Honeywell_J&A_-_Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A MOFFETT BUILDING

47123 BUSE ROAD BLDG 2272

PATUXENT RIVER MARYLAND 20670-1547

IN REPLY REFER TO:

J&A_16_0199

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves the issuance of a sole-source, fixed-price contract to Honeywell Inc., 1944 East Sky Harbor Circle North, Phoenix, AZ 85034.

This contract will support the procurement, assembly, and delivery of a navigation database subscription for the Kuwait Air Force (KAF). This subscription will be in support of three KAF

KC-130J aircraft and one Weapon System Trainer. The contract is anticipated to include a base year with four (4) option years.

3. Description of Supplies/Services.

This contract for navigation database subscriptions includes the procurement of Honeywell

Navigation DataBases (NavDBs) which convert navigational data into a format compatible with the KC-130J Flight Management System (FMS).

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Honeywell is the sole designer, developer, and manufacturer of the C/KC-130J FMS. The data received from the supplier’s basic navigational data is formatted to be compatible with the

Honeywell CorePT processing tool. This tool is proprietary to Honeywell and converts the data file into a format that is compatible with specific FMS units. Honeywell is the only company with the proprietary software and capability to convert the data file for use in a Honeywell FMS.

Honeywell developed the C/KC-130J navigational database as a commercial item and the

Government has only those rights in technical data and computer software that would be provided to commercial customers.

J&A_16_0199

Past efforts to solicit competition for the development of the NavDBs resulted in a Government determination that Honeywell was the only known firm that possessed the requisite knowledge, expertise, and proprietary technical data. The previous efforts resulted in the award of a sole-source NAVAIR contract with Honeywell via the Army Research Lab (W911NF-11-D0004-

0008).

Compatible NavDbs, which are proprietary to Honeywell, are required for operation of the KC-

130J FMS systems. The proprietary technical data rights are not available for sale.

As a result, NAVAIR has determined that Honeywell is the only known firm that possesses the requisite knowledge, expertise, and technical data to perform the required efforts authorized and approved under this J&A.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

A sources sought was published on FedBizOps on 21 January 2016 and no potential sources responded. The proposed sole source contract action was synopsized on the FedBizOps website on 29 February 2016 and closed 15 March 2016, with no response from any potential interested sources.

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer must ensure that all supplies and support are purchased at a fair and reasonable price. It is anticipated that the negotiation and award of this contract will be conducted in accordance with FAR Part 12, Acquisition of

Commercial Items. As such, the Contracting Officer will use price analysis as the basis for negotiating a fair and reasonable price in accordance with FAR 12.209 Determination of Price

Reasonableness, FAR 15.404-1(b) Price Analysis, and DFARS PGI 215.403-1(c) Prohibition on

Obtaining Cost or Pricing Data. This will enable the Contracting Officer to establish price reasonableness by requiring the contractor to submit commercial sales data or data other than cost or pricing data in order to analyze the proposal and ensure the price negotiated is fully justified as fair and reasonable. In addition, the Contracting Officer may compare the proposed prices with previous Government contract prices for the same or similar items once the validity of comparison and the reasonableness of previous prices have been established. Analysis of the proposal will be performed by the Contracting Officer with the assistance of qualified technical analysts and the Defense Contract Management Agency (DCMA) to ensure the appropriate analysis is performed.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVAIR has no plans at this time to compete future requirements covered in this document. If another potential source emerges, NAVAIR will determine whether competition for future requirements is feasible.