CAO-18-0607_JA_M60E_-_REDACTED.DOCX

Control No: CAO-18-0607

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: M60E4 and M60E6 Machine Guns

Authority: Title 10 United States Code (U.S.C.) Section 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $13,499,098.50

DSN: 880-2137

Contract Specialist Email:marcos.g.kamiyama.civ@mail.mil

Date: 06/04/18

Email: daniel.l.potempa2.civ@mail.mil

DSN: 880-4870

Date Reviewed: 06/11/18

DSN: 880-3476

Product Manager Crew Served Weapons

Date Reviewed:

06/11/18

DSN: 880-3476

Date Reviewed:

06/11/18

REVIEWS: I have reviewed this justification and find it adequate to support other than full and open competition.

Product Manager:

Typed Name: LOYD BEAL III, LTC Engineer

DSN: 880-3476

Signature: _//signed//______________________ Date: 6/11/18

Group Manager:

Typed Name: THERESE GRIMM

DSN: 880-3942

Signature: _//signed// _____________________ Date: 7/16/2018

Center Director:

Typed Name: KEVIN PUMA

DSN: 880-6612

Signature: _//signed// _____________________ Date: 7/11/2018

Legal Counsel:

Typed Name: ADAM FONTANA

DSN: 880-9160

Signature: _//signed// _____________________ Date: 7/16/2018

Associate Director:

Typed Name: JOHN C. ROSAMILIA

DSN: 880-2749

Signature: _//signed//______________________ Date: 8/7/2018

Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: US Army Contacting Command – New Jersey

2. Description of Action: The proposed action is for approval of a new five year Indefinite Delivery Indefinite Quantity contract with Firm-Fixed Price Delivery Orders. Foreign Military Sales (FMS) and Other Government Appropriations will be used to fund this requirement.

3. Description of Supplies/Services:

The M60 is an air-cooled, gas-operated, belt-fed machine gun (MG) capable of being fired handheld or from various mounts and is primarily used for ground operations. It is chambered in 7.62 Millimeter North Atlantic Treaty Organization (NATO) ammunition and feeds from belts of disintegrating M13 links. This effort requires the M60E4 and M60E6 MG variants along with conversion kits, associated accessories and spare parts, and training.

The M60E4 incorporates improvements over previous M60 versions that include improvements to internal components, thick-walled barrel, a new polymer handguard and grip, and a redesigned gas system. The ammunition hanger has been moved from the feed tray and is now mounted on the receiver. The E4 variant’s folding bipod is attached to the gas system of the receiver assembly and not the barrel assembly as in the original M60 design and the barrel has a carrying handle to facilitate barrel changes. Additionally, the front sight is adjustable for windage and the E4 utilizes an ambidextrous safety and has universal sling attachments. In addition, the flash hider has evolved from an earlier “duck bill style” to the currently available “bird cage” style. Furthermore, the top cover is equipped with an integral Picatinny rail for the purpose of mounting optics and accessories. In addition, the E4 has the ability to load the weapon with the bolt closed and the feed cam and feed pawl have been redesigned to provide greater belt pull capability. The M60E4 can also be configured to match the Mk43 Mod 1 which includes multiple MIL-STD 1913 rails for attaching optics and accessories.

An M60E4 is defined as follows:

*NOTE: M60E4 spare barrel does not include a bipod as the bipod is receiver mounted.

The M60E6 is a further improvement over the E4 design. It has improvements to the gas system such as a reversible gas piston that is designed to reduce the likelihood of incorrect assembly and removal of the need for a lock wire to fix the cap to the gas system. The top cover is machined forged aluminum and includes a rail on the top surface for attaching optics. The handguard is also aluminum and includes railed surfaces at the 3, 6, and 9 o’clock positions. Furthermore, plastic molded rail protectors are included and the front sight on the barrel is adjustable allowing for individual zeroing of each barrel (main and spare). Additionally, the buttstock design has been changed to include ergonomic enhancements and the material has been upgraded. In addition, the back plate has been improved for durability and is easily replaced for improved maintainability. The M60E6 can be configured with either a push button or an ambidextrous safety lever. An M60E6 is defined as follows:

*NOTE: the M60E6 spare barrel does not include a bipod as the bipod is receiver mounted.

The U.S. Ordnance M60E6/E4 Conversion Kit upgrades any serviceable M60 receiver to the M60E6/E4 configuration. Upgrades can be performed at U.S. Ordnance or the customer facility after training by U.S. Ordnance staff. When the conversion kit is installed on a serviceable M60, U.S. Ordnance issues a new gun warranty. Using only the kit, an armorer at the customer location can convert and upgrade a serviceable M60 machine gun in fewer than 30 minutes, without complex tools and machines.

The period of performance for this effort will be five years with a total estimated dollar value of $13,499,098.50. The following table delineates the cost breakout.

4. Authority Cited: Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1(a)(2), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for. As further described in FAR 6.302-1 (c)(1), an acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer does not provide for full and open competition, regardless of the number of sources solicited. The Government intends to award the proposed contract to US Ordnance Defense Systems Manufacturing, 300 West Sydney Drive, McCarran NV 89434.

The M60E4/E6 MG are proprietary systems developed and patented by US Ordnance.

In April 2000 US Ordnance signed a licensing agreement with SACO Defense (now General Dynamics OTS) to produce the M60 series of weapons under license. During this time period, the M60 MG was replaced in its entirety by the M240 MG as the standard medium machine gun in the U.S. Army. Since the M60 MG was no longer in use due to its replacement within the U.S. Army, it was determined that any benefits obtained from pursuing the M60 MG licensing agreement were outweighed by the costs of said licensing agreement. As a result, the M60E4/E6 MG licensing agreement was not pursued by the U.S. Army and all Government property, tooling and gauges were abandoned to US Ordnance. Due to the aforementioned, the U.S. Army no longer has the property, tooling, gauges, processes and procedures, or a manufacturing line to produce the M60E4/E6 MG series. Currently, US Ordnance exports the M60 MG series to approximately 23 international customers through both FMS and Direct Commercial Sales. In the years that US Ordnance has been producing the M60 MG series, it implemented continuous process improvements at both the part level and system level of the weapon system. These improvements have been focused on increased safety, modernization, and reliability. In 2013 this system was adapted by the Danish Army, classified as the M60E6 and assigned a National Stock Number. Since the M60E6 has become a NATO standard weapon, Program Manager Soldier Weapon’s existing customer base and new customers are requesting the M60E4 and M60E6 versions through FMS. The M60E4 and M60E6 MGs cannot be procured competitively since the TDPs for both weapon systems are fully owned by US Ordnance and the Government does not have any licensing rights to compete this requirement. In addition, US Ordnance has not licensed any other vendors to manufacture the M60E4 and M60E6 MGs. Therefore, awarding the requirement to any source other than US Ordnance would fail to fulfill FMS and OGAs’ customer requirements.

The M60E4 and M60E6 MGs are already currently in use by the U.S. Army’s FMS & OGAs’ customers. Procurement of a different weapon system would not accomplish customers’ requirements. Through its utilization for over two decades, FMS and OGAs’ customers’ armed forces personnel have become very familiar with the M60 MG series use and performance abilities and as such, these specific products are requested by brand name and Original Equipment Manufacturer (OEM). Introduction of a new MG system would add substantial performance risk such as reliability, material stress, durability, new configuration and suitability to the mission.

Utilization of third-party vendors to fulfill FMS customer M60E4 and M60E6 MG requirements is not optimal due to third-party vendors’ limited quantities. This uncertainty in required quantity availability leads to high risk in the U.S. Army not being able to fulfill FMS customers’ delivery schedules in a timely manner thereby negatively impacting customer mission. Additionally, currently there are a variety of aftermarket replacement components and parts, however, these parts are unproven and unauthorized by the OEM. Utilization of aftermarket components or parts increases performance and safety risk because it could lead to weapon system degradation in performance which could result in unintended loss of life. As a result, utilization of third-party and aftermarket replacement vendors represents an unacceptable risk in schedule and performance.

Based on the above, US Ordnance is the only qualified source with the requisite knowledge, technical experience, and production capability necessary to satisfy the requirements to manufacture weapon systems such as the M60E4 and M60E6 MG to meet customer’s requirements. In addition, the U.S. Army would provide customers with United States Government pricing and economies of scale through the utilization of a single contract vehicle. Lastly, due to customers frequent time sensitive requirements, award of this contract vehicle will allow the U.S. Army to provide a rapid response in fulfilling FMS customers’ requirements.

6. Efforts to Obtain Competition:

a. Effective Competition: Because this is a sole source action, effective competition is not applicable. The notices required by FAR 5.201 shall be published, any proposal received will be considered.

b. Subcontracting Competition: US Ordnance is a small business concern. In accordance with FAR 19.702(b)(1), small business contracting plans are not required from entities that are certified as small. Notwithstanding, US Ordnance continues to rely on other small businesses for material sourcing, business supplies and service support. US Ordnance will be required to select subcontractors to the maximum practical extent in accordance with FAR 52.244-5.

7. Actions to Increase Competition: Full and open competition is not practical at this time. Technical design, development, and data knowledge are not available to foster competition. US Ordnance is the only known source that possess the capability of satisfying the manufacturing requirements of the M60E4 and M60E6 MGs. As stated, the M60E4/E6 MG are proprietary systems developed and patented by US Ordnance. Due to the fact that US Ordnance self-funded the development of the M60E4 and M60E6 MGs and owns the technical data, the opportunities to obtain future competition from other sources is limited. The U.S. Army does not intend to obtain licensing agreements for the M60E4 and M60E6 MGs since the M60 MG series is no longer employed by the U.S. Army and obtaining licensing rights for the purpose of fulfilling orders is too cost prohibitive.

8. Market Research: Sources Sought Notice W15QKN-18-X-01HJ was posted to FedBizOps on 6 February 2018 to determine if there were any viable solutions to this requirement and to identify the contractors who are cable of meeting the requirement.

The only response received was submitted by US Ordnance Defense Systems Manufacturing located at 300 West Sydney Drive McCarran, NV 89434. US Ordinance’s response was evaluated by the Armament Research, Development and Engineering Center (ARDEC) personnel and the written evaluation was provided to ACC-NJ. As detailed in the evaluation, US Ordinance response confirmed the characteristics and technical data required by the M60 variants. Additionally, US Ordinance’s response included a detailed technical description of the kits used to convert earlier M60 models to M60E4 and E6 models. In addition, US Ordinance provided contract information regarding the transfer of US Government data and tooling/machinery to support the manufacture of M60 weapon systems. Furthermore, the response indicated that production capacity and delivery schedule are reasonable and meet or exceed the requirements. US Ordnance did not provide any information detailing its compliance procedures for Item Unique Identification (IUID) machine-readable information (MRI) requirements as described in MIL-STD-130, Identification Marking of U.S. Military Property and Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.211-7003. Further inquiry regarding the IUID requirements was deemed adequate. As a result of the aforementioned, it was determined that US Ordnance can meet the technical requirements.

The market research effort as described above has not identified additional sources other than US Ordnance that would be capable of meeting the M60E4 and M60E6 MG variant requirements.

9. Interested Sources: To date, no other sources have written to express interest in the requirement.

10. Other Facts: N/A

a. Procurement History: N/A

b. Other facts: The previous M60 contract, W152H09-09-D-0135, was awarded by TACOM-Rock Island and due to the age of the contract, the file is no longer available. The required details of the previous Justification Approval for Other than Full Competition are unknown at this time. The contract was a Firm Fixed Price sole source award to US Ordinance for a total contract value of $46,512,514.13.

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.

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.

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 determination will be made using cost analysis and price analysis. Certified cost or pricing data will be requested to include history of sales to non-governmental and governmental entities and cost data, on sales of these same items. The price analysis will consist of a comparison of proposed prices to historical prices paid for the same items; and also be compared against the Independent Government cost estimate.

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

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the M60E4 and M60E6 MG variants along with conversion kits, associated accessories and spare parts, and training on an other than full and open competition basis pursuant to the authority of Title 10 United States Code (U.S.C.) Section 2304(c)(1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The total value for this procurement over a five year period of performance is $13,499,098.50. The approval is subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

FOR OFFICIAL USE ONLY