Justification and Approval (JOFOC) UCAS3 GVCS Sensors_Redacted.pdf

Version 11/01/21

BEP-OCPOFORM-FY22-01

Source Selection Information - See FAR 2.101 and 3.104

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. 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 Requisition #:

2. THE DESCRIPTION OF ACTION:

The Bureau of Engraving and Printing (BEP), Office of Quality Operations (OQO) seeks to add to its existing capabilities with six (6) Universal Currency Authentication Sensor 3 (UCAS3) and six

(6) GemVision Currency Sensor (GVCS) sensors that meet or exceed the specified requirements.

Three (3) UCAS3 and three (3) GVCS sensors are being shipped to Washington D.C. Facility (DCF), with three (3) UCAS3 and three (3) GVCS sensors being sent to Western Currency Facility (WCF). The sensors will be used to analyze printed currency as well as for quality control of other materials used in the production process and for quality control monitoring of currency.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Bureau of Engraving and Printing (BEP) has a mission critical need for purchase and maintenance of six (6) UCAS3 and six (6) GVCS sensors, one scheduled mandated hardware and software upgrade, and additional software updates and or patches as mandated for the remained of the expected life-cycle of the sensors, in order to maintain the highly proprietary sensor which will be integrated with the M8 Machines.

There is a critical need to ensure the M8 machine and the UCAS3 and GVCS sensors operate daily to meet the Bureau’s mission to manufacture Federal Reserve Notes and other security products for the United States of America. These products are designed with advanced counterfeit deterrence features to ensure product integrity. BEP staff perform regular verification or validation of the sensors. Occasional issue requires telephonic or online technical support. The service plan shall include the Emergency maintenance of the sensors is necessary when verification or validation fails and there is no remote remedy. The sensors will be sent out for emergency maintenance on an as needed basis when failure occurs. The sensors will be installed on two M8 machines: one (1) at the Washington D.C. Facility (DCF) and one at the Western Currency Facility (WCF). There will be a total of six (6) UCAS3 sensors, three (3) at DCF and three (3) at the WCF, as well as six (6) GVCS sensors, with three (3) at DCF and three (3) at the WCF.

DEPARTMENT OF THE TREASURY

BUREAU OF ENGRAVING AND PRINTING

WASHINGTON, D.C. 20228

Source Selection Information - See FAR 2.101 and 3.104

The Federal Reserve Board (FRB) equipment is a validation of the inspection/currency processes of the BEP’s output from the M8 machine. The BEP must mirror the sensor updates occurring at the FRB which can be called for at any time. These upgrades are mandated when BEP’s customer, the FRB, undergoes an upgrade. Thus, other upgrades and patches are expected to occur on the sensors on demand. By allowing the software upgrade and maintenance of the UCAS3 and GVCS sensors the BEP can meet its customers’ needs by testing printed currency in the same manner as the FRB.

The upkeep of the UCAS3 and GVCS sensors is considered mission critical to the BEP.

4. AUTHORITY CITED:

41 U.S.C. 3304(a)(1) as implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. APPLICABILITY OF AUTHORITY CITED:

Authentix, Inc., the manufacturer, developed the UCAS3 and GVCS sensors, which will be installed at the BEP for use in the M8 machine. The UCAS3 and GVCS sensor products support the government's need for continuity of operations in quality assurance testing of finished currency.

This ensures the delivery of currency to the Federal Reserve Bank (FRB) in compliance with BEP quality guidelines. These sensors are exclusively used at the FRB and BEP and are not available on the open market.

Authentix, Inc. developed and owns the propriety and patented hardware, software and algorithms that are used in these products and is the only contractor that can support the services specifically required for this acquisition; thereby the proposed source has the sole unique technical and other resources required for this acquisition. This requirement is a follow for continued provision of highly specialized service.

Additionally, the BEP’s customer, the FRB, requires that BEP use the sensors of Authentix Inc. to perform finished currency testing and requires that BEP utilize this contractor to provide services related to these products due to the unique nature of these products and to ensure that currency testing at BEP exactly matches currency testing at FRBs.

Therefore, it was determined that only Authentix, Inc. will satisfy the agency’s unique requirements.

6. EFFORTS TO OBTAIN COMPETITION:

FAR 5.203(a) & 6.302-1(b)(1)(i) applies. Unique supplies or services available from only one source or only one supplier with unique capabilities.

A Notice of Intent (NOI) 2031ZA25N00035 to sole source this requirement was posted on SAM.gov dated 16 April 2025 with a closing date of 16 May 2025. This notice did not yield a single response.

The objective of the notice was to obtain information regarding the availability and capability of all sources qualified to provide UCAS3 and GVCS sensors.

7. FAIR AND REASONABLE COSTS:

The UCAS3 and GVCS sensors is classified as a non-commercial product thus allowing the Government the ability to request certified cost or pricing data from the contractor in accordance with FAR Part 15.403-5. The contractor’s proposal will be evaluated using price analysis of FAR

Source Selection Information - See FAR 2.101 and 3.104

15.404-1(b) and determination of price fair and reasonableness will be made in accordance with FAR subparts 15.405 and 15.406.

8. MARKET RESEARCH:

Market research was conducted by the Office of Quality Operations (OQO) and Office of the Chief Procurement Officer (OCPO). A Notice of Intent to sole source this requirement was published in SAM.gov for 30 days and no vendor responded.

According to the Authentix, Inc.’s letter dated May 28, 2025, the technology known as UCAS3 and GemVision are proprietary to Authentix, Inc. The designation is based on the unique development, intellectual property rights, and trade secrets that are integral to the creation and operation of the technology. Authentix, Inc. holds exclusive rights to the intellectual property embedded in UCAS3 and GemVision, including but not limited to trade secrets, technologies, proprietary software, and specialized components.

Developed by Authenix’s research and development team, UCAS3 and GemVision incorporate original algorithms, system architecture, and design elements that are not publicly available or replicated elsewhere. These technologies are protected under applicable intellectual property laws, including but not limited to patents, copyrights, and trade secrets.

Small Business Administration (SBA), the Treasury Office of the Procurement Executive, Treasury’s Mandatory Sources and Acquisition Gateway for a listing of Best-in-Class and Treasury Mandatory Sources in accordance with the Department of the Treasury Acquisition Procedures, DTAP 1008.002(a) and the North American Industry Classification System (NAICS) number 334413 “Semiconductor and Related Device Manufacturing” yielded No Results.

The results of the market research supported the Government’s determination to obtain these supplies under a sole source basis. Refer to the SF 1010 Market Research Summary Report for specific details.

9. OTHER FACTS:

Due to the proprietary nature of the UCAS3 and GVCS sensors, Authentix Inc., as the original manufacturer, does not permit other vendors to service these systems. Additionally, BEP is unable to engage alternative vendors since only Authentix, Inc. possesses the specialized training required to support these technologies. As these instruments represent a completely new technology for BEP personnel, additional time and effort will be necessary to fully understand and establish testing specifications and requirements. To ensure the project remains on schedule, more labor hours will be allocated to mastering this technology.

A similar requirement under Contract 2031ZA21C00449 was awarded for five (5) UCAS2 sensors, along with annual preventative maintenance, in the amount of . The UCAS2 sensors were used on BPS3000. The period of performance for that contract spans from September 23, 2021, to September 22, 2026.

10. INTERESTED SOURCES:

To date, no other sources have written to express an interest in this acquisition and no additional interested sources are expected based on procurement histories and knowledge of this requirement.

Source Selection Information - See FAR 2.101 and 3.104

11. STEPS TO FOSTER COMPETITION:

The Government does not anticipate that Authentix, Inc. will authorize competing vendors to manufacture this sensor or expand availability of the sensors through other distributors due to the proprietary nature of the item. However, OCPO will periodically conduct market research to gauge availability of similar sensors in the commercial market for the purposes of price comparison and product availability.

Source Selection Information - See FAR 2.101 and 3.104

REVIEW AND APPROVAL (ALL JUSTIFICATIONS, ALL LEVELS)

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION (ALL LEVELS):

I certify that the supporting data under my cognizance which is included in this justification is accurate and complete to the best of my knowledge and belief.

SIGNATURE: DATE: ___

NAME:

TITLE:

CONTRACTING OFFICER APPROVAL

Based on the foregoing, I approve this justification and provided that the services and supplies herein described have otherwise been authorized for acquisition. I certify that the supporting data under my cognizance which is included in this justification is accurate and complete to the best of my knowledge and belief.

SIGNATURE: DATE: ____

NAME:

TITLE:

DOLLAR THRESHOLD REVIEW AND APPROVAL LEVELS (JUSTIFICATIONS >750K>)

ADVOCATE FOR COMPETITION (if >$750,000 and <=$15 million) (Contracting Activity).

I have reviewed this justification for other than full and open competition and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this justification based on the authority specified in para 4.

SIGNATURE: DATE: ____

NAME:

TITLE:

HEAD OF THE PROCURING ACTIVITY OR AUTHORIZED DESIGNEE (if >$15 million and <=$75 million) (Contracting Activity).

I have reviewed this justification for other than full and open competition and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Head of Contracting Agency (HCA), I hereby approve this justification based on the authority specified in para 4.

SIGNATURE: DATE: _______________

NAME: _______________________________

TITLE: _______________________________