Tab 1 PIGA Float Justification Approval_Final_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 3 of 7

I. Contracting Activity.

United States Air Force Air Force Nuclear Weapons Center (AFNWC) ICBM Systems Directorate AFNWC/PZB Contracting Office 6008 Wardleigh Rd, Bldg 1580 Hill AFB, UT 84056-5802

II. Nature and/or description of the action being processed.

A. Upon approval to use other than full and open competition procedures, the Air Force (AF) will establish a new follow-on contract with Honeywell Aerospace to repair the Pendulous Integrating Gyroscopic Accelerometer (PIGA) Float Assemblies. This is in support of the Minuteman III Intercontinental Ballistic Missile (ICBM) Weapon System. Honeywell aerospace, Cage code 09128, B. Contract Type and structure: This is a services contract and the anticipated pricing arrangement will be Firm Fixed Price and/or Cost-Plus-Fixed-Fee. The estimated award date is 30 Sep 2021 with performance expected through 31 Oct 2027. The contract will have a basic two-year period with three two-year option periods as indicated in III C below. The options will overlap in order to maintain a continuous repair line.

There will be one un-priced over and above Contract Line Item Number (CLIN) in the basic and each option period. If necessary, this CLIN will be used for the float bodies, repair and/or replace PIGA Float production equipment. The Option to Extend Services Clause, FAR 52.217-8, will be included and evaluated in the resulting contract.

C. Type J&A: Individual

III. Description of supplies/services required to meet agency needs.

A. Under the contemplated contract, Honeywell Aerospace will repair PIGA Float Assemblies which is an ongoing repair effort at the Honeywell facility located in Clearwater, Florida. This effort includes repair/replacement of Government Furnished Equipment (GFE) as required to support the PIGA Float Assembly repair line. The PIGA Float is an extremely complex, critical and precise sub-assembly that is the heart of the PIGA instrument. Each Missile Guidance Set contains three separate PIGA instruments which, in turn, each house a PIGA Float. The PIGA Float allows the PIGA to measure missile acceleration. Without this key component, the ICBM would cease to function properly.

B. The cost for this effort is estimated to be over an 8 year period. This cost is in then-year dollars and is based on historical data and an independent cost estimate provided by Government cost estimators accomplished in November of 2020.

The appropriation funding type for this unique non-severable service is AF Appropriation Code 3400, Operations and Maintenance.

C. The estimated award date will be 30 September 2021 and the contract Period of Performance will be in effect from 1 November 2021 through 31 October 2029. The rationale for obtaining approval to contract for greater than one fiscal year is that the long lead times for materials require production lines stay operational as transition from one contract year to the next takes place. This is described in more detail in Section V, paragraph A and B. Furthermore, market research revealed that only Honeywell Aerospace is qualified to complete these repairs. It is also in the best interest of the Government to contract for the longest period

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7

Standards Administration, Part 31 - Contract Cost Principles and Procedures, Subpart 15.4 - Contract Pricing, to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guide, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The AF will obtain certified cost and pricing data IAW FAR Subpart 15.403 if determined necessary prior to award. Upon completion of negotiations, a Price Negotiation Memorandum (PNM) will contain detailed documentation and justification of price reasonableness.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

A. As described in Section VI above, Market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

B. Market research was conducted September through October of 2020 by the Program Manager and Program Engineer. Along with the SSS, noted in paragraph VI, market research consisted of a thorough internet search where 14 companies were identified but only one was qualified: Honeywell Aerospace.

Additionally, knowledgeable people within government and industry were contacted and stated it would take several years to develop a new vendor. In addition to the tangible manufacturing processes, the necessary skill set used is one that has been developed over considerable time. Even when someone has been trained, they may not possess the temperament or touch to perform the extremely delicate and precise actions required to produce a finished product within tolerance. Also, government and commercial databases were queried for PIGA, Pendulous Integrating Gyroscopic Accelerometer, Gyroscopic Accelerometer, Guidance Inertial Instruments and Inertial Sensors resulting in further support for Honeywell being the only qualified source. Market research results clearly indicate that Honeywell Aerospace is the only qualified candidate with the capability to repair PIGA Float Assemblies.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

Honeywell Aerospace was contacted by the Program Manager/Jonathan Hall on and they are not interested in selling their data for the repair effort or equipment.

X. List of any sources that expressed, in writing, an interest in the acquisition.

No other sources expressed interest in this 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 or services required.

Until the Government is able to obtain the proprietary data, processes, test equipment, and specialized tools/ fixtures or the rights to use the data package in competitive acquisitions, no steps can be taken for future competition. It is not anticipated that future competition is possible as it would not be cost/time effective to qualify a new source. Honeywell Aerospace and their subcontractor, GD, has no interest in sharing or selling their proprietary data rights. They have been approached on more than one occasion with the proposal of selling the data rights but will entertain the discussion. Even if the opportunity was available to acquire the data rights, the cost and time to qualify a new vendor would be prohibitive, as indicated by the study

March 2018 FOR OFFICIAL USE ONLY Page 7 of 7 referenced in section V, paragraph C.

XII. Certification by the Contracting Officer.

The contracting officer's signature on the Coordination and Approval Document (CAD) is evidence that he has determined this document to be both accurate and complete to the best of his knowledge and belief (FAR 6.303-2(b)(12)).

XIII. Certification by the technical/requirements personnel.

As evidenced by their signature on the CAD, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete (FAR 6.303-2(c)).