JA-00606_Redaction_SAM.pdf

This is a Justification and Approval (J&A) document for a sole-source contract award by the Army Contracting Command-Detroit Arsenal (ACC-DTA).

The contracting agency proposes to award a firm-fixed-price contract to Honeywell International Inc., Commercial and Government Entity (70210), for a Repair Kit, Air Precooler (National Stock Number 25400137777871, USG Part Number 5705514) using Army Working Capital Funds (AWCF). The total contract value is estimated at $1,250,288.52 for a quantity of 78 each (EA), with an option quantity of 78 EA, resulting in a total quantity of 156 EA. The procurement is justified under 10 United States Code (U.S.C.) 3204(a)(1) and implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

The justification cites that the main component (approximately 85 percent of cost) is the Honeywell International Air Precooler, which is sourced per drawing 12336768 containing only performance specifications, space claims, and interface dimensions. The Government lacks pertinent technical data and detailed manufacturing drawings necessary for competitive procurement. Honeywell International is identified as the sole source with requisite technical and engineering expertise to provide Air Precoolers meeting design space requirements, with extensive proven use throughout the vehicle's development and operational history. The Contract Specialist's efforts to obtain a Technical Data Package (TDP) through negotiated license were unsuccessful, as Honeywell declined to license the TDP due to other business arrangements. Development of a competitive TDP would require an estimated $8,000,000 in duplication costs for reverse engineering activities, including prototype development, integration, testing, and validation. Market research conducted in February 2023 through online searches, database reviews, and a Sources Sought Notice yielded no viable alternative suppliers. The solicitation will include FAR clauses promoting small business subcontracting opportunities and will comply with Defense Federal Acquisition Regulation Supplement (DFARS) requirements. No plans exist to increase competition for future procurements of this item. The document is signed and approved by Rachel Capaldi.