20132313 - Skydio - LSJ_Exceeding_SAT_FAR_8.405-6_CO - REDACTED.pdf

Attachment 4 U.S. Customs and Border Protection

Limited-Sources Justification (LSJ) - FAR 8.405-6 For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2020

Date: September 26, 2022 PR Number: 20132313

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C.

152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity. Identification of the agency, contracting activity, and specific identification of the document as a “Limited-Sources Justification.”

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Acquisition (OA), Aviation, Maritime, and Border Technologies (AMBT) Contracting Division intends to award a call order against an existing blanket purchase agreements (BPA) pursuant to FAR 8.405-6(a), Limiting Sources.

2. Nature and/or description of the action being approved. Describe the action being approved and include the name and address of the proposed contractor(s).

CBP intends to limit the number of sources solicited pursuant to FAR Part 8.405-6(a) for the procurement of Skydio X2D Blue Small Unmanned Aircraft Systems (sUAS) to Proposed Contractor:

ATLANTIC DIVING SUPPLY INC

621 LYNNHAVEN PKY STE 160

VIRGINIA BEACH, VIRGINIA 23452-7448

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Provide the estimated total value:

This order is for the delivery of Skydio X2D Blue Small Unmanned Aircraft Systems (sUAS) with ancillary equipment, spares, and warranty. The Skydio X2D Blue SUAS will provide USBP with additional situational awareness over rugged and remote terrain and supports CBP’s mission by providing USBP with the capability to detect, track, identify, and classify border activity using an aerial platform. The total estimated cost of this requirement is $1,294,050.31.

4. Authority and supporting rationale. Select one of the circumstances justifying limiting sources pursuant to FAR 8.405-6(a)(1)(i) below and demonstrate the proposed contractor’s unique qualifications to provide the required supply or service.

• FAR 8.405-6(a)(1)(i)(B) Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

The Department of Defense (DOD) Defense Innovation Unit (DIU) evaluated and approved the sUAS offered by several vendors to ensure compliance with strict DOD sUAS operational requirements, http://uscode.house.gov/

Limited-Sources Justification (LSJ) - FAR 8.405-6 encryption requirements and the criteria outlined in the DOD DIU certification guidlines. sUAS which have been approved of by DOD DIU are referred to as “Blue sUAS.” In order to procure safe and U.S.

Government authorized sUAS in an efficient manner, CBP has awarded a multiple-award blanket purchase agreement (BPA) to four (4) vendors that offer four unique Blue sUAS. Atlantic Diving Supply is the authorized seller of the DOD DIU approved Skydio X2D under CBP’s multi-award BPA for Blue sUAS.

CBP currently has a requirement to operationally assess and evaluate the capabilities, effectiveness, and viability of each of the available BPA Blue sUAS in various operational environments. Such an evaluation will provide CBP operational familiarity with each available Blue sUAS, and will inform future acquisitions. To facilitate this evaluation, CBP intends to acquire an equal quantity of each Blue sUAS. Therefore, CBP intends to place an order with each of the Blue sUAS BPA holders, acquiring each vendor’s Blue sUAS on a sole-source basis pursuant to FAR 8.405-3(a)(1)(B)(i). Because each Blue sUAS is unique and required to satisfy CBP’s evaluation needs, highly specialized by virtue of its approval by DoD DIU, and each BPA holder is the only source capable of supplying their respective sUAS, a sole-source award pursuant to FAR 8.405-3(a)(1)(B)(i) is justified.

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

The contracting officer has determined that issuing the proposed Delivery Order to Atlantic Diving Supply for the delivery of Blue Small Unmanned Aircraft Systems (sUAS) with ancillary equipment, spares, and warranty represents the best value and will result in the lowest overall cost, considering price and administrative costs, to meet the Government’s needs. This order will be placed in accordance with FAR 8.404, “Use of Federal Supply Schedules.” CBP has already negotiated fair and reasonable pricing rates under CBP’s multi-award BPA for Blue sUAS.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

CBP conducted market research for the CBP multi-award BPA for Blue sUAS. Based on CBP’s market research findings it was determined that none of the other CBP Blue sUAS BPA vendors are able to provide the DOD DIU authorized Skydio X2D sUAS which is offered by Atlantic Diving Supply.

7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

None.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited-sources) before any subsequent acquisition for the supplies or

Limited-Sources Justification (LSJ) - FAR 8.405-6 services is made. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service (e.g., the government intends to revise overly restrictive technical specifications, acquire data rights, or pursue some other means to increase future competition). Posting requirements may also be addressed here or in #9 below.

CBP intends to seek competition in future acquisitions for sUAS by competing orders among the Blue sUAS BPA holders. By acquiring Blue sUAS through the intended actions with each vendor, CBP will obtain operational familiarity with each sUAS which will inform capabilities of the various brand name drones in different climates, environments, operational settings, conditions, and other settings for market research and future competitive acquisitions.

9. CBP intends to post this requirement on Sam.gov pursuant to FAR 8.405-6(a)(2)(i).

Limited-Sources Justification (LSJ) - FAR 8.405-6

10. Technical/Requirements Personnel Certification:

Pursuant to FAR 8.405-6(c)(2)(x), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the Limited-Sources Justification, are accurate and complete.

Digitally signed by LEONARD J

BADE

Date: 2022.09.26 16:12:31 -04'00'

Technical Representative/COR Date

11. Contracting Officer Certification and/or Approval: *

Pursuant to FAR 8.405-6(c)(2)(ix), I certify that the Limited-Sources Justification is accurate and to the best of my knowledge and belief.

Contracting Officer Date

*Note: In accordance with FAR 8.405-6(d)(1) for proposed BPAs or orders with an estimated value exceeding the simplified acquisition threshold, but not exceeding $750,000, the ordering activity contracting officer’s certification that the justification is accurate and complete to the best of the ordering activity contracting officer’s knowledge and belief will serve as approval.

► LSJ Approvals:

12. COMPETITION ADVOCATE (Per FAR 8.405-6(d)(2) - Exceeding $750,000)

Approved Disapproved

Name (Print):

Competition Advocate

Signature:

Date:

NICOLE S

HUBBY

Digitally signed by

NICOLE S HUBBY

Date: 2022.09.26 17:56:25 -04'00'

RICHARD K

GUNDERSON

Digitally signed by RICHARD

K GUNDERSON

Date: 2022.09.26 15:24:30 -07'00'

LEONARD J BADE