Tab 4 - JOFOC89233120NNA000056 M320s Final 8-12-2020 with Redactions 530pm.pdf

NATIONAL NUCLEAR SECURITY ADMINISTRATION

OFFICE OF SECURE TRANSPORTATION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

40X46MM GRENADE LAUNCHER HK GLM “M320”

August 12, 2020

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

40X46MM GRENADE LAUNCHER HK GLM “M320”

MANUFACTURED BY

HECKLER & KOCH DEFENSE

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The U.S. Department of Energy/National Nuclear Security Administration's (DOE/NNSA) Office of Secure Transportation (OST) plans to contract for the purchase of the HECKLER & KOCH DEFENSE (HKD) M320 (40x46MM) GRENADE LAUNCHER MODULE (GLM) by means of other than full and open competition. The contracting activity is the NNSA Non- M&O Contracting Operations Division, Specialty Acquisition Section, Supplies & IA Team

(NA-APM-123.2).

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This document sets forth the justification and approval of the use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act (CICA) of 1984, Public Law 98-369. Specifically, OST intends to acquire the HKD M320 GLM via a sole-source to HKD as follows:

HECKLER & KOCH DEFENSE (HKD)

Address 19980 Highland Vista Drive, Suite # 190, Ashburn, VA, 20147 North American Industry Classification System (NAICS) Code

332994

Size Standard Less than 1000 Employees

III. DESCRIPTION OF SUPPLIES

OST National Security Mission

OST is responsible for the safe and secure transportation of nuclear weapons (NWs), special nuclear materials (SNMs), and nuclear weapons components (NWCs) and assemblies between production facilities and Department of Defense facilities using ground and air modes of transportation. The nuclear materials and components are entrusted to the custody of the OST Federal Agents (FAs) who are responsible for preventing the theft, sabotage or takeover of nuclear weapons/materials. Because the FAs have an affirmative duty to immediately recover the NWs, NWCs, and SNMs from unauthorized individuals using all necessary means, including pursuit and the use of deadly force in accordance with National Security Presidential Directive (NSPD) 28, the FAs receive extensive initial and continuous specialized training which test and

JOFOC Page 3 enhances the FAs’ firearms and tactical proficiency through realistic and extensive urban movement and defensive training scenarios, live fire range training, small unit infantry tactics, and close-quarter battle. The range of individual and team tactical training scenarios therefore maintains and enhances the FA’s knowledge, skills, and tactical leadership abilities to detect, mitigate, and/or eliminate all threats to the shipments within their protective custody.

The approximate cost of the HKD M320 GLM is approximately $500,000.00 of which the full amount is ready to be obligated upon contract award. This cost is inclusive of all hardware and spare parts, accessories, including Certified Armorer Training. In addition, if the need arises and subject to the availability of funds, OST shall include FAR Clause §52.217-7 Option for Increased Quantity – Separately Priced Line Item for additional HKD M320 GLMs, spare parts, and accessories at an approximate cost of $100,000.00 to be ordered during the five (5) year contract ordering period. Accordingly, the total cost of this action is approximately $600,000.00.

IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 USC §3304(a)(1), as implemented by the Federal Acquisition Regulation (FAR) §6.302-1(c)(1), which permits contracting on a brand name basis when the supply or service is only available from one manufacturer.

V. APPLICATION OF AUTHORITY

This brand name justification is to equip OST FAs with the HKD GL M320s. The HKD GL M302s fires a variety of ammunition including CS gas, High-Explosive Dual Purpose (HEDP), Less Lethal, and flares out to 400 meters with accuracy and has the capability of being used as a stand-alone weapon system with enhanced accuracy. The M320’s complete self-cocking firing mechanism is included in the receiver, allowing it to be operated as an independent weapon even when attached to a rifle/carbine. The receiver is made of high strength forged aluminum alloy, which offers it extreme ruggedness, yet keeps weight to a minimum. The barrel, which is also made of a high strength aluminum alloy, is a side-loading, rifled barrel which is spring actuated for quick loading and unloading.

At this time, HKD is the only manufacturer of the M320 that meets the OST’s requirements as shown in Table 1 below:

Table 1 – Category Specifications for the HKD M320 GLM

Category I – Technical Specifications • Commercial-off-the-shelf (COTS)

• Side-loading breach/ loading

• Ambidextrous barrel release lever

• Ambidextrous safety

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• Double Action trigger

• Day/Night sight (DNS) compatible

• US Army and NATO-standard ammunition compatible

• Maximum range of 400 yards (area target)

• Effective range of up to 150 yards (point target)

• Removable adjusting buttstock

• Removable/Collapsible foregrip

• Fold down ladder sight

• Integrated MIL-STD picatinny rail

• Sling/Holster compatibility

• Weapon mounted compatibility

• Ease of manipulation with gloves on Day or Night without looking

• Ruggedized in order to withstand shock, vibration, extreme temperatures and environmental conditions e.g.

sand, wind, dust, etc. expected in mission environments

Category II – US Army Approved Technical Data Package and Fielded

M320 GL

• HKD awarded US Army Contract for M320 GLMs under Contract No. W15KQN05C1250;

• US Army approved Technical Data Package IAW MIL- DTL-31000C (Effective 9 July 2004) which was subsequently purchased by the Army between 2012- 2015 which consisted of the following:1 o Conceptual design drawings;

o Developmental design drawings and associated lists;

o Product drawings and associated lists;

o Commercial drawings and associated lists;

o Special inspection equipment (SIE) drawings and associated lists;

o Special tooling (ST) drawings and associated lists;

o Specifications;

o Software documentation;

o Special packaging instructions (SPI) drawings/models and associated lists o Source control drawing approval request;

o Drawing number assignment report;

o Proposed critical manufacturing process description.

• HKD M320 GLMs entered production in November

1 Note: MIL-DTL-31000C was superseded by MIL-STD-31000, effective 5 November 2009.

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2008.

• HKD M320 GLMs were officially fielded at Ft. Bragg with the 1st Brigade Combat Team, 82nd Airborne Division in July 2009 and the U.S. Marine Corps. 2nd Combat Engineer Battalion, Bravo Company, began fielding the HKD M320 GLMs in July 2017.

Category III – Delivery, Armorer Certification Training, Warranty, and Spare Parts/Hardware/Accessories

• Firm delivery date of 9-12 months from date of award

• HKD Certified Armorer Training

• HKD 2 Year Commercial Warranty

• HKD Spare Parts, Hardware, and Accessories

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

In accordance with FAR §5.201, a Sources Sought Synopsis (SSS) entitled “RFI 89233120NNA000056 40mm M320 Grenade Launcher” was published through the “beta.SAM.gov” site on February 6, 2020 requesting vendor’s Statement of Capabilities (SOCs) with a due date of February 21, 2020. In response to the SSS, NA-APM 123-2 received four (4) responses as follows: (1) Heckler & Koch Defense; (2) AirTronic USA, LLC; (3) EMG; and (4) CAPCO, LLC. As discussed in greater detail in Section VIII Market Research, based on the Government’s reviews of the SOCs, including additional information obtained through extensive market research and information provided by the US Army Contracting Command (Picatinny Arsenal, New Jersey), the Government does not anticipate additional sources other than HKD will meet all of the Category I, II, and III requirements as discussed in Section V. However, the Government will continue to identify additional sources as information becomes available.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

The Contracting Officer shall conduct a thorough review of recent contract awards for the HKD M320 GLM. The CO will then make a determination of cost/price reasonableness utilizing various methods including a price analysis which incorporates a technical analysis and an Independent Government Cost Estimate, including any other relevant market research and other cost estimating methodologies. Accordingly, it is the determination of the CO that the anticipated costs will be fair and reasonable.

VIII. MARKET RESEARCH

Table 2 below reflects additional market research that was conducted in accordance with FAR §10.001(a)(2). An evaluation was conducted by OST of the four SOCs received in response to the SSS and the findings are reflected in Table 2. OST subject matter experts (SMEs) reviewed the companies and determined whether their 40MM M320 GRENADE LAUNCHER system met OST’s requirements. At this time, the OST SMEs have determined that no other 40MM M320 GRENADE LAUNCHER meets the requirements.

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Table 2 – Efforts to Identify Additional Sources

Company • Findings

Web searches • https://taskandpurpose.com/analysis/m320-grenade-launcher-review

• https://military.wikia.org/wiki/M320_Grenade_Launcher_Module

• https://www.thefirearmblog.com/blog/2018/09/20/us-made-m320a1-

40mm-grenade-launcher/

Trade/ Show conferences

• Shot Show conferences

• Warrior Expo conference

Equipment vendors • Heckler & Koch Defense

• RM Equipment

• LMT (Lewis Machine and Tool)

• Milkor USA

Contact with ex-military users

• US Army

• US Marine Corp.

AirTronic USA, LLC

• Did not have a side-loading breach/ loading chamber;

• Did not have a Double Action trigger. Single Action trigger only with a safety;

• Did not have a Removable/ Collapsible foregrip; conventional handguard only; and

• Sling/Holster compatibility was not holster compatible

Heckler & Koch Defense

• The HKD M320 GLM meets OST’s requirements.

EMG • EMG partners with manufacturers of this weapon system and can only provide quotes.

• EMG does not provide armor training for weapon system.

• EMG does not provide customer service for weapon system repairs.

• EMG does not provide spare parts needed to maintain weapon system.

https://taskandpurpose.com/analysis/m320-grenade-launcher-review https://military.wikia.org/wiki/M320_Grenade_Launcher_Module https://www.thefirearmblog.com/blog/2018/09/20/us-made-m320a1-40mm-grenade-launcher/ https://www.thefirearmblog.com/blog/2018/09/20/us-made-m320a1-40mm-grenade-launcher/

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CAPCO, LLC • CAPCO indicated that it is producing the M320 for the US Army under two contracts: (1) a five (5) year IDIQ contract (Contract No.

W15QKN-15-D-0063) with Firm Fixed Priced delivery orders on 30 July 2015 for up to 32,413 M320 40mm Grenade Launchers; and (2) a five (5) year IDIQ US Army contract (Contract No. W15QKN-20- D-0025) with Firm Fixed Priced delivery orders on 24 April 2020 for up to 17,000 M320 40mm Grenade Launchers. CAPCO further stated that its M320 Grenade Launcher is being manufactured to the US Army Technical Data Package specifications. Furthermore, US Army Contracting Command has informed this CO that CAPCO is currently building its M320 based on the US Army M320 TDP which has been approved by the USG. Therefore, until such time the US Army has approved CAPCO’s M320 for full service, the CAPCO M320 is not ready to be deployed for OST training and on actual OST mission. Finally, CAPCO’s SOC did not address whether CAPCO will provide certified armorer training.

IX. OTHER FACTS

As discussed in Sections V and VIII, a technical evaluation performed by OST’s SMEs revealed only one known responsible and available source that can meet the Government’s requirement.

OST SMEs shall continue to conduct market research to determine the vendor capabilities in meeting OST’s requirements. However, at this time, HKD is the only manufacturer who can meet all of OST’s requirements.

X. INTERESTED SOURCES

As discussed in Section VIII, additional sources not identified here may submit a Statement of Capability in response to this Justification for Other than Full and Open Competition. If so, OST will evaluate any submitted Statements of Capability and determine whether this sole source action can be supported. In the interim, OST continues to conduct market research to determine if there are other firms capable of meeting OST’s requirements.

XI. STEPS TO FOSTER COMPETITION

OST will continue to research additional sources of suppliers for their requirements.

XII. CERTIFICATIONS

Acquisition Initiator/Technical Representative:

The Technical Representative certified via an e-mail to the CO that the facts and representations under their cognizance, which were included in this justification and which formed a basis for this justification, were complete and accurate.

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Program Manager:

Additionally, the Program Manager also affirmed via an e-mail to the CO that they had reviewed this justification and found it to be accurate and complete to the best of their knowledge and belief.

Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

_________________________________ 8/12/2020_______ David L. Clonts Date Non-M&O Contracting Officer

DOE/NNSA