Sole_Source_Justification_Redacted.pdf

JUSTIFICATIO 1 APPROVAL FOR FAR SU. ART 13.5 SOLE

SOURCE (INCLUDING BRAND NAME) ACQUISITIONS

1. Identification of the agency and the contracting activity:

Department of the Treasury Bureau of Engraving and Printing (BEP) Office of Acquisition 14th and C Streets, SW Washington, DC 20228

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

Sole source acquisition for the upgrade of the Horiba Auorolog Spectrofluorometer (HFS).

3.a A description of the supplies or services required to meet the agency's needs:

This requirement is considered to be sensitive, but unclassified (SBU). Since the base system currently exists and is operational in the BEP's Office of Technology Development (OTD), a requirement for upgrades of the instrumentation and associated operational software in an effort to further develop the potential technology to be used to enhance BEP's capabilities for analyses of security features in development. This requirement includes equipment, software, training and installation services, and warranty to be furnished by Horiba Instruments Incorporated. The period of performance will be nine (9) months from contract award.

3.b Estimated value:

4. Identification of the authority being used (Check the appropriate box that applies):

1:81 41 U.S.C. 1901 - Simplified acquisition procedures.

S. A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited:

This requirement is to continue and build upon the previous customization of an instrument crucial to characterize banknote security features in the BEP. This original instrument was built for the United States Secret Service (USSS) on site around 2010-2011. This build was unique and exclusive to the USSS. It contains proprietary components and more importantly, connections and integration between components, that allow for a myriad of operational configurations and types of experiments that can be performed. The versatility of this instrument is one-of-a-kind and has been controlled under NDA agreements between the USSS and Horiba. This relationsh has been continued once the instrument was transferred to the BEP on cont . It is most advantageous to the Government that this instrument now be upgraded and improved to increase its capabilities for more varied types of analyses to support future security feature development in OTD/SFD.

The unique qualifications of Horiba Instruments Incorporated for the HFS upgrades further exist because the company owns the intellectual property behind the modular equipment. The customization of the HFS is a crucial aspect of the unique capabilities of this instrument. The HFS upgrades can only be supplied by the manufacturer that has supplied the major components of the original equipment. Horiba also has trained personnel specifically for modifying the HFS and its components. The specialized parts are solely furnished by Horiba therefore generic parts would not be compatible with the originally customized HFS.

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JUSTIFICATIO & APPROVAL FOR FAR SU. ART 13.5 SOLE

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies:

Based on market research and proprietary nature of the equipment, no other sources will be able to satisfy the requirement other than the original equipment manufacturer. A Special Notice will be posted on FedBizOpps to express the Government intent to sole source this requirement to Horiba Instruments Incorporated.

7. A determination by the contracting officer that the anticipated cost to the Gcvernment will be fair and reasonable:

The contracting officer anticipates the price to be fair and reasonable. The contractor's proposal will be evaluated using price analysis of FAR 15.404-l(b) and determination of price fair and reasonableness will be made in accordance with FAR Part 15.404-1(b)(2)(iv) Comparison with competitive published price lists and FAR Part 15.404-l(b)(2)(vi)- Comparison with similar items.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Applied Personal Knowledge: Proprietary equipment involves the use of proprietary parts for upgrades, and Horiba owns the intellectual property and are solely able to upgrade the HFS.

The hardware/software pieces that will be added to the HFS are engineered by Horiba, and generic substitutes for the modular HFS are not compatible, as well as in depth training on the instrument modifications.

Queried FPDS-NG database: This research yielded the original contract that the equipment was acquired. In reviewing the procurement history documentation, t e result further confirms the proprietary and customized nature of the equipment. As a result, the market research focus shifted toward the manufacturer to determine to optimum solution for the BEP requirement.

Contacted knowledgeable individuals: Conducted on 14 December 2015: Efforts were made to contact knowledgeable individuals at Horiba regarding HFS upgrades. Discussions began with interests in future capabilities for the HFS, and what it would take to upgrade the system. New components' compatibility was questioned to further understand how much of the current HFS would have to be customized, and if desired capabilities were feasible. Two other prominent manufacturers that were contacted were Agilent Technologies and Bruker, both offered standalone spectrofluorometers, however they did not offer a modular system. The modular HFS system allows upgrades to the core of the instrumentation as long as components can be updated. Agilent and Bruker cannot accommodate upgrades to the HFS due to different components and configurations.

Reviewed Catalogs/ Trade Magazines/ other Uterature: Conducted on 22 February 2016: A review of literature and catalogs for the HFS upgrades yielded several results. The upgrades were identified in the Horiba catalog, and compatibility is not an issue. Mostly, a literature review of the catalog helped determine which upgrades would be suitable for the HFS to further BEP's mission.

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JUSTIFICATICl & APPROVAL FOR FAR SU ART 13.5 SOLE

Held Interchange meetings I pre-solicitation conferences: Conducted on 25 February 2016: A demonstration of the fluorescence microscopy and upgraded components of the HFS was observed. The demonstration of the HFS upgrades revealed additional information on which components are necessary for acquiring specific spectral information on specimens. The HFS upgrades showed enhanced capabilities in spectral imaging using the fluorescence microscope with the Charge Coupled Device (CCD) detector on the HFS. Also, the Quanta-Phi accessory was demonstrated with a quinine standard to demonstrate the accuracy of investigating the quantum efficiency of materials.

9. Any other facts supporting this justification:

There are no other supporting facts.

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

To date, no other sources have written to express an interest in this acquisition and no additional interested sources are expected based on procurement history and knowledge of equipment.

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 the supplies or services required:

The Government does not anticipate that this requirement will be recurring; therefore, no actions to increase competition are planned at this time.

12.Certifications and 12.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and to the best of and belief .

...... 0J ...... Business (Contracting Activity). I have reviewed this justification, including any attached documentation, if applicable, and 0 concur I 0 do not concur with the · nn•·nv,!lt I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a sole source (including brand name) basis. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a sole source (including brand name) basis under the authority of FAR

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