JA_SPRDL1-25-R-0203_Redacted.pdf

This is a Justification and Approval (J&A) document for Other Than Full and Open Competition for contract SPRDL1-25-R-0203 by the Defense Logistics Agency – Land Warren (DLA-WRN).

The contracting action involves awarding a new firm-fixed-price contract to Northrup Grumman, Commercial and Government Entity (CAGE) 8K969, for the M230 30MM Chain Gun Receiver, National Stock Number (NSN) 1005-01-386-2769, part number 387-3601-3. The deliverable consists of a base quantity of 16 units with a 100% option quantity, for a total of 32 units. The contract will be funded through Army Working Capital Funds. The receiver is the fundamental component providing attachment points and support for all other M230 Gun subassemblies used on the AH-64 Apache Attack Helicopter.

The justification for sole-source procurement is based on 10 U.S.C. § 3204(a)(1), Only One Responsible Source, as implemented by FAR 6.302-1. The Government lacks pertinent technical data and necessary intellectual property rights to enable competitive re-procurement. Prior inquiries to the Original Equipment Manufacturer (OEM) to purchase or license proprietary technical data were declined, as the OEM determined such sales would be inconsistent with their strategic priorities. Market research conducted through a Sources Sought Notice posted June 6, 2025 (open 14 days) yielded no responses. Additional online searches for M230 receiver information returned no meaningful results, with all findings universally associated with the OEM. The Acquisition Method Code is 3 (Acquire for the second or subsequent time directly from actual manufacturer), and the Acquisition Method Suffix Code is D (data needed to produce the item from additional sources is not physically available). Procurement history shows prior awards to Northrop Grumman Systems Corporation (May 2023, $201,508.00) and Alliant Techsystems Operations LLC (June 2017, $225,370.95), both under sole-source authority. Unless awarded to a small business, the contract will include FAR clauses requiring small business subcontracting competition and utilization provisions. The anticipated fair and reasonable cost determination will be based on detailed cost/price analysis, with the contractor not required to submit certified cost or pricing data as this item is determined to be a commercial product.