REDACTED JA Ukraine Replenishment MACS.pdf

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Class Justification Review Document for Other than Full and Open Competition – FAR Part 6

Program/Equipment: 155MM M231/M232-series Modular Artillery Charge System (MACS) Components (WC864 Ball Powder, M31-Type Propellant, Combustible Cases, and Metal Containers) and MACS Load, Assemble, and Pack (LAP)

Authority: Title 10 United States Code (U.S.C.) Section 3204(a)(1) as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount:

Prepared by:

Date: 10 November 2022

Contracting Officer:

Date: 10 November 2022

Technical Representative:

Date: 14 November 2022

Requirements Representative:

Date: 14 November 2022

Class Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Contracting Command - New Jersey (ACC-NJ)

2. Description of Action: ACC-NJ, on behalf of the Office of the Project Manager Combat Ammunition Systems (PM CAS), requests approval of this class justification to increase the maximum value for the Modular Artillery Charge System (MACS) components (WC864 Ball Powder, M31-Type Propellant, Combustible Cases, and Metal Containers) and associated Load/Assemble/Pack (LAP) contracts.

St. Marks Powder, Inc., General Dynamics (GD) Canada/

Valleyfield, Armtec Defense Products (Armtec), Conco Inc. (Conco), American Ordnance (AO), and General Dynamics and Ordnance Tactical Systems (GD-OTS) – Niceville are the only manufacturers to deliver a significant quantity of parts in the shortest time while conforming to the US Government’s contractual and technical data requirements. The WC864 Ball Powder, M31-Type Propellant, Combustible Cases, and Metal Containers are integral components, that when loaded, assembled, and packed form the M231/M232-series propellent charges. The proposed contract actions will be six individual bridge modifications to each of the Firm Fixed Price Indefinite Delivery Indefinite Quantity (IDIQ) contracts detailed below. Execution of the bridge modifications will increase the current maximum contract values

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 207.103(d)(i)(B), an Acquisition Plan is required for this procurement and a combined Acquisition Strategy Report/Acquisition Plan was approved by

ACC-NJ intends to pursue the following contract actions under this Class Justification and Approval. The Technical Data Packages (TDPs) for the MACS LAP and associated MACS components (WC864 Ball Powder, M31-Type Propellant, Combustible Cases, and Metal Containers) are fully owned by the United States Government.

a) A modification to contract W15QKN-19-D-0074 with St. Marks Powder, Inc., to manufacture, test, package, and deliver the WC864 Ball Powder to be used in the 155mm MACS. The scope of this modification is to increase the maximum contract ceiling value from

The ordering period for this contract remains unchanged from 09 July 2019 through 08 July 2024.

b) A modification to contract W15QKN-19-D-0072 with the Canadian Commercial

Corporation and GD Canada/Valleyfield, for the manufacture, test, packaging, and delivery of M31A2-Type Triple-Base Propellant for the 155mm MACS M232A2-series propelling charges. The scope of this modification is to increase the maximum contract value from

. The ordering period for this contract remains unchanged from 26 June 2019 through 25 June 2024.

c) A modification to contract W15QKN-21-D-0005 with Armtec, , to manufacture, test, package, and deliver the MACS M231/M232-series Combustible Case Assemblies for the 155mm Propelling Charges.

The scope of this modification is to increase the maximum contract value from

. The ordering period for this contract remains unchanged from 05 March 2021 through 04 March 2026.

d) A modification to contract W15QKN-20-D-0003 with Conco, , to manufacture, inspect, test, and deliver the PA103A2 and PA161 Metal Containers for the MACS. The scope of this modification is to increase the maximum contract value from .

The ordering period for this contract remains unchanged from 13 December 2019 through 12 December 2024.

e) Modifications to multi-award IDIQ contract W15QKN-19-D-0109 with AO, and contract W15QKN-19-D-0110 with GD- OTS – Niceville, , to LAP 155mm M231/M232-series MACS propelling charge increments. The scope of these modifications is to increase the aggregate maximum contract value from

. The ordering period for these contracts remain unchanged from 10 September 2019 through 09 September 2024.

3. Description of Supplies/Services:

The 155mm MACS fulfills the Army’s requirements for propelling charges to be used in the 155mm artillery weapon systems. The 155mm M231/M232-series propelling charges known as MACS

The M231 charge(s) is (are) used

, while the M232-series charges are used at . The M231/M232-series charges are

MACS provides

The WC864 Ball Powder, a loose spheroidal propellant

, is common to all MACS charges and is commonly used in the 155mm MACS Propelling Charge. This is one of the four MACS Components delivered to AO and GD-OTS – Niceville for LAP.

The M31-Type Propellant is used for the M232-series MACS propelling charge

This is one of the four MACS Components delivered to AO and GD-

OTS Niceville for LAP.

The Combustible Case Assemblies are a key technology for M231/M232-series MACS

. This is one of the four MACS

Components delivered to AO and GD-OTS – Niceville for LAP.

The PA103A2 and PA161 Metal Containers are the shipping and storage containers for the M231/M232-series MACS respectively. The containers were developed to protect the MACS charges

This is one of the four MACS Components delivered to AO and GD-OTS –

Niceville for LAP.

The WC864 Ball Powder, M31-Type Propellant, Combustible Case Assemblies, and Metal Containers are components of the final MACS LAP configurations.

The LAP is the process of combining all of the above components into one final end product.

The maximum total value increase for all six contracts is . The annual requirements for quantity and dollars displayed in the tables below are estimates (Unit prices were rounded to two decimal places. The total costs are calculated based on actual, not rounded, unit prices. Therefore, the quantity multiplied by the unit price is different than the actual total cost shown.)

Throughout the ordering periods, PM CAS may order any quantity in any year as long as the total value of the contract does not exceed the contract maximum.

The Joint Program Executive Officer, Armaments and Ammunition has been designated as the Single Manager for Conventional Ammunition Executor and is responsible for the management of this item for all of the Department of Defense (DoD) and approved foreign military customers.

4. Authority Cited: Title 10 United States Code (U.S.C.) Section 3204(a)(1), as implemented by Federal Acquisition Regulation (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 by FAR 6.302- 1(a)(2)(ii)(B), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

These bridge modifications to increase the maximum value of each contract will allow the Government to capitalize on valid ordering periods for immediate issuance of delivery orders

The MACS Component contracts

A production break in any

The assessment of a new contractor to fulfill the required delivery times is comprised of two elements; the ability to execute a new contract through full and open competitive procedures, and the ability of a new contractor to qualify the capability to safely deliver MACS end-items or components.

The current MACS suppliers are the only sources capable of providing their respective product in the shortest time without the Government incurring, unacceptable schedule delays, St. Marks Powder, Inc. is the only known producer of the WC864 Ball Powder and has the current production capabilities of that are readily available to fulfill Government requirements.

They are the only company with the required corporate knowledge and expertise with regard to WC864 Ball Powder and have the existing production line in place, including the required manufacturing and inspection equipment to support deliveries. St. Marks Powder, Inc. was the contractor to support development of the WC864 Ball Powder in 1987 and has since been the only supplier of this product. St.

Marks Powder, Inc.

Aside from a new contractor developing a capability to manufacture an alternate ball powder, an extensive test program would be required in order to test and evaluate the performance of WC864 Ball Powder from an alternate source.

General Dynamics – Valleyfield is the only qualified manufacturer of the M31-Type Propellant for the MACS high-zone propelling charge (M232-series) and has the current capabilities that are readily available to fulfill Government requirements. They have the existing production line in place, including all of the necessary manufacturing and inspection equipment to produce As the current and unique producer, General Dynamics - Valleyfield required for manufacturing the M31-Type Propellant. The new and improved

Armtec is the only qualified manufacturer of the 155mm M231/M232 Series MACS Combustible Case Assemblies. Armtec has the existing production line in place, including all of the necessary manufacturing and inspection equipment, and are currently in production of They are the only company with the required corporate knowledge and expertise with regard to combustible case manufacturing technology to achieve the Government’s requirements.

Conco is the current MACS PA161 & PA103A2 Metal Containers producer. Conco has the existing production line in place, including all of the necessary manufacturing and inspection equipment, and are currently

AO and GD-OTS Niceville are the two contractors responsible for the LAP of the M231/ M232-series MACS. Their processes are fully functioning and support the current

AO and GD-OTS Niceville have an established workforce, qualified production line, as well as the expertise and knowledge to perform LAP.

It is imperative for the Government to retain St. Marks Powder, Inc., GD Valleyfield, Conco, AO, and GD-OTS Niceville’s specific knowledge and expertise

6. Efforts to Obtain Competition:

a. Effective Competition: The Contracting Officer published Sources Sought Notices for the MACS LAP and each of the MACS Components during July and August 2022, on the dates stated in paragraph 8, via the System for Award Management (SAM) website in accordance with DFARS Procedures, Guidance, and Information (PGI) 206.302-1(d) as detailed in paragraph 8 market research. Based upon the information stated in paragraph 5 above, effective competition is not anticipated for these bridge extensions. In accordance with FAR 5.201, the ceiling increase modifications resulting from this J&A shall be synopsized and any bids or proposals received shall be considered from respondents within the National Technology Industrial Base.

b. Subcontracting competition: FAR clause 52.219-9, Small Business Subcontracting Plan is included in Contracts W15QKN-19-D-0109, W15QKN-19-D-0110, W15QKN-19- D-0074, and W15QKN-21-D-0005 while FAR clause 52.244-5, Competition in Subcontracting is included in all of the above except for Contract W15QKN-19-D-0074.

Each large business has a comprehensive subcontracting plan that highlights their commitment to supplier diversity through their consistent ability to meet or exceed their small business subcontracting goals except for contracts W15QKN-20-D-0003 and W15QKN-19-D-0072, which were awarded to Small Businesses.

7. Actions to Increase Competition: Full and Open Competition is not anticipated as the requirements will remain limited to the U.S., its outlying areas, or Canada. A competitive environment will be sought and promoted beyond FY24 via individual solicitations for the WC864 Ball Powder, M31-Type Propellant, Combustible Cases, Metal Containers, and MACS LAP.

8. Market Research: In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS PGI 206.302-1(d), five sources sought notices were posted to SAM.gov website during July and August 2022. Individual sources sought notices requested information regarding industry’s capabilities and potential sources to produce and deliver MACS LAP and associated MACS components. Preliminary technical information submitted by all respondents provided sufficient information to be analyzed, as detailed below.

a. M231/M232-series MACS LAP: Sources Sought Notice W15QKN-22-X-0PP5 was published on SAM.gov website on 18 July 2022 and closed on 2 August 2022. Two responses were received from the following large businesses.

GD-OTS Niceville: GD-OTS Niceville (CAGE Code 4R854) has more than 23 years’ experience with MACS production at their Camden Operations facility. Since 2012, GD- OTS Niceville has delivered the Government under Contracts W15QKN-12-D-0103 and W15QKN-19-D-0110. GD-OTS Niceville’s Camden Operations possesses all necessary facilities, production/inspection equipment, storage capacity, quality systems, and knowledgeable personnel required to successfully manufacture and deliver M231/M232-series propelling charges.

AO: AO (CAGE Code 14912) has produced MACS increments since 2001 at

AO possesses all necessary facilities, production/inspection equipment, storage capacity, quality systems, and knowledgeable personnel required to successfully complete LAP.

b. WC864 Ball Powder: Sources Sought Notice W15QKN-22-X-0PWF was published on SAM.gov website on 1 August 2022 and closed on 17 August 2022. Only one response was received from the following large business.

St. Marks Powder, Inc.: St. Marks Powder, Inc. (CAGE Code 5D079) has produced

WC864 ball powder for the MACS program since June 2020.

c. M31-Type Propellant: Sources Sought Notice W15QKN-22-X-0PN0 was published on SAM.gov website on 13 July 2022 and closed on 29 July 2022. Only one response was received from the following large business.

GD-OTS Canada Valleyfield: GD-OTS Canada Valleyfield (CAGE Code L6633)

d. Combustible Case Assemblies: Sources Sought Notice W15QKN-22-X-0PK4 was published on SAM.gov website on 25 July 2022 and closed on 8 August 2022. The following response was received from a large business.

Armtec: Armtec (CAGE Code 22792)

e. Metal Containers: Sources Sought Notice W15QKN-22-X-0PJ7 was published on to SAM.gov website on 12 July 2022 and closed on 29 July 2022. One response was received from the following small business.

Conco Inc.: Conco Inc. (Cage Code 6B341) has produced munitions containers for the Government for over 50 years.

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

10. Other Facts:

a. Procurement History

M231/M232-series MACS LAP

(1) W15QKN-19-D-0109 (AO) and W15QKN-19-D-0110 (GD-OTS Niceville), awarded 10 September 2019.

(2) Other Than Full and Open Competition

(3) Restricted to U.S., its outlying areas, or Canada under the authority of FAR 6.302-3 “Industrial mobilization; engineering, developmental, or research capability; or expert services.”

(4) Future acquisitions were to be competed within the U.S., its outlying areas, or Canada.

(5) No prior awards were made using Full and Open Competition.

(6) No unusual patterns were revealed by the contract history.

(1) W15QKN-12-D-0103 (GD-OTS Niceville) and W15QKN-12-D-0104 (AO), awarded 12 September 2012.

(2) Other Than Full and Open Competition.

(3) Restricted to U.S. and Canada under the authority of FAR 6.302-3 “Industrial mobilization; engineering, developmental, or research capability; or expert services.”

(4) Future acquisitions were to be competed within the U.S. and Canada. The Government used this strategy for the follow-on procurement and awarded two firm-fixed price Indefinite Delivery Indefinite Quantity contracts to be competed at the Delivery Order level.

(6) No unusual patterns were revealed by the contract history.

WC864 Ball Powder

(1) W15QKN-19-D-0074 (St. Marks Powder, Inc.) awarded 09 July 2019.

(2) Other Than Full and Open Competition.

(3) Only one responsible source under the authority of FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(4) No other sources were determined to be a capable source to manufacture and produce the Ball Powder.

(6) No unusual patterns have appeared based on past procurements.

(1) W15QKN-11-C-0104 (St. Marks Powder, Inc.) awarded 03 February 2011.

(2) Other Than Full and Open Competition.

(3) Restricted competition to the National Technology Industrial Base under the authority of FAR 6.302-3, “Industrial mobilization; engineering, developmental, or research capability; or expert services.”

(4) Paragraph 7 of the justification supporting the procurement before this one stated

Therefore, there were no other known sources are capable/qualified at that time.

(6) No unusual patterns have appeared, based on past procurements.

M31-Type Propellant

(1) W15QKN-19-D-0072 (GD-OTS Canada Valleyfield) awarded 26 July 2019.

(2) Other Than Full and Open Competition.

(3) Only one responsible source under the authority of FAR 6.302-1, “Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.”

produce the propellant.

(1) W15QKN-12-C-0147 (GD-OTS Canada Valleyfield) awarded 25 September 2012.

(3) Restricted competition to the National Technology Industrial Base under the authority of FAR 6.302-3, “Industrial mobilization; engineering, developmental, or research capability; or expert services.”

produce the propellant.

Combustible Cases Assemblies

(1) W15QKN-21-D-0005 (Armtec Defense Products) awarded 5 March 2021.

(2) Other Than Full and Open Competition.

(3) Only one responsible source under the authority of FAR Part 6.302-1, Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

produce the combustible case assemblies.

(1) W15QKN-15-D-0004 Armtec Defense Products) awarded 18 May 2015.

(3) Only one responsible source under the authority of FAR Part 6.302-1, Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

1(a)(2)(ii)(A), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

produce the combustible case assemblies.

Metal Containers

(1) W15QKN-20-D-0003 (Conco) and W15QKN-20-D-0004 (Delfasco LLC) awarded 13 December 2019.

(2) The competitive status of the actions were as Small Business Set-Asides.

(3) Not Applicable as there was not a previous J&A for this effort.

(4) Not Applicable as there was not a previous J&A for this effort.

(5) No prior awards were made using Full and Open Competition.

(6) No unusual patterns have appeared based on past procurements.

(7) Not Applicable as there was no previous J&A for this effort.

(1) W15QKN-10-D-0044 (Conco) and W15QKN-10-D-0045 (Delfasco LLC), awarded 15 April 2010.

(2) The competitive status of the actions were as Small Business Set-Asides.

(3) Not Applicable as there was not a previous J&A for this effort.

(4) Not Applicable as there was not a previous J&A for this effort.

(5) No prior awards were made using Full and Open Competition.

(6) No unusual patterns have appeared based on past procurements.

(7) Not Applicable as there was no previous J&A for this effort.

b. Other facts.