J A_Redacted.pdf

PR Number: FD2060-12-00716-00

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated for the Air Force Sustainment Center (AFSC), 407 Supply Chain Management Squadron (SCMS)/GULB. The contracting authority for this requirement is the AFSC/PZABA Robins AFB, GA. The purchase request number supporting this contract action is FD2060-12-00716.

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 result in the award of a new contract, which will be a firm-fixed price contract with a basic one year plus four one year ordering/option period in which additional quantities may be ordered. This requirement will be purchased from the following company:

Honeywell International Inc.

2600 Ridgeway Pkwy Minneapolis, MN 55413-1719

CAGE: 94580

Large Business

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

AGENCY’S NEEDS

These AN/APN-224 components are utilized in conjunction with the AN/APN-224 Radar System on the B-1, B-52, and the A-10 aircraft in support of the Air Force Sustainment Center (AFSC), Supply Chain Management Operational Availability of this Radar System. This effort will improve the organic depot-repair capability by streamlining the repair of Line Replaceable Units (LRU). Work performed under this PWS includes all actions necessary to return the end item, identified below, to a serviceable condition. The contractor shall furnish the services and material necessary for the essential depot level repair, functional testing, inspection, and packaging of the National Stock Numbered (NSN) items listed below. The estimated repair cost is based on the D035 latest repair cost with a 3 percent inflation rate applied and the quantity is based on requisitions from the D200 database. MSD funding will be used to fund these repairs.

NSN P/N CAGE NOMENCLATURE

LATEST

REPAIR

COST

BASIC

Ordering

Period Ext Cost Ordering Period 1 Ext Cost

5841010902667 JG1203AB01 94580 Height Indicator

5841011251598 10068951-103 94580 A1 Transmitter

Assy

5841013169997 10068951-104 94580 A1 Transmitter

Assy

5841011000080 10068961-102 94580 A4 Receiver Assy

Ordering Period 2 Ext Cost Ordering Period 3 Ext Cost

Ordering Period 4 Ext Cost

YEAR

QTY

5 YEAR

$ TOTAL

$745,200.00

$175,800.00

$117,200.00

$236,500.00

$1,274,700.00

$1,312,941.00

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

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.

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED ABOVE

Screening action has resulted in the assignment of the RMC/RMSC of R/3R (The Government does not own the data or the rights to the data needed to repair these parts from additional sources) for NSN’s: 5841-01-090-2667, 5841-01-316-9997 and 5841-01- 100-0080. NSN: 5841-01-125-1598 is assigned RMC/RMSC of R/3P (Acquire directly from the actual manufacturer; the rights to use the data needed to repair this part from additional sources are not owned by the government and cannot be purchased). A request for individual pricing quotes for Level 3/Engineering Level data rights (not "Top Level") on each of the following NSN's: 5841-01-090-2667 (P/N JG1203AB01), 5841-01-316- 9997 (P/N 10068951-104), 5841-01-100-0080 (P/N 10068961-102) and 5841-01-125- 1598 (P/N 10068951-103) was sent to Honeywell International Inc. on 11 June 2012.

Honeywell informed the government that the “applicable data rights under no circumstance was eligible for sale.”

Currently, Honeywell International Inc. exclusively provides required services for the aforementioned NSNs in the form of testing, repair, functional check and certification of items for use on specified aircraft. These services were offered under contract FA8522- 07-D-0007, awarded on 7 July 2007 and expired on 31 Dec 2011 and FA8522-07-D- 0010, awarded on 22 August 2007 and expired on 31 Dec 2011 as sole source contracts.

This requirement is needed to repair circuit cards that are integral to the AN/APN-224.

The AN/APN-224 accurately provides the altitude readings of the aircraft from 0-5,000 feet. The circuit cards comprise the components required for assembly of the receiver transmitter. This system currently supports the A-10, B-1, and B-52 aircraft. The declining life of this system, obsolescence issues and old technology makes this system unfeasible at this time for reverse engineering. The B-1 and B-52 System Program Office (SPO) has identified the AN/APN-232 system as a potential replacement candidate for the AN/APN-224 to improve reliability and maintainability. The unavailability of funds to purchase the AN/APN-232 hardware to support the B-1 and B-52 aircraft prevents replacement until funds are allocated.

The agency’s minimum needs can only be satisfied by the unique supplies or services available only from the referenced source.

International Enterprises Inc. (CAGE 50218) was identified as a source of repair in the contract repair history on a limited base and on a limited number of subassemblies excluding the Height Indicator. After 2005, all contract repairs were awarded to the OEM, Honeywell International. Although IEI was a repair candidate back in 2005 and stated a repair capability on a similar radar altimeter system (P/N HG7502AJ—see market research), the vendor still requires a legacy serviceable AN/APN-224 unit, provided by the government, to be utilized as a “Hot Mock-Up”. Without the “Hot Mock-Up” unit, IEI does not have full capability of meeting test specification requirements as needed on the AN/APN-224 system. A follow-up E-mail was sent to IEI on 3 October 2012 to verify their repair and test capabilities but no response was received. This is a bridge contract needed to maintain the required repairs for sustainment of the AN/APN-224 until such time as organic maintenance is stood up, the system is replaced or the associated aircraft are decommissioned. The repair option years are necessary for sustainment due to the life expectancy of B1 and B-52 fleets (2040 and beyond). The 224 system is no longer procurable, it has received several Beyond Economical Repair (BER) notices and at this time there are no finite plans for replacement on the B-1 and B-52 aircraft. The depot does not possess the capability to repair the CCAs at this time. The receiver transmitter is constantly awaiting parts (AWP) when circuit card failures are detected.

The contractor is the only entity who has the test equipment and test program sets to fault isolate and, consequently, repair the CCAs. Failure to award this contract will result in increased MICAP hours and backorders. The increase of MICAP hours and backorders will result in grounding mission capable aircraft and degradation to the information the warfighter requires for mission accomplishment. Therefore this acquisition will be a follow-on contract for the continued repair of the specified AN/APN-224 subassemblies.

While other companies may have experience with electronic altimeter sets and subsequent components, no source other than Honeywell International Inc. (CAGE 94580) can fully repair and test these items exclusively for the AN/APN-224 Electronic Altimeter system. The repair and test data is proprietary to Honeywell, the OEM; they also own the required interface test adapters for access to the Honeywell manufacturer information needed for successful integration to the aircraft. A complete repair and test data package is not available for competitive solicitation.

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. It is anticipated that sources having an interest in subcontracting may be identified though synopsis. Although the Government does not own data to support acquisition of this repair effort from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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 considered fair and reasonable based upon FAR 12 negotiation procedures using price and cost analysis. Methodologies to assure this will be commercial pricing techniques utilizing publicly offered catalogs, comparison to historical contractor sales and/or analysis of limited cost and pricing information which could be made available by the contractor. In the event that limited cost and pricing information is made available, the Government’s negotiation objective will be developed using local technical analysis applied to direct and indirect rate factors recommended by the DCAA and/or DCMA.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH

WAS NOT CONDUCTED

The System Engineer, 407 SCMS/GUEA, conducted market research in accordance with FAR 10.001 and 10.002. The engineer conducted research using internet searches; such as Small Business Administration, Thomas Registry, IHS Haystack, ILSmart and Google.

The engineer searched these websites by part/national stock numbers and by manufacturers. Also, qualified individuals within the appropriate government sections were contacted for assistance gathering product background information. A search for HUB zone and service disable veteran owned businesses was also conducted using the Small Business Search Engine. Market research determined these NSNs could be considered commercial items. Reference previous contract FA8522-07-D-0005 memo, Commerciality of Repair of APN 224 Radar Transmitter Assembly, the contractor stated that these are commercial items/repairs based on the fact that they are a type of devices that are routinely used for non-governmental (i.e. commercial) purposes. The memo also stated that radar altimeters are commonly used in private and business aircraft as well as helicopters; and the same type product is also routinely used in the air transport industry.

Market analysis shows that there are limited companies capable of AN/APN-224 system technology and manufacturing however, Honeywell is the only fully qualified source for this repair effort. Honeywell is uniquely and solely capable of meeting contractual performance metrics. Honeywell is the only responsible source due to their ownership of the test data required for manufacturing and repair in addition to access to testing information needed for successful integration to the aircraft. The item must interface and integrate with existing configuration in regards to size, weight and electrical requirements.

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

OPEN COMPETETION

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

Prior to exercising option 2 of this contract, the IPT will again engage with the OEM, Honeywell International Inc., regarding the purchase of data rights to the An/AON-224 system. Furthermore, the IPT will also continue to collaborate with the B-1 and B-52 System Program Office (SPO) to monitor the availability of funds to replace the AN/APN-224 with the AN/APN-232 system. No estimated date has been determined for funding.

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.

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.

Erica.Plummer Typewritten Text 17 June 2013