sole_source_justification_Z-Portal_ZBV_JBCHS_Redacted.pdf

SOURCE SELECTION SENSITIVE

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

SOURCE SELECTION SENSITIVE March 2023 Page 2 of 5

I. Contracting Activity.

Department of the Air Force Air Mobility Command (AMC) 628th Contracting Squadron/PKA 101 E. Hill Blvd Bldg 503 Joint Base Charleston, SC 29404

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

This Sole Source Justification and Approval (J&A) implements 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901) IAW FAR 13.501(a)(2)(ii). This J&A outlines the United States Air Force (USAF) requirement for an extended warranty plan for the Z Portal and Z-Backscatter Van X-ray inspection systems. This requirement will be fulfilled under a new contractual vehicle which will include a new Firm Fixed Price contract using FAR Part 13 Procedures.

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

628 Security Forces Squadron (SFS) requires routine repair and replacement of components 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. The purpose of this acquisition is to obtain an extended warranty plan to ensure both X-ray systems continue to be maintained and repaired.

Since 2016 the Government has fulfilled this requirement by awarding contracts to American Science & Engineering, Inc. (AS&E). This vendor has previously provided extended warranty plans under contracts FA441816P0137, FA441817P0004, and FA441818P0008, and FA441819PA035. All contracts were awarded on a sole source basis to AS&E (since acquired by Rapiscan, novation modification executed in 2024). Prior to the award of each of these contracts, a Notice of intent to Award Sole Source Contract was posted. In each of these occasions, no responsible sources submitted a capability statement, proposal or quotation in response to the posting.

It should be noted that Rapiscan Systems, Inc. (formerly AS&E) is the transferee of all contractual obligations and shall be referred to as such for the remainder of this document. Rapiscan Systems, Inc. legally remains the only OEM parts manufacturer.

Rapiscan Systems, Inc. will remain the manufacturer and sole authorized service provider in the JB CHS area, this action is not available for competition.

The estimated total value of this contract is:

Total: $1,407,636.30

The estimated PoPs are as follows:

Base PoP: 1 October 2024 to 30 September 2025 Option I: 1 October 2025 to 30 September 2026 Option II: 1 October 2026 to 30 September 2027 Option III: 1 October 2027 to 30 September 2028 Option IV: 1 October 2028 to 30 September 2029

SOURCE SELECTION SENSITIVE

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

SOURCE SELECTION SENSITIVE March 2023 Page 3 of 5

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

DAFFARS 5313.501 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U. S.C. 1901)

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

When purchased, these systems come with a 1-year warranty for maintenance & repair. However, the follow-on extended warranty plans are not covered and must be procured under a separate contract. Market research shows that no other vendors are capable of providing these plans since the Z Portal and the ZBV X-ray systems are both manufactured by Rapiscan Systems, Inc. Rapiscan holds unique qualifications as thy own the trademarked software and patents to the physical equipment used for system operation and due to the proprietary nature is the only vendor authorized to maintain, replace components, and repair these systems. This contract supports key anti-terrorism and force protection detection capabilities for contractor and oversized vehicle entry control and searches at JB CHS, where approximately 52,000 vehicles and trailers are scanned every year, with an average of 450 access denials. Without Rapiscan Systems ensuring continuous operational capabilities for 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 rapid scan functions and would leave JB CHS vulnerable to high-yield explosives and vehicle borne improvised explosive devices. Approval of this sole source justification is in the best interest of the government to ensure these vital security elements are operational 24/7.

628 CONS, 628 SFS, 628 CPTS, and 628 CES met in Aug 2019 prior to the FY20 requirement to discuss the possibility of obtaining procurement funding and executing the acquisition of new equipment. In Aug 2019 628 CPTS advised procurement funding was not available and not expected to become available within the next three (3) fiscal years (FYs). The team met in Feb 2024 to again discuss the possibility of obtaining the required procurement funding to replace the aging equipment as the previous request for funding did not materialize. However, once more, 628 CPTS informed 628 SFS that procurement funding is not currently available, and funding availability is unknown. However, 628 CPTS did indicate that trying to obtain funding would be a priority given the age of the equipment and parts becoming obsolete. This contract will allow the government to either receive a replacement part or, if a part is obsolete, Rapiscan provides the Government with a custom fabricated part. As a priority item for obtaining funds, 628 SFS and 628 CONS strategy is once procurement funds are available to competitively procure this requirement and not exercise any remaining options on this contract to align with the arrival of the new cargo portals. Therefore, to ensure 100% uptime of operational capabilities the POP of 1 year base period and 4 option periods is required and represents best value to the government, given budgetary restraints and operational requirements. Until procurement funds are received, 628 SFS has a continued need for routine repair and replacement of components of the current Rapiscan equipment.

628 SFS along with 628 CONS researched the cost to replace the existing system, which is approximately 15 years old, and the associated cost to maintain a new system. Multiple x-ray inspection systems in the market were found, with the estimated replacement price of as well as a lead time of six (6) to twelve (12) months to be in place. These prices obtained from various sources were significantly outside budgetary limitations and would result in a substantial duplication of cost as well as significant schedule delays. A leasing option of these systems was also considered as an alternative solution. Leasing with Rapiscan Systems, Inc. would allow continuity of the existing agreement, and this strategy has been utilized at Grand Forks Air Force Base and Ellsworth Air Force Base. However, pricing for a lease agreement was also considered outside budgetary limitations at; throughout the life of the proposed contract (Base plus four option years). Furthermore, most cargo x-ray detection systems identified as alternatives to the current systems in place at JB CHS would still require follow on OEM maintenance and component replacement to be performed by authorized vendors resulting in the requirement owner again needing to justify a sole source or possible brand name.

Currently a lease nor purchase of these systems is financially feasible for 628 SFS, and operational requirements