Justification Approval for Other Than Full and Open Competition Final 11.17.23 signed.pdf

Justification & Approval for Other Than Full and Open Competition Template v3.3 (July 2021)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

41 U.S.C. 3304(a)(1)

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, Transportation Security Administration (TSA), Office of Procurement Operations, proposes to enter into a contract with multiple vendors on a basis other than full and open competition.

2. Nature and/or Description of the Action being Approved.

Justification and Approval (J&A) number JA-2024-02-1017 is to document and seek approval to 1) extend the period of performance of the current Consortium contracts by two years and one month, from January 1, 2024 to February 13, 2026, and 2) add Project One Retrievers LLC to the list of approved Domestic Breeding Consortium (DBC) contractors.

(a) Nature of action: TSA intends to use other than full and open competition to extend the period of performance of current contracts under the current DBC model, in order to continue support for the Explosive Detection Canines (EDCs) that have been reared and trained in accordance with DBC standards established by the Department of Homeland Security Science and Technology Directorate (DHS S&T) and Johns Hopkins University Applied Physics Laboratory (JHU APL).

(b) The current Contractors approved by the DBC are as follows:

Auburn University, 107 Samford Hall, Auburn, AL Aspen Creek Kennels LLC, 540 250th St, Woodville, WI Katalyst Kennels, 37 Burgess Rd, Morris, CT Project One, 1242 Brandywine Road, Crown Point, IN

(c) Contract type: Firm Fixed Price

(d) Estimated total value (including options).

This is a no cost action. TSA has not exceeded its ceiling and it does not need to be increased. DHS is paying for the breeding of the canines.

Ceiling Amount: Not to be Increased Total Ceiling: $690,000.00 Amount Expended: $237,845.55 Amount Remaining: $452,154.45

Note: The current Contract Number 70RSAT19CB0000002 expires February 13, 2024.

(e) Year of funding Fiscal Year 2024

3. Description of Supplies/Services.

The DBC program supports congressional mandates contained in the TSA Modernization Act. DHS S&T is responsible for and is collecting scientifically robust data on the breeding and rearing strategies to inform future expansion of a high quality, predictable and risk mitigated domestically bred and raised detection canine program. A critical element of the DHS S&T sponsored program is to successfully transition Pilot canines into the TSA operational explosive detection canine program, to allow longitudinal study of these canines from acquisition to training to operational employment. As discussed in Section 3 of this Amendment, it was anticipated that at the conclusion of CY23 enough data and information would be available to formulate complete requirements of the DBC. However, due to the vendors’ inability to produce sufficient numbers of suitable canines during the Pilot thus far, DHS S&T was unable to obtain all necessary data.

After all necessary data has been collected TSA intends to compete the full requirement and purchase from additional vendors, as appropriate and practicable.

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)(1) implemented by FAR 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Identification of Exception to the Buy American Statute (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)). N/A.

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

TSA currently faces significant vulnerability to its security posture due to a shortage of quality canines suitable for explosives detection work. This vulnerability is enhanced by the fact that TSA has to rely on foreign sources for a majority of its canines. With world demand and events causing market instability, TSA and Congress have recognized the need to increase the domestic supply of quality canines bred for specific genetic traits to enhance quality and increase supply through improved acceptance rates.

Due to the age structure required by the demands placed on explosives detection canines, traditional canine procurement actions rarely involve actual breeders, let alone those qualified and interested in breeding targeted genetics. Instead third party vendors complete their individual assessments of adult canines of often unknown heritage when selecting potential candidates to present to a variety of customers. The variety of assessments, interpretation of canine behavior, varying customer requirements, and understanding of those requirements vary greatly in the industry, and vendors have varying success in acceptance rates for providing explosives detection candidates for TSA.

The four vendors seen in section 2(b) are members of the DBC and will have litters meeting the minimum age requirement (1-year-old) for TSA procurement testing. These litters were bred and are being evaluated and categorized under the DHS S&T pilot to establish the Breeding Consortium Strategy put forth by TSA. DHS S&T is responsible for and is collecting scientifically robust data on the breeding and rearing strategies to inform future expansion of a high quality, predictable and risk mitigated domestically bred and raised detection canine program. Current strategies involve breeding healthy puppies from sires and dams with established pedigrees, promising genetic profiles, and extensive behavioral and medical screening. Puppies are raised in a humane environment that encourages environmental soundness, fearlessness, inquisitiveness, and eagerness to work with humans.

DBC breeders also provide exposure to early developmental strategies and cognitive training for puppies up to 18 months of age.

A critical element of the DHS S&T sponsored program is to successfully transition pilot canines into the TSA operational explosive detection canine program to allow longitudinal study of these canines from acquisition to training to operational employment. Tracking canine development and performance over their career spanning several years will validate the breeding model and provide crucial data to refine the breeding process from genetically determined mating pairs to phenotypic behavior assessments from whelping to maturity.

TSA procurement testing culminates DHS’s collection of information to fulfill the mandate and effort to increase the domestic capacity of explosives detection canines.

The existing four vendors in the DBC were selected to participate in the DBC upon meeting rigorous criteria. Potential vendor breeders had to be willing to demonstrate high standards of humane treatment and care and be willing to apply methods and rearing strategies that emphasize developing cognitive, sensory and socialization skills that increase the likelihood of a successful detection adult canine. Vendor breeders were also selected if they were willing to provide biological samples and genetic information on the sire, dam, puppies, and potentially future generations of offspring, allowing for comprehensive health screening as well as further data collection to inform future breeding pairs. As of Q1 FY24, only four breeder vendors met all required criteria, have been selected by, are fully participating in the DBC, and are therefore the only available sources to be purchased from.

Purchasing canines from this initiative meets the following program requirements:

• Meets CTC requirements with availability of age appropriate purpose bred detection canines

• Allows for further data collection to drive future breeding through predictive modeling

• Provides known biological sampling

• Enhances service life through controlled breeding to minimize medical issues

In an effort to find alternative solutions to procuring through the DBC and to increase the pool of breeders and canines sourced within the United States, the CTC has reached out to breeders not affiliated with the DBC. Four out of the six breeders contacted were not interested due to perceived insufficient purchase prices that do not cover the cost of raising and developing the canines. These vendors also stated that they did not have the time and resources needed to train or condition canines to the standards that the TSA would require.

There would be a substantial negative impact to the TSA’s mission if the J&A is not approved and the canines not procured. The TSA already faces a limited supply of qualified canines from stateside third party vendors. Failing to approve this J&A would take away one more alternative sourcing of canines, which could prevent the TSA from supplying an adequate number of trained explosive detection canines. This outcome places our transportation systems at risk. Although approval of this J&A will not allow the TSA to meet full mission capability, it will allow the CTC to move forward in a limited capacity to continue training and fielding explosive detection assets that aid in securing our nation’s transportation infrastructure.

In addition, if the J&A is not approved, the progress made by the DBC Pilot may be hampered if members cannot present young dogs for potential TSA procurement which in turn jeopardizes fulfillment of the congressional mandates contained in the TSA Modernization Act.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential

Sources as is Practicable.

DHS S&T and JHU APL worked to select the existing vendors to be a part of the DBC by issuing a solicitation through JHU APL for interested breeders. Respondents were down-selected based on their willingness to provide biological and genetic information, apply puppy rearing strategies that promote cognitive, sensory and socialization skills that increase the likelihood of a successful detection adult canine, and produce litters within a certain timeframe. Upon meeting preliminary criteria, JHU APL subject matter experts visited interested breeder facilities to ensure humane and high standards of care.

DHS S&T and CTC subject matter experts reviewed the information submitted. Based on a review of this information, and additional research conducted, there was no clear indication that the vendors could meet the consortium requirements at this time (both the capability to meet established DBC criteria and having dogs available to purchase now that could potentially satisfy DBC criteria). With that said, both vendors were given information on how to apply to the DBC Pilot for possible participation as the program expands.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on comparison to historical pricing from TSA’s numerous canine procurements over recent years. There is a myriad of data to compare pricing from the four vendors to, to include pricing from one of the DBC vendors themselves. It is acknowledged that the breeding consortium model represents a marked changed from how prior year procurements were conducted; however, the pricing from the vendors should not be substantially higher than prior procurements.

9. Description of Market Research.

Traditional canine procurement of adult canines from third party vendors is experiencing market risk that TSA needs to address for long term sustainment of its Canine Program.

TSA has put forth a report to Congress “Building Domestic Capacity for Explosives Detection Canines” for increasing quality and quantity of domestically bred canines. The TSA/DHS led Breeding Consortium working group established that many small breeders do not always have easy access to medical evaluations or expertise that can increase the likelihood of positive mating outcomes. The required science-based approach to improving and breeding explosives detection canines resides in our partnership with the DHS S&T DBC Pilot by providing an end user access point for canines while supporting long term research goals for improving canine quality. The structured research requirements of the DBC act as a direct risk reduction to asset acquisition.

It is anticipated that at the conclusion of this effort, enough data and information will be available to formulate complete requirements of the DBC. If this is to occur, it would allow for the TSA to potentially compete the full requirement and purchase from additional vendors, as appropriate.

Market Research for the Consortium is performed at the DHS level. DHS supports and uses JHU APL to find, vet and approve vendors into the Consortium. Just recently in early November 2023 the JHU APL produced a Domestic Breeding Consortium Early and Operational Development Guide; this guide details the requirements and process necessary to join the Consortium and it is currently being processed for approval and release.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

In May 2023, TSA held an Industry Day, at the Canine Training Center located at Lackland Airforce Base. There were 21 contractors who attended, to hear the details of TSA’s upcoming Canine procurement scheduled for FY24. TSA fully expects competition for that action. It is noted that the TSA procurement and the Consortium are two different actions; as the Consortium is for breeding and data collection purposes and the BPA is to purchase working canines.

11. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the

Acquisition.

N/A

12. 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.

It is anticipated, as mentioned, that as this requirement matures and is refined over the two years, increased competition will occur and more vendors will be added into the

DBC.

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13. 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

14. 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 Date

APPROVAL:

Contracting Officer Date

Note: The Contracting Officer is the final approving official when the action does not exceed $750K and must also sign the justification when the contract is awarded under FAR 6.302-7, Public Interest, regardless of dollar amount.

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION