A04 Sole Source Justification - Paris Air Show 2025 (2).pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION (FAR) 13.5

August 5, 2024 Control No. 1463

1. AGENCY AND CONTRACTING ACTIVITY: The objective of the Department of Defense (DoD) Security Cooperation (SC) exhibit is to promote awareness of the Department’s SC programs foreign Military Sales (FMS), Humanitarian Assistance (HA), International Military Education and Training (IMET), and to conduct senior civilian and military official bilateral meetings with invited Distinguished Visitors (DVs) from other foreign delegations.

These engagements support the DoD SC mission and Enterprise-wide improvement efforts.

2. DESCRIPTION OF ACTION: The Defense Security Cooperation Agency (DSCA) requires the need for 101.5 square meters of exhibit space for 3 conference rooms at Paris Air Show (PAS), scheduled to execute June 16-22, 2025 in Paris, France.

3. DESCRIPTION OF SUPPLIES/SERVICES: The space at any Trade Show must allow DSCA’s exhibit builder to construct a booth that can accomplish the following:

Highlights the defense articles and services the U.S. offers to its partners under the scope of the Department’s SC programs;

Promotes those U.S. foreign policy objectives SC aims to achieve;

Represents SC activities across all Military Departments;

Appeals with high impact, professional-quality design to portray international security cooperation missions and functions; and Includes two discussion areas to enable DoD SC personnel to engage with visitors and international senior leaders to promote the DoD SC mission and a variety of SC programs.

The vendor shall provide an initial schematic of the space at both locations for DSCA review within five (5) days after contract award.

The vendor shall provide DSCA with necessary guidelines, timelines, and requirements to ensure DSCA’s designated agent can construct an exhibit that includes audio/visual, lighting, and electrical requirements, within five (5) days of contract award. Any revisions to the guidelines, timelines, and requirements should be provided immediately, upon completion of revisions.

4. AUTHORITY CITED: This action is under the procedures of Federal Acquisition Regulation (FAR) 13.5 under the authority of:

41 U.S.C. 1901, Simplified Acquisition Procedures

5. REASON FOR AUTHORITY CITED: International Trade Show space is leased from the host country to a single U.S. consolidator and then rented out to different exhibitors from the United States, thus creating the U.S. Pavilion. That said, for DSCA to secure exhibit space at an International Trade show, DSCA must rent it from that single U.S. consolidator via a sole source contract; there is no other method to secure exhibit space. DoD must build its exhibit within the U.S. Pavilion to showcase the U.S. Government footprint, support U.S. industry, and increase the impact on the national security interests of the United States.

In accordance with FAR 13.106-1, Kallman Worldwide is the only source that will provide exhibit space at the 2025 Paris Air Show (PAS). There is no other vendor from which DSCA can procure space for this event.

a. Lead in Events – The initial request from the show consolidator came to DSCA in July 2024 (with pricing data) so that they could start planning the layout of space within the U.S. Pavilion at the trade show;

b. Alternative Vendors – The 2025 organizers have selected Kallman Worldwide as the U.S.

Pavilion consolidator – they will not allow for any other alternative vendors to compete for that space; for DSCA to procure space within the U.S. Pavilion, the only option is to contract space through Kallman Worldwide;

c. Authority – In accordance with Federal Acquisition Regulation 13.106-1(b)(1), I hereby determine that exhibit space at Paris Air Show (PAS) 2025 from June 16-22, 2025 in Paris, France, is available from only one source, and competition is precluded for the reasons indicated in this memo; there are no other substitutes available;

d. Impact – If this J&A is not approved, then the U.S. Department of Defense will not be able to purchase space at the trade show, thus not allowing them to build an exhibit booth at the trade show, thus not allowing them to complete their trade show mission for the U.S.

Government. DoD would no longer be able to host meetings for the many senior U.S.

Government officials in attendance, and there would be an immensely reduced amount of support to the U.S. Industry companies participating at the show.

6. EFFORTS TO OBTAIN COMPETTION: With years of trade show experience, DSCA has developed a relationship with all major U.S. trade show space consolidators. The DSCA Trade Show Lead works with those consolidators as well as host nation trade show organizers and USG Security Cooperation Offices 12-18 months from the execution of the show to identify the avenue by which to secure space within the U.S. Pavilion. In the last ten years, there has not been more than one U.S. consolidator for exhibit space within the U.S. Pavilion.

7. FAIR AND REASONABLE COST COMPETITION: The Contracting Officer determines that the anticipated prices will be fair and reasonable by using the techniques identified within the attached Market Research memorandum to ensure award will be at fair and reasonable prices.

Pricing data was provided by Kallman Worldwide and is detailed in the Market Research memorandum.

8. MARKET RESEARCH: In accordance with FAR Part 10, extensive market research has been conducted through widespread historical analysis and contact with knowledgeable persons in Government and industry regarding the market capabilities to meet this requirement (and standard industry practices in this area of supply/services). In talking with experts from within the U.S. Government on exhibiting at international trade shows, the DSCA Trade Show Lead learned that exhibitors usually interact with one of two actors regarding exhibit space.

Show Organizers own all exhibit space for the entire trade show and set the rules and regulations for exhibiting at the show. Some show organizers elect to maintain control of exhibit space and sell it directly to individual companies seeking to exhibit.

However, in most instances, Show Consolidators are designated to organize individual pavilions of exhibitors by country/regional affiliation or exhibitors showcasing a particular technology or service (e.g., Unmanned Systems; Small Business; Innovation).

Kallman Worldwide is the U.S. consolidator for this show.

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: Sole Source procurement of trade show space is the industry standard and has been for the last 5 DSCA Trade Show Leads over a 10+ year period.

10. INTERESTED SOURCES: Typical USG attendees that attend International Trade Shows that would be affected by disapproval of this request would be:

Defense Security Cooperation Agency Undersecretary of Defense for Policy Undersecretary of Defense for Acquisition and Sustainment Deputy Assistant Secretary of the Army for Defense Exports and Cooperation Secretary of the Air Force for International Affairs Navy International Programs Office Defense Technology Security Administration Every Geographic Combatant Command and all subordinate military components Department of State Department of Commerce Federal Aviation Administration

APPROVAL

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

This justification is approved.