Approved_JA_Bittium_Devices_-_Brand_Name_Redacted.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

FAR Part 6.3

1. Identification of the agency and the contracting activity

The Bureau of International Narcotics and Law Enforcement Affairs (INL) Grants, Acquisitions, and Procurement Policy (GAPP) Division is conducting this acquisition for Bittium Smartphone devices and accessories on behalf of the Counternarcotics and Special Investigations Team within INL Mexico. The estimated dollar value is $918,320.00.

2. Nature and/or description of the action being approved.

INL/GAPP intends to award a contract for Bittium Smartphone devices. The solicitation will be a

Brand Name requirement for Bittium Smartphones compatible with the Government of Mexico’s

Satellite System (MEXSAT). All participating vendors must show proof of license from the

GoM to operate on the L Band at the time of bidding.

3. A description of the supplies or services required to meet the Department’s needs.

INL works to keep Americans safe at home by countering international crime, illegal drugs, and instability abroad. INL helps countries deliver justice and fairness by strengthening their police, courts, and corrections systems. These efforts reduce the amount of crime and illegal drugs reaching U.S. shores. The Counternarcotics and Special Investigations Team at INL Mexico supports the overall INL Mission by identifying, interdicting, disrupting, and dismantling transnational criminal organizations (TCOs) and reducing the flow of narcotics which threaten the safety the United States and its citizens in accordance with Presidential executive orders on

TCOs and the Opioids Crisis.

The United Nations Office on Drug and Crime (UNODC) has partnered with the Government of

Mexico (GoM) on a project titled MEXK54. The main objective of the project is to strengthen the technical capacities of the Mexican Government to generate information based on evidence on the location of illicit crops with high precision. This will allow obtaining results for the quantification of planted area of poppy and marijuana crops. With this data, comprehensive public policies aimed at combating supply and demand for drugs can be developed. The UNODC is working jointly with the Attorney General’s Office (PGR), the Secretary of the Navy

(SEMAR), the Secretariat of National Defense (SEDENA) and the Ministry of Foreign Affairs

(SRE).

As a complement to MEXK54, INL Mexico works with the GoM to execute an intelligence based eradication strategy. One element of the eradication strategy is a project called Whiskey

34. There are approximately 320 teams that work to eradicate poppy fields across Mexico. The

Whiskey 34 project will equip GoM eradicators with one Bittium smartphone device, one solar charger and one reconnaissance drone. The Bittium Smartphone devices are equipped with an application that will provide a direct uplink to the UNODC’s platform to give complete, accurate and verifiable information on the GoM’s poppy eradication efforts. This data consists of geotagged measurements and photos. The data is then transmitted from the field to the MEXSAT satellite. Only Bittiums can link to the MEXSAT, no other satellite smartphones are able to link to the MEXSAT. The data collected and transmitted by the Bittiums will enable the GoM to report on its poppy eradication efforts and make the eradication teams more efficient.

A one-year warranty and technical support must be included with the Bittium Smartphone devices and accessories.

Through this acquisition, INL Mexico and the GoM will continue to work in a cooperative manner to combat transnational crime and conduct drug eradication efforts. The Bittium

Smartphone devices will be used by GoM entities to collect and transmit data, through

MEXSAT, during their activities of detection and eradication of illicit crops.

4. An identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competitions is 41 U.S.C. 3304(a)(1)., FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

In August and September 2017, the Government of Mexico’s Secretariat of Communications and

Transportation (SCT) addressed an official letter to the companies of Spacenet Communications

Services de Mexico and Intercomunicaciones Moviles Satelitales (Inmosat), authorizing them as the only two distributors of mobile terminals manufactured by Bittium in the L Band for use with

Mexico’s owned Satellite System.

In this letter, SCT also authorized these companies to provide any services related to these terminals, exclusively to the following Mexican national security agencies: SEDENA, SEMAR, PGR, the Federal Police (PF), the Investigation and National Security Center (CISEN), and

Mexico’s Telecommunications (Telecomm). The only manner in which INL can purchase the required satellite phones, ensure they are compatible with the MEXSAT satellite system, and donate them to the Mexican Army is by awarding this purchase to authorized companies legally allowed to conduct this transaction in Mexico.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

On July 18, 2018, RFQ #: 191NLE18Q0054 was issued on FedBid with a final closing date of

July 27, 2018. After the time of closing, INL Mexico was made aware that the requested

MEXSAT “L Band” (Band used exclusively by the Government of Mexico) terminal was only authorized by the GoM to be sold by two companies. INL/Mexico reached out to the

Communications and Transport Security Office of the GoM, and received confirmation on the exclusivity. The solicitation was cancelled in its entirety, resulting in a non-select, due to the new information.

7. A determination by the ordering activity Contracting Officer that the anticipated cost to the Government is fair and reasonable.

Because there are two authorized resellers, and therefore competition, the Contracting Officer will be able to compare pricing to determine a fair and reasonable price. The Contracting Officer will also utilize market research conducted by INL Mexico to compare the Bittium Smartphones to that of comparable phones.

8. A description of the market survey conducted (see Part 10) and the results or a statement of the reasons a market survey was not conducted.

RFI 191NLE18N0016 was posted to FBO on March 13, 2018 with five responding vendors. Of the vendors, one was an Authorized Reseller (Spacenet), and the other four were vendors who were capable of providing the requested phones, but they would not be recognized by the GoM.

This recognition is crucial to the project, as within GOM approval, the phone would not be able to be utilized.

9. Any other facts supporting the use of this justification.

In April and July 2018, the Manufacturer Bittium issued a letter appointing certain vendors as the only authorized distributors to sell, lease, and provide support to the Bittium MEXSAT terminals in the country of Mexico.

The attached official letters from SCT and Bittium, provide additional support for this justification indicating only these two identified vendors can fulfill the requirements.

10. A listing of any sources that expressed a written interest in the acquisition.

RFI 191NLE18N0016 was posted to FBO on March 13, 2018 with five responding vendors. Of the vendors, one was an Authorized Reseller (Spacenet), and the other four were vendors who were capable of providing the requested phones, but they would not be recognized by the GoM.

This recognition is crucial to the project, as within GoM approval, the phone would not be able to be utilized.

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.

INL/RM/GAPP is requesting to restrict the competition for this requirement to Brand Name, and requiring proof of a license from the GoM to operate on the L band at the time of bidding.