M1020-Redacted-FINAL-J A.pdf

Program/Item: 120mm M1020 Mortar Ignition Cartridges Estimated Amount: $636,000.00

JUSTIFICATION AND APPROVAL CONCURRENCE SHEET

Program/Item: 120mm M1020 Mortar Ignition Cartridges

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(ii)(A), only one responsible source and no other supplies or services will satisfy agency requirements.

Estimated Amount: $636,000.00

Prepared by:

Amy Kirzow DSN: 880-4032 Contract Specialist Date: 6/12/2013

Procuring Contracting Officer:

Rafael Rivera DSN: 880-3970 Contracting Officer Date: 6/12/2013

Technical:

William Kuhnle DSN: 880-8443 Branch Chief Date: 6/12/2013 Conventional Ammunition Division

Requirements:

William Kuhnle DSN: 880-8443 Branch Chief Date: 6/12/2013 Conventional Ammunition Division

CONCURRENCE:

Sheela R. Lopez Center Director

ACC-NJ-CA //esign// Sheela R. Lopez 6/21/2013 .

Signature Date

Lawrence M. Brady Legal Counsel

RDAR-GCB //esign// Lawrence M. Brady . 6/25/2013

Signature Date

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Army Contracting Command-New Jersey, Picatinny Arsenal, NJ 07806-5000.

2. Description of Action(s):

a. This Justification and Approval (J&A) is for the procurement of quantities of 120mm M1020 Mortar Ignition Cartridges that will undergo alterations to the current, approved M1020 Technical Data Package (TDP), Statement of Work, or other technical requirement. The proposed acquisition shall be satisfied through the execution of several iterations of specification revisions, each subsequent version of the product being built upon the previous set of changes. After multiple iterations of the product, the desired end goal will result in revisions to the technical data package with either widened or tightened specifications that will enable more cost effective production of the M1020 Ignition Cartridge.

b. This action will procure quantities of the 120mm M1020 Mortar Ignition Cartridges that may contain certain characteristics outside the current M1020 Technical Data Package (TDP). This procurement will support the M1020 Key Parameters Development & Management (KPD&M) effort, which is a continuous improvement activity that is considered to be the best practice resulting in ECPs which would change the build and acceptability, and improve the reliability and producibility of the cartridge.

c. The proposed acquisition will obligate Procurement of Ammunition Army (PAA) funds through the use of a single award, Firm Fixed Price (FFP), Indefinite Delivery/Indefinite Quantity (IDIQ) contract, number W15QKN-13-D-0018, with Pocal Industries, Scranton, PA. Period of performance for the KPD&M effort will be approximately twelve (12) months from date of award of modification incorporating this scope of work.

d. The 120mm M1020 Mortar Ignition Cartridges effort is an Ammunition, Acquisition Category (ACAT) III program managed by the Project Manager for Combat Ammunition Systems (PM-CAS).

3. Description of Supplies/Services:

a. The M1020 ignition cartridges are part of the final assembly of 120mm HE, HE IM, smoke, illuminating, and full range practice cartridges. The 120mm M1020 Mortar Ignition Cartridges are used in production of the following 120mm Mortar Cartridges:

M934A1 HE, M934E1 HE IM, M929 Smoke WP (MOF), XM929 Smoke WP (PD), M930 VL Illum, M983 IR Illum, and M931 FRPC. When dropped into the firing tube, the ignition cartridge is the mechanism by which the propelling charges are initiated. When the ignition cartridge strikes the firing pin, the primer ignites and the ignition train travels up the ignition cartridge and flashes through holes in the fin assembly to ignite the propelling charge(s).

b. The total estimated dollar value for this action is $636,000.00. The proposed action will procure a quantity of 120mm M1020 Mortar Ignition Cartridges that will be subjected to standard acceptance testing and modified subscale testing at Pocal. The testing will be based on test procedures already currently outlined in the M1020 TDP (i.e. Static Pressure Testing, etc.). This procurement will improve the cost effectiveness of the overall program. The effort will analyze the effects each factor of the TDP has in regards safety, reliability, and performance. This information will be used to appropriately classify characteristics in the TDP and ensure that the TDP has sufficient tolerance limits. The KPD&M initiative will identify the design factors (leading indicators) that have the most influence on desired response/performance and control those manufacturing parameters associated to them thereby improving the consistency of the item. The parameters that do not have an influence on the desired response will be validated and tolerances will be adjusted accordingly thereby making the item more producible. It is anticipated that the overall number of characteristics to be inspected will be condensed and reduced (specifically reducing the quantity of inspections classified as majors) with more emphasis placed on the characteristics that have a direct impact on the performance of the product.

c. National Stock Number is 1315-01-465-5969.

4. Authority Cited:

10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(ii)(A), only one responsible source and no other supplies or services will satisfy agency requirements, “full and open competition need not be provided for when the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources and no other type of supplies or services will satisfy agency requirements”.

5. Reason for Authority Cited:

a. As described in FAR 6.302-1(a)(2)(ii)(A), only one responsible source and no other supplies or services will satisfy agency requirements is applicable as award to another contractor would result in substantial duplication costs to the Government that is not expected to be recovered through competition.

b. Pocal Industries has an active M1020 Mortar Ignition Cartridge manufacturing line in place which has been used in the execution of previous and current 120mm M1020 Mortar Ignition Cartridges production contracts. Contract W15QKN-13-D-0018 was awarded on 27 December 2012 via a competitive acquisition limited to the National Technology and Industrial Base (NTIB). The established M1020 production capabilities possessed by Pocal Industries will allow them to support the M1020 KPD&M effort in a timely and cost-effective manner. If anyone other than Pocal were awarded this effort, substantial duplication costs would be incurred by the Government.

c. Duplication costs are not expected to be recovered through competition due to the relatively low volume of parts being procured under this effort. The duplication costs to the Government are separated into two separate areas:

1. Projected Contractor Start-up costs (Contractor Activities)-- Other than Pocal, any other company would be required to design, facilitize, and prove-out a new manufacturing line for production of 120mm M1020 Mortar Ignition Cartridges. It is expected that these costs would be rolled into unit prices to be paid by the Government (passed through costs). These costs are especially related to an associated First Article Test (FAT), which must be accomplished in order to proceed into production. The large initial investment paired with the relatively small quantities of parts required by this M1020 KPD&M effort (approximately 3,000 pieces), will result in a very high unit price in order to recoup any initial investment. It is important to note that Pocal has already passed a FAT and is currently running a production line to meet the delivery schedules under their awarded Delivery Orders 0001 and 0002, so for Pocal this production run will be concurrent to their running line, a significant benefit to the Government in cost and schedule.

2. Government Direct Labor and Testing costs (Government Activities)--

Specific types of duplication costs incurred directly by the government include costs for and related to the First Article Test (FAT), Propellant Charge Establishment/Charge Uniformity (CE/CU) Testing, and the review and approval of contract documents necessary for production to include:

Acceptance Inspection Equipment (AIE), Critical Characteristics Control Plan (CCCP), Critical Plan Of Action (CPOA), Statistical Process Control (SPC) Plans, and Quality Surveillance (QS) Plans, all of which are time and cost intensive and the Government is successfully past this point already with Pocal, so to repeat these activities would be duplication costs to the Government.

d. The table below outlines the costs of the specific activities that would result in duplication costs to the Government if anyone other than Pocal was selected to fulfill the requirement.

DUPLICATION COSTS to the GOVERNMENT

Contractor Activities (Passed Through Duplication Costs)* COST

Projected Contractor Start-Up

Safety Certification (prep, walk-through, documentation) (400 hrs) $40,104

Site Survey (prep, development, hosting) $25,000

Quality Management System (1000 hrs) $100,260

HVAC system (for LAP environment requirement) $60,000

First Article Test

Inspection Equipment Cost

Standard Measurement Equipment (SME) $50,000

Automated Defect Recognition Equipment (X-ray) $759,950

Test Equipment

Temperature Conditioning Chambers $10,000

Static Testing Equipment/Software $75,000

Support Equipment (storage containers, tools, etc) $5,000

Test Facility $ 20,000

Manufacturing Equipment Cost

Propellant Loaders $400,000

Primer Press Equipment with Compressors $50,000

Handling Equipment $80,000

Fixtures $250,000

Labor

Contractor Preparation of Contract Quality Documentation (950 hrs: AIE, CCCP, CPOA, SPC, QS Plan, FAT Report ) $95,247

Fabrication of FAT/Dry Run samples (600 hrs) $60,000

Training & Equipment Prove Out $140,000

Material (Raw Materials, Packaging, Primers, BP, Propellant) $30,078

SUBTOTAL $2,250,639.00

Government Activities (Direct Labor Duplication Costs )** Cost

First Article Test

Labor (60 hrs) $5,481

Travel (3 personnel) $6,000

Document Approvals (AIE, CCCP, CPOA, SPC, QS Plan

Labor (316 hrs) $28,867

Travel (3 personnel) $6,000

Ballistic Testing Costs

CE/CU $70,000

BFAT $35,000

SUBTOTAL $151,348

TOTAL COST $2,401,987.00

* Contractor labor rate based on the FY13 ARDEC Average Contractor Rates for Quality

Control Engineer ($100.26) ** Government labor costs based on an hourly rate of $91.35 (rate is based off FY13 Man

Year estimated costs)

e. Pocal has shown that they can make quality M1020 parts and deliver to the required schedule. By leveraging these capabilities, the schedule and performance risks associated with the M1020 KPD&M effort are decreased dramatically. In addition to not having to wait for another company to develop a production line and pass a First Article Acceptance Test, the chances of receiving conforming parts on time is significantly increased.

6. Efforts to Obtain Competition:

a. As required by FAR 5.201, this procurement action was synopsized on Federal Business Opportunities (fedbizopps.gov) with the appropriate rationale for other than full and open competition. The procurement shall be publicized in the Federal Business Opportunities (Fed Biz Ops) to alert businesses that competition for this requirement is being limited to Pocal Industries. Effective competition is not anticipated.

b. The Government intends to continue promoting future competition in order to ensure that the Government receives the overall best value for the 120mm M1020 Mortar Ignition Cartridges. Any future procurement will likely be restricted to the NTIB through the use of an approved Justification and Approval document as has been done on previous procurements for the M1020. Any improvements generated from the M1020 KPD&M effort will be incorporated into the next competitive procurement via updated TDP and/or approved Engineering Change Proposal (ECP).

c. Subcontractor Competition at the subcontractor level will be encouraged through publication of the synopsis required by FAR 5.201, as a function of negotiations, and the subject contract includes FAR 52.244-5 “Competition in Subcontracting”.

7. Actions to Increase Competition:

It is anticipated that future acquisitions of the 120mm M1020 Mortar Ignition Cartridges will be restricted to the National Technology Industrial Base (NTIB). Based on market research and responses to previous solicitations, sufficient competition is expected for future production contractual actions that will benefit from this action.

8. Market Research:

A market survey for Advanced/Novel Energetic Characterization Methods for the 120mm M1020 Mortar Ignition Cartridge was published on 26 February 2013, under W15QKN-13-X-A007. A total of four (4) responses to this recent market survey were received on 28 March 2013 from: Pocal Industries, Inc., NTS Dana Point, Innovative Materials and Processes, LLC (IMP), and Battelle Memorial Institute.

Each source was evaluated with regard to the company’s experience and the application of the proposed technologies to establish advanced and/or novel test methods.

Battelle Battelle Memorial Institute 505 King Avenue Columbus, OH 43201 www.battelle.org http://www.battelle.org/our-work/national-security/cbrne-defense 614-424-7789 (Christopher A. Perhala, P.E., Principle Research Engineer)

Innovative Materials and Processes, LLC (IMP) 8420 Blackbird Court Rapid City, SD 57702 www.imp-co.com 605-390-2564

NTS Dana Point 28 Monarch Bay Plaza, Suite F Dana Point, CA 92629 www.nts.com 949-429-8602

Pocal Industries, Inc.

100 Electric Street Scranton, PA 18509 www.pocal.com 570-961-1999 (Leo Lynn, Contracts Manager)

Battelle has experience working in explosive research and development (R&D) and proposes many relevant technologies to make novel characterization of the M1020 ignition cartridge possible. It is not explicitly stated whether Battelle owns or has experience using the technologies proposed in the response. The Government technical evaluation determined that Battelle has identified novel energetic characterization methods and may be a viable source for the future acquisition of the 120mm M1020 Mortar Ignition Cartridges, which will be competed within the NTIB.

Innovative Materials and Processes (IMP) has experience working in the field of nano-energetics; specifically their work to replace small arms percussion primer technology is of relevance. IMP also lists the technologies they have available, but does not provide a discussion of how these technologies can be used for novel characterization of the M1020 ignition cartridge. IMP’s experience developing novel percussion primers, though not specifically solicited in the Market Survey, may be of interest. The Government technical evaluation determined that IMP has experience developing small arms primers and primer manufacturing processes and may be a viable source to help identify alternate primer candidates to be evaluated in the M1020 ignition cartridge.

GTE determined that IMP has not identified novel energetic characterization methods with respect to desired M1020 ignition cartridge testing.

http://www.battelle.org/ http://www.imp-co.com/ http://www.nts.com/ http://www.pocal.com/

NTS has experience using legacy test methods to characterize the M299 ignition cartridge performance; what is perhaps more interesting to note, however, is NTS’s development of a numerical first principle model for the pressure-time history using this data. NTS proposes relevant technologies to make novel characterization of the M1020 ignition cartridge possible. NTS proposes that flow rate, heat flux and total energy can be calculated using an interior ballistics model, but does not mention what model will be utilized or how it is capable of predicting this behavior. NTS also lists various modeling tools available, but does not provide a discussion of how these technologies can be used for novel characterization of the M1020 ignition cartridge.

Pocal’s machine shop can fabricate the specialty metal parts to enable novel testing.

Pocal also has extensive experience using legacy test methods to characterize ignition cartridge performance. Pocal proposes the use of a newly designed SPT for technologies that would be used for novel characterization of the M1020 ignition cartridge. The Government technical evaluation determined that Pocal is a viable source for any specialty metal parts required to enable novel testing.

Pocal is currently the only contractor in current production for this item, and as a result, is the only contractor capable of providing these items to the USG at a fair and reasonable price.

9. Interested Sources:

To date, no other sources have expressed interest.

10. Other Facts:

a. Procurement History:

1. Current Contract: W15QKN-13-D-0018, awarded to Pocal Industries, Inc.

Competitive Status: Other than Full and Open Competition, restricted to NTIB Authority Cited: FAR 6.302-3

2. Previous M1020 production contract (W15QKN-07-C-0092): Other than Full and Open Competition, restricted to NTIB.

Authority Cited: FAR 6.302-3

3. No unusual patterns have appeared based on the past procurements.

b. Acquisition Data Availability: A Statement of Work (SOW) with a competitive technical data package is currently available.

c. Unusual and Compelling Urgency: Not applicable to this procurement.

d. Subcontracting Competition: The prime contractor will be encouraged to compete at the subcontractor level through publication of the synopsis required by FAR 5.201 as a function of negotiations.

11. Technical Certifications: 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.

William Kuhnle Date: 6/21/2013 Branch Chief

Conventional Ammunition Division Signature: //esign// William Kuhnle

SFAE-AMO-CAS

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.

William Kuhnle Date: 6/21/2013 Branch Chief

Conventional Ammunition Division Signature: //esign// William Kuhnle

SFAE-AMO-CAS

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.

The resulting proposal will be subjected to price analysis and the need for certified cost and pricing data is not anticipated, per FAR 15.403-1(b)(1).

Rafael Rivera Date: 6/19/2013 Contracting Officer

ACC-NJ-CA Signature: //esign// Rafael Rivera

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

Rafael Rivera Date: 6/19/2013 Contracting Officer

ACC-NJ-CA Signature: //esign// Rafael Rivera