4 Any PPON amendments or general questions and answers will be issued via the Beta.SAM.gov website within the Notice for this PPON, W15QKN-24-R-0ZP7.

3.1.5 Advertising brochures are not desired.

3.1.6 Multiple proposals may be submitted by the same organization; however, each written proposal must be separate and distinct from one another.

3.1.7 The proposal(s) shall be valid for six (6) months after date of submission.

3.1.8 All proposal submission information shall be unclassified and will be protected as competitive source selection information.

3.1.9 The proposal shall be written in the English language and conform to the instructions herein.

3.1.10 Technical and/or computer software data with military application may require appropriate approval, authorization, or license for lawful exportation.

3.1.11 All communications regarding the contents of the PPON and its attachments shall be addressed to the PPON points of contact identified in Section 6 of this PPON.

3.1.12 All proposal submissions shall be submitted through the DoD Safe Access File Exchange (SAFE) website. The Government will provide interested parties with a proposal drop off request via the DoD SAFE website. Note that the website is intended to exchange unclassified files up to 8.0 gigabytes (GB). See Section 3.2.4 for further information on obtaining the DoD SAFE proposal drop off request from the Government.

3.2 Submission Information

3.2.1 Due Dates

3.2.1.1 DoD SAFE proposal drop off link requests by parties interested in submitting a proposal in response to this PPON are due to the PPON points of contact listed in Section 6 by 8 July 2024. This will allow the Government sufficient time to provide the interested parties with the DoD SAFE proposal drop off request on 15 July 2024, as the request links are only valid for 14 days from issuance of the DoD SAFE proposal drop off request. If the link is not received by 15 July 2024, contact the PPON points of contact immediately.

3.2.1.2 Questions may be submitted via email submission to the PPON points of contact upon release of the PPON on Beta.SAM.gov but no later than 10 July 2024 in order for the Government to provide a timely response prior to the proposal submission due date. Reference Section 3.2.2 and its subsections for more information.

3.2.1.3 Proposal submissions are due 17 July 2024. Reference Sections 3.23 – 3.24 and its subsections for more information.

3.2.1.4 Any DoD SAFE proposal drop off link requests, questions, proposal submissions, or modifications or revisions of a proposal received by the Government after the exact time specified in Sections 3.2.1.1 – 3.2.1.3 will be determined as late and will not be considered, except in the event of a Government declared system error. As such, it is strongly encouraged for Offerors to keep a record/screenshot of any DoD SAFE completion notices and email submissions.

3.2.2 Questions and Answers

3.2.2.1 Any questions/comments regarding this PPON shall be submitted via email submission to the PPON points of contact and refer to specific text of the PPON in the following format:

E-mail Subject: Vendor Name Questions/Comments Solicitation No. W15QKN-24-R-0PZ7.

Questions/Comments will be formatted as depicted in Table 1 below to include:

· Each Question/Comment shall be on one row.

· Offerors shall NOT INSERT BLANK ROWS between each Question/Comment

· Column headings shall appear at the top of each page when printing.

· Questions and Comments shall be submitted as a MS Excel file (compatible with MS Excel 2013) attachment with file naming convention: VendorName_Qs_PPON_W15QKN-24-R-0PZ7.xls

Table 1 – Questions and Comment Format

Offeror Company Name:

3.2.2.2 The Government will only accept written questions/comments to ensure that all Offeror inquiries have been addressed in advance of the proposal due date/time. This limitation excludes any Technical Exchanges that may be initiated by the Government, if deemed necessary after the proposal submission due date.

3.2.2.3 It is anticipated the Government will provide a Question & Answer compilation document and/or revised PPON documentation that will be uploaded under this PPON announcement number in Beta.SAM.gov as deemed necessary by the Government. See paragraph Section 3.2.1.2 for the suspense date/time for any questions.

3.2.3 Proposal Submission

3.2.3.1 Each Offeror shall submit its proposal electronically in accordance with the PPON, consisting of the documentation required per PPON Section 3 (and its sub-sections). Proposals shall be clear, concise, and include sufficient detail for effective evaluation and validity substantiation of stated claims. Proposals should not simply rephrase or restate the Government requirements but shall provide convincing rationale to address how the Offeror intends to meet these requirements.

3.2.3.2 Offerors shall assume that the Government has no prior knowledge of its company or the company’s potential ability to fulfill the requirements sought in this PPON. Proposals will be evaluated based on the information presented in the Offeror's proposal. For verification purposes, the Government may verify the information provided by contacting the named point(s) of contact identified in the Offeror’s Critical Skills and/or Demonstrated Performance volume submission.

3.2.4 Submission via DoD SAFE

3.2.4.1 Offerors shall submit proposals electronically through DoD SAFE using the drop-off request link received from NoReplyTo@mail.mil, which was generated as a result of completing the required request identified in Section 3.2.1.1. This is the only acceptable method of proposal submission. Offerors are strongly encouraged to make sure this email address is not on a junk mail senders list to ensure receipt of the link.

3.2.4.2 The drop-off request email message will indicate the Government point of contact who initiated the request and contain the link, which is only valid for 14 days from the time of the email message. SAFE supports file sizes up to 8.0 GB for uploading. Once the Offeror clicks on the link, it will proceed to the website to submit the proposal. Any difficulties encountered during this process, contact the PPON points of contact.

3.2.4.3 Once at the DoD SAFE site, manually enter the email addresses of all PPON points of contact listed in Section 6 to ensure all points of contact receive the submission.

3.2.4.4 Attach all proposal files using the following naming convention: Vendor Name_Vol_#_W15QKN-24-R-0PZ7 (Example: Company_A_Vol_1_W15QKN-24-R-0PZ7)

3.2.4.5 After including all documents in the Offeror’s submission, click “Drop Off Files”, which will prompt the Offeror to confirm there is no classified information being transmitted.

3.2.4.6 Upon confirmation, the website will indicate the drop-off is completed. It will provide a list of all files submitted and contain a request code. The Government will consider a response to be on time or late based on the Offeror’s last file “UPLOAD” date/time. All Offerors shall ensure the “UPLOAD” date and time is before the PPON submission date and time (Eastern Time).

3.2.4.7 After submitting through SAFE, send a separate notification e-mail stating that a response submission was made to the Points of Contact (AO and AS) listed above in Table 1 with the following Subject: “Vendor Name Submitted PPON: W15QKN-24-R-0PZ7”

3.2.4.8 The body of the note shall be short and include the Offeror’s point of contact.

3.3 Proposal Preparation

3.3.1 The Offeror shall prepare the proposal submission as set forth in Table 2.

Table 2 - Proposal File Organization and Page Limits

NQ Recrystallization Proposal Submission

Volume I, Technical (Evaluation Factor 1):

NQ Recrystallization Technology

Page Count by Subfactor:

NQ Recrystallization Technology = Maximum 10 pages.

VendorName_Vol_1_Tech_NQ Recrystallization Technology_W15QKN-24-R-0PZ7

File name: VendorName_Vol_2_Schedule_W15QKN-24-R-0PZ7

1. Price Proposal, using the naming convention:

VendorName_Vol_3_Price_Proposal_ W15QKN-24-R-0PZ7

Volume IV, Miscellaneous Agreement Documentation

1. Offeror Cover Letter

2. OTA Terms and Conditions (Reference Attachment 7)

3. Completed ABSC (Reference Attachments 4 and 5)

Return with File name: VendorName_Vol_4_Docs_W15QKN-24-R-0PZ7.pdf

3.3.2 Page Limitations

Page limitations cited above are maximums. If exceeded, the excess pages will not be read and will not be considered in the evaluation of the proposal. Table 2 above contains the page limitations.

3.3.3 Page Size and Format

Two Page Formats are defined:

Format 1: Each face of an 8.5 x 11 inches sheet of paper, with the digital submission viewed in print format.

Format 2: Each face of an 8.5 x 14 inches sheet of paper, with the digital submission viewed in print format. This format is designated for .xlsx Attachments and diagrams or images only.

Each volume shall be clearly identified, and the text shall begin at the top of each page. All pages of each volume shall be appropriately numbered and identified by the complete company name, date, and PPON number in the header and/or footer.

Format 1: Adobe or Microsoft Word (.pdf, .doc or .docx file extensions) files shall use the following page set-up parameters:

Margins (Top, Bottom, Left, Right) = 1.0 inch From Edge Header, Footer = 0.5 inches Page Size, Width = 8.5 inches Page Size, Height = 11 inches Paragraphs = Separated by at least one blank line

Format 2: Microsoft Excel (.xls or .xlsx file extensions) and diagram or image files (.pdf) shall use the following page set-up parameters:

Margins (Top, Bottom, Left, Right) = 1.0 inch From Edge Header, Footer = 0.5 inches Page Size, Width (Maximum) = 11 inches Page Size, Height (Maximum) = 14 inches

Except when specifically addressed in the instructions for an Attachment, the reproduced sections of the PPON document and the items in Section 3.3.4, the font type shall be Arial and text size shall be no less than 12 point. Tracking, kerning, and leading values shall not be changed from the default values of the word processing or page layout software. Pages shall be numbered sequentially by volume. For electronic submissions, page limitations shall be calculated as though the document were printed as a hard copy proposal.

3.3.4 Tables, Charts, Graphs, and Figures

These displays shall be uncomplicated, legible, and where they exceed one page, shall follow Section 3.3.3 Page Size standards. For tables, charts, graphs and figures, the text shall be no smaller than 10 point font size. For electronic submissions, page limitations shall be calculated as though the document were printed as a hard copy proposal. For diagrams and images only – font and sizes may be different (as small as 8) but must be legible.

3.3.5 Glossary/Acronym List

Each non-price volume shall contain a Glossary/Acronym List of all abbreviations/acronyms used and a definition for each within that volume. Glossaries of abbreviations and acronyms do not count against the page limitations for their respective volumes.

3.3.6 Stand Alone Volumes

Each volume shall be written on a stand-alone basis so that its contents may be evaluated with no cross-referencing to other volumes of the proposal. Information required for proposal evaluation which is not found in its designated volume will be assumed to have been omitted from the proposal. Within a proposal volume, cross-referencing is permitted where its use would conserve space without impairing clarity.

3.3.7 Pricing Information Location

Pricing information of any kind shall not be included in Volume I – Technical, Volume II – Schedule, and Volume IV –Miscellaneous Agreement Documents; it shall only appear in Volume III Cost/Price Factor.

3.3.8 Number of Copies and Digital File Format

Proposals shall be submitted in electronic (searchable) format and organized as defined in 3.3.1. Self-extracting .exe files, hyperlinks, and ZIP files are not acceptable. The electronic copies of the proposal shall be submitted in a format readable by Microsoft (MS) Office or searchable Adobe Acrobat (.pdf). Use separate files to permit rapid location of all portions, including factors, Attachments, exhibits, and annexes, if any.

3.4 Proposal Submission Content

Proposals shall address the Government requirements outlined in the PPON and its attachments. The Government reserves the right to reject any proposal that does not comply with the proposal preparation instructions. Each Offeror bears responsibility for submitting its offer by the specified date/time.

3.4.1 Volume I, Technical – NQ Recrystallization Technology (Evaluation Factor 1)

This Volume shall describe the Offeror’s proposed technical approach and solution for meeting the performance and capability requirements specified in this PPON and the SOW, to include its supporting documents. Responses will be evaluated as defined in Section C - Evaluation Factors for Award.

3.4.1.1 NQ Recrystallization Technology

3.4.1.1.1 The Offeror shall provide a description of the proposed technology for recrystallizing stockpiled NQ to military grade NQ that meets the requirement for Class 2, Type 1 in accordance with MIL-N-494A. The Offeror may include text, photos, illustrations, and model/drawing extracts. The description shall include subsystems and components. The Offeror shall demonstrate a clear understanding of System Engineering (SE) principles in their design process, including compliance with all SE design milestones.

3.4.1.1.2 The Offeror shall address the current maturity, risks and opportunities, schedule drivers, and performance trade-offs for their selected NQ recrystallization technology. The Offeror shall outline a design approach for scaling up their technology to recrystallize up to 17.5M lbs of stockpiled NQ, to include projected throughput based on 1-8-5 and 3-8-5 operating scenarios.

3.4.1.1.3 The Offeror shall describe the essential design facilities, prototyping facilities, production, tooling, equipment, processes, and process controls in place or, if not in place, a plan to demonstrate how they will be put in place in time to meet delivery schedule requirements of the solicitation. The Offeror shall describe its plan to scale-up their NQ recrystallization technology to recrystallize up to 17.5M lbs of stockpiled NQ, including anticipated annual throughput based on a 1-8-5 and 3-8-5 operating scenarios.

3.4.2 Volume II, Schedule (Evaluation Factor 2)

3.4.2.1 An Integrated Master Schedule (IMS) shall be provided that details all key design processes, and materials, The IMS shall include all government safety incremental and final reviews required for certification including lead-time for preparations, dry-runs, and action item resolution. The Offeror shall account for Government review times in their schedule. The IMS shall be complemented by an associated organizational chart.

3.4.2.2 The Offeror shall provide a detailed narrative accompanying the IMS. This narrative will describe the relationship and resources required to complete each key Milestone, with associated mitigations.

3.4.2.3 The IMS shall be submitted in printed form and in a Microsoft Office Project 2013 file; and does not count toward the page limit. The Government will evaluate exclusively on the contents of the printed IMS submission.

3.4.3 Volume III, Price (Evaluation Factor 3)

The Company shall propose the total price to complete the prototype project and shall provide any other data or supporting information that the parties agree is necessary for the determination of a fair and reasonable price. The Government reserves the right to request additional cost or price data if required to support the fair and reasonable price determination.

3.4.4 Volume IV, Miscellaneous Agreement Documentation

3.4.4.1 Offeror’s Cover Letter: The Offeror shall provide a Cover Letter – Page Limit: 2 Pages, and shall include:

· Name for the Prime Company proposed along with the following information: point of contact (name, phone, and e-mail), company address, DUNS, CAGE Code and confirmation for SAM.gov registration for NAICS 332993 – Ammunition (except Small Arms) Manufacturing and Small Business Administration Size Category.

· Table that lists: Proposed Team Member Company Names, DUNS, CAGE and as applicable the status as Small Business Category, Nonprofit Research Institute, with designation as a Nontraditional or Traditional Defense Contractor.

· Statement confirming the proposal is valid for six (6) months after date of submission.

· Authorized Offeror Representative POC(s) with contact information.

3.4.4.2 OTA Terms and Conditions (Attachment 7): Return as required with highlighted portions filled out and any requested minor deviations identified in tracked changes and/or embedded comments.

3.4.4.3 Business Status Certification (ABSC) Forms (Attachments 4 and 5): Complete per the instructions on the form. This form, when properly filled out by each Prime (Offeror) and Team member and submitted in response to the PPON, provides the Government with the information required in accordance with 10 U.S.C. § 4022 to determine that the Offeror (and Team members) are eligible to receive an OT Agreement Award.

3.4.4.4 Section 889 Certification: As a result of interim FAR rule 2019-009, published on July 14, 2020, and effective on August 13, 2020, the Government is required to implement Section 889(a)(1)(B) Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment Clauses. To ensure Offeror compliance with this requirement, the Offeror shall provide evidence of the Beta.SAM.gov entry the Offeror provided to FAR Provision 52.204-26. If the Offeror selected “does” in FAR Provision 52.204-26, the Offeror shall also provide evidence of the Beta.SAM.gov entry for FAR Provision 52.204-24. The Offeror is required to complete these verifications in Beta.SAM.gov prior to proposal submission.

SECTION 4 – BASIS FOR AWARD

4.1 General Evaluation Process

Each Offeror’s proposal will be evaluated in a careful, full, and impartial manner pursuant to the stated criteria of this PPON. The Government’s selection decision will be based on an integrated assessment of the proposals submitted in response to this PPON, giving due consideration to all of the Evaluation Factors/Subfactors and their relative order of importance. The proposal that are determined to be the most beneficial to the Government will be eligible for award.

Offerors are cautioned that award may not necessarily be made to the Offeror that proposes the lowest evaluated cost or the Offeror whose proposal receives the highest rating.

The Government intends on making only two (2) awards but reserves the right to make one (1) award or none based on an integrated assessment of the evaluation results.

The Government may contact Offerors during the source selection process to request clarifying information, in the form of Technical Exchanges. The Government reserves the right to conduct a Pre-Award Survey (Safety and Security) or similar, in order to determine the selected Offeror’s responsibility.

The basis for award of an OTA resulting from this PPON will be the result of the evaluation factors specified below.

4.2 Evaluation Factors

The Government will use the following evaluation factors to evaluate each proposal submitted in response to this PPON:

Factor 1 – Technical – NQ Recrystallization Technology Factor 2 – Schedule Factor 3 – Price

4.2.1 Volume I: Factor 1 – Technical – NQ Recrystallization Technology

4.2.1.1 The Government will evaluate the proposed design for the NQ recrystallization technology. The Government will evaluate the extent to which the Offeror has provided a complete design plan and design description for the technology.

4.2.1.2 Government will evaluate the extent to which the Offeror has addressed the technologies maturity, risks and opportunities, schedule drivers, and performance trade-offs. The Government’s evaluation of the planned approach will include the Offeror’s current maturity of the technology, plans for maturity progression and planned integration tasks.

4.2.1.3 The Government will also evaluate the extent to which the Offeror demonstrates a clear understanding of the system engineering (SE) principles. The Government will evaluate any prior examples provided to support the Offeror’s claims.

4.2.1.4 The Government will evaluate the Offeror’s estimated system cost strategy and preliminary goals accompanied by support to demonstrate the realistic nature of the strategy and goals.

4.2.1.5 The Government will evaluate the extent to which the Offeror described the essential design facilities, prototyping facilities, equipment, processes, and process controls in place or, if not in place, a plan to demonstrate how they will be put in place in time to meet prototype system delivery schedule requirements of the PPON.

4.2.1.6 The Government will evaluate the extent to which the Offeror’s plan to implement the processes demonstrated their ability to establish a full-scale NQ recrystallization facility under a follow-on agreement or contract with an ability to recrystallize up to 17.5M lbs of stockpiled NQ.

4.2.2 Volume III: Factor 3 – Schedule

4.2.2.1 The Government will evaluate the extent to which the Offeror’s IMS will successfully meet the program requirements and delivery dates. The Government’s evaluation will consider the completeness of the IMS events and associated descriptions, the IMS logic and structure, critical path(s), production transition approach, and the Offeror’s provided risk assessment of the IMS and associated assumptions and justifications. The Government will evaluate the extent to which the Offeror clearly documented all key design processes and materials, and other events key to the PPON requirements were addressed. The Government will evaluate if the IMS sufficiently addressed all government safety incremental and final reviews required for certification including lead-time for preparations, dry-runs, and action item resolution. The Government will also evaluate if the Offeror’s organizational chart sufficiently details the relationship of the Offeror’s various organizational elements including subcontractor/sub-vendor and the Government.

4.2.2.2 The Government will evaluate the Offeror’s detailed narrative accompanying the IMS, to include the relationship and resources required to complete each key milestone, with associated mitigations.

4.2.2.3 The Government will evaluate the extent to which the Offeror’s IMS clearly communicated when design prototypes are available for Government evaluation.

4.2.3 Volume IV – Factor 4 – Price

4.2.3.1 The Price Evaluation Factor will be evaluated but will not be assigned a rating. The total evaluated price will be the sum of Contract Line Item Numbers (CLINs) 0001 and 0002 and will used in the award determination will be the total proposed price, less any proposed Cost Share. The Government will evaluate the Price Proposal submission to determine reasonableness, allowability, and allocability of the proposed price and Cost Share, if proposed. Priced CLINs shall be proposed as follows:

4.3 Relative Order of Importance

Factor 1 – Technical and Factor 2 – Schedule are equally important. Factor 1 – Technical and Factor 2 – Schedule when combined are more important than Cost/Price. However, price may become a more significant factor when ratings of acceptable proposals are closely grouped.

4.4 Rating Definitions

4.4.1 The evaluators will use the following terms in support of the ratings assigned for Factor 1 – Technical.

A benefit means an aspect of an Offeror’s proposal that enhances performance, provides enhancement to the technology, and/or reduces schedule or performance risk.

A shortcoming means an aspect of an Offeror’s proposal that does not provide adequate performance, does not provide technology enhancement, and/or increases schedule or performance risk.

A risk means an aspect of an Offeror’s proposal that causes the potential for disruption of schedule, degradation of performance, the need for increased Government oversight, and/or the likelihood of unsuccessful performance.

4.4.2 The evaluators will use the following terms in support of the ratings for Factor 2 – Schedule.

Acceptable

The Offeror’s proposal indicates an adequate approach and understanding of the development path, has benefits that outweigh or offset any shortcomings, and the risk of unsuccessful performance is low to moderate.

Marginal

The Offeror’s proposal has not demonstrated an adequate approach and understanding of the development path, the shortcomings are not offset by the benefits and/or the risk of unsuccessful performance is high.

4.4.3 Factor 3 – The Price/Cost evaluation factor will not receive a rating but will be factored into the selection decision as noted above in paragraph 4.3.

SECTION 5 – PPON STATEMENT OF WORK (SOW)

Reference Attachment 1 – Statement of Work

SECTION 6 – PACKING AND MARKING

The following packaging instructions are applicable to CLIN 0001, 100lbs of recrystallized low bulk density NQ for FAT:

Item Nomenclature: Nitroguanidine (NQ)

Detailed Packaging and Unitization Requirements apply to this procurement:

Preservation and Packaging Requirements: Per Code of Federal Regulations (CFR) 49, up to 50lbs per package.

Packing Requirements: Preservation and Packaging Requirements: Per CFR 49, up to 50lbs per package.

Marking Requirements: MIL STD-129 and/or CFR 49

No Bar Codes Required.

Unitization Requirements:

Standard Unitization: Shipments of identical items going to the same destination shall be palletized if they have a total cubic displacement of 50 cubic feet or more unless skids or other forklift handling features are included on the containers. Pallet loads must be stable, and to the greatest extent possible, provide a level top for ease of tacking. A palletized load shall be of a size to allow for placement of two loads high and wide in a conveyance. The weight capacity of the pallet must be adequate for the load. The preferred commercial expendable pallet is a 40 x 48 inch, 4-way entry pallet although variations may be permitted as dictated by the characteristics of the items being unitized. The load shall be contained in a manner that will permit safe handling during shipment and storage.

Wood Packaging Materials - Heat Treatment and Marking of Wood Packaging Materials: In accordance with the requirements of International Standards for Phytosanitary Measures (ISPM) 15, the following commercial heat treatment process has been approved by the American Lumber Standards Committee (ALSC) and is required for all Wood Packaging Material (WPM). WPM is defined as wood pallets, skids, load boards, pallet collars, wooden boxes, reels, dunnage, crates, frames, and cleats.

Packaging materials exempt from the requirements are materials that have undergone a manufacturing process such as corrugated fiberboard, plywood, particleboard, veneer and oriented strand board. All WPM shall be constructed from Heat Treated (HT to 56 degrees Centigrade for 30 continuous minutes) lumber and certified by an accredited agency recognized by the ALSC in accordance with Wood Packaging Material Policy and Wood Packaging Material Enforcement Regulations (see URL:

http://www.alsc.org). All materials must include certification markings in accordance with ALSC standards and be placed in an unobstructed area that will be readily visible to inspectors. Pallet markings shall be applied to the stringer or block on diagonally opposite sides and ends of the pallet and be contrasting and clearly visible. All dunnage used in configuring and/or securing the load shall also comply with ISPM 15 and be marked with an ALSC approved DUNNAGE stamp. Failure to comply with the requirements of this restriction may result in refusal, destruction, or treatment of materials at the point of entry.

Performance-Oriented Packaging: For all hazardous items, prior to marking and shipment, the contractor shall ensure that the exterior shipping container has been tested by a U.S. Government approved Performance-Oriented Packaging (POP) test laboratory in compliance with POP requirements in accordance with Title 49, Code of Federal Regulations. The test will be conducted to a weight of at least 10% greater than the gross package (pack out) weight or to the specified POP certification weight listed on the corresponding Packing and Marking drawing(s), whichever is greater.

- The POP test report shall be prepared by the POP test laboratory in accordance with DI-PACK-81059 (Data Item Description) in accordance with Part 178, CFR 49 with the appropriate POP marking of the test laboratory.

- The report must be submitted to the U.S. Government for approval as directed in the contract data requirement list (CDRL) DD Form 1423.

- The U.S. DoD POP symbol shall not be applied to the container unless the Government approves the contractor’s test report and authorizes use of the DoD POP symbol on the container.

POP recertification is required every year for a single pack per 49 CFR.

Estimated weight of the item in its shipping container: Less than 200 pounds.

Identity security classification of the material to be shipped: Unclassified

DOT Container Marking: Hazardous (including HAZMAT, ammunition and explosive

Appropriate Transportation Security Category for Arms, Ammunition, or Explosives (AA&E) as categorized in DoD 5100.76-M: Uncategorized AA&E Items

SECTION 7 – ARMS, AMMUNITIONS, AND EXPLOSIVES

Nitroguanidine (NQ) has a Hazard Classification of 1.1D. Therefore, the requirements of DoD 5100.76-M apply to the following items of AA&E being developed, produced, manufactured, or purchased for the Government, or provided to the COMPANY as Government-furnished property under this agreement.

In addition to what has been listed above in SECTION 4, as well as within the Terms and Conditions, reference JHCS #04575 – Attachment 8 and Safety Data Sheet - Attachment 9 for required AA&E information.

SECTION 8 – OTHER INFORMATION

ACC-NJ policy is to treat all submissions as source selection information, and to disclose their contents only for the purpose of evaluation. Restrictive notices notwithstanding, during the evaluation process, submissions may be handled by support contractors for administrative purposes and/or to assist with technical evaluation. All ACC-NJ and DoD support contractors performing this role are expressly prohibited from performing DoD-sponsored technical research and are bound by appropriate nondisclosure agreements.

Offerors are advised that developments arising from the resulting Agreement may constitute a significant enhancement to the national defense, and to the economic vitality of the United States. As such, in the conduct of all work under the anticipated OTA, the recipient will comply strictly with the International Traffic in Arms Regulation (22 CFR 120-130), the National Industrial Security Program Operating Manual (DoD 5220.22-M) and the Department of Commerce Export Regulation (15 CFR 730-774).

The total OTA(s) amount will not be obligated at time of award. Funding for the OTA(s) will be obligated when funding is appropriated. Based on the availability of funds, the Government and OTA Awardees may need to renegotiate the schedule, milestones events, and/or the SOW.

SECTION 9 – CONTACT INFORMATION

U.S. Army Contracting Command - New Jersey Building 10 Phipps Road, CCNJ-ET Picatinny Arsenal, NJ 07806-5000

Agreements Specialist – Ms. Iryna Litvinova, Email: iryna.litvinova.civ@army.mil Agreements Officer – Ms. Christina A. Malafatopoulos., Email: christina.a.malafatopoulos.civ@army.mil

Be advised, only an Agreements Officer has the authority to enter into a binding agreement on behalf of the Government. He or she will sign the agreement, and only an Agreements Officer has the authority to change the terms of the agreement.

SECTION 10 – GOVERNMENT FURNISHED PROPERTY

The Government will be providing 100lbs of Nitroguanidine (Reference: Attachment 3- Government Furnished Property (GFP) to the contractor 30 Days after agreement award. This date is estimated and will be finalized upon execution of the agreement.

SECTION 11 – ATTACHMENTS

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Attachment 1 - NQ Recrystallization SOW.pdf

STATEMENT OF WORK (SOW)

Nitroguanidine Recrystallization

1.0 Objective:

The United States has a requirement to establish a Nitroguanidine (NQ) recrystallization process capable of reprocessing the existing Department of Defense (DoD) inventory in order to mitigate the risk of supply chain issues currently being experienced.

2.0 Background:

Large caliber artillery systems such as the M777 Howitzer, M109 Howitzer as well as next generation Field Artillery System, are using Solvent Extruded Triple Base (SETB) propellant formulations such M31A2 and the M30. With the current global conflict, the requirement for SETB propellant is stretching the current manufacturing capability to its limit.

One major limitation is that the SETB processing requires the use of large quantities of NQ, as these formulations contain approximately 50 percent by dry weight in a typical SETB formulation. NQ is a colorless, needle shaped crystalline energetic material. To be used as part of a SETB propellant formulation, the NQ average particle size must fall between a value of 3.4 to 6.0 μm and exhibit a needle-like crystalline structure, which is much smaller than high bulk density NQ used in explosive formulations. NQ is currently purchased from Alzchem GmbH (Waldkraiburg, Germany) as there is currently no manufacturing capability of NQ within the National Technology and Industrial Base (NTIB). In order to mitigate the risk associated with supply chain issues, a strategic stockpile of NQ produced at Sunflower Army Ammunition Plant (SFAAP) in the late 1980s exists within the US DoD inventory (~17M pounds); however, this material does not meet specification requirements for propellant applications.

The objective of this effort is to establish a NQ recrystallization process capable of reprocessing the material in US DoD inventory to make it suitable for SETB manufacturing on a best effort basis. It’s important to note that this effort is not an alternative to establishing a new NQ production capability; rather a risk mitigation to ensure continuity of NQ supply while a new NQ manufacturing capability is being established. As the DoD stockpile is finite, it does not serve as an enduring source of NQ. However, if successful, this recrystallization effort protects against an acute supply interruption from the sole existing supplier. It also mitigates the timing risk of propellant capacity expansion outpacing the establishment of additional virgin NQ production, which otherwise would result in a production bottleneck. Another ancillary benefit of this project’s success is an outlet for otherwise stagnant and aging US DoD stock of legacy NQ with little to no practical application.

3.0 Requirements:

3.1 Phase 1 – Proof of Principle

3.1.1 The objective of the proof of principle is to demonstrate a single prototype process for recrystallizing low bulk density NQ for artillery propellant meeting requirements set forth in the latest version of MIL-N-494A (dated 10 Sep 20). This proof of principle effort will be conducted at a TBD Contractor site.

3.1.2 The Contractor shall establish recrystallization parameters such as solubility, nucleation kinetics, crystal growth kinetics, moisture content, and final particle size.

3.1.3 The NQ manufactured using the prototype process will meet requirements specified in the latest version of MIL-N-494A (dated 10 Sep 20).

3.1.4 The NQ manufactured using the prototype process will meet low bulk density requirements with a particle size distribution between

3.4 and 6 µm.

3.1.5 The Contractor shall issue a Technical Report detailing the prototype crystallizer and characterization of the NQ produced by the prototype process to include any waste products and effluents.

3.1.6 To support First Article Testing (FAT) by the USG, the Contractor shall deliver 100 pounds of low bulk density NQ that meet the requirements set forth in the latest version of MIL-N-494A (dated 10 Sep 20). FAT will be the responsibility of the US Army.

3.2 Phase 2 – Production Transition Plan

3.2.1 The Contractor shall develop and provide the USG with a Production Transition Plan for the US Army inventory of high bulk density NQ to be recrystallized using the production scale crystallizer to produce low bulk density NQ.

3.2.2 The Contractor shall develop and provide the USG with a Rough Order of Magnitude (ROM) cost estimate for the design of a future production scale crystallizer facility (follow on effort) to produce the low bulk density NQ as required by the US Army. The ROM cost estimate should address projected cost per pound of NQ and an estimated throughput of the facility. The conceptual design shall include a site recommendation. The low bulk density NQ shall meet the required characterization and latest version of MIL-N-494A (dated 10 Sep 20).

3.3 Program Management Requirements

3.3.1 The Contractor shall prepare monthly and quarterly reports that discuss topics such as project progress, changes to the project schedule, and anticipated problems.

3.3.2 The Contractor shall prepare and submit a Program Management Plan that includes a statement of objectives, milestones, subcontracting plan, work breakdown structure (WBS), and a preliminary integrated master schedule (IMS).

3.3.3 The Contractor shall host a Post Award Meeting at their facility to include contracts, management, and technical personnel no later than 30 days after contract award.

3.3.4 Formal Operational Security (OPSEC) Program: The Contractor shall identify a certified Level II OPSEC coordinator per AR 530-1.

The Contractor shall develop an OPSEC Standard Operating Procedure (SOP) / Plan within 90 calendar days of agreement award, to be reviewed and approved by the responsible US Government OPSEC officer. This plan will include a process to identify critical information, where it is located, who is responsible for it, how to protect it and why it needs to be protected.

3.3.5 OPSEC Training: Per AR 530-1 Operations Security, The

Contractor employees must complete Level I OPSEC Awareness training. New employees must be trained within 30 calendar days of their reporting for duty and annually thereafter. Level I OPSEC training is available at the following website:

https://www.dni.gov/index.php/ncsc-what-we-do/operations-security (Duration: 45 minutes).

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