Redacted Justification.pdf

Control No: JA-20-Adel-493 Contractor: Rheinmetall Waffe Munition GmbH

Supply: DM53 and DM53A1 penetrator cartridges

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Programs/Equipment: The United States (U.S.) Army Research Laboratory (ARL) Weapons and Materials Research Directorate (WMRD), Protection Division, Armor Mechanisms Branch (AMB) procurement of DM53 and DM53A1 penetrator cartridges.

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

Amount: REDACTED

Prepared by: REDACTED Contracting Officer: REDACTED Technical: REDACTED Requirements: REDACTED

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

Program Manager:

X Program Manager

Supply: DM53 and DM53A1 penetrator cartridges

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Adelphi Contracting Division (CCAP-SCA), 2800 Powder Mill Road, Adelphi, MD 20783, United States.

2. Description of Action: The U.S. ARL WMRD, Protection Division, AMB requests a Firm Fixed Price (FFP) new contract with Rheinmetall Waffe Munition (RWM) GmbH, Werkstr. 2, Oberndorf am Neckar, Baden-Wurttemberg, 78727, Germany. The delivery of cartridge will be within 16 weeks after receipt of order (ARO). The Government projects award for December 2020 and fiscal year (FY) 2020/2021, Research, Development, Test & Evaluation (RDT&E) funds will be used.

_X_ An acquisition plan is not required because this procurement either does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i), or is an R&D acquisition and does not meet the definition of services in 10 U.S.C. 2330(c)(2).

3. Description of Supplies/Services: The U.S. ARL requires the procurement of a total quantity of 180 penetrator cartridges; ninety (90) 120mm diameter x 570mm length DM53 Armor Piercing, Fin Stabilized, Discard Sabot with Tracer (APFSDS-T) penetrator cartridges and ninety (90) 120mm diameter x 570mm length DM53A1 APFSDS-T penetrator cartridges that contain tungsten sintered metal (WSM) consisting of WSM IV material. Furthermore, the penetrator cartridge is a projectile that can be loaded into a gun or cannon that consists of the projectile, powder, and primer to launch the projectile.

The WSM penetrators are made of the proprietary tungsten (W), nickel (Ni), and Iron (Fe) composition developed and defined as WSM IV by Rheinmetall Metal Waffe Munition GmbH of Germany. The U.S. ARL requires that the penetrators have a specific geometry of 120mm x 570mm and mass that are only produced by RWM GmbH, which are the DM53 and the DM53A1, in order to replicate prior ballistic performance data previously obtained during firing trials conducted by ARL WMRD. Furthermore, the U.S.

ARL requires that the required penetrator cartridges are capable of being fired from the existing M256 smoothbore cannon.

# Mfr. Part # Description Qty. Unit Price

1 26181814 Patrone 120mm x 570 DM53A1 Drawing No.: 334R-000000.000.0/D UN-No: 0328,Hazard class: 1.2 C

90 REDACTED

2 15533301 Patrone 120mm x 570 DM53 Drawing No.: 119A-000000.000.0 UN-No: 0328,Hazard class: 1.2 C

90 REDACTED

3 80188888 Transport DAP Aberdeen Proving Ground 1 REDACTED

Supply: DM53 and DM53A1 penetrator cartridges

Period of Performance: 16 weeks after receipt of order (ARO) Total Value REDACTED. The cost was derived from market research quote received from the vendor Rheinmetall Metal Waffe Munition GmbH of Germany. Additionally, an IGE was developed using similar product (KEW A1) with the estimated price of

REDACTED

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

RWM GmbH is the only manufacturer of large caliber kinetic energy penetrators that uses the proprietary material, WSM IV, with the required physical dimensions and is capable of being fired from a M256 smoothbore cannon which is the cannon being used for ARL testing. The use of WSM IV material is required because REDACTED is assessing the technology and performance REDACTED.

The subject cartridges are required based upon experimental continuity as WMRD AMB has already conducted 70 experimental firings, REDACTED, using the required cartridges manufactured by RWM GmbH and all subsequent testing must utilize the same cartridge ammunition in order to keep the results of the testing consistent. ARL has conducted extensive large-caliber ballistic experiments using these 120mm x 570mm cartridges and established a significant experimental and research database in response to the results of these tests. Based upon the findings of prior performance testing demonstrated by the WSM penetrator in this cartridge, ARL requires additional cartridges to conduct a new series of ballistic experiments furthering the research already conducted. Substitution of a different manufacturer’s cartridge would essentially void all testing done using the DM53/DM53A1 cartridges and require all testing done to date to be replicated with a new cartridge to ensure data integrity. Furthermore, using a different cartridge would require conducting 70 experiments, to recreate the results obtained in previous testing, that would take approximately REDACTED to complete. The estimated duplicate manhours, time, and cost that would be incurred due to using a different manufacturer’s cartridge was calculated by using the time and funds already spent on these specific tests and is not expected to be recovered through competition. This would cause an unacceptable delay in testing and create the unnecessary use of funding to replicate tests that have already been successfully completed and have had previous FY funds obligated for. The cartridges are required no later than 16 weeks after contract award. Furthermore, a delay in procurement of these cartridges will have a negative

Supply: DM53 and DM53A1 penetrator cartridges impact on several Research and Development (R&D) programs, REDACTED The program listed above have experimental test result deliverables due in FY 21; if this contract is not awarded in timely manner, these deadlines cannot be met. To duplicate data with another cartridge would likely take until FY22 just to get baseline data before the government could even start testing the new program enhancements.

To date, specifications and/or purchase descriptions suitable for Full and Open Competition have not been developed because of the proprietary nature of the WSM IV material used to manufacture the DM53 and DM53A1 cartridges and the amount of testing that has already been conducted using these cartridges. During Market Research, it was confirmed that there are no new manufacturers that have entered the market providing the required cartridges. The government does not require a Technical Data Package (TDP) for these cartridges. The subject cartridges are required for experimental continuity purposes and it is not certain that the TDP requested will be able to generate the same exact result as the original manufacturer, RWM GmbH. It is not the Government’s intention to manufacture these cartridges for field use but to use them for experimental purposes only.

The alternatives available to the Government, other than purchasing directly from RWM GmbH, are to suspend the operations of the program or use in-house personnel/expertise to manufacture the cartridges. Also, using in-house personnel/expertise is not acceptable, as ARL does not currently have the manpower, expertise, equipment, or the budget to attempt to manufacture its own cartridge for testing. Furthermore, this alternative would cause delays and be cost prohibitive would create delays to the program as well due to the amount of time it would take to reverse engineer cartridges used or to research and develop a totally new manufacturing process required to create the cartridges. Analysis of the aforementioned alternatives further supports the Government’s justification to procure the required cartridges directly from RWM GmbH, as it does not have the expertise and knowledge to manufacture its own cartridge nor can it absorb the impact of suspending the program and the effects that would have for the Army. As stated previously, to date there are no known manufacturers, other than RWM GmbH, that provide the required products or similar products as it is the only known penetrator cartridge using the proprietary WSM IV material with the required physical dimensions and it is the only cartridge that has been used by ARL WMRD since the inception of the REDACTED program testing began and cannot be altered due to experimental continuity purposes. Neither of these alternatives are acceptable to the Government. REDACTED

6. Efforts to Obtain Competition: The Contracting Officer published the notice required by FAR 5.201 with the intent of considering any quotes received in response. A synopsis of this requirement was posted to beta.SAM.gov, from 08/06/2020 to 08/21/2020, to provide notice of the Government’s intent to solicit and negotiate with Rheinmetall Waffe Munition. At the time of the announcement closing, no vendors responded expressing interest. In addition to the announcement, the Requiring Activity and Contracting Officer conducted market research to identify alternate vendors capable of providing the

Supply: DM53 and DM53A1 penetrator cartridges required cartridges consisting of contacting knowledgeable people and subject matter experts (SME) within Government and industry as these cartridges are extremely unique and the guidance from a SME was critical in determining if other vendors obtained the capability to manufacture or provide the tank ammunition. Additionally, RWM GmbH was contacted to ensure there are no authorized resellers and it was confirmed that none exist.

Based upon the Market Research techniques conducted, it was concluded that RWM GmbH is the only manufacturer that offers the required cartridges.

b. Subcontracting Competition: Subcontracting is not possible as the company who manufacture the subject requirement is in Germany. Additionally, RWM GmbH was contacted to ensure there are no authorized resellers and it was confirmed that none exist.

7. Actions to Increase Competition: For any subsequent purchases of the DM53 and DM53A1 cartridges, ARL will actively monitor the market via technical publications that document technology advances and new market entrants within this industry, trade shows and industry technology events, and participation in consultations with knowledgeable Government and industry personnel to help locate alternative manufacturers that can provide DM53/DM53A1 cartridges that contain the specific penetrator and geometric requirements. Furthermore, the Government will utilize the use of a Sources Sought Synopsis while conducting Market Research to attempt to identify new market entrants capable of meeting the requirement prior to pursuing a sole source acquisition in future purchases. If during Market Research for subsequent acquisitions, ARL WMRD discovers that another manufacturer could provide a reliable alternative with a high confidence of research/experimental continuity, ARL will not hesitate to pursue the acquisition on a Full and Open Competition basis.

The government does not require a Technical Data Package (TDP) for these cartridges.

The subject cartridges are required for experimental continuity purposes and it is not certain that the TDP requested will be able to generate the same exact result as the original manufacturer, RWM GmbH. It is not the Government’s intention to manufacture these cartridges for field use but to use them for experimental purposes only.

8. Market Research: Market research was conducted by Subject Matter Expert (SME) from the Lethal Mechanisms Branch, U.S. ARL. The SME has over 35 years’ experience working specifically in the field of large caliber kinetic energy penetrators, which includes extensive knowledge in armor-piercing, fin-stabilized, discarding sabot with tracer cartridges used for tank cannon ammunition. Market research was conducted during the period of 19 May 2020 through 22 June 2020 via contacting knowledgeable people and various SMEs within Government and industry. Individuals were contacted from the following companies and Government Organizations: RWM GmbH; General Dynamics Ordnance and Tactical Systems and Defense Munitions International; the Office of the Project Manager, Maneuver Ammunition Systems. After conducting Market Research, it was determined that there is only one (1) manufacturer, RWM GmbH, which can fulfill

Supply: DM53 and DM53A1 penetrator cartridges the Government’s requirements due to the proprietary nature of the materials used for the cartridge and the Government’s requirement of experimental continuity.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a Synopsis - Request for Information (RFI) was posted to beta.SAM on 8/06/2020 for 15 days and resulted in no responses.

9. Interested Sources: See Paragraph 6 for the synopsis information. To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement History: The previous contract W911QX-15-P-0013 is also awarded as a sole source due to the same reason of experimental continuity. ARL conducted extensive large-caliber ballistic experiments using this 120mm x 570 cartridge and established a significant database, therefore for continuity of testing and performance to conduct a new series of ballistic experiments Rheinmetall Waffe Munition GMBH is the only source for the cartridges. Substitution of similar cartridges would not be acceptable due to the fact that the U.S. Army requires the same WSM penetrator, which is only found in the 120mm x 570 DM53, DM53A1, and DM63 cartridges. All three of these rounds are manufactured by RHEINMETALL WAFFE MUNITION GMBH. The U.S. Army has established these requirements to conduct additional experimental trials using 120mm x 570 cartridges that match the prior performance of the DM53 cartridge used for testing. A comprehensive search was performed, which included extensive discussion with the SMEs and concluded that only one company (RHEINMETALL WAFFE MUNITION GMBH) manufactured and sold the 120mm x 570 DM53, DM53A1, and the DM63 cartridges. Since a D&F was written for this acquisition for Other than F&O, briefly describe the circumstances justifying the procurement and whether there have been any significant changes

Contract: W911QX-15-P-0013 Contractor: Rheinmetall Waffe Munition GmbH Award Date: 05 December 2014 Delivery Date: 30 June 2015 Dollar Value: REDACTED Competitive Status: Sole Source

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.

Signer’s Title: General Engineer Only the most senior persons within the org responsible for acquiring the supplies as described in the justification. This person would need to be the PM, Senior Program engineer, etc.

Senior Program Engineer

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.

Signer’s Title: Program Manager

Program Manager

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following:

__ Cost analysis _X_ Price analysis __ Should cost

_X_ IGE

__ Audit:

__ Other:

As a part of this basis, certified cost or pricing data:

__ Will be required.

_X_ Will not be required and the following exception applies (FAR 15.403):

__ Prices that will be agreed upon are based on adequate price competition.

__ Prices that will be agreed upon are based on prices set by law or regulation.

__ A commercial item is being acquired.

__ A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

Supply: DM53 and DM53A1 penetrator cartridges

__ The contract action is a modification to a contract or subcontract for commercial item(s).

_X_ The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Contracting Officer (KO)

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

Contracting Officer (KO)

Approval

Based on the foregoing justification, I hereby approve the procurement of a total quantity of 180 penetrator cartridges; ninety (90) 120 millimeter (mm) diameter x 570mm length DM53 penetrator cartridges and ninety (90) 120mm diameter x 570mm length DM53A1 penetrator cartridges, for an estimate of REDACTED and for a delivery date of 16 weeks after receipt of order (ARO), on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) subject to availability of funds, and provided that the supplies herein described have otherwise been authorized for acquisition.

Joseph Dellinger Contracting Officer

(End of J&A)