J A_for_post_synopsis.pdf

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval is requesting authority for Other Than Full and Open Competition to support requirements for the Air Force Sustainment Center (AFSC), 638th Supply Chain Management Group (SCMG) and the 410 Supply Chain Management Squadron (SCMS/GULA). The contract authority for this requirement is the Air Force Sustainment Center Contracting Branch (AFSC/PZAAC). The purchase request number for this contracting action is

FD2060-14-00815.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair services listed in this document using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services will satisfy agency requirements. This action will result in the award of a new firm-fixed price contract, with a basic year plus four one-year option periods. Estimated award date is 30 April 2015 in the estimated amount of $4,400,637.99. This sole source acquisition will be to the following company:

Honeywell International Inc.

DBA: Honeywell

CAGE: 94580

Division Aerospace – Minneapolis 2600 Ridgeway Parkway Minneapolis, MN 55413 Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

a. This J&A will cover the purchase of repair services for components of the F-15 Tactical Electronic Warfare Systems (TEWS) Intermediate Support System (TISS). This noncommercial repair contract will return the 16 NSNs to serviceable condition in accordance with the manufacturer’s specifications. The projected period of performance for this repair requirement will be one year basic and four one-year option periods.

The following tables contained the NSNs covered by this J&A. The estimated unit repair costs used to compute the estimated contract price are based on previous unit prices paid plus inflation factors that were applied to reflect current year and out-year estimated repair costs.

FY15 Forecast FY16 Forecast FY17 Forecast FSC NIIN Qty Value/Unit Total Cost Qty Value/Unit Total Cost Qty Value/Unit Total Cost

5998 012716556 0 0 0 5998 012730901 2 2 2 5998 012980093 3 3 3 5998 012986826 1 1 1 5998 012993543 1 1 1 5998 013005494 0 0 0 5998 013027555 5 5 5 5998 013053350 3 3 3 5998 013055056 25 25 25 5998 013462200 3 3 3 5998 014504654 1 1 1 5998 015240110 2 2 2 5998 015427511 2 2 2 5998 015484639 0 0 0 5998 015484640 1 1 1 5998 015532923 1 1 1

50 $801,706.00 50 $833,774.24 50 $867,125.22

The total estimated cost for all items is $4,400,637.99. It is expressed as Best Estimated Quantities (BEQs) for the basic year (FY15) and all 4 option periods (FY16-FY19). All computations were calculated using requirements data (D200 ABCS) for all part number variants for the specified National Stock Number (NSN). The type of appropriation for the repair of NSNs is 4930.

b. The table below shows a Summary of the number of NSNs with each RMC/RMSC code along with the description of each Repair Method Code and the Repair Method Suffix Codes.

RMC/

RMSC

# of NSNs

R3R 16 Total 16

FY18 Forecast FY19 Forecast Qty Value/Unit Total Cost Qty Value/Unit Total Cost

0 1 2 2 3 3 1 1 1 1 0 1 5 5 3 3

25 25 3 3 1 1 2 2 2 2 0 1 1 1 1 1

50 $901,810.22 50 $996,222.31

FSC NIIN

5998 012716556 5998 012730901 5998 012980093 5998 012986826 5998 012993543 5998 013005494 5998 013027555 5998 013053350 5998 013055056 5998 013462200 5998 014504654 5998 015240110 5998 015427511 5998 015484639 5998 015484640 5998 015532923

5 year Total $4,400,637.99

RMC REPAIR METHOD CODE: AFMCI 21-113; A9.2.6.4.5 - 5 NOV 2008

RMC R 3 - Repair, for the second or subsequent time, directly from the actual manufacturer.

RMSC REPAIR METHOD SUFFIX CODE: AFMCI 21-113; A9.2.6.4.5.7 - 5 NOV 2008

RMSC R The Government does not own the data or the rights to the data needed to contract repair this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1 Only One or a Limited Number of Responsible Sources, and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF

THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

This agency’s needs can only be satisfied by the unique supplies or services available from Honeywell who has been the sole source provider of the majority of parts and services necessary to sustain the F-15 TISS testers. Honeywell is the Original Equipment Manufacturer (OEM) and Product Support Integrator (PSI) of the F-15 TISS and repaired many NSNs via delivery orders under the sole source Honeywell F-15 Basic Ordering Agreement (BOA) FA8517-05-G-0001.

They are the only responsible source that possesses the unique capabilities demonstrated as follows. Honeywell is the only company with the technical expertise, data/drawings, equipment, software and other utility programs needed to diagnose and repair these items. The Government has requested repair technical data from Honeywell on numerous times and Honeywell's USAF Customer Business Leader (Owner of technical DATA/RIGHTS) notified the Government on 8 Jul 2014, they are unwilling to sell/release any of the technical data associated with the 16 NSNs.

The Government reverse engineering cost estimate for the 16 NSNs is $39.5 M (Engineering 16.1M, Material $7M, Overhead $6.2M, Technical Data $3.5M and Testing $6.7M) and will require 2 - 5 years to qualify new Sources of Supply (SOS) and Sources of Repair (SOR). These reverse engineering estimates are based on similar Maintenance Engineering Project Sustainment Tool (MPST) Consolidated Sustainment Activity Group (CSAG) engineering projects.

Based on the F-15 TISS repair requirements for the next 5 years being only $4,400,637.99, and the reverse engineering cost of $39.5M, it has been determined uneconomical to reverse engineer the F-15 TISS items to allow for competition. The substantial duplication of costs could not be recovered through competition.

http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002304----000-.html

BOA FA8517-05-G-0001 expired on 28 Feb 2014. Tinker AFB is currently working on an enterprise-wide contract that will include the NSNs listed on this effort. Tinker anticipates that the enterprise-wide contract will be awarded in 2016. This is a bridge contract to ensure coverage until the enterprise-wide contract is in place. Four option year periods are included in the event that award of the enterprise-wide contract is delayed.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

This requirement will be synopsized on the Federal Business Opportunities (FedBizOpps) web page as required by FAR 5.201 citing conditions which preclude full and open competition. It is anticipated that sources having an interest in subcontracting may be identified through synopsis.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The overall cost of these repair services will be fair and reasonable to the Government based upon FAR 15 negotiation procedures using price and cost analysis. The contractor will be required to submit certified cost and pricing in accordance with FAR 15.403-4. Thorough price analysis will be conducted using available information and approved pricing techniques that will support the contracting office in making a determination that the price paid to the contractor is fair and reasonable to the Government.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

Market Research was performed 21 July 2014 pursuant to FAR Part 10. Various methods were used to perform the market research to identify capable and potential sources by researching CENTRA/ETIMS, JEDMICS, Fed Log, Haystack/D043, PRPS, J018/CIDs, BINCS/SAM, Dynamic Small Business Database and Google Website. A Request For Information (RFI) was sent to each potential source. All potential sources were asked about their company’s interest, repair capability, if the item was Commercial/Noncommercial, and if there was no repair interest to recommend a source of repair. Market Research showed the only company capable and interested in repairing the specified 16 NSNs is Honeywell Cage Code 94580.

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

See Section VI above.

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 previous J&A approved in Sep 2004 in support of BOA FA8517-05-G-0001 stated that there were many impediments to a competitive acquisition, e.g. missing, incomplete or illegible engineering drawings; proprietary rights by the original manufacturer; inadequately defined test requirements; and/or unavailable master tooling. It further stated that for remanufacturing efforts, an item would be removed once another source is identified and becomes qualified.

All items were rescreened prior to inclusion in this effort. Items that are no longer sole source to Honeywell have been removed. For the items remaining Honeywell is not willing to sell data rights to the Government which means the technical data package, specifications and descriptions suitable for Full and Open competition cannot be developed. The F-15 TISS is expected to be operational until 2040. The cost of this requirement projected to that year is significantly less than the cost to reverse engineer. The expenditures of the cost and time to reverse engineer are unfeasible because the remaining system life will not allow the government to ever recover those costs. However, when any item is no longer reparable due to obsolescence and/or requires modification or replacement the government will develop a full technical data package that will be used to establish competition.

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)).