20144673 - JEFO for Smiths Extension_Redacted.pdf

U.S. Customs and Border Protection Justification for Exception to Fair Opportunity (JEFO) – FAR 16.505(b)(2)(ii)(B)

Exceeding the SAT

Version 2.0 November 2020

Date: May 17, 2024 PR Number: 20144673

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Information and Technology (OIT), Enterprise Infrastructure and Operations Directorate (EIOD), Integrated Logistics Division (ILD), and CBP Office of Acquisition (OA), Procurement Division (PD), Information Technology Contracting Division (ITCD) prepared this Justification for Exception to Fair Opportunity (JEFO).

2. Nature and/or description of the action being approved.

(a) Nature of action: CBP utilizes Large Scale (LS) and Small Scale (SS) Non-Intrusive Inspection (NII) equipment at various CBP locations within the Continental U.S.

(CONUS) and outside of the Continental U.S. (OCONUS) to intercept and disrupt the flow of contraband. The equipment includes CBP’s fixed position and mobile LS and SS imaging and X-ray equipment. CBP intends to extend its current preventative and corrective maintenance task order 70B04C23F00000617 under its IDIQ contract 70B04C18D00000018 with Smiths Detection Inc. (Smiths) which ends on May 30, 2024, for three (3) months through August 30, 2024 using the authority under FAR Part 52.212- 4(c) Changes.

(b) Name and address of contractor: Smiths, 2202 Lakeside Blvd, Edgewood MD 21040.

(c) Contract type: Hybrid, Firm, Fixed-Price (FFP) and Time and Materials (T&M)

(d) Estimated total value (including options).

The task order will be extended from May 30, 2024, by three (3) months to August 30, 2024. The value of this action is estimated at $2,656,643.50.

(e) Type of funding: Operations and Support (O&S).

(f) Year of funding: Fiscal Year 2024 (annual).

(g) Solicitation number: Not Applicable.

(h) Background information about the requirement:

The Smiths LS and SS equipment is a part of the CBP NII portfolio deployed to CONUS, OCONUS and mission-related locations to detect illicit material entering or exiting the United States or OCONUS locations. Smiths is the original equipment manufacturer (OEM) of LS and SS NII equipment, and they are the only entity that can service the Smiths-manufactured equipment.

3. A description of the supplies or services required to meet the agency’s need (including the estimated value).

CBP utilizes Non-Intrusive Inspection Equipment at various CBP locations to intercept and disrupt the flow of contraband. To maintain this equipment CBP has purchased systems from Smiths to deploy and maintain specialized equipment as the Original Equipment Manufacturer.

EIOD has a requirement to procure maintenance support and on-demand services in support of existing Smiths security technology equipment.

The Smiths equipment is comprised of fielded equipment. The services required include scheduled preventive and corrective maintenance, as well as other on-demand services that may be needed throughout the term of this contract, such as relocations, engineering, installation, disposal, and other activities that are peculiar to the equipment or may be required on short notice. An example of one such anticipated on-demand service will be the requirement to add branding to equipment with the official CBP logo.

4. Identify the exception to fair opportunity and supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited.

_____X____FAR 16.505(b)(2)(i)(B). Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Rationale:

The equipment to be maintained (1,322 individual pieces of equipment deployed, both CONUS and OCONUS) under CBP/ILD is comprised of fielded non-intrusive Inspection (NII) equipment. These systems detect illicit material as well as radiological threats that are attempting to enter or exit the borders. The systems must be operational 24x7x365 to ensure people, cargo, mail and transportation continue to move safely and securely with minimal or no delays in service. A lapse in services to the Smiths systems will adversely impact the mission of CBP, keeping America safe. Without this equipment being deployed and functional, the nation's border security would be compromised.

Smiths provides technically complex and high-value inspection, detection equipment systems, currently being used by CBP/ILD to assist in securing the land border crossings, airports, seaports, rail crossings, mail handling, and express cargo consignment facilities within the United States and participating countries. Under the proposed contract modification, Smiths will continue to provide the necessary supplies, parts, maintenance services, and subject matter expertise to fully sustain and transition Non-Intrusive Inspection (NII) equipment under the NII Program, currently operational at CBP land, sea, air, and rail ports of entry. This support includes, at a minimum, program management, configuration management, warranty transitions, preventative maintenance, trouble call handling, corrective maintenance, and other requested services. Other requested services shall include engineering, site surveys, parts provisioning, retrofits, relocations, corrosion control, source change outs, disposal, maintenance training, operator refresher training, special event support, and emergency services on a case-by- case basis. In addition, the contractor may be required as on-demand services to repair damage resulting from accidents, incidents, natural disasters, and weather events, regardless of warranty status.

The Government must acquire these services from Smiths on a sole-source basis. As the original equipment manufacturer, Smiths can provide the maintenance services needed by the Government. As the current provider of these services under Contract 70B04C18D00000018, Smiths is also the only responsible source capable of providing these services without risking unacceptable delay.

The existence of limited rights in data, patent rights, copyrights, and trade secrets make a subset of the requirement available only from Smiths. They develop and are the only company that has access to the source code and programming information for the RS 484 Radiation Portal Monitor systems and the newly installed Multi Energy Portal (MEP) and Low Energy Portal (LEP) systems. Neither their proprietary manuals, nor their maintenance training on equipment are commercially available to other vendors. No other vendor has access to Smiths’ proprietary capabilities. Their technical data and software for CBP’s detection systems are proprietary information. Smiths will not sell data rights, maintenance training, technical manuals, drawings, schematics, or special tools associated with their equipment. It does not provide spare parts outside a maintenance plan. Without Smiths’ unique capabilities, this equipment could not be maintained or fixed in the field.

5. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

CBP has developed an independent government cost estimate (IGCE) and will conduct a thorough price analysis of the proposed price to form the basis for the Contracting Officer's determination of fair and reasonable prices. The Contracting Officer will work with the OIT EIOD ILD to review historical pricing information.

6. Any other facts supporting the justification.

None

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

This justification will be synopsized in SAM.gov after award. If other visible sources are manifested as a result of the publication of the sole source justification, they will be considered for future competitive services acquisitions.

8. CBP intends to post this requirement on SAM.gov pursuant to FAR 16.505(b)(2)(ii)(D).

9. Technical/Requirements Personnel Certification:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the justification, are accurate and complete.

Technical Representative/COR Date

10. Contracting Officer Certification and Approval: *

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that this justification is accurate and complete to the best of my knowledge and belief and hereby determine that the circumstances for an exception to fair opportunity exist:

Contracting Officer Date

*Note: In accordance with FAR 16.505(b)(2)(ii)(C)(1), proposed 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. For CBP, the contracting officer should sign each justification prior to approval by the next higher level (e.g., Competition Advocate, HCA, and/or CPO).

► JEFO Approvals:

12. COMPETITION ADVOCATE (Per FAR 16.505(b)(2)(ii)(C)(2) - Exceeding $750,000 to $15M)

Approved Disapproved

Name (Print):

Competition Advocate

Signature: Date: _____________