21DGT11_JA Redacted.pdf

NCH 53.6-2 (Apr 2019)

J&A Number: CR-20132 Code: GXTQ

PR Number: N00164-20-Q-GT11

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center (NSWC-CR) Global Department Contracts Branch, Code 0221.

2. Description of the Action Being Approved

Award of a five-year firm fixed price (FFP) Indefinite Delivery, Indefinite Quantity (IDIQ) contract on a sole source basis for electronic security hardware, software, technical support, and training to AMAG Technology, Inc., 20701 Manhattan Pl. Torrance, CA, 90501-1829 (CAGE: 1DAJ3).

3. Description of Supplies/Services

The supplies and services to be acquired are commercial electronic security system components and hardware, software, technical support, and training. The most common items purchased will include circuit boards, badge stock, card readers, technical support services, licenses, and software expansion ty res n factory technical support. Some instances may require professional services for on-site technical support.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The IDIQ will include a maximum of $2,500,000 in supplies and services over a five-year period. Funding for purchases will be provided directly from the customer, utilizing Working Capital Funds (WCF), Operations and

Maintenance (O&M), or Capital Investment Program (CIP) funding where appropriate.

Projected funding for FY21 and the out years is as follows:

Estimated Dollar Value FY21 FY22 FY23 FY24 FY25 Totals

WCF

O&M

CIP

Total $2,500,000

4. Statutory Authority Permitting Other Than Full and Open

Competition

10 U.S.C. 2304(c)(1). Only one responsible source and no other supply or services will satisfy agency requirements as implemented in FAR 6.302-1(a)(2)(ii).

5. Rationale Justifying Use of Cited Statutory Authority

As set forth below, AMAG Technology, Inc. (hereinafter referred to as “AMAG”) is the only responsible source capable of providing the required supplies. Award to a source other than AMAG is likely to result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements.

In accordance with FAR 6.302-1(a)(2)(ii), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued production of highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A)Substantial duplication of cost to the Government that is not expected to be recovered through competition or (B) Unacceptable delays in fulfilling the agency’s requirements.

Over the last 15 years, NSWC-CR, Security Systems Engineering Branch (GXTQ) has been tasked to install, upgrade, and maintain software, applications, and associated hardware that have been installed into securit ucts with an excellent history of performance and compliance. The Government previously acquired these products from AMAG as follows:

Multiple Purchase Orders from 2005 through 2009 for AMAG hardware, software, and support services.

N00164-10-D-GQ23 – Awarded to AMAG: 06 January 2010 – Indefinite Delivery, Indefinite Quantity contract for AMAG hardware, software, and technical support services.

N00164-15-G-GT04 – Awarded to AMAG: 18 September 2015 – Unpriced BOA for AMAG hardware, software, and technical support services.

Electronic Security System vendors offering total system solutions are protective of proprietary information. Many of them, including AMAG, have developed customized communications protocols and bit-scale language to prohibit interoperability with competitor systems or components to protect their proprietary data from being shared. The hardware compromises a network of interconnected panels all instructed from a single database to administer access control and security throughout an entire base or campus site. GXTQ has experimented with all major product developers who meet customer requirements. GXTQ is actively supporting security systems installed across various sites which utilize four (4) different vendors, none of which provide any cross functionality between hardware infrastructures. The lack of cross functionality would require total system replacement to accommodate alternative hardware.

s control systems at are protecting Natio annot be interrupted. With the access control systems supporting multiple critical sites, the need for support services to resolve any technical issues immediately is of the utmost concern. In order to limit the impact of system error and downtime requires immediate technical support from the original equipment manufacturer (OEM), AMAG. The only means of obtaining immediate, direct OEM technical support is to contract directly with AMAG.

Therefore, it is crucial to work directly with AMAG to ensure the safety and security of the national security assets. Additionally, to compete this requirement and award to a new vendor would require total replacement of the current AMAG system due to the lack of cross functionality between vendor products. Replacement of the current AMAG security system would result in significant duplicative costs. The table below illustrates the costs requirements to replace all existing AMAG equipment with an alternate replacement product due to incompatibility.

Description of Requirements TOTAL COST A. Replacement System Material Cost $ 3,710,000 B. Design and Installation Labor Costs $ 7,707,760 C. Associated Travel Costs $ 973,596 D. IT Hardware Replacement Cost $ 307,876 Total Cost to Replace Existing AMAG Equipment $12,699,232

Funds are not available to accomplish the replacement of the AMAG systems. Competition of the Government requirements would not offset the estimated $12,699,232 cost to replace the existing AMAG systems. Additionally, the labor required is projected at 1,361 days (180 days for design, 51 days for OCONUS installation, and 1,130 days for CONUS installation) for completion. Alternating between home and away for 50% travel time and accounting for other potential delays each year, the total estimated time to complete a total replacement is 10 years. All changes for replacement would be overwhelming to the Government’s current available manpower and would certainly cause delays in existing GXTQ tasking and responsibilities. Therefore, utilizing any source other than AMAG for the security system requirements would result in significant cost duplication and schedule delays.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

Market research was conducted to determine if there were any other companies who have the capability to maintain compatibility between AMAG and their system, or the capability to meet the basic requirements as a replacement system. Electronic Security Market Research is an ongoing effort within GXTQ to maintain awareness of the General Services Administration (GSA) Physical Access Control Systems (PACS) Approved vendor list. No alternative product has the capability to maintain compatibility with AMAG to operate within the existing AMAG network.

In accordance with DFARS Procedures, Guidance, and Information (PGI) 206.302-1, a Request for Information (RFI)/Sources Sought was issued on 11 February 2020 on the System of Award Management (beta.sam.gov) website with a response date of 27 February 2020. The Government received zero responses to the RFI.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined the anticipated costs to the Government for the supplies/services to be fair and reasonable based upon price analysis utilizing a Government technical evaluation and historical and/or market pricing data for same/similar products.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, Crane Division, Naval Surface Warfare Center (NSWC Crane), has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another company releases hardware/software that is compatible and interoperable with AMAG, then NSWC Crane will assess whether competition for future requirements is feasible at that time.