eTALIN_II_6000_INU_JA_FINAL--REDACTED.pdf

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN

FULL AND OPEN COMPETITION - FAR Part 6

Program/Equipment: Location and Azimuth Determining System (LADS) / Honeywell eTALIN II Software Two-Position Accuracy Feature Upgrade & eTALIN II 6000 Inertial Navigation Unit (INU)

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

Amount: $40,393,500.00

Reviews: I have reviewed th is justification and find it adequate to support other than full and open competition.

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

1. Contracting Activity: U.S. Army Contracting Command - New Jersey

2. Description of Action: Program Manager Towed Artillery Systems (PM TAS) intends to award a single five (5) year Firm-Fixed-Price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract with Honeywell International - DSES Clearwater Defense (Honeywell), 13350 US Highway 19 North , Clearwater, FL 33764 (Honeywell International). This is a requirement for highly special ized equipment to procure Inertial Navigation Units (INUs) to support the Location and Azimuth Determining System LADS ro ram. The Government ro·ects award for June 2022. This effort will utilize

3. Description of Supplies/Services:

• I • • • • p p p missions, independent of GPS availability, legacy system availability, and field artillery survey experience. Developed by U.S. Army Research , Development and Engineering Command Armaments Center engineers at Picatinny Arsenal , LADS enables accurate efficient fires and maneuvers in GPS de raded or denied environments

The eTALIN II 6000 Inertial Navigation Unit (PIN: HH0056AL02) manufactured by Honeywell has been determined as the only solution available to the U.S. Government to ensure the warfighter receives the INU units in a timely manner as there is no current contract to support procurement of the equipment.

The proposed award will contain five (5) one-year ordering periods with a ceiling of $40,393,500.00.

The quantity of supplies are a best estimated quantity only and does not guarantee purchase under this contract. All delivery orders placed against this I DIQ contract will be subject to receipt of appropriated funds, The I DIQ contract will provide maximum flexibility and alignment of funding profile with the approved Procurement History and Planning, which the production schedule exhibits. The minimum guarantee is the procurement of

If the USG's requirements do not result in orders for the estimated quantities, that fact shall not constitute the basis for an equitable price adjustment.

4. Authority Cited: 10 U.S.C. 2304(c)(1 ), as implemented by FAR 6.302-1 (a)(2)(ii)(A) and (B), 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)(ii)(A) and (B), supplies may be deemed 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 substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling agency requirements. This procurement is for highly specialized equipment available from only one responsible source. Honeywell is the only source capable of providing INUs that meet the Government's performance requirements without incurring duplicated costs and unacceptable delays.

further develop it into a system compatible with LADS, a company would require additional time to prototype, produce, test, qualify, and build production units.

and

The Government's requirement is to field LADS . Based on extensive market survey results and an understanding of the Technology Readiness Level (TRL), the Government estimates that the process to further develo existing technolo would take at least to conduc . This includes rototyping and design, internal hardware an so

In addition to the development, production and initial qualification efforts, the Government would be required to qualify LADS hardware and software with a new INU ~overnment would require an additional -to change the design of LADS, components and prototype a LADS system with a new INU integrated, and qualify LADS with a new INU for environmental suitability, hardware surv1va 11 y, and software functionality and stability.

ell I NU was qualified during development at a - demonstration The INU was further tested and qualified by the USG unng esign Verification Testing, Software Qualification Testing, ar ware irst Article Testing, and Software Final Qualification Testing. While Honeywell's solution is a proven technology and is qualified on LADS, other solutions are still in the technology development phase and come with no guarantee of development or qualification success. If performance or schedule hurdles arise during development, which is common for new technolo the Government could be forced to absorb further ne ative costs

In summary, the Government would experience extensive delay and duplication of costs for the integration of LADS with a new INU product, which is currently proprietary and produced by Honeywell. The INU was developed by and is only produced by Honeywell.

Any development required by another vendor to modify, test , qualify, and produce an INU that meets the LADS current specifications would cause considerable risk to the USG. Delays as such as this would provide significant setbacks to the anticipated delivery schedule as no current contract exists for procurement of the INU for fielding of LADS to the warfighter.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any proposals received shall be considered .

a. Effective Competition: Effective competition is not anticipated for this effort. The notice required by FAR 5.201 shall be posted and any bids or proposals received shall be considered.

b. Subcontracting Competition : The Government intends to ensure there is as much subcontracting competition as possible . To further support competitive subcontracting possibilities, the resultant contract will include FAR 52.244-5

"Competition in Subcontracting" and FAR 52.219-9 "Small Business Subcontracting Plan".

7. Actions to Increase Competition: The market survey was completed on 07 January 2021 . Since the hardware and software interface are exclusive and proprietary to Honeywell, and due to the recent upgrades to the software exclusively for the LADS INU, market research was updated December 2021 . The updated market research shows no other company has the technology or current capability to produce this requirement without extensive duplication of costs and considerable delays. As the U.S Government acquires additional knowledge about INU technologies, competition will be sought, where possible , for future requirements.

Honeywell solely developed the INU. The Government does not have rights to the INU product and is proprietary to Honeywell.

8. Market Research: In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1 (d) , and DFARS Procedures, Guidance and Information (PGI) 206.302-1 (d), a Sources Sought Notice, RFI-PANNWJ- 21-P , was posted to Federal Business Opportunities (SAM .gov) on 07 January 2021, with a response date of 08 February 2021, and the results are detailed below.

Army Contracting Command, New Jersey (ACC-NJ) on behalf of PM TAS published a market survey titled "Azimuth Determining System Inertial Navigation Unit (I NU)" on 07 January 2021 . The purpose of the market survey was to improve the Government's understanding of industry's general capabilities and to identify qualified sources capable of producing , integrating, and supporting critical components for an INU in support of LADS. Interested vendors were asked to identify the following regarding their INU technology: production capability of 200 potential INU units, production life cycle experience, integration experience , interfaces and system hardware/software , system specifications, production management capability, ISO 9001 Section 4.5 status, system cost, and ability to meet the Government's schedule requirements.

The Government received- responses from industry. The Government performed a capability assessmeriron the- responses, and determined Honeywell International as the only capable source of meeting the U.S. Government requirement to provide INUs for the LADS program within the required timeframe . Per Honeywell 's response and the Government's experience with Honeywell products in this specific application, they meet all requirements for the LADS system and can provide a solution that meets the schedule , and performance requirements of the Government.

1. In response to the Market Survey, ACC-NJ received responses from -different companies. PM T AS conducted a capabilities assessment o~ responses on 25 February 2021 , and determined that the requirement is only compatible with Honeywell lnternational 's (Honeywell) INU product. Per Honeywell 's response and the Government's prior experience with Honeywell's INU product, they are determined to be able to meet the risk schedule and erformance re uirements of the Government.

fielding effort.

In addition to the Sources Sought Notice, the requiring activity continuously conducted market research beginning in March 2018 and concluding in December 2021. Mandatory sources were reviewed as well as contacting knowledgeable individuals within the Government and industry.

Based on the above Market Research, there are no other firms that can currently produce or manufacture INUs to satisfy the Government's specifications. An award to Honeywell International, who offers an existing INU product that meets the Government's requirement, and schedule risk in fulfilling PM TAS's requirements to procure Honeywell 's proprietary INU software and INUs is crucial for fielding of LADS to the warfighter. The unique capabilities of Honeywell's INU products have been demonstrated tested and validated durin the LADS develo ment rocess that can satisfy all of the Government's requirements.

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

10. Other Facts: No previous FAR procurement history exists on the Honeywell eTALIN II Software Two-Position Accurac Feature U rade & eTALIN II 6000 Inertial Navi ation Unit

This contract award would be the first in support of the

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 or price to the Government for this contract action will be fair and reasonable. The basis for this determination will be cost analysis, price analysis, Independent Government Estimate (IGE), and comparison to historical pricing and technical evaluations. As part of this basis, certified cost or pricing data will be required and obtained in accordance with FAR 15.403-4.

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 INUs for the LADS program for the estimated amount of $40,393,500.00 on other than full and open competition (F&OC). This basis is pursuant to the authority of 10 U.S.C. 2304(c}(1 ), as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 (a)(2)(ii)(A) and (8), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements; subject to availability of funds, and provided that the services or property herein described have otheiwise been authorized for acquisition.

Contracting Activity:

Contractor ame & Address:

MEMORAl\~Ul\!IFORRECORD

Honeywell International Inc.

Aerospace- Clearwater (Defense) 13350 US Highway 19 North Clearwater, Florida 33764-7226

Justification and Approval (J&A):

Contract Type: Indefinite Delive1y Indefinite Quantity (IDIQ) with Film-Fixed-Price (FFP) Delive1y Orders

Desc1iption of Item/Service: To procure eTALIN II 6000 Ine1tial Navigation Unit (INU) in supp01t of the Location and Azimuth Dete1mining System (LADS).

Pe1iod of Performance: Five (5) Years [Five (5) One (1) Year Orde1ing Periods]

Total Value: $49,861 ,528.90 the Alm Conu·acting Command under the authority of Title

10 Umte States Co e 1 up as llilp emented by Federal Acquisition Regulation (FAR) 6.302-1 - Only one responsible source and no other supplies or se1vices will satisfy agency requirements, for eTALIN II 6000 h1e1tial Navigation Units (INUs) in support of Location and Azitnuth Dete1mining System (LADS).

In accordance with AFARS 5106.303-l-90(a), the contracting officer shall amend a justification and obtain required apprnvals when the dollar value of tl1e prospective contrnct action increases beyond the authority of the previous approving official, a change in the competitive strategy finther reduces competition, or a change in requit·ements affects the basis f~tion. The purpose of this memorandum is to it1crease the ceiling amount under J&A- to $49,861 ,528.90 from $40,393 500.00 to suppo1t the prncurement of the eTALIN II 6000 INUs. This increase does not exceed the authority of the previous approvit1g official, nor does it represent a change in the competitive strategy o · ments . The basis for the J&A remains the same as outlined in the original document J&A . In addition AFARS 5106.303-l-90(b) and (c) do not apply per the above discussion, as g p ·esented in this memorandum do not constitute a f01mal amendment to the J&A.

LADS t at provt es accurate pos1t1on an aznnut 1 ta to So ers to accomp s 1err IlllSStons, m ependent of GPS availability legacy system availability, and field aitillery survey experience. Developed by U.S . Almy Research, Development and Engineering Command Armaments CenteI engineeis at Picatinny Arsenal, LADS enables accurate, efficient fires and maneuvers in GPS de ·aded or denied enviromnents is utilized to determine the osition, location, and navi

1e eTALIN II 6000 Ine111a Nav1gat1on Urnt P : HH0056AL02 manu acture y Honeywe I has been detennined as the only solution available to the U.S. Government to ensure the warfighter receives the INU units in a timely marn1er as there is no cunent contract to suppo1t procurement of the equipment.