Honeywell_BOA_050718__REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20070-1547

CLASS JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Systems Command (NA VAIR) Headquarters

2. Description of the Action Being Approved.

IN REPLY REFER TO:

CJ&.<\ 17-0093

This Class Justification and Approval (CJ&A) authorizes and approves, on a sole source basis, the issuance of orders against Basic Ordering Agreement (BOA) N00019-l 7-G-8009 with Honeywell International, Inc. Orders will be placed on a sole source basis with Honeywell for procurement of supplies and services in support of the V-22 program. Authority to award orders pursuant to this CJ&A commences upon award of the BOA and expires 5 years thereafter.

3. Description of Supplies/Services.

Actions authorized under this CJ&A will consist of non-recurring engineering, reliability/ sustainability improvements, test, repair, modification, logistics support, training, obsolescence management, spare and repair parts, support equipment, and procurement of Honeywell components on the V--22 aircraft to include infrared suppressors, generators, control units, shaft driven compressors, fan motors, environmental control systems, weather radar, traffic collision avoidance systems, inertial navigation systems, antennas, radar altimeters, cockpit displays and panels, remote frequency indicators, and specialized avionics. Orders under the Honeywell BOA and authorized under this CJ&A will include:

a. Development, design/redesign, manufacture, modification, integration, repair and testing of Honeywell V-22 components (and/or associated sofuvare and firmware);

b. Non-recurring engineering (NRE) and logistics efforts in support of repair and modification ofHoney\vell V-22 components, development of technical data, training of Fleet Readiness Center (PRC) artisans, completion of engineering change proposals and delivery of support equipment and components for' validation and verification;

c. Procurement of Honeywell aircraft end-items and/or associated hardware, software, and fmnware, to be provided as Government-Furnished Equipment (GFE) to the V-

22 production line, V-22 mod/retrofit lines or trainers, including spare or repair parts;

CJ&A 17-0093

d. Obsolescence management efforts for Honey-\vell V-22 components including, but not limited to, obsolescence trade studies, obsolescence component testing, and bridge buys or Life-of-Type buys;

e. In-service Support, including Fleet support, for Honeywell components on operational and test V-22 aircraft; and

f. Engineering/technical/integration support, engineering investigations, service life assessment support, service life extension support, and studies relating to Honeywell

V-22 components.

Quantity and delivery requirements will be established in e_ach order. The estimated total value of orders placed against the V-22 Honeywell BOA is $92.9M and is anticipated to be funded by the appropriations set forth below.

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APN-1 $1,073,576 $420,579 $0 $0 $4,158,998 $5,653,153

APN-5 $8,595,000 $11,775,675 $1 L278,762 $7,560,000 $9,693,300 $48,902, 737

APN-6 $0 $0 $0 $1,277,736 $1,750,000 $3,027,736

0&1\1, N $450,000 $225.000 $225,000 $0 $0 $900,000

RDTE,N $10,345,677 $9,766,666 $8,266,666 $266,666 $0 $28,645.676

RDTE,AF $0 $66,667 $66,667 $66,667 $0 $200,000

BP-11 $216,922 $0 $0 $240,000 $240,000 $696,922

BP-16 $112,051 $27,513 $0 $1,277,736 $3,410,709 $4,828,009

TOTAL $20,793,226 $22,282,100 $19,837,095 $10,688,805 $19,253,007 $92,854,233

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l ), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. Rationale Justi:f)ring Use of Cited Statutory Authority.

Honeywell is the Original Equipment Manufacturer (OEM) of the infrared suppressor, generators, shaft-driven compressor, fan motors, environmental control system, weather radar, traffic collision avoidance system, inertial navigation system, radar altimeters, remote frequency indicators and associated antennas~ cockpit displays and panels on the V-22 Aircraft. These Honeywell components have been integrated and flight qualified on the V-22 via various Bell Boeing Joint Project Office contracts as a supplier. The Government has limited technical data rights for these components. Consequently, any follow-on kits, spares, repair parts, non platform-related modifications/upgrade;;; to the components, obsolescence management/Life-of Type buys, and associated component-specific logistics support, trainer support and support equipment are deemed to be available only from Honeywell, because Honeywell is the only erika.jamieson Highlight

CJ&A 17-0093

source with the requisite knowledge and technical data for these components to satisfy V-22 requirements. Use of the Honeywell BOA will allow the Government to reduce costs by procuring supplies and services directly from the OEM rather than through a prime contractor or other third party.

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

Market research was conducted through a sources sought notice posted to the Federal Business Opportunities (FBO) website on 2 November 2016 seeking sources from industry for procurement and support of Honeywell components for the V-22 aircraft. There were no responses to this sources sought notice. As such, it has been determined that the aforementioned sources sought fulfills the DF ARS PG! 206.302-1 Request for Information/Sources Sought requirement for procurement and support of Honeywell components for the V -22 aircraft. In accordance with FAR 5.201, orders will be individually synopsized on the FBO website. The Contracting Officer will evaluate any responses received prior to award of each order.

Additionally, parties interested in subcontracting opportunities will be referred to Honeywell to maximize competition in subcontracted efforts.

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 procured at a fair and reasonable price. Analysis of the proposal will be performed by technical analysts and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) analysts and Defense Contract Audit Agency (DCAA) as needed. Tl1e Contracting Officer will use Government expertise, including DCMA, DCAA, the PMA and other Government resources, to evaluate the proposal's material, labor, and subcontract positions if needed. A detailed report developed as part of the Government evaluation will be utilized to establish a NA VAIR position. The Contracting Officer -will work with DCMA and DCAA to establish a Honeywell rate position, to include escalation, for negotiation of each contract action under this BOA. The PCO will utilize cost and price analysis as the basis for negotiating a fair and reasonable price for the supplies and support covered by this CJ&A.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in paragraph 5 and 6, NA VAIR has no plans at this time to compete future contracts for the types of supplies/support covered by this document. If the appropriate data rights are obtained in the future, NAV AIR will assess potential competition opportunities for efforts that can be broken out from the overall requirement.