Astrophysics LSJ Final_Redacted.pdf

Attachment 4 U.S. Customs and Border Protection

Limited-Sources Justification (LSJ) - FAR

Version 2.0 November 2020

Date: 1 /1 /2025 PR Number: 2015-3642

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C.

152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

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) proposes to award an order pursuant to FAR 8.405-6(a), Limiting Sources.

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

CBP intends to limit the number of sources solicited pursuant to FAR Part 8.405-6(a) for the procurement of services to upgrade and maintain proprietary software to Astrophysics, Inc.

21481 Ferrero Parkway, City of Industry, California 91789.

3. Description of Supplies/Services.

CBP utilizes Large Scale (LS) and Small Scale (SS) Non-Intrusive Inspection (NII) equipment at 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 Radiation Detection Equipment (RDE) and LS/ and SS NII imaging and X-ray equipment. This procurement is for the continued maintenance, sustainment, and technical support for the RDE, NII systems deployed at CBP land, sea, air, and rail ports of entry. EIOD has a requirement to procure corrective and preventative maintenance services in support of existing Astrophysics security technology equipment.

4. Authority and supporting rationale.

FAR Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Astrophysics Inc. is the original equipment manufacturer (OEM) of the RDE and LS/ SS NII equipment, and they are the only company capable of performing the entirety of the sustainment services that the equipment requires.

The existence of limited rights in data, patent rights, copyrights, and trade secrets make a subset of the requirement available only from Astrophysics. Astrophysics develop and is the only company that has access to the source code and programming information for the ZBV/ ZBF model x-ray systems and the newly installed medium 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 Astrophysics proprietary capabilities. Their technical data and software for CBP’s detection systems are proprietary information. The OEM 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 Astrophysics’ unique capabilities, this equipment could not be maintained or fixed in the field.

Any attempt to utilize a non-OEM providing would void existing warranties, compromise system integrity, and increase the risk of failure or cyber vulnerabilities within critical border inspection systems. A sole-source award to Astrophysics is therefore essential to ensure operational reliability, data security, and mission continuity.

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

The Contracting Officer has determined that issuing the proposed Task Order to Astrophysics Inc. for the RDE and LS/SS NII represents the best value and will result in the lowest overall cost, considering price and administrative costs, to meet the Government’s needs. This order will be placed in accordance with FAR 8.404, “Use of Federal Supply Schedules.” The General Services Administration (GSA) has already negotiated fair and reasonable pricing rates. Discounts to these GSA schedule rates will be requested. Additionally, prior to issuance of the task order, the ordering activity will consider the level of effort and the mix of labor proposed to perform the specific task being ordered in order to determine that the total price is reasonable. The contractor’s labor mix and level of effort will also be compared to the Independent Government Cost Estimate (IGCE).

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

Corrective and preventative maintenance services for CBP’s RDE and NII equipment portfolio has historically been executed through sole source awards to the various OEMs.

CBP published a request for information on SAM.gov on November 2, 2020, to determine the extent to which small businesses might be capable of handling the maintenance requirements as an integrator.

CBP received six (6) responses from industry, four (4) of which were from small businesses. While initial findings suggested potential for competition, subsequent evaluation revealed that none of the responding vendors had direct partnerships with the OEM or possessed the required technical data rights to maintain or repair the systems to satisfy the entirety of the requirement.

A competitive solicitation was released for the award of two (2) separate Blanket Purchase Agreements (one for RDE and one for NII LS and SS) on December 22, 2022. Despite the attempt to compete the requirement, however, the solicitation was ultimately canceled when CBP determined that it would not yield a viable awardee for either of the BPAs, based, in part, on discovery that, in fact, the interested small businesses lacked partnerships with the OEMs as well as the depth and breadth of experience to satisfy the entirety of the requirements described in the RFQ.

Further market research was conducted in October 2025 to thoroughly re-validate the market landscape.

During this period, CBP undertook several actions including: performing an in-depth review of intellectual property databases for patents and copyrights related to Astrophysics' technology.

Additionally, CBP consulted with industry experts and reviewed commercial market intelligence reports to confirm the uniqueness of Astrophysics' proprietary technology and the absence of viable third-party alternatives for maintenance and repair. This research yielded findings that consistently supported the claims of the OEM’s unique capabilities and the proprietary nature of their technology.

CBP’s market research and its subsequent attempt to compete the requirement has not provided an alternative to a sole source task order. CBP reviewed the DHS Strategic Sourcing Vehicles, and none were deemed appropriate for this requirement

Extensive market research further confirmed that data rights restrictions, patents, copyrights, and trade secrets limit the availability of essential services to Astrophysics alone. Astrophysics retains exclusive access to proprietary source code and programming information necessary for critical system components, including RIIDs, RPMs, and Vehicle and Cargo Inspections systems. Astrophysics does not distribute spare parts independently of a maintenance plan, further restricting third-party service feasibility. Finally, pricing is composed of historical, per unit costs, and costs associated with maintenance values from equipment acquisition contracts.

7. Any other facts supporting the limited-sources justification.

The fixed and fielded RDE and NII equipment 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 continues to move safely and securely with minimal or no delays in service. Without this equipment being deployed and functional, the nation's border security would be compromised.

Astrophysics 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 this new task order, Astrophysics will continue to provide the necessary supplies, parts, maintenance services, and subject matter expertise to fully sustain and transition RDE and NII equipment under the RDE/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 services to repair damage resulting from accidents, incidents, natural disasters, and weather events, regardless of warranty status.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited-sources) before any subsequent acquisition for the supplies or services is made.

The Government will continue to assess the marketplace for technological advancements and alternative solutions to reduce reliance on proprietary systems. Future competitive opportunities will be considered should the OEM release relevant technical data rights, or if other vendors develop interoperable, non-proprietary inspection technologies capable of meeting mission requirements.

9. Posting.

CBP intends to post this requirement on SAM.Gov pursuant to FAR 8.405-6(a)(2)(i) within fourteen days of placing the task order for a minimum of thirty days.

10. Technical/Requirements Personnel Certification:

Pursuant to FAR , I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the Limited-Sources Justification, are accurate and complete.

11/24/2025

Date

11. Contracting Officer Certification:

Pursuant to FAR 8.405-6(c)(2)(ix), I certify that the Limited-Sources Justification is accurate and to the best of my knowledge and belief.

Mary W. Carson Date

MARY W CARSON

Digitally signed by MARY W

CARSON

Date: 2025.11.24 09:45:05 -05'00'

Contracting Officer