JUSTAPPR_redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

Choose the funding level for this J&A Document:

< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M

Contracting Activity: AFSC/PZAAB

Purchase Request / Local ID Number: FD2060‐16‐00013

Program / Project (and PE, if applicable): Ground Collision Avoidance Computer (GCAC)

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title):

Estimated Contract Cost (including options): $ J&A Type: Class Individual

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APPROVAL (A F F A R S 5 3 0 6 . 3 0 4 ( a) )

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COORDINATION (A F F A R S 5 3 0 6 . 3 0 4 ( a) )

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&Awill be used asa reference document by the approving official.

Date ContractingOfficer

[ Name ]

[ Office Symbol / Phone Number ]

Signature

Date ContractingOfficer

Wendell Crittenden

AFSC/PZAAB / 468‐2231

Signature

Date Project Lead / Program Mgr / Requiring Activity

Michele Warren

409 SCMS / 497‐3645

Signature

WARREN.MICHELE.A.1 Digitally signed by WARREN.MICHELE.A.1228769220 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=WARREN.MICHELE.A.1228769220

228769220 Date: 2016.04.25 14:37:18 ‐04'00'

Date Local Legal Reviewer

[ Name ]

[ Office Symbol / Phone Number ]

Signature

Date Chief of the Contracting Office (COCO)

[ Name ]

[ Office Symbol / Phone Number ]

Signature

Date Competition Advocate

[ Name ]

[ Office Symbol / Phone Number ]

Signature

I. ContractingActivity.

This Justification for Other Than Full and Open Competition support requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 409 Supply Chain Management Squadron (SCMS) / GUMB.

The contracting activity for this requirement is AFSC/PZAAB, Robins AFB, GA 31098. The purchase request (PR) supporting this contract action is FD2060‐16‐00013.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire the repair 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 be awarded as a new, Firm‐Fixed‐Price (FFP) contract. This repair contract will support AFSC, United States Air Force (USAF), United States Air Force Reserve (USAFR), and United States Air National Guard (USANG) at the contractor depot repair facilities for the C‐130 Ground Collision Avoidance System (GCAS).

This sole source requirement will be purchased from the following company:

Honeywell International, Inc. CAGE CODE: 1W4T8 4150 Lind Ave. Southwest Renton, Washington 98055‐4973

III. Description of supplies/services required to meet agency needs.

a. This contract action establishes interim contract repair for the C‐130 Ground Collision Avoidance Computer (GCAC), until the five year Honeywell Enterprise Repair Strategic (HERS) led by Tinker has been awarded. HERS is estimated to award in Oct 2016. This contract supports depot level repair at the contractor facility Honeywell International Inc. Estimated award date is June 2016.

b. This effort provides services where Honeywell International Inc. is the only responsible source to support the sustainment of GCAC on C‐130 that are unique to the GCAS. Honeywell shall provide all labor, services, facilities and replacement parts necessary to return unserviceable assets to "serviceable ", ready‐for‐issue condition. These repair quantities are based on Automated Budget Compilation System from the March 2015 computation cycle.

c. The total estimated cost of this repair requirement is $608,724.00. The repair cost estimates are derived from negotiated repair pricing on current USAF contract, FA8538‐10‐D‐0015, including a 3% inflation factor. Any combination of the two listed NSNs can make up the BEQ but only NSN 5841‐01‐463‐3343LG will be output.

Basic Year

5841‐01‐463‐3343LG

5841‐01‐449‐9255LG

Part Number 965‐0636‐003‐B02‐B03 965‐0636‐003‐B02‐B02

BEQ

74 each

Repair Price

Total Price

Option 5841‐01‐463‐3343LG 965‐0636‐003‐B02‐B03 63 each $

5841‐01‐449‐9255LG 965‐0636‐003‐B02‐B02

TOTAL $

The type of appropriation for the repair of NSNs is 4930 for a period of performance of 24 months.

IV. Statutoryauthority permitting Other than Full and Open Competition.

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

The agency's minimum needs can only be satisfied by the unique services available from Honeywell International, Inc., the only source that possesses the skilled employees, equipment, facilities, repair data and processes necessary to perform this contract. Therefore, this acquisition is for continued performance of a minimum essential list (MEL) of equipment required for the C‐130 and congressionally mandated; no troops or passengers may be carried on the aircraft without a fully operational GCAC engaged. The unique capabilities are demonstrated as follows:

Current Contract:

Honeywell International, Inc. is currently providing repair services identified in Section III through a five‐year contract awarded under authority 10 USC 2304(c)(1) as implemented by FAR 6.302‐1, FA8538‐10‐D‐0015, awarded 29 Sep 2010, which will expire this fiscal year. The current contract provides repair support for GCAC managed by Robins AFB. This contracting action will cover the AFSC USAF repair requirements. The individual paragraphs below provide the applicability of authority. This acquisition will be a FFP, sole source, interim contract for continued support.

Only Capable Source:

The contract effort will be solicited under "Other Than Full and Open Competition" to Honeywell International, Inc.

Honeywell International Inc., is the Original Equipment manufacturer (OEM) for these NSNs and is the only source capable of providing the supplies and services identified in Section III for the specific NSNs identified in paragraph III. C that meet the necessary minimum requirement.

Both NSNs included in this effort have an Air Force Material Command, AFMC Form 762 Contract Repair Screening Acquisition Worksheet (CRSAW) Repair Method Code (RMC) and Repair Method Suffix Code (RMSC) that indicate a sole source requirement to Honeywell International Inc. exist.

The RMC/RMSC Codes are R3/R.

RMC: R3 Repair, for the second or subsequent time, directly from the actual manufacturer.

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

Highly Specialized Skills and Equipment:

Honeywell International Inc. is the only source that has the expertise, facilities, equipment, repair data and processes to provide repair support of NSNs covered via this contract. Test equipment that is in marginal condition or technicians that lack seasoned proficiency in the repair of GCAC can destroy next higher assembly and thus affect Honeywell's cost and schedule for end item repair.

Technical Data:

The Government does not own the rights to the data required to repair the GCAC items listed in paragraph III.C. The OEM, Honeywell International Inc., possesses repair data rights as well as proprietary data rights on the software and depot level manuals. The OEM is unwilling to sell the repair data, proprietary software nor depot level manuals.

Significant Delay and Duplication of Cost:

The GCAC alerts the aircraft when it is going to hit the ground. GCAS is listed on the minimum essential list (MEL) of equipment required for the C‐130 and is congressionally mandated; no troops or passengers may be carried on the aircraft without a fully operational GCAC engaged. In accordance with the Systems Engineering, reverse engineering is typically cost effective only if the item to be reverse‐engineered will result in a high return in investment or the OEM is no longer willing or able to provide support. Return on investment cannot be justified, based on parts obsolescence and total system replacement through the Avionics Modernization Program (AMP). Based on comparable reverse engineering effort for the Advanced Lighting Control System (awarded in 2007), the estimated cost for reverse engineering the GCAC is $2.5 million.

The amount of time it would take for reverse engineering is estimated at 18 to 24 months. Therefore, sufficient justification does not exist to obtain funding for reverse engineering.

Accordingly, Honeywell is the only firm capable of providing the services described in Section III above without the USAF experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptabledelays infulfillingits requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

This requirement was posted on the Federal Business Opportunities (FedBizOps) web page on 14 Aug 2015 citing conditions which preclude Full and Open Competition. No sources expressed an interest as a result of the posting. Although the Government does not own data to support the acquisition of GCAC repair from any other source, any source who responded to the Government would have been identified to the prime contractor as a potential source for subcontracting possibilities. This is a pre‐award contract action as required by FAR 5.201(b) in advance of issuance of the solicitation.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.404, it is anticipated that negotiations will be conducted using data other than cost or pricing data from the contractor. Thorough price analysis and/or cost 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 is fair and reasonable to the Government and the Contractor.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research (MR) was conducted in accordance with FAR Part 10 and was completed in July 2015. The following MR techniques were used:

a. Thorough documentation searches were conducted within government data bases, combined with various Internet searches (IHS Haystack, GSA Advantage, Google) for part/national stock numbers and item description.

b. E‐mail correspondence was exchanged with the OEM to determine the present status of the item. As of 1 June 2015, the OEM is unwilling to sell the technical data package or rights to it.

c. Several other companies with a potential to repair GCAC (Rockwell Collins, Teledyne, Goodrich Sensor Systems, etc.) were contacted but no positive replies were received.

d. Discussions with other Government personnel were conducted to further identify potential sources for this MR.

The MR showed that the GCAC is a commercially available product from Honeywell International Inc. It has many versions and is used by both the military and the commercial aviation industry. However, all repair data and test equipment software for this particular version is proprietary to Honeywell. Therefore, the only source capable of repairing the GCAC is the OEM.

Honeywell International Inc. owns the design of the special test equipment that is essential for troubleshooting and testing of applicable assets. Highly technical skills, using the relevant technical data, are also required to satisfactorily service and maintain the current system. No opportunities to contract with small or disadvantaged business were identified for specified actions MR results indicate that Honeywell International Inc. is the only source that can provide these specialized repair services.

Request for Sources Sought Synopsis (SSS)/Request For Information (RFI) for Non‐ competitive Repair of C‐130 AN/ASN‐167 (V) Ground Collision Avoidance Computer (GCAC) was posted to FedBizOps on 14 August 2015 resulting with no responses by close of business 31 August 2015.

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 GCAS is planned for service until 2025. While the current MR indicates a sole source environment for these NSNs, the Government will continue its attempt to procure the data rights in order to make this requirement competitive, but as of now, the OEM possessing the data rights is not willing to sell them. Market surveillance will continue through the monitoring of technical literature, discussion with other engineers and attendance at expos for potential repair sources/ suppliers of the subject NSNs.

XII. Certification bythe Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

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