Redacted_Updated_JA_Urgent_NIIN_01-382-6795_M4_Upper_Receiver._-_4_Mar.pdf

CMO CONTROL NO.

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: DLA Land Warren.

2. Description of Action: AMC/AMSC code: 1G. This action is for the procurement of 9,000 each M4/M4A1 Carbine Upper Receivers, NSN: 1005-01-382-6795, P/N:

12972670. A new firm-fixed price contract award is anticipated to be awarded to either Colt Defense or FN America; the estimated value of this procurement is $630,000.00.

This procurement will be funded with Army Working Capital Funds.

3. Description of Supplies/Services: This action is for the procurement of 9,000 each M4/M4A1 Carbine Upper Receivers NSN: 1005-01-382-6795, P/N: 12972670. The upper receiver is a repair component necessary for field level maintenance by all branches of the Department of Defense. The upper receiver is also required as a repair component during the overhaul of the M4/M4A1 Carbine at Anniston Army Depot, as well as the M4 Product Improvement Program (PIP) at Anniston Army Depot.

4. Authority Cited: The statutory authority permitting acquisition of these services by other than full and open competition is 41 USC 3304(a)(2), “Unusual and Compelling Urgency,” as implemented by FAR 6.302-2(a)(2).

5. Reason for Authority Cited: FAR 6.302-2 is deemed applicable for this requirement because delivery delays and product quality issues have brought TACOM’s stock level to zero. Failure to expedite replenishment of stock levels will result in additional backorder accumulation, and TACOM will not be able to meet field and depot level sustainment requirements to ensure M4/M4A1s are fully mission capable. TACOM has a long term contract (LTC) with Demco, who is the current contractor. Demco failed to meet their second delivery schedule on W56HZV12D0110; TACOM was notified of the

3.5 month delivery delay on short notice prior to this expected delivery; this delay has reached 5 months. Additionally, Product Quality Deficiency Reports (PQDR) have been submitted against Demco for dimensional non-conformances to the Technical Data Package (TDP). Additionally, a recent PQDR investigation found that Demco obtained upper receivers from an unauthorized source, in direct violation of the contract, and a stop work order has been issued. PQDR investigation and deliveries are dependent on the independent testing ARDEC is currently completing. Based on the high risk of not receiving deliveries from Demco in the near term and new First Article Test (FAT) and Acceptance Inspection Equipment (AIE) submissions required, an emergency buy is required to ensure all field and depot sustainment requirements can be satisfied. The M4/M4A1 Carbine is the primary individual weapon for the U.S. Army and this repair component supports a density of over 550,000 carbines worldwide.

The Integrated Logistics Support Center (ILSC) for the Army has an urgent requirement for upper receivers beginning March 2016 or sooner. An urgent need of 9,000 upper receivers is required based on the current back orders, inventory posture, and expected future monthly requirements. The current AMD is 650 and will continue to rise as the M4A1 is pure fleeted, replacing all existing M16A2/A4 rifles, which use a different receiver. Demands to support the M4 PIP are approximately 500 each per month beginning in 2QFY16 and will increase the average monthly demand to approximately 1,500 orders per month, leading to an overall AMD of approximately 1600 minimum.

The current stock will run out at the end of May 2016, and we will not have any deliveries from the new LTC until MAR 2017. This urgent procurement is needed to bridge that gap between May 2016 and the beginning of 2017.

Copy of Upper

Receiver 01-382-679

6. Efforts to Obtain Competition: Pursuant to FAR 5.202(a)(2), this proposed action will be made under the conditions described in FAR 6.302-2, and the agency will be seriously injured if the agency complies with the time periods specified in FAR 5.203.

Therefore, this action will not be synopsized in Federal Business Opportunities (FedBizOpps).

7. Actions to Increase Competition: The urgency of this requirement prevents any additional action to increase competition for this procurement. A new long term contract was initiated on 25 JUN 2015 and a competitive solicitation to support the upper receiver requirements beyond the quantity of the urgent procurement is in process.

8. Market Research: Market research during 20-27 July 2015 was conducted consisting of internet searches, included WEBFLIS and Haystack, and has shown Colt and FN are or could be positioned to provide the required items within the required delivery timeframe of March 2016 or earlier. The government has an M4/M4A1 end item contract with Colt and FN and a partial First Article Test has been waived, with remaining portion due in NOV 2015. While there are numerous companies that have made commercial upper receivers, only FN, Colt and aforementioned Demco has produced these items in support of a Government contract, according to a Government Technical Data Package (TDP). All M4/M16 components are produced for the US military per a fully-defined contractual TDP (Technical Data Package), which ensures that minimum/expected requirements with regard to operational use, user safety, environmental impact, quality assurance, spare parts compatibility/interchangeability, host weapon compatibility, life cycle costs, etc. are met. Commercial equivalent weapons and components may be available from several sources. However, because commercial equivalents are not produced per the government's fully-defined contractual TDP, there is no certainty that the aforementioned minimum/expected requirements are met. Therefore, commercial equivalents will not satisfy the US military's need for M16 Series Rifles, M4 Series Carbines or their components. Based on the above market research, the Government has determined that Colt and FN can meet the short suspense, aggressive delivery demands, and quality specifications of this requirement.

9. Interested Sources: Pursuant to FAR 5.202(a)(2), the proposed action will be made under the conditions described in FAR 6.302-2 and is exempt from the requirements of synopsis described in FAR 5.203. Therefore, this action will not be synopsized in FebBizOpps.

10. Other Factors:

a. Procurement History/Background

Contract DAAE2003D0191 Contractor: Colt Defense LLC Notes: Deliveries complete

Contract: W52H0911D0013 Contractor: FN America, LLC.

Notes: Deliveries Complete

Contract: W56HZV12D0110 Contractor: DEMCO Group, INC Notes: D.O. 0001 delivered complete and partial quantity is suspect. D.O. 0002 is delayed; shipments were to be delivered 3.5 months late beginning in September 2015, however, with recent PQDR, deliveries expected to be pushed to the right even further or potentially terminated.

Contract: SPRDL115C0184 Contractor: FN America, LLC Notes: E-buy deliveries incomplete; 3,000ea/month beginning in DEC 2015.

b. Acquisition Data Availability: The Government owns a fully developed technical data package (TDP) for the Upper Receiver. The Government TDP will be used for this procurement.

c. Unusual and Compelling Urgency. TACOM is at a critical shortage of upper receivers to cover sustainment for military services requirements. The current contract deliveries have been delayed. This emergency buy is to minimize backorders and keep stock available for field maintenance requirements, the M4 PIP and M4/M4A1 overhaul programs. The current urgent requirement for 9,000 each Upper Receivers is needed as soon as possible to support requirements until deliveries are received on the new long term contract.

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.

Name: _ _ Date: 1-MAR-2016_ Title: _ Signature:

12. Requirement 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.

Name: Date: 1 MAR 2016_

Title: Signature:

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 based on price history and price analysis. In accordance with FAR 15.403-1(b)(3), Certified Cost or Pricing Data will not be required because this is a procurement of a commercial item.

Name: Michael J. Bissig Date: 4 Mar. 2016

Title: _Contracting Officer Signature: //s//

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

Name: Michael J. Bissig Date: 4 Mar. 2016

Title: _Contracting Officer Signature: //s//

Legal Concurrence: Date: 03/08/2016