Redacted_JandA_for_FBO_21_Oct_19.pdf

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

SOURCE SELECTION SENSITIVE

March 2018 SOURCE SELECTION SENSITIVE Page 1 of 5

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to all J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: 628th Contracting Squadron/PKA

Purchase Request / Local ID Number: F1M3F19212AW01

Program / Project (and PE, if applicable): Z Portal and ZBV X-ray systems Gold level Service Plan

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $1,192,248.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

29 Jul 2019

Project Lead / Program Mgr / Requiring Activity [ Benjamin Lanteigne ]

628 SFS/J3OSS, (843) 963-3639

Signature

Date

24 Aug 2019

Contracting Officer Terry Harrelson

628 CONS/PKA, (843) 963-5158

Signature

Date

26 Sep 2019

Local Legal Reviewer Robert E. Beyler

628 ABW/JA, 963-6209

Signature

Date

24 Sep 2019

Chief of the Contracting Office (COCO) Barbara V. Bonnette

628 CONS/PK, (843)963-5018

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

27 Sep 2019

Competition Advocate Susan Madison

Signature

LANTEIGNE.BENJAMIN.

ALEC.1471667036

Digitally signed by

LANTEIGNE.BENJAMIN.ALEC.1471667036

Date: 2019.07.29 14:11:58 -04'00'

HARRELSON.TERRY.G.1

109141972

Digitally signed by

HARRELSON.TERRY.G.1109141972

Date: 2019.08.24 15:26:38 -04'00'

BONNETTE.BARBARA.V.

1028793355

Digitally signed by

BONNETTE.BARBARA.V.1028793355

Date: 2019.09.24 16:55:42 -04'00'

BEYLER.ROBERT.E.1250

767664

Digitally signed by

BEYLER.ROBERT.E.1250767664

Date: 2019.09.26 14:15:33 -04'00'

MADISON.SUSAN.R.123

0377959

Digitally signed by

MADISON.SUSAN.R.1230377959

Date: 2019.09.27 16:36:18 -05'00'

March 2018 SOURCE SELECTION SENSITIVE Page 2 of 5

I. Contracting Activity.

628th Contracting Squadron/PKA

II. Nature and/or description of the action being processed.

Gold level Service Plan for the Z Portal and Z-Backscatter Van X-ray inspection systems. This action will be awarded as a new, firm-fixed-price contract. Currently this requirement is covered under contract FA441819PA035.

III. Description of supplies/services required to meet agency needs.

628 Security Forces Squadron requires routine maintenance and repair for the two X-Ray inspection systems they use to inspect vehicles requesting access to Joint Base Charleston (JBCHS). The Z Portal X-Ray inspection system is used to inspect vehicles before accessing JB CHS - Air Base. The Z Backscatter Van (ZBV) X-Ray inspection system is used to inspect vehicles before accessing JB CHS - Weapons Station. This contract supports key anti-terrorism and force protection detection capabilities for contractor and oversized vehicle entry control and searches at JBCHS, where approximately 52,000 vehicles and trailers are scanned every year, with an average of 450 access denials. Without the rapi-scan capabilities provided by the Z Portal and ZBV X-ray, SFS would have to revert to manual searching techniques with only intermittent support from K-9 patrols. These searches are not capable of detecting the full spectrum of explosive and radiological threats detected by the rapi-scan functions, and would leave JBCHS vulnerable to high-yield explosives and vehicle borne improvised explosive devices. The purpose of this acquisition is to obtain a service plan to ensure both X-ray systems continue to be maintained and repaired.

Since 2016 the Government has fulfilled this requirement by awarding 12-month long contracts to AS&E. As AS&E is the manufacturer and sole authorized service provider in the JB CHS area, this action is not available for competition.

628 CONS, 628 SFS, 628 CPTS, and 628 CES met Aug 2019 to discuss the possibility of obtaining procurement funding and executing the acquisition of new equipment. 628 CPTS advised procurement funding is not currently available and not expected to become available within the next three FY's. 628 SFS will continue to work within the financial system to obtain the required type of funding to execute the acquisition of new equipment. Until such time, 628 SFS continues the need to obtain preventive maintenance and servicing of the existing equipment.

The estimated total value of this contract is:

Base Period of Performance (PoP):

1st option:

2nd option:

3rd option:

4th option: $ Total: 1,192,248.00

The estimated PoPs are as follows:

Base PoP: 1 October 2019 to 30 September 2020 Option I: 1 October 2020 to 30 September 2021 Option II: 1 October 2021 to 30 September 2022 Option III: 1 October 2022 to 30 September 2023 Option IV: 1 October 2023 to 30 September 2024

IV. Statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1), as implemented by FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, and required by FAR 6.303-2(b)(4).

March 2018 SOURCE SELECTION SENSITIVE Page 3 of 5

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The Z Portal and ZBV X-ray systems are listed under the AS&E GSA contract GS-07F-153DA. When purchased, the systems come with a 1-year warranty and maintenance & repair service plan. However, the follow on service plans are not covered under the GSA contract. Market research shows that no other vendors are capable of providing service plans because the Z Portal and the ZBV X-ray systems are both manufactured by American Science and Engineering, Inc. (AS&E). AS&E owns the trademarked software and patents to the physical equipment used for system operation and due to proprietary nature is the only vendor authorized to maintain and repair these systems.

This requirement is currently provided by contract FA441819PA035. The vendor has previously provided service plans under contracts FA441816P0137, FA441817P0004, and FA441818P0008. All contracts were awarded on a sole source basis to AS&E IAW FAR 6.302-1(a)(2).

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

Market research conducted on the SBA website using NAICS 334517 and the keywords "detection system" did not produce any results. A search for the same NAICS and the keyword "X-ray" revealed seven results -- one VOSB, one WOSB, two SDVOSB, and three SB. However, none of these vendors are capable of fulfilling this requirement because AS&E owns the trademarked software and patents to the physical equipment used for system operations and is therefore the only vendor authorized to maintain and repair 628 SFS's X-ray systems.

Market research also revealed that AS&E offers four commercial service plans: Platinum, Gold, Silver, and Bronze. The Platinum plan is only available in . The Gold plan includes all semi-annual and annual preventative maintenance, all parts (including the X-ray tube), disposal of the X-ray tube, all consumable X-ray system parts, 48 hour response time, all labor, and emergency telephone support availability 7 days a week, 24 hours a day, 52 weeks a year. The Silver plan is similar to the Gold plan, but the X-ray tubes and the high voltage components (power supply and cable) are not covered. According to the contractor, the average cost of repair for each one of these three parts is , and if one fails, it usually causes the other two to fail as well because the high voltage supply powers the X-ray tube via the high voltage cable. The Bronze plan includes semi-annual and annual preventive maintenance, but it does not include any emergency repairs. After review, the 628 SFS determined the Gold Plan was the best plan to meet their needs and provided the best coverage as the equipment nears the end of its life cycle.

As mentioned in Section V, the current contract and the previous three contracts for service plans were awarded on a sole source basis to AS&E. Prior to the award of each one of these contracts, a Notice of Intent to Award a Sole Source Contract was posted on FBO. In each of these occasions, no responsible sources submitted a capability statement, proposal or quotation in response to the FBO posting.

The Government posted a Sources Sought announcement on FBO on 26 August 2019. The announcement stated the Government was seeking a vendor capable to provide semi-annual and annual preventive maintenance and repair of Z Portal and ZBV X-Ray inspection systems manufactured by AS&E. The contractor would also be responsible for providing all parts, disposing of the X-ray tube, a 48-hour response time to service calls, all required labor, and providing emergency telephone support 7 days a week, 24 hours a day, 52 weeks a year. The deadline to respond to this posting was 30 August 2019. No vendors responded to this Sources Sought notification.

In March 2019, 628 CONS requested 628 SFS research the cost to replace the existing system, which is approximately 10 years old, and the associated cost to maintain a new system. 628 SFS found multiple x-ray inspection systems in the market, with the replacement price of $2M. Follow-on pricing for maintenance and repair was not provided. Until adequate funding is obtained, it remains cost effective to maintain the current equipment at approximately $230K a year with a base plus four 12 month options contract.

IAW FAR 5.201, the Government released a Notice of Intent to Award a Sole Source contract on FBO on 13 Sep 19. This

March 2018 SOURCE SELECTION SENSITIVE Page 4 of 5 notice will be available on FBO for period of 15 days. No responses have been received so far.

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

The Contracting Officer anticipates that the costs of this acquisition will be considered fair and reasonable. AS&E has provided service plans to the Government in support of the 628 SFS since 2016, and therefore historical costs are available, allowing the Government to estimate the costs of the new contract. The Contracting Officer will also contact other bases that have agreements with AS&E for the maintenance of their detection systems and request pricing information. The proposed prices for this acquisition will therefore be compared to historical prices paid by JB CHS and prices paid at other AF bases to support the fair and reasonable price determination.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in section VI, market research conducted on the SBA website using the identified NAICS and the keyword "X-ray" revealed seven results -- one VOSB, one WOSB, two SDVOSB, and three SB. However, none of these vendors are capable of providing the requirement because AS&E owns the trademarked software and patents to the physical equipment used for system operations they are the only authorized service provider for the service plan required by 628 SFS. In addition, the Government issued a Sources Sought announcement on FBO on 26 August 2019, but no vendors responded to the posting.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

As AS&E owns the trademarked software and patents to the physical equipment used by 628 SFS at JBCHS, it is not possible at this time to develop a statement of work suitable for full and open competition.

X. List of any sources that expressed, in writing, an interest in the acquisition.

None.

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

The Government has previously indicated that it would continue to search for other vendors capable of providing the required services. This was accomplished, for example, with the release of the Sources Sought notification in March 2019 and again in August 2019. The Government will perform market research regularly during the proposed contract in order to continuously assess whether other vendors have acquired the capability to provide service plans. In addition, the issue of maintenance capabilities will also be discussed when the Government has adequate funding to purchase new inspection equipment to replace both the Z Portal and ZBV X-ray systems.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

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