J&A_Signed_Redacted.pdf

Justification & Approval (J&A) Justification for Other Than Full and Open Competition

41 U.S.C. 3304

J&A No.: FY19-0458

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Office of Procurement Operations (OPO).

Science and Technology Acquisitions Division (STAD) proposes to enter into a Small Business Innovation Research (SBIR) Phase III contract with REI Systems Incorporated (REI) to procure support services for the DHS Science and Technology Directorate (S&T) Office of Industry Partnerships (OIP) SBIR Broad Agency Announcement (BAA) web portal on a basis other than full and open competition.

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

a. Type of action: Time-and-Materials Contract

b. Amount:

c. Type of funding: 3 Year Research and Development (R&D) Funds

d. Year of funding: FY19

e. Other brief descriptive words and phrases: DHS, OPO intends to procure, on a sole-source operations and support services for the DHS SBIR BAA web portal via REI Systems Inc. The contractor possesses a current Phase III award for the current SBIR BAA web portal and are the only vendor capable of continuing operation and support at this time. As a result, the agency shall document to show how they provided this preference to the SBIR awardee that developed the technology.

The proposed contractor is:

REI Systems Inc.

14425 Willard Road Suite 200 Chantilly, VA 20151-2110

3. Description of Supplies/Services.

This requirement is to provide operations and support needed for the DHS/S&T/OIP SBIR BAA web portal while OPO conducts a full and open competition for a new web portal system.

The OIP SBIR BAA web portal, an S&T enterprise-wide system, is an internet-facing portal located in DHS Data Center 2, an approved DHS Data Center. The DHS S&T SBIR BAA Government Off-the-Shelf (GOTS) web portal automates the administration of the BAA, Silicon Valley Innovation Program (SVIP), as well as SBIR solicitation, submission, evaluation, award and deliverable activity. It is the primary face to industry and it is key to receiving innovative solutions to DHS Research and Development (R&D) related subjects.

DHS S&T needs to continue the operations and support of the current web portal environment for information exchange concerning SBIR, SVIP and BAA research projects and to deliver continued functionality through continued research and development, as defined by the SBIR, SVIP and BAA Program stakeholders.

The estimated total cost of this effort is as follows:

Period Total Base Period 6 months Option 1 3 months Option 2 3 months

Total

This proposed period of performance allows time for an awardee to emerge from the full and open competition for the new portal. Additional time is required for the awardee to develop the new portal, to migrate it to the cloud, to test the system, and to receive the Authority to Operate (ATO) . With a high degree of confidence, the overlap period is estimated at twelve months, and each 3-month option period will be exercised.

4. Identification of statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(5) pursuant to FAR 6.302-5.

The statutory authority permitting other than full and open competition for SBIR Phase III awards satisfies any competition requirement of the Armed Services Procurement Act, the Federal Property and Administration Services Act, and the Competition in Contract Act. As a result, per Federal Acquisition Regulation (FAR) Subpart 6.302-5 and 15 USC 638(r)(4), this proposed Phase III award is exempt from further competition as it is derived from, extends, or completes efforts made under prior SBIR funding agreements. Specifically, this proposed award derives from DHS Phase III award HSHQDC-14-C-00079. The SBIR program is also mandated by Small Business Research and Development Act of 1982 (Public Law 97-219), the Small Business Research and Development Act of 1992 (Public Law 102- 564), and the National Defense Authorization Act of 2017 (Public Law 114-328).

5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Background information about the requirement: As mentioned above, DHS S&T needs to continue the operation and support of the current SBIR BAA web portal. On September 9, 2014, Phase III contract HSHQDC-14-C-00079 was awarded to REI Systems Inc. for the existing web portal in accordance with FAR 6.302-5. The contract was for a period of 1 year with four (4) one-year options, the contract will expire on September 8, 2019.

b. Details covering what events lead to the situation requiring use of other than full and open competition procedures:

REI stood up, developed and has maintained the current DHS SBIR Portal under Phase III award

no. HSHQDC-14-C-00079. This decision was in keeping with 15 USC 638(r)(4) regarding “To the greatest extent practicable, Federal agencies … shall … issue, without further justification, Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.”

According to the Small Business Administration (SBA) Policy Directive (dated February 24, 2014), "The competition for SBIR Phase I and Phase II awards satisfies any competition requirement of the Armed Services Procurement Act, the Federal Property and Administrative Act, and the Competition in Contracting Act. Therefore, an agency that wishes to fund an SBIR Phase III project is not required to conduct another competition in order to satisfy those statutory provisions. As a result, in conducting actions relative to Phase III SBIR award, it is sufficient to state for purposes of a Justification and Approval pursuant to FAR 6.302 -5, that the project is an SBIR Phase III award that is derived from, extends, or logically concludes efforts performed under prior SBIR agreements and is in accordance with 15 U.S.C. 638(r)(4) and 41 U.S.C.

3304.

c. Why considered alternatives will not work:

The current contract HSHQDC-14-C-00079 is the result of a Phase III award, substantiated by the J&A approved at the time of award. This proposed action is also a Phase III award and by legislation a SBIR Phase III project is authorized to continue without conducting another competition; no other alternatives were considered.

d. Which authority applies and why:

The federal SBIR Program is mandated by the Small Business Research and Development Act of 1982 (Public Law 97-219), the Small Business Research and Development Act of 1992 (Public Law 102-564), and most recently reauthorized under the National Defense Authorization Act of 2017 (Public Law 114–328).

e. Explain the impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided:

If this J&A is not approved and a sole source contract is not awarded to REI Systems Inc., the SBIR BAA web portal will be shut down for several months until an alternative procurement course of action is identified and executed. DHS S&T and all its DHS component clients (e.g. Transportation Security Administration, Federal Emergency Management Agency. Customs and Border Protection) will be severely impacted. A cessation in the functionality provided by the SBIR BAA web portal will result in DHS S&T not being able to fulfill a critical part of its mission that is soliciting private industry's participation in the development and delivery of key capabilities required by DHS' mission of protecting the nation.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

This requirement is exempt from FedBizOpps posting per FAR subpart 5.202 (a)(7). This contract action results from acceptance of proposal under the Small Business Innovation Development Act of 1982.

7. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Per 15.404-1 (b)(2), the Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on price and cost analysis. The Contracting Officer will utilize a combination of price analysis techniques to include comparison of proposed price with independent government cost estimate and comparison of proposed prices to historical price paid for these services. The Contracting Officer will obtain certified cost or pricing data, because in accordance with FAR 15.403-4, the estimated dollar value of this action exceeds the threshold.

8. Description of market research.

Market research was conducted by the DHS S&T OIP Program Manager who reviewed the current contract, HSHQDC-14-C-00079, which was awarded as a Phase III contract in accordance with FAR 6.302-5. The DHS S&T Program Office as well as the Contracting Officer reviewed the SBIR Program Policy Directive and found that Congress expects that agencies that pursue Research and Development (R&D) or production developed under the SBIR Program, give preference, including sole source awards, to the awardee that developed the technology.

9. Any other facts supporting the use of other than full and open competition.

DHS intends to make this justification publicly available pursuant to FAR 6.305 on FedBizOpps within 14 days after contract award.

10. A listing of the sources, if any that expressed, in writing, an interest in the acquisition.

As mentioned above in Section 5, by legislation, competition is not required for Phase III SBIR awards; therefore, this proposed action was not solicited to FBO.

11 A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for supplies or services required.

DHS S&T and OPO are in the process of a competitive award for the long-term OIP portal requirement under RFQ No. 70RSAT19Q00000041.

12. Contracting Officer’s Certification. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

13. Technical/Requirements Personnel Certification. I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Technical Representative/COR Date

APPROVAL:

Procuring Activity Advocate for Competition Date