JOFOC IDV.pdf

Version No.: 4 Version Date: May 2025

Approved by: Chief, Office of the Chief Procurement Officer

DEPARTMENT OF THE TREASURY

BUREAU OF ENGRAVING AND PRINTING

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(Justification for FAR subpart 6.3)

A. NATURE/DESCRIPTION OF THE ACTION BEING APPROVED.

1. Name of contracting activity

U.S. Department of the Treasury Bureau of Engraving and Printing (BEP) Office of the Chief Procurement Officer (OCPO) 14th and C Streets, SW Washington, DC 20228

2. Name of Proposed Source: STA Technologies

3. Requisition No.: N/A 4. Total Contract Value:

5. New Contract or Modification 6. Bridge Yes No

7. Brand Name Yes No 8. Individual or Class Justification

9. Contract Type: Firm-Fixed-Price IDV 10. Attachments Yes No

11. Policy Tracking no.

12. Additional details:N/A

B. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET AGENCY NEEDS.

BEP’s SFD-OTD (Security Features Division in the Office of Technology Development) requires the establishment of a sole source contract with STA Technologies Inc. for a research and development (R&D) service contract to continue the development of the proposed source’s unique, proprietary technologies as a security feature with unique characteristics

In this instance, the proposed source shall furnish facilities, labor, and materials to produce the in accordance with the Statement of Objectives.

The BEP anticipates the award of a new Indefinite Delivery Indefinite Quantity (IDIQ) contract with fixed price task orders as a logical follow-on contract.

$36,000,000

Version Date: May 2025

Approved by: Chief, Office of the Chief Procurement Officer

. The focus of the IDIQ contract is to further the technology development that resulted from the five

(5) previous contracts.

C. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN FULL

AND OPEN COMPETITION. (Check only one)

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

41 U.S.C. 3304(a)(2), FAR 6.302-2 Unusual and compelling urgency

41 U.S.C. 3304(a)(3), FAR 6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services

41 U.S.C. 3304(a)(4), FAR 6.302-4 International agreement

41 U.S.C. 3304(a)(5), FAR 6.302-5 Authorized or required by statute

41 U.S.C. 3304(a)(6), FAR 6.302-6 National security

41 U.S.C. 3304(a)(7), FAR 6.302-7 Public interest

D. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS

OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED.

Background Information:

The BEP (Bureau of Engraving and Printing) and the USCP (United States Currency Program) have a strategic goal of developing security features for future generations of U.S. Currency.

BEP completed an evaluation of the proposed source’s unique and innovative technologies and has determined, based on the completion of this evaluation that there are sufficient demonstrations of the unique technology potentials that it would be most advantageous and beneficial for the Government to continue the R&D process for the technologies developed

As a result, a follow-on contract needs to be established with the STA in order to advance the R&D process regarding the STA unique technology.

The R&D efforts for this requirement are anticipated to result in achieving security feature exemplar advancement within the scope of the following phases of the approved Technology Development Process (TDP): Test and Optimize (Phase 3), and Technology Integration (Phase 4)

The Phase 1 (Concept Definition) Contract involved the research and development effort of unique materials

The basis of BEP pursuing this proprietary technology as, principally, a follow-on contract to the initial competitive contract is the technical merit that has been demonstrated to-date and the importance of the BEP's counterfeit deterrence strategic goals to continually develop and implement new security features within the U.S. currency. The

This current procurement action is for R&D services for the continued development of the unique, proprietary technology held currently by STA Technologies, Inc.

Proposed Source’s unique qualifications:

This is a follow-on contract effort to five (5) previous sole source contracts. STA has been determined to be the only source, current or potential, of the unique and proprietary system

The use of any alternate vendor is not a viable option in this case since STA owns the intellectual property associated with the complete system

Overall, STA is the only responsible and qualified source that owns the intellectual property of the materials as well as the specialized technical expertise, knowledge, and capability to manufacture, supply, deliver and thereby perform the required R&D effort to further

E. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE 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.

The BEP maintains continuous sources sought announcements (Request for Information – RFI) on the GPE (Government Point of Entry) for Federal Government procurement on the sam.gov website.

These announcements are revisited annually and specifically request industry to submit their unique technologies for consideration as a potential security feature for US currency. These RFIs specifically seek to identify information and sources for technologies and/or materials with potential application as an overt or covert feature in future generations of U. S. currency. Interested parties are encouraged to respond to these notices with information for technologies, which provide effective counterfeit deterrence against all types of threats including traditional printing as well as digital reproduction.

BEP continues to receive responses via various RFIs, and Request for Proposals (RFPs), as well as to identify other potential sources via other market research avenues including, but are not limited to holding vendor conferences, attending industry conferences and/or similar forums and internet search.

The Program Office, SFD, through OCPO issues RFIs related to security features, as the subject security feature of this JOFOC is a feature-type. The latest RFI was updated on 10/10/2024

The BEP will continue to review and evaluate responses received from the RFI’s to determine as warranted the possibility of establishing a competitive R&D procurement with the intent to evaluate security features in U.S. currency.

Published Requests for Information (RFIs), sources sought notices, etc. specifically related to this requirement are:

• Long Range Broad Agency Announcement (LRBAA) – A five-year LRBAA was posted on FBO on 8/21/2015 and remained open until 8/31/2020. The BEP sought R&D projects for revolutionary, evolving, and maturing technologies that demonstrated the potential for significant improvement in U.S. Federal Reserve Notes. Offerors were encouraged to submit white papers to the Program Office related to research topic areas of interest and identify the specific topic for which their concept will have the maximum impact. The unique contribution of the proposed research or technical concept, and how it differed from similar efforts or solutions, should have been clearly articulated in the white paper.

• Requests for Information (RFIs) – OTD has an ongoing sources sought notice as an RFI posting on SAM.gov titled “Research and Development for Hidden Machine-Readable Security Features. The latest RFI was updated on 10/10/2024 and can be found by searching the SAM.gov for Notice ID 2031ZA25N00003. Past RFIs for hidden machine-readable security feature technologies include BEP-RFI-16-0329, 2031ZA19N00011, 2031ZA12N00011, and 2031ZA23N00002.

The posting was an open channel for companies or individuals who are unknown to the marketplace to submit their covert security feature technologies for consideration. Any technologies and/or materials submitted for consideration are reviewed for inherent and relative effectiveness as a security feature and may be further assessed for compatibility with design and production factors, durability, environmental acceptability, and other processing requirements.

Version Date: May 2025

Approved by: Chief, Office of the Chief Procurement Officer

BEP is and will continue to promote competition for the development of unique technologies for the expressed purpose of their use as a counterfeit deterrent security feature on U.S. currency. In this instance, BEP has and is currently conducting multiple standalone R&D efforts regarding various unique and novel technologies for possible use as a covert security feature on U.S. currency. The actions BEP will continue to take to promote competition and identify such potential sources include but are not limited to: posting RFIs, Sources Sought Notices and BAA, holding vendor conferences, attending conferences and other similar forums regarding emerging trends and leading technologies within and outside of the banknote industry.

F. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The Contracting Officer determines the anticipated cost to the Government will be fair and reasonable based upon:

Historical pricing from previous R&D contracts.

The IGCE submitted with this requirement.

Cost analyses and negotiations may be used to further confirm the reasonableness, accuracy, and completeness of proposed pricing, in accordance with FAR 15.404-1(b)(2) and FAR 15.404-1(c)(2).

G. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE FAR PART 10) AND

THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT

CONDUCTED.

The Bureau of Engraving and Printing (BEP) conducted extensive market research to identify unique and novel technologies for future U.S. currency. This research included technology surveys, requests for information, vendor outreach, industry exchanges, attendance at technical conferences, and internet searches.

The BEP found no existing commercial specifications or industry standards for this novel technology.

Information gathered from previous contracts will be used to finalize requirements, develop product specifications, and determine supply logistics and training.

The BEP explored existing contract vehicles, applied knowledge from experienced individuals, conducted internet searches, and reached out to vendors to discuss available technologies.

Additionally, the BEP hosted industry days, attended trade shows and conferences, and published requests for information to gather insights from various sources.

H. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

The BEP and other members of the USCP (US Currency program) have a strategic goal of developing security features for future generations of U.S. currency. To achieve that goal, BEP must continuously identify, evaluate, and source new technologies to stay ahead of counterfeiting and to maintain the trust and confidence that the world has in the U.S. currency. In identifying sources, BEP often looks for sources that have technologies that are inherently unique or exclusive to maintain a limited distribution to only BEP for use only on U.S. currency.

The objective of the BEP is to identify, develop, and recommend new and emerging security feature technologies and sources for potential U.S. currency application. As part of the program, the BEP receives and evaluates relevant technologies and sources for potential contracts using various market research techniques. A technical recommendation, combined with BEP management, determines whether to pursue further investigation of the information submitted by the vendor or otherwise obtained by BEP.

Security features must exhibit certain attributes depending on the intended usage of the feature. As a continual effort to find, assess and eventually choose unique and US exclusive security features, BEP enters contractual arrangements with vendors possessing certain proprietary technologies and unique features in order to fully test, develop and properly implement the features.

I. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN

THE ACQUISITION.

STA Technologies is the only known source available and qualified in fulfilling this Government requirement.

J. 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.

To remove barriers to competition and encourage innovation in the development of unique technologies for use as counterfeit deterrents on U.S. currency, the (BEP) will:

1. Maintain open channels for submissions: BEP will keep its continuous sources sought announcements (Requests for Information - RFIs) on SAM.gov active and updated. These RFIs encourage companies and individuals to submit their unique technologies for consideration, fostering a competitive environment where diverse solutions can be evaluated.

2. Review and evaluate responses: The BEP will thoroughly review and evaluate responses received through RFIs and Broad Agency Announcements (BAAs). This evaluation will assess the technical merit and potential of the proposed technologies for integration into future U.S. currency designs.

3. Explore competitive procurement: Based on the evaluation of responses, the BEP will determine the feasibility of establishing competitive research and development (R&D) procurements.

This approach will ensure that the best and most innovative technologies are selected for further development and potential inclusion in U.S. currency.

4. Engage in active outreach: The BEP will continue to actively engage with the industry through various channels, including vendor conferences, industry conferences, and other relevant forums.

This engagement will help the BEP stay informed about emerging trends and leading technologies, both within and outside the banknote industry, thus promoting a wider pool of potential suppliers and technologies.

K. JUSTIFICATION CERTIFICATIONS AND APPROVALS.