Nitroguanidine (NQ) Recrystallization Technology Demonstration

PPON Amendment 0001:

PPON Amendment 0001 dated 18 July 2024 as well as the Questions and Responses file dated 18 Jule 2024 have been uploaded as attachments to this PPON (please refer to Attachments section). 

Note: a)   All updates to the PPON are highlighted in yellow within the PPON Amendment.

          b)  The updated Terms and Conditions, Attachment 7, needs to be requested and sent via DoD Safe. 

EXECUTIVE SUMMARY 

1.1 Background 

Large caliber artillery systems such as the M777 Howitzer, M109 Howitzer as well as next generation Field Artillery System, are using Solvent Extruded Triple Base (SETB) propellant formulations such M31A2 and the M30. With the current global conflict, the requirement for SETB propellant is stretching the current manufacturing capability to its limit.  

One major limitation is that the SETB processing requires the use of large quantities of NQ, as these formulations contain approximately 50 percent by dry weight in a typical SETB formulation. NQ is a colorless, needle shaped crystalline energetic material. To be used as part of a SETB propellant formulation, the NQ average particle size must fall between a value of 3.4 to 6.0 μm (micromole) and exhibit a needle-like crystalline structure, which is much smaller than high bulk density NQ used in explosive formulations. NQ is currently purchased from Alzchem GmbH (Waldkraiburg, Germany) as there is currently no manufacturing capability of NQ within the National Technology and Industrial Base (NTIB). In order to mitigate the risk associated with supply chain issues, a strategic stockpile of NQ produced at Sunflower Army Ammunition Plant (SFAAP) in the late 1980s exists within the US DoD inventory (~17M pounds); however, this material does not meet specification requirements for propellant applications. 

The objective of this effort is to build an NQ recrystallization process facility capable of reprocessing the material in US Department of Defense (DoD) inventory to make it suitable for SETB manufacturing on a best effort basis. It’s important to note that this effort is not an alternative to establishing a new a NQ production capability; within the NTIB; rather a risk mitigation to ensure continuity of NQ supply while a new NTIB NQ   manufacturing capability is being established. As the DoD stockpile is finite, it does not serve as an enduring source of NQ. However, if successful, this recrystallization effort protects against an acute supply interruption from the sole existing supplier. It also mitigates the timing risk of propellant capacity expansion outpacing the establishment of additional virgin NQ production, which otherwise would result in a production bottleneck. Another ancillary benefit of this project’s success is an outlet for otherwise stagnant and aging US DoD stock of legacy NQ with little to no practical application.   

1.2  Acquisition Approach  

The purpose of this PPON is to competitively solicit and award of up to two (2) prototype Other Transaction Agreement (OTA) under the authority of 10 U.S.C.§4022 for sources capable of prototyping a process for recrystallizing NQ. The prototype OTA will be awarded on a Firm Fixed Price (FFP) basis and the duration for the prototype OTA is estimated to be twelve (12) months (in accordance with the SOW). This prototype OTA is anticipated for award no later than September 2024, pending availability of funding. 

The overarching goal is for the contractor(s) to develop one prototype NQ recrystallization process and deliver 100 lbs of NQ recrystallized from USG stockpiled NQ from the SFAAP. The Government intends to conduct testing ten (10) months after agreement award.  

Follow-On Production Contract or Transaction: In accordance with 10 U.S.C. §4022(f), competitive procedures will be used for the selection of parties in the transaction.  Therefore, upon determination that the participant(s) in the transaction successfully completed the prototype project provided for in the transaction, or in the event that a particularly favorable or unexpected result is accomplished that justifies transition to production, this prototype project may result in the award of a follow-on production contract or transaction without the use of competitive procedures. 

Should the Government pursue a follow-on production award, a production scope supporting this prototype project would be provided and a separate solicitation request would evaluate production pricing. The anticipated scale of a follow-on production contract or transaction resultant from this prototype project award is estimated to be the recrystallization of approx. 17.5M lbs. of USG stockpiled NQ from the SFAAP into the proper form factor of Type II, Class I (low bulk density) that meets MIL-N-494A. 

For more information regarding Other Transaction (OT) regulations and policies, please refer to the DoD, Other Transactions Guide, Version 2.0, dated July 2023. A copy of the Guide can be obtained by contacting the PPON Points of Contact listed in Section 6. 

1.3  Definitions 

Reference Attachment 7- Terms and Conditions, Supplement 2: Definitions 

1.4  Eligibility 

In accordance with 10 U.S.C. §4022(d), Offerors shall meet one of the following conditions to be considered for an award: 

(A) There is at least one nontraditional defense contractor or nonprofit research institution participating to a significant extent in the prototype project. 

(B) All significant participants in the transaction other than the Federal Government are small businesses (including small businesses participating in a program described under section 9 of the Small Business Act (15 U.S.C. 638)) or nontraditional defense contractors. 

(C)  At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government. 

The eligibility of proposals under conditions (A) and (B) above is subject to a determination by the Government that the significance of the proposed nontraditional defense contractor and/or nonprofit research institution participation satisfies the requirements of 10 U.S.C. § 4022(d). Offerors should refer to Attachment 5 - Supplement to Business Status Certification, for guidance on developing a proposal that can satisfy conditions (A) and (B). 

If the Government determines that an Offeror’s proposal does not meet conditions (A) or (B) above, the Government may, at its sole discretion, request additional rationale and support or provide the Offeror with an opportunity to propose an alternative cost share arrangement that meets condition (C) above in accordance with § 4022(d). 

In addition, Offerors must have a Dun and Bradstreet (DUNS) number and must register in the System for Award Management (SAM) to obtain a Commercial and Government Entity (CAGE) code. This system verifies identity and ensures that payment is sent to the right party. In general, to invoice and receive payment after award of an OTA, Offerors must register in Wide Area Work Flow (WAWF) through the Procurement Integrated Enterprise Environment (PIEE).  

The Offeror is subject to a determination by the Agreements Officer that it is a responsible party that is not suspended or debarred by the Federal Government, and is not prohibited by Presidential Executive Order, or law from receiving such award. Additionally, Offerors who attempt to circumvent the eligibility requirements/conditions may be excluded from consideration at the Agreements Officer’s discretion. 

1.5  Evaluators 

Army Contracting Command – New Jersey (ACC-NJ) with the assistance of Government subject matter experts from Development Command Armament Center (DEVCOM AC) and Project Manager Combat Ammunition Systems (PM CAS), will review and evaluate proposals submitted in response to this PPON. There will be no Government contractor personnel involved in the evaluation of proposals submitted in response to this PPON. 

PLEASE REFER TO THE ATTACHMENTS SECTION FOR THE PPON AND CORRESPONDING ATTACHMENTS.