JOFOC (Redacted) FINAL.pdf

This is a Justification for Other Than Full and Open Competition (JOFOC) document for a sole-source acquisition by the U.S. Department of the Treasury's Bureau of Engraving and Printing (BEP).

The BEP seeks to award a Firm Fixed Price Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a five-year ordering period to Papierfabrik Louisenthal GmbH (a subsidiary of Giesecke+Devrient) for continued research and development of proprietary security features for U.S. currency counterfeiting deterrence. The cost estimate is $47,474,246. The contract represents Phase III continuation of ongoing work initiated under contracts TEPD-15-1781 ($20,000,000 awarded 9/30/2015) and 2031ZA20D00011 ($42,000,000 awarded 9/29/2020), which covered Phase II Feasibility, Phase III Test & Optimization, and Phase IV Technology Integration. The requirement is for facilities, labor, and materials to develop security features through roll-to-roll manufacturing and integration into U.S. Federal Reserve Notes at BEP's secure facility with trained personnel.

The justification cites 41 U.S.C. § 3304(a)(1) (only one responsible source) as the statutory authority for sole-source procurement. BEP determines Louisenthal is the only source capable of producing the required security feature due to proprietary intellectual property, exclusive manufacturing technique, technical complexity, and U.S. Currency Program (USCP) exclusivity agreements. Extensive market research since 2009 identified no competing technologies meeting technical requirements. BEP maintains ongoing Requests for Information (RFIs) on SAM.gov for security feature technologies and conducts annual market outreach through trade shows, vendor meetings, and industry conferences. The Treasury Chief Information Officer approval is required for purchases exceeding $75 million, and the Senior Procurement Executive approval is required for amounts exceeding $75 million.