Redacted JA_Redacted.pdf

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

CUI

March 2023 CUI Page 2 of 7

I. Agency and Contracting Activity.

The Requirement Office is the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 409th Supply Chain Management Squadron (SCMS)/GUMAA. The Contracting Office responsible for this proposed contracting action is AFSC/PZAAB. The purchase request number supporting this contracting action is FD2060-23-00305.

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

Due to the circumstances described herein, the activity requests authority to acquire the repair services listed in this Justification and Approval 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 follow-on contract, which will be a 5-year Firm- Fixed Price (FFP), Requirements Indefinite Delivery Contract (IDC) structured with a basic 1-year ordering period and four additional 1-year ordering periods. Based on the projected contract award date, orders can be issued from May 2024 through May 2029.

This acquisition will be awarded to the following vendor:

Honeywell International Inc.

855 S Mint St.

Charlotte, NC, 28202-1517

CAGE: 0B7T5

Large Business

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

This requirement is in support of repair activities for three (3) Honeywell National Stock Numbers (NSNs) as follows:

The Micro Inertial Reference System (MIRS), NSN: 6605-01-500-6802UC / part number (PN):

HG2101AB02, is a self-contained Line Replaceable Unit that provides acceleration, velocity, position, and altitude information for the aircraft. It is part of a larger inertial navigation system.

The Satellite Data Unit (SDU), NSN: 5895-20-011-3435UC / PN: 1252-A-3800-01, is a standalone Satellite Communication that provides two channels of Swift64 high speed data or one channel of SwiftBroadband for use in the cabin. It provides one channel of Aero H+ voice for use by the crew that meets the FANS-1/A+ requirements for communication with Air Traffic Control, an additional channel of Aero-H+ for the cockpit (or the cabin subject to preemption by the cockpit), and a European Conference of Postal and Telecommunications Administrations 1 interface used by older handsets, such as Magnastar. It also provides a dedicated data channel for Controller pilot data link communication and Aircraft Communication Reporting and Addressing System. The SDU uses the Williamsburg SDU Controller Interface protocol to interface with the audio system and the Flight Management System (FMS) to allow dialing through the FMS and audio through the pilot's headsets for voice communication.

The SATCOM Antenna, NSN: 5985-20-011-2563UC/PN: 1242-A-0010-21, is an ARINC 781High Gain Antenna used to receive and transmit voice and data from a moving aircraft via the Inmarsat satellite

March 2023 CUI Page 5 of 7 engineering effort to develop sufficient technical data to compete which would result in unacceptable delays to the Government and expenditure of funds not expected to be recovered through competition.

Reverse Engineering: AFSC engineering performed an analysis to determine the estimated costs to reverse engineer the MIRS. Based on expected service life of the C-5 aircraft through year 2040, the analysis determined the Government would not recoup the reverse engineering investment for these items. It is anticipated that a reverse engineering effort would cost the Government an estimated $17.3M. The estimated cost was based on engineering experience and past similar reverse engineering efforts. The current repair cost of the MIRS is approximately . Assuming that a reverse engineering effort was completed, and competition resulted in a 20% reduction in cost, a new repair price is expected to be per unit. The repair requirement of the MIRS is estimated to be 115 units through the year 2040.

A reverse engineering effort would result in revenue loss of $16.5M based on C-5 lifecycle through 2040.

The Government would need to repair 2,544 units in order to cover the costs associated with a MIRS reverse engineering effort. At the current estimated rate of repair, the Government would not break even until the year 2526.

SDU: It is anticipated that a reverse engineering effort would cost the Government an estimated $15M.

The estimated cost was based on similar engineering experience and past reverse engineering efforts. The current repair cost of the SDU is approximately . Assuming that a reverse engineering effort was completed, and competition resulted in a 20% reduction in cost, the new repair price would be per unit. The repair requirement of the SDU is estimated to be 621 units through the year 2040. A reverse engineering effort would result in a revenue loss of $3.6M based on C-5 lifecycle through 2040. The Government would need to repair 1,143 units in order to cover the costs associated with reverse engineering the SDU. At the current estimated rate of repair, the Government would not break even until the year 2059.

SATCOM Antenna: Based on engineering experience and past reverse engineering efforts, it is anticipated that a reverse engineering effort would cost the Government an estimated $10M. The expected serviceable life of the C-5 airframe is the year 2040. The current repair cost of the SATCOM Antenna is approximately . Assuming that a reverse engineering effort was successful, and competition resulted in a 20% reduction in cost, the new repair price would be per unit. The repair requirement of the SATCOM Antenna is estimated to be 306 units through the year 2040. A reverse engineering effort would result in are venue loss of $9.4M based on C-5 lifecycle through 2040. The Government would need to repair 3,333 units in order to cover the costs associated with reverse engineering the SATCOM Antenna.

At the current estimated rate of repair, the Government would not break even until the year 2208.

Pursuing a reverse engineering effort for any of these assets would cause an unacceptable delay in support for the C-5 due to the time it would take to develop the repair procedures and lapse of repair coverage when our current contract support runs out. This would result in downed aircrafts and would directly impact the ability for the C-5 to fulfill its mission requirements.

Accordingly, Honeywell is the only firm capable of providing the services described in Section III above without the United States Air Force experiencing unacceptable delay in fulfilling mission requirements.

March 2023 CUI Page 7 of 7

A Small Business Administration Dynamic Small Business Search query was conducted using NAICS code “811210” to search for potential vendors. This query produced 0 results.

The CNS/ATM SATCOM is considered a commercial item as defined in FAR 2.101. The CNS/ATM SATCOM is used by both the military and the commercial aviation industry.

The market research concluded Honeywell is the only vendor capable of fulfilling the Government's requirement.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

None.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

See Section V above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

The Government does not own the data rights and the contractor is not willing to sell the data required to repair these items. The plan to overcome barriers to competition is to send inquiry to Honeywell prior to each ordering period requesting their interest in selling the repair technical data to the Government to support future repair requirements.

The plan to break barriers to competition in the prior J&A was to continue engaging Honeywell on selling the TDP to the Government. The plan was completed; however, Honeywell continues to decline sell of the TDP to the Government. Based on fulfillment of the prior plan, the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a)(S-70)(ii).

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. 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.