1.5.1 - JEFO Exceeding SAT - RFO 16.507-6 - LEP Leidos - Redacted.pdf

Attachment 4 U.S. Customs and Border Protection

Justification for Exception to Fair Opportunity (JEFO) Exceeding the SAT – RFO 16.507-6

March 2026 or services ordered are unique or highly specialized.”, is applicable due to the unique qualifications of the proposed contractor and the nature of the acquisition.

The proposed delivery order is being issued under the existing multiple-award IDIQ contract vehicle, which was competitively awarded on September 21, 2021, to three vendors— Astrophysics, Leidos, and Rapiscan —using full and open competition. Following the LEP IDIQ award to Leidos, Rapiscan and Astrophysics, CBP competed each delivery order among the IDIQ awardees using Fair Opportunity procedures. For each requirement, CBP issued a delivery order solicitation under the IDIQ, evaluated technical and price proposals, and made award decisions based on best valued to the Government. Through this process, individual delivery orders were awarded for specific ports of entry and field offices. Each awardee has since developed site specific designs, completed or initiated construction activities, and integrated their LEP systems into the local operational environment.

Each contractor has developed detailed knowledge of the physical, operational, and regulatory conditions at its assigned ports; and each contractor’s systems and infrastructure at those locations are now proprietary and tightly integrated with existing CBP operations.

Leidos has current experience delivering systems to the sites listed within the proposed Delivery Order. The requirement involves sustainment and enhancement efforts for established NII systems at designated locations. Leidos originally installed the existing Z-Portal systems and possesses specialized knowledge of the systems' design, functionality, and integration within the port environment. This expertise, combined with the contractor's familiarity with the unique construction challenges and operational needs of the port, ensures continuity and minimizes risks associated with system upgrades or modifications.

Additionally, the contractor has extensive experience working within the port environments, including familiarity with its unique construction challenges, operational needs, and regulatory requirements. This experience ensures that the contractor can effectively address unforeseen issues that may arise during the installation and upgrade process.

The contractor has also established strong working relationships with port points of contact, which facilitates efficient coordination and execution of the required tasks. Engaging a new contractor would require significant time and resources to transfer knowledge, establish relationships, and familiarize them with the port environment and existing systems. This would introduce unnecessary risks, delays, and costs, jeopardizing the ability to meet the required timeline and operational needs.

5. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The proposed delivery order is being issued under the existing multiple-award IDIQ contract vehicle, which was competitively awarded on September 21, 2021, to three vendors—

March 2026

Attachment 4 U.S. Customs and Border Protection

Justification for Exception to Fair Opportunity (JEFO) Exceeding the SAT – RFO 16.507-6

Astrophysics, Leidos, and Rapiscan —using full and open competition. The pricing structure established under the IDIQ contract was determined to be fair and reasonable at the time of award. The proposed delivery order pricing aligns with the rates and terms negotiated under the IDIQ contract.

Additionally, the Contracting Officer will review and evaluate the cost breakdown for the delivery order as provided by the contractor and determine if the proposed pricing is reasonable given the scope of work, technical complexity, and operational requirements.

6. Any other facts supporting the justification.

This delivery order is a follow-on action under the legacy IDIQ contract, and transitioning to a new contractor outside of the IDIQ would result in significant duplicat costs. These costs include:

Re-engineering Costs: Developing new systems to meet CBP’s specifications, estimated at $10–15 million per system based on prior acquisition history.

Integration Costs: Re-integrating new systems with existing infrastructure at Ports of Entry (POEs), estimated at $5 million per location.

Training Costs: Retraining CBP personnel to operate and maintain new systems, estimated at $2 million.

Operational Downtime: Delays in deployment and operational readiness, resulting in potential mission impacts and increased risks at POEs.

These estimates are based on historical data from similar acquisitions and the costs associated with transitioning to a new contractor. By issuing this delivery order under the legacy IDIQ, CBP avoids these duplicat costs and ensures continuity of operations.

Ordering these units now, versus waiting for the follow-on procurement to the existing contracts to be awarded, will allow CBP to continually improve its operational capabilities in inspecting vehicles, as well as meet the request as outlined in the One Big Beautiful Bill to begin procuring additional quantities of these items in an expedited manner.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

This delivery order is being issued under the LEP, Multiple Award IDIQ contract. The IDIQ structure was designed to promote competition among the awardees for subsequent delivery orders under Fair Opportunity procedures, ensuring that barriers to competition are minimized within the scope of the IDIQ.

For future acquisitions beyond the scope of the current IDIQ, CBP will take the following actions to increase competition: