SPE4AX22D0003_Redacted.pdf

management function support. Prior to inclusion onto the Honeywell SCC, appropriate levels of Market Research will be performed to ensure only sole source items or support strategies are included. If, at any time, a part or support strategy becomes competitive it will be removed from the contract.

DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS

The Honeywell SCC will be a contract with Honeywell for items managed and procured by any DoD activity, including, but not limited to, DLA and the Military Services. The currently identified items support multiple weapons systems, including, but not limited to, C-130, F-15, FA-18, B-52, C-5, E-3, and P-3 aircraft; T55 and F100 engines; H-47 and H-53 helicopters. The estimated annual quantities for the applicable National Stock Numbers (NSNs) vary with each NSN.

This Class J&A will cover the acquisition of supplies and associated supply chain management function support services that are all sole-source to Honeywell for multiple Federal Supply Classes (FSCs) for the 14 Honeywell CAGEs list in Section II of this document. That strategy may include supply chain management, logistics and engineering services, and sole source repair services including support such as repair of DLRs and unplanned depot maintenance activity repair services, with each requirement outlined in its own unique performance standards and/or outcomes.

A class population of 13,475 NSNs has been identified as potential items for this acquisition. An initial candidate population of 1,853 NSNs with an estimated ten-year dollar value of $ has been identified from the class population of 13,475 NSNs as the items to be initially solicited for this acquisition. This estimated dollar value is calculated by applying the material acquisition unit cost (MAUC) or estimated unit price to the average annual demand quantity for a ten-year contract duration.

This is a Requirements Type Contract consisting of an umbrella terms and conditions contract and associated subsumable contracts, and has no maximum contract dollar value.

There are 973 of the items identified in the initial candidate population that are currently supported by the existing Honeywell long term Joint Opportunity Contract (JOC), SPE4AX-14-D-9401, which expires October 30, 2022. It is noted that the umbrella contract will be solicited and awarded with terms and conditions only and expanded by adding items in phases onto the subsumable contracts throughout the contract period.

This initiative involves identifying demand patterns for sole source NSNs in various FSCs and placing those NSNs on contract as demand warrants. Continuous spare parts support is required to avoid impacting the mission requirements of the various weapons systems utilizing these parts. The goals of this initiative are to improve production lead time (PLT) and material availability (MA), reduce administrative lead time (ALT) and unfilled orders (UFOs), improve cost control, and achieve 100% on-time delivery (OTD).

The delivery requirements for the initial population will be developed using the DLA Industrial Base Management System (IBMS) website. Additionally, IBMS will identify items with surge and sustainment requirements.

STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

Use of Other than Full and Open Competition is authorized by 10 U.S.C. 2304(c)(1) and FAR 6.302-1, as there is only one responsible source and no other supplies or services will satisfy agency requirements.

DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR NATURE

OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE

The acquisition is restricted to the only source of supply and support known to have the capability of furnishing the required support – Honeywell. Honeywell is the only known source of supply for the items in the initial population of parts to be covered by this contract and will be the only known source of supply for additional items added to the contract. As the OEM, Honeywell possesses the data, tooling, machining, and assembly capability to produce the items in accordance with the drawing requirements, making it the only responsible source which possesses the full capability to satisfy the agency’s requirements.

In addition to parts support, this Class J&A covers associated supply chain management function support including, but not limited to: performance based support, wholesale supply and logistics support, inventory management, maintenance planning, configuration management, repair of reparables, and sustainment engineering associated with end items. As the OEM, only Honeywell can provide the necessary expertise, capacity, capability, and proficiency to perform this effort. Honeywell is the only company which possesses the requisite technical data, engineering expertise, configuration management, tooling, and management knowledge to ensure that items conform to the proper form, fit and function, thus keeping complex weapon systems reliable and safe. With regard to the material support for the repair of aviation components at DoD repair depots, Honeywell’s overall systems engineering knowledge and technical expertise in aviation platforms systems integration, make it singularly capable of performing the full scope of the depot support requirement.

Honeywell is the only contractor that can leverage necessary production capability and has an in-depth knowledge of the vendor base capable of supporting these various weapon systems at the required level of support. No other source has the long-standing business relationships with the supplier base that Honeywell has developed relative to this requirement. No other source can leverage this supplier base as well as Honeywell to ensure continued effective, reliable, and safe sustainment of the supply chain. Any other contractor would introduce a high degree of risk into the supply chain and ultimately into the weapons systems.

This Class J&A will also cover the acquisition of all sole source Honeywell spare parts for multiple Federal Supply Classes (FSCs) which have Acquisition Method Codes (AMC) of “3”, “4” or “5”, which specifies that the parts are to be directly acquired from the actual manufacturer or the sole source contractor, which is Honeywell. Items within the population are sole source for a variety of reasons, including, in part, that the technical data is proprietary or is not otherwise available to the government; the parts require engineering source control approval by the design control activity; and/or the parts must be acquired from a manufacturing source(s) specified on a source control drawing. Each NIIN will be subjected to a complete technical review, screening, and certification process for sole source determination prior to inclusion on the contract. The Contracting Officer will assure that only items with a permanent Acquisition Method Suffix Code (AMSC) will be priced and placed on contract. Any items coded with an AMSC of “A” or “H” will be reviewed by the appropriate engineering authority to assign a permanent AMSC. Technical certification will be conducted prior to adding parts to the contract. AMSC A and/or H coded items will not be placed on contract (or will be removed from contract, as applicable) if the annual screening and review does not result in assignment of a permanent AMSC code within one year of the date this J&A is approved. Only items confirmed to be sole source to Honeywell will be part of this contract.

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 Contract Opportunities section of the beta.sam.gov web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Although the Government does not own data to support acquisition of these items from any other source, any source who responds to the Government as a result of the synopsis will be identified to Honeywell as a potential for subcontracting possibilities. Future interest from additional sources is not anticipated at this time, but all new requirements added to the SCC will be advertised via Contract Opportunities on the beta.sam.gov website to ensure that potential alternate sources are aware of new requirements and can identify interest to support the applicable items.

For all traditional sole source requirements fulfilled by subsumable contracts under this umbrella, DLA will utilize Honeywell’s comprehensive subcontracting plan approved annually by the Defense Contract Management Agency (DCMA).

As applicable, all other subsumable parts contracts or holistic weapon system contracts awarded under this umbrella will require an approved 2579 to address any small business concerns including but not limited to bundling or consolidation.

DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

Honeywell will be required to provide certified cost or pricing data in accordance with FAR Part 15 for military unique items to support the Government’s evaluation of the proposed cost. A review of the proposed prices will be conducted and the Government will review Honeywell cost data, including proposed labor hours, types and quantities of material, historical material prices, and other direct costs. A pricing methodology for this acquisition will be established in a Memorandum of Agreement (MOA) with Honeywell. No Defense Contract Management Agency (DCMA) Forward Pricing Rate Agreements (FPRA) exist for any of the Honeywell facilities at this time. Forward Pricing Rate Recommendations (FPRR) will be provided by DCMA for the negotiation of direct and indirect rates. For Honeywell facilities that do not have a FPRR, direct and indirect rates will be negotiated and established in a rate agreement. Profit will be negotiated using the Weighted Guidelines Method.

Honeywell will not be required to provide certified cost or pricing data for commercial items acquired using FAR Part 12 procedures. To evaluate the proposed price of commercial items, price analysis will be performed in accordance with FAR Subpart 15.4. Should data other than certified cost or pricing data be utilized, the Government’s negotiation objective will be developed using local technical analysis, negotiated direct and indirect rates, and profit using the Weighted Guidelines Method.

Based on the foregoing, the Contracting Officer hereby determines the anticipated cost to the Government will be fair and reasonable.

DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR

STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

A Sources Sought Synopsis (SSS) was posted to Contract Opportunities of the beta.sam.gov website on February 12, 2021, in order to determine if any companies other than Honeywell had the capability and data rights necessary to provide support for this SCC acquisition. No responses were received.

NIINs included in the initial population for the first increment and additional increments will be deemed sole source to Honeywell based on Market Research in the following manners:

An analysis of the AMC/AMSC coding inside of Government systems to verify if the Government owns sufficient data to compete or find additional sources. (see Section V above).

Any items not meeting the AMC/AMSC criteria will be excluded from the requirement.

Coordination with the DLA Aviation Competition Advocate to confirm that there is extensive history to support that these items have been and will continue to be sole source to Honeywell.

A Contract Opportunities synopsis on the beta.sam.gov website will be issued to advise industry of the pending procurement and solicit inquiries from interested parties. It is anticipated that no other source other than Honeywell, the only known source capable of meeting this requirement, will be interested in this procurement.

Requirements for the procurement of associated supply chain management function support will also be reviewed through Market Research methods to determine if any other potential sources exist. Should it be determined that other sources are capable to provide the services, the requirement will not be procured as sole source via the SCC.

Based on the Market Research conducted, there are no additional sources capable of satisfying the agency's need for the Honeywell SCC. Currently, there are no other commercial or non-developmental means which could be utilized or modified to meet the agency's need.

ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

Honeywell is not willing to sell data rights to the Government, which means the technical data package, specification and engineering description suitable for Full and Open Competition cannot be developed without reverse engineering. The Government has determined that reverse engineering is cost prohibitive.

LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

A Sources Sought Synopsis (SSS) was posted to Contract Opportunities on the beta.sam.gov website on February 12, 2021, and no sources expressed an interest in the acquisition. As indicated in Section VI above, the SCC requirement (terms and conditions) will be synopsized on the Contract Opportunities beta.sam.gov website as required by FAR 5.201. Additionally, the initial group of parts, all future groups of parts and any service support requirements will be synopsized. Should any sources other than Honeywell express interest, they will be provided a copy of the solicitation.

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

Due to the complex nature of this work, it is difficult to remove barriers to competition at the prime contractor level. However, the Government intends to include FAR 52.219-16, Liquidated Damages- Small Business Subcontracting Plan and FAR 52.219-10, Incentive Subcontracting Program in the contract, and work in close coordination with the DLA Small Business Office. Honeywell will be requested to select subcontractors on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract and sound business case analyses. In accordance with DLAD 11.391(b), DLAD Procurement Notes L04, Offers for Part Numbered Items (SEP 2016) and M06, Evaluation of Offers for Part Numbered Items (SEP 2016), will be included in the solicitation which provides guidance for potential suppliers.

In accordance with DLAD 16.590(a), this acquisition will include DLAD Procurement Note L27, Addition/Deletion of Items (AUG 2017), which allows additional sole source items to be added to the contract after the initial award, and items which become competitive after award to be deleted. Prior to pricing and adding items to the contract, a complete technical review, sole source certification and synopsis will be completed. Any items found to have additional sources of supply will be excluded as candidates to be added. Conversely, any item which becomes competitive after award will be deleted from the contract.

The Contracting Officer will continue to synopsize items that may be added to this contract in order to investigate the possibility of competition. The Competition Advocate will review the requirements to verify that all requirements are sole source.

Future requirements and/or additions to the contract will be advertised on Contract Opportunities of the beta.sam.gov website, prior to execution, in order to ensure that potential alternate sources are aware of the requirement and can identify interest in support for these items.

CONTRACTING OFFICER’S CERTIFICATION

The contracting officer’s signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of his knowledge and belief.