Redacted_JA.pdf

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: Air Force Sustainment Center AFSC/PZABA

Purchase Request Number: FD2020-16-00524

Program Name: B-1B Secondary Power Systems (SPS) Repair

Estimated Program Cost: $284,157.75

Authorities:

41 U.S.C. 253 (a)(2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency

10 U.S.C. 2304 (c)(1) as implemented by FAR 6.302-1, Only One Responsible Source and no other Supplies or Services will Satisfy Agency Requirements

Type Program: Other Contracting

Type J&A: Individual

COORDINATION:

PROGRAM MANAGER

Sean Gibson, Program Manager

APPROVED:

CONTRACTING OFFICER

Gregory R. Johnson

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY:

United States Air Force

Air Force Sustainment Center, AFSC OL:H/PZAB

6050 Gum Lane, Bldg. 1215

Hill AFB UT 84056-5825

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED:

A. This is a new contract action and upon approval to unusual and compelling urgency procedures, the Air Force (AF) will issue a specific tactical repair contract for the repair and overhaul B-1B Secondary Power System (SPS) components. The contractor for this effort will be:

Honeywell International Inc, DBA Honeywell

1300 W. Warner Road, Tempe, AZ 85284-2822

Cage Code: 02LU7

DUNS: 176019107

B. Contract Type & Structure: It is determined that for the repair and overhaul of these specific B-1B Secondary Power System (SPS) components is for “services” in accordance with FAR 37.101. The specific pricing arrangement of all CLINs will be Firm Fixed Priced (FFP). The estimated period of performance/delivery of all items will be no later than 120 after contract award. All items have been determined to be non-commercial in accordance with FAR Part 15.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED MEETING

THE AGENCY’S NEEDS:

BACKGROUND/CURRENT WEAPON PLATFORM STATUS

The USAF is preparing to finalize award of SPLS Increment 3 for B-1B support, which will commence in February 2016. Since August 2014 SPLS support for B-1B has been provided by two consecutive UCA’s. Negotiations to definitize the UCA’s , and enable award of SPLS 3 for PBL support of the B-1B were concluded at the end of October

2015. To facilitate the planning and transition from the UCA periods to the PBL support in February 2016 required a standown period in production to enable a clean break for accounting purposes. To facilitate this one month standown period, safety stock levels for the Left Hand ADG were beefed up to support to 8 units (representing four months usage).

However an unanticipated surge for Left Hand ADG’s depleted on hand safety stocks.

Without sufficient safety stocks, the B-1B fleet risks being grounded without available on hand assets to keep the B-1B operationally ready to answer all calls.

In accordance with 41 U.S.C. 253(a)(2), as implemented by FAR 6.302-2, Unusual and

Compelling Urgency, these specific and limited amount of items are urgently required in order to keep the USAF B-1B fleet at “Fully Mission Capable Status (FMCS)”. With downed aircraft the USAF loses its critical combat edge readiness as it directly relates to the B-1B platform and nuclear deterrent capability. At this time there is no contractual coverage to which these secondary power units can be procured nor does the USAF have any replacement units within its current inventory.

The mission of the B-1B is a multi-role, long-range bomber, capable of flying intercontinental missions without refueling, then penetrating present and predicted sophisticated enemy defenses. It can perform a variety of missions, including that of a conventional weapons carrier for theater operations.

Any loss of capability to the USAF raises serious global mission capability concerns. The

B-1B fleet shares a global mission to be able to cover certain assigned geographical areas. With any downed aircraft, this puts increased risk upon existing aircraft to maintain the type of desired coverage of these locations.

In addition to capability concerns, additional results of the downed aircraft is a loss of training flight hours required by current pilots to remain qualified. Flight support crews are on stand down status and are waiting for the required parts to install and begin quality testing prior to final approval before flying actual missions.

In accordance with regulations set forth within the authority to use FAR 6.302-2, this contract action will only procure items that are required at this time and in compliance with bona fide need rule.

In addition to the previous authority stated above--an additional authority of 10 U.S.C.

2304 (c)(1) as implemented by FAR 6.302-1, Only One Responsible Source--also applies

(specifically FAR 6.302-1(b)(2)). At this time, Honeywell controls all of the proprietary data regarding these specific SPS items. Honeywell has been contacted by the USAF

PCO inquiring if the contractor would entertain selling the Government its unique data rights to these specific parts. The contractor has verbally replied they are not interested at this time in selling any of its proprietary data rights as it pertains to the B-1B SPS weapon platform. At this time Honeywell is the only qualified source to complete the required services and provide a fully repaired and capable unit.

Under the contract, Honeywell International will provide the required hardware, testing, manpower, and facilities to repair B-1B SPS components. The Government will ship the assets to Honeywell International to repair, test, package, and ship back to the

Government as directed on the contract. The delivery schedule is anticipated to be between 90-120 days after contract award. Early deliveries will be encouraged and accepted however early deliveries will be at no additional charge to the government.

The SPS is made up of three major components with several sub-components for the purpose of starting the main engines and thereafter providing power to support/drive other aircraft systems. When these engines are inoperative the result is a grounded aircraft.

The amounts cited in this J&A are based on the current negotiated prices in addition to the pricing history of USAF contract F34601-00-D-0371. These prices have previously been found to be fair and reasonable.

Estimated total cost: $284,157.75. Amounts have been rounded up to allow for expected and urgent situation/cost increases.This action will be funded with Consolidated

Sustainment Activity Group (CSAG) 4930 working capital funds.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND

OPEN COMPETITION:

41 U.S.C. 253 (a)(2), as implemented by FAR 6.302-2, Unusual and Compelling Urgency

10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1, Only One Responsible Source

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY):

A. The above authority was selected because the B-1B SPS requires urgent and essential equipment and required repairs at once to perform the operational mission of B-1B aircraft.

B. Unavailability of this support will cause B-1B aircraft to be inoperable thus unable to complete the required missions of the B-1B aircraft.

C. No other action can be taken at this time to avert these conditions.

D. The repair services which will be procured under this acquisition cannot be performed organically. The Government does not possess the data or proprietary data rights necessary to accomplish the SPS component repairs organically and therefore are not feasible.

E. The contractor is the only qualified source capable of completing the required repairs and provides a qualified part(s) to meet both the Government’s quality standards and urgent time requirement.

VI. DESCRIPTION OR EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED

PRACTICABLE:

A. In the future the US Government will continue to inquire if the contractor would be willing to sell or negotiate its position regarding proprietary data rights specific to the B-1B SPS items.

B. This requirement will not be synopsized in accordance with FAR 5.202 (a)(2).

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

A. The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The Contracting Officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and

Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology.

The Contracting Office will obtain certified cost and pricing data IAW FAR

Subpart 15.403,--when/if required. Should individual contract items later be determined to be commercial in nature as defined in FAR 2.101, the contracting office will obtain other than certified cost and pricing data IAW FAR Subpart

15.403-3. The final step is to include the Price Negotiation Memorandum (PNM).

This detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED:

A. The B-1B SPS components being repaired are highly specialized, non-commercial items that require very strict overhaul, repair, and testing requirements as previously described in Section V. The market research noted that although there are many companies in the aviation industry that repair and overhaul similar components as those found in the B-1B SPS, they are all missing the required data and likely test and build equipment to perform these repair actions. Since inception of the B-1B the AF has contracted support for the SPS with the OEM.

The AF has not maintained the AF Technical Orders due to the SPS being under contract support. Additionally, the repair & testing processes of these B-1B SPS components are unique and are not considered commercial as defined in FAR

2.101. Market research revealed that no commercial or non-developmental repair services exist to satisfy the agency’s needs for these items.

B. IAW FAR part 10 market research/surveillance was performed by the integrated product team; acquisition specific market research was conducted by 419 SCMS engineers. The Market Research Strategy focused on gathering information to support the efficacy of establishing additional repair sources for the B-1B SPS items. Research included vendor surveys, product data and data rights evaluation, review of vendor capabilities, secondary power performance requirements, engineering skills and techniques required, repair history, and additional or existing sources for each system. The engineers conducted multiple internet based searches of ThomasNet and Google. The searches were based on nouns, NSNs, and part numbers as well as a corporate knowledge of companies that currently exist that might meet the required key performance characteristics. A

Small Business Dynamic Search was also accomplished using the Federal procurement Data System Next Generation website utilizing searches under the

NAICS and Product Service Codes anticipated for this procurement.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION:

None.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION:

None.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

MAKING SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES

REQUIRED:

The program office will provide any performance data to interested sources willing to qualify at their own expense, or review qualification packages submitted to their office. Any new potential sources must be approved by the system engineer prior to any contract award. However, no additional action can be taken to encourage competition while the government lacks sufficient data or data rights to develop and complete a qualification package or remove other restrictions to competitive acquisitions. The Government will continue to pursue possibilities and options to obtain sufficient technical data (rights or licenses) from OEM to compete at least a portion of the effort in the future.

XII. CONTRACTING OFFICER’S CERTIFICATION:

The Contracting Officer’s signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(b)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION:

As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR

6.303-2(c)).