SPRDL123R0085_JA00602 Redacted.pdf

SPRDL1-23-R-0085 (JA-00602)

No Prior J&As are available

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

SPRDL1-23-R-0085

1. Contracting Agency: Defense Logistics Agency - DLA Land Warren (DLA-WRN).

2. Description of Action: DLA-Land WRDLA-WRN proposes to award a new Firm- Fixed-Price Indefinite Delivery Indefinite Quantity (IDIQ) contract to Trijicon, Inc., (Commercial and Government Entity (CAGE) 0FL29)), for National Stock Number (NSN) 1240-01-557-1897, PRON# EH2L0132EH, Sight, Bore, Optical, using Army Working Capital Funds

(AWCF).

3. Description of Supplies/Services: The NSN 1240-01-557-1897, part number TA31RCO-M150 / 13019540, Sight, Bore, Optical, is used on the M4, M4A1, M16A2, M16A4, and M249 Squad Automatic Weapon (SAW). The M150 Rifle Combat Optic (RCO) provides the shooter with quick target acquisition at close combat ranges while enhancing target identification and hit probability.

The deliverables for this contract are as follows:

Minimum Guaranteed Quantity: 297 each

Maximum Quantity: 11,071 each

Estimated Minimum Guaranteed Value:

Estimated Maximum Value:

Acquisition Method Code (AMC):

3 - Acquire, for the second or subsequent time, directly from the actual manufacturer.

Acquisition Method Suffix Code (AMSC):

B - This part must be acquired from a manufacturing source(s) specified on a source control or selected item drawing as defined by the current version of American Society of Mechanical Engineers (ASME) Y14.24. Suitable technical data, Government data rights, or manufacturing knowledge are not available to permit acquisition from other sources, nor qualification testing of another part, nor use of a second source part in the intended application. Although, by ASME Y14.24 definition, altered and selected items shall have an adequate Technical Data Package (TDP), data review discloses that required data or data rights are not in Government possession and cannot be economically obtained. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

4. Authority Cited: The statutory authority permitting other than full and open competition for this effort is 10 United States Code (U.S.C.) 3204(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As the Original Equipment Manufacturer (OEM), Trijicon Inc. has sole access to the relevant drawings, technical data rights, and vendor base. The Government did not purchase the proprietary rights for a TDP suitable for competition. Trijicon Inc. is in current production of commercial optics with little production lead-time to provide the M150 RCO. The approved source has demonstrated the ability to establish and maintain the manufacturing processes required to successfully produce a finished and properly functioning item. In addition, Trijicon Inc. has produced and qualified parts of this nature for the Government in quantities greater than 14,000 each. The contractor possesses full knowledge and understanding of the critical manufacturing processes required to successful produce the M150 RCO.

The Government does not have the pertinent technical data to enable competitive re-procurement. The Government does not own the necessary intellectual property data rights to the pertinent technical data to enable competitive re-procurement.

Trijicon Inc. developed the RCO at private expense and owns the right to the TDP.

Funds are not available nor is Trijicon interested in providing proprietary rights to the TDP. Reverse engineering is extremely cost prohibitive, would cause a significant delay in schedule, and is technically high risk. U.S. Army Combat Capabilities Development Command Armaments Center (DEVCOM-AC) engineers have estimated the cost to develop a detailed TDP for competition through reverse engineering would be approximately $707,400 and take approximately 34 months:

TASK # of Months Estimated Cost

Design 10 $257,400 Procurement Lead Time 4 $10,000 Production Set-Up 6 $250,000 Sample Build 2 $10,000 Product Validation Testing 3 $70,000 Rework 6 $100,000 Validation Testing 3 $10,000

Total 34 $707,400

The current fielded system is a proven system that meets performance and operational requirements soldiers are accustomed to operating with their weapon systems.

Procuring and fielding an alternative RCO would have negative impacts on the mission and require new equipment fielding training and sustainment efforts.

A new Next Generation Squad Weapons (NGSW) Program has been initiated to replace the M4/M16 family of weapons and M249 SAW and includes a NGSW-Fire Control (FC). The current procurement is intended to bridge the gap until the NGSW-FC is fully fielded. The time and resources to compete the M150 RCO would not be regained prior to the M150 being replaced.

The purchase description (PD) used to procure the current M150 RCO could be used to recompete for a different system; however, this has schedule impacts. According to U.S. Army DEVCOM-AC engineers, the time to fully qualify other sources for the existing performance of the M150 RCO is approximately 29 to 38 months at an estimated cost of $600,000. The 29–38-month delay and $600K estimated cost is comprised of the following tasks:

TASK # of Months Estimated Cost PD reviewed and vetted by subject matter experts 6 $50,000 Sources screened and qualified 9-12 $80,000 Provisioning processes for qualified source(s) 12-18 $300,000 Type Classification and Full Material Release 3 $50,000 New Source(s) complete First Article Test (FAT) 3 $120,000

Total 29-38 $600,000

Due to priorities on procurement and fielding, the M150 RCO PD was not formalized into a standard performance specification after initial contract award. To compete for a new M150 RCO, the PD will need to be thoroughly reviewed and vetted through various subject matter experts. It is anticipated this would be an approximate six-month delay at approximately $50,000. Potential sources would have to screened and qualified which would add a 9–12-month delay for performance and operational testing costing approximately $80,000. If a new source(s) was qualified, there would be logistics and training impacts. The new source(s) would have to go through the provisioning process to determine spares and establish stock, develop a new technical manual, and the soldiers would have to be re-trained on the new optic. The estimated delay and cost impacts for provisioning and new equipment training is 12-18 months costing approximately $300,000. The new optic would undergo Type Classification / Full Material Release (TC/FR), adding an additional three-month delay and costing approximately $50,000. After contract award, a new source would have to qualify their productions processes by performing a FAT causing a three-month delay and estimated at costing $120,000.

The Government would not be able to recover, through subsequent competition, the duplication of costs involved in either procuring the proprietary data, reverse engineering, or recompeting the purchase description within a reasonable timeframe.

At the current Average Monthly Demand (AMD) of 45 (per the item manager), a current unit cost of , and assuming 25% savings achieved through the competition, the in annual savings would take over to offset the estimated $600,000 cost of qualifying another source.

There is currently a backorder of each. Trijicon Inc. is currently producing a commercial version of the M150 RCO and is anticipated to be able to ramp up production quickly. Competing and qualifying a new source would incur a 29-to-38-month delay which would increase the backorder status by each ( months x

AMD).

6. Efforts to Obtain Competition:

a. Effective competition: The Government will not be pursuing competition due to the reasons cited in Section 5 above.

b. Subcontracting competition: Unless the contract is awarded to a small business, the solicitation and resulting contract will include FAR clauses 52.219-8, "Utilization of Small Business Concerns"; 52.244-5, "Competition in Subcontracting"; 52.219-16, "Liquidated Damages--Subcontracting Plan";" and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," to maximize small business opportunities and utilization.

SOLE SOURCE: Notices required by FAR 5.201 will be posted.

7. Actions to Increase Competition: There are no plans to increase competition for future procurements due to the reasons cited above.

The M150 RCO was designed and developed by Trijicon Inc. As detailed above in section 5, it is uneconomical to buy the data rights or qualify a new weapon sight. The cost of qualifying a new source is not expected to be recovered through subsequent competition especially taking into consideration the upcoming replacement by the

NGSW-FC.

8. Market Research: A Sources Sought Notice was posted to SAM.gov on 29 November 2022, and was open for 15 days. Responses were received and the assessment of the responses are below:

Sources Sought - Response from Vasteron Defense Contracting - Vasteron provided a one-page, high-level summary of their capabilities. This company mainly specializes in third party procurements of systems with limited parts manufacturing. Nothing was stated about optics capabilities or history in procuring/manufacturing optics. Vasteron's response did not provide sufficient information to provide confidence in their ability to provide an optic with the performance requirements of the current M150 RCO.

Sources Sought - Response from Guneye - Guneye provided a cover letter, quad chart, and a presentation with product description, history, and plans for future production of their novel "Smart HD Weapon Mounted Camera with Night Vision and S3 Technology".

The device provides real-time imagery to a Smart Phone via an app. The device is not an aiming device and does not provide the shooter quick target acquisition as required of the M150 RCO. This device may provide future capabilities but does not replace the

Approval Authority for Acquisitions Equal to or Greater Than $750,000 But Less Than $15M

APPROVAL OF JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing Justification, I hereby approve the procurement of the following:

a. Noun: Bore, Sight, Optical

b. NSN: 1240-01-557-1897

c. Minimum Guaranteed Quantity: 297 each

d. Maximum Quantity: 11,071

e. Estimated Guaranteed Minimum Value:

f. Estimated Maximum Value:

This action will be awarded under other than full and open competition pursuant to the authority of 10 USC 3204(a)(1) and subject to the availability of funds. This approval is subject to the proviso that the property herein described has otherwise been authorized for acquisition.

Signature:

SXHEARER.MARY.E.

1250702449

Competition Advocate

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2023.04.14 16:57:56 -04'00'