Competition Restriction Justification 12.102 SAP Commercial Acquisitions - D-26-SG-0067 - redacted.pdf

CRJ (Part 12) Control No. D-26-SG-0067

Procurement Sensitive - See FAR 2.101 and 3.104

For Official Use Only

COMPETITION RESTRICTION JUSTIFICATION

FAR 12.102 > SAT TO ≤ $15M

SAP COMMERCIAL PRODUCTS & SERVICES

In accordance with Federal Acquisition Regulation (FAR) Subpart 12.102 (41 U.S.C. 1901, 1903, or other statutory authorities listed in FAR 6.103, as appropriate) decisions to restrict competition, including the use of brand-name descriptions without allowing for “equal” products shall be documented as follows:

1. Identification of the Agency, Contracting Activity, and Specific Identification of the Document.

a. Agency: Drug Enforcement Administration (DEA)

b. Contracting Activity: Office of Acquisitions

c. Requiring Activity: Aviation Division (SG)

d. Document Identification: D-26-SG-0067

2. Nature and Description of the Action Being Approved: This action is seeking brand name competition restriction justification to procure Skydio® X10 and accessories required to perform law enforcement operations while maintaining officer safety protocols.

a. Contractor Name: Atlantic Diving Supply, Inc (ADS)

b. Estimated Amount:

c. Recurring Requirement: Yes No

d. Estimated Delivery: 12/30/2026 or sooner

3. Description of Supplies or Services: Purchase of Skydio® X10 Drone (PN: DR4ESKT2IZG0300NA), Skydio® Spotlight (PN: DR4ATTSPTL) , Skydio® 150W Battery (PN:DR4ACCBAT), Skydio® Night Sense (PN: DR4ATTSWNAIR) and Skydio® Streaming Suite (PN: SWSUITEEDMSU)

4. Identification of the Competition Restriction Justification (CRJ):

FAR 12.201-1, Simplified procedures > SAT, ≤ $9 million authorized by 41 U.S.C.§ 1901.

Simplified acquisition procedures —To promote efficiency and economy in contracting and to avoid unnecessary burdens for agencies and contractors, the FAR shall provide for special simplified procedures for purchases of property and services for amounts not greater than the SAT;

FAR 12.201-1, Simplified procedures, for acquisition described at 12.001(c) > $9 million, ≤ $15 million authorized by 41 U.S.C.§ 1901 and 41 U.S.C.§ 1903.

41 USC §1901. Simplified acquisition procedures —To promote efficiency and economy in contracting and to avoid unnecessary burdens for agencies and contractors, the FAR shall provide for special simplified procedures for purchases of property and services for amounts not greater than the SAT;

41 USC §1903. Special emergency procurement authority —Only available when the head of the contracting activity determines that the property or services are to be used for:

Contingency Operations: As defined under 10 U.S.C. § 101(a)(13);

Attack Response/Recovery: To facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attacks against the U.S;

International Disaster Assistance: In response to requests from the Secretary of State or USAID; or

Major Disasters/Emergencies: Operations aligning with the Robert T. Stafford Disaster Relief and Emergency Assistance Act

FAR 12.201-2, Other procedures in FAR Part 15 (RFPs) or FAR Part 14 (IFBs) > $9 million (>

$15 million for acquisitions described at FAR 12.001(c) for One statutory authorities cited in 6.103 as appropriate)

FAR 6.103-1, Only One Responsible Source. authorized by 41 U.S.C. 3304(a)(1)

FAR 6.103-2, Unusual and Compelling Urgency authorized by 41 U.S.C. 3304(a)(2)

FAR 6.103-3, Industrial Mobilization authorized by 41 U.S.C. 3304(a)(3)

FAR 6.103-4, International Agreement authorized by 41 U.S.C. 3304(a)(4)

FAR 6.103-5, Authorized or Required by Statute authorized by 41 U.S.C. 3304(a)(5)

FAR 6.103-6, National Security authorized by 41 U.S.C. 3304(a)(6)

FAR 6.103-7, Public Interest authorized by 41 U.S.C. 3304(a)(7).

5. A Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires using the Authority Cited:

a. Name and address of the proposed contractor(s).

Atlantic Diving Supply, Inc. (ADS), preferred distributor for the required Original Equipment Manufacturer (OEM) Skydio® items listed in Section 3.

OEM:

Skydio 3000 Clearview Way, Bldg. E San Mateo, CA 94402

Distributor:

ADS, Inc.

621 Lynnhaven Pkwy Ste 160 Virgina Beach, VA 23452

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Skydio® X10 is the only known brand to meet DEA’s requirements of an integrated, National Defense Authorization Act (NDAA) compliant, autonomous, 360-degree, optical Artificial Intelligence (AI), collision-avoidance with digital interoperability capability to enable safe operation by Government agents in unknown conditions and locations. There is currently no other U.S. based manufacturer that offers a comparable, all-around, 360-degree, optical AI collision avoidance system with the same performance capabilities as Skydio X10. In addition to the aforementioned, the

Skydio® brand provides a "fly-and-forget" autonomy capability that is unmatched in the industry.

These capabilities are critical to meet DEA’s law enforcement responsibilities, while complying with the Department of Justice (DOJ) regulations for local, state and federal cases.

6. A Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as Possible, Including Whether a Notice was or will be Publicized as Required by Part 5 and, if not, Which Exception under Part 5 Applies:

IAW RFO 12.201, a combined synopsis/solicitation with this justification will be posted to the Government Point of Entry (GPE) (SAM.gov), to allow commercial suppliers fair opportunity to respond to this requirement.

a. Other Actions. The requiring activity, Aviation Division (SG), participated in product demonstrations to facilitate competition for DEA’s requirements, but no other source was successful in demonstrating their product met DEA’s minimum requirements in Section 5b.

7. Contracting Officer’s Determination that the that the Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer will review previous purchase history, General Service Administration (GSA) pricing for comparison, and similar items if needed to determine fair and reasonable pricing.

8. Market Research Conducted (See Part 10) and the Results or a Statement of the Reason Market Research was not Conducted:

Market research was performed by the Aviation Division to include review of GSA products from various sources, review of previous purchase history and product demonstrations from Brink, PDW, Anduril and Hoverfly Technologies. The Aviation Division has hosted and attended trade shows with live demonstrations in search of products that meet DEA’s requirements. To date, the Skydio® brand is the only item that provides U.S based manufacturing, NDAA compliant unmanned aircraft and meets all other performance capabilities required and listed in Section 5b.

9. Any Other Facts Supporting Using Other than Full a Open Competition.

The DEA Aviation Technical Operations Group (ATOG) personnel have received the Skydio® Training which provides agents and technical personnel instruction on how to safely and effectively operate the unmanned aircraft. DEA currently operates an internal program using the Skydio® training to provide instruction to DEA users on becoming the Remote Pilot In Command (RPIC). Changes to the DEA’s knowledge and training structure would not be cost efficient or operationally effective in supporting mission requirements for agents and/or technical personnel.

a. When 6.103-1 is cited for follow-on acquisitions as described in 6.103-1(c)(2), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

Not applicable as the Government is not using 6.103-1.

b. When 6.103-2 is cited, data, estimated cost, or other rationale as to whether and how much the

Government would be harmed.

Not applicable as the Government is not using 6.103-2.

10. A Listing of the Sources, if any, that Expressed an Interest in the Acquisition in Writing.

No other sources have expressed an interest, in writing, in the proposed acquisition.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition Before any Subsequent Acquisition for the Supplies or Services Required.

At this time, DEA does not have a future requirement to procure these items. DEA will perform continuous market research by reviewing GSA schedules, attending/hosting trade shows and reviewing the open market for emerging technology that meets or exceeds the agency’s needs.