MVACIS_JA_20150813_signed_redacted.rtf

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

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 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.

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Justification and Approval (J&A) for Other Than Full and Open Competition file_1.wmf

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

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< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M Contracting Activity: 87th Contracting Squadron, Joint Base McGuire-Dix-Lakehurst, NJ 08641 Purchase Request / Local ID Number: F3A3CE5090AW01 Program / Project (and PE, if applicable): Maintenance and Repair of Mobile Vehicle and Cargo Inspection System (MVACIS) Program Type (PEO or Other Contracting): Other Contracting Authority (include full title): 41 U.S.C. 1901 as implemented by FAR 13.501(a)(ii) Estimated Contract Cost (including options): $1,320,000.00 J&A Type: Class Individual file_2.wmf

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

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Date 21 Jul 2015 Contracting Officer Christine T. Lehtinen LGCC/609 754-4843 Signature LEHTINEN.CHRISTINE.T.1 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, Digitally signed by LEHTINEN.CHRISTINE.T.1228949112

228949112 ou=USAF, cn=LEHTINEN.CHRISTINE.T.1228949112 Date: 2015.07.21 15:59:51 -04'00' Date 22 Jul 2015 Project Lead / Program Mgr / Requiring Activity Adam S. Weinstein 87thSFS/609 754 4151 Signature WEINSTEIN.ADAM.S.1270 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, Digitally signed by WEINSTEIN.ADAM.S.1270287170

287170 ou=USAF, cn=WEINSTEIN.ADAM.S.1270287170 Date: 2015.07.22 12:23:00 -04'00' Date

10 Aug 2015 Local Legal Reviewer Capt Michael Merrell

87 ABW/JA / 609 754-0416

Signature MERRELL.MICHAEL.BARN Digitally signed by MERRELL.MICHAEL.BARNETT.1503489011 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MERRELL.MICHAEL.BARNETT.1503489011 ETT.1503489011 Date: 2015.08.10 13:18:33 -04'00'

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

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Date 13 Aug 2015 Chief of the Contracting Office (COCO) Suzanne M. Edgar

87 CONS/CD/609-754-5927

Signature EDGAR.SUZANNE.MARTH DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, Digitally signed by EDGAR.SUZANNE.MARTHA.1029454945

A.1029454945 cn=EDGAR.SUZANNE.MARTHA.1029454945 Date: 2015.08.13 11:39:55 -04'00' Date

13 Aug 2015 Competition Advocate Gregory S. Oneal Command Competition Advocate AFICA/KM/618-229-0192 Signature ONEAL.GREGOR Digitally signed by

ONEAL.GREGORY.S.1230391013

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, Y.S.1230391013 Date: 2015.08.13 15:18:58 -05'00' ou=USAF, cn=ONEAL.GREGORY.S.1230391013

Note 1: See guidance at the end of this document for completing the following sections. Note 2: Each field will expand automatically if additional space is needed.

Contracting Activity.

The 87th Contracting Squadron is responsible for this justification for other than full and open competition. The respective funding document is F3A3CE5090AW01.

Nature and/or description of the action being processed.

This action will be awarded as a new fixed price contract with an estimated ceiling cost of $1,320,00.00. The resulting contract will be for a base period and four option years.

Description of supplies/services required to meet agency needs.

This contract action is to provide maintenance for two MVACIS (Mobile Vehicle and Cargo Inspection System) trucks at JB MDL. The MVACIS is a truck-mounted, gamma-ray scanning system that captures an image, similar to an x- ray, of a vehicle's contents which provides 87 SFS a unique advantage in defending the base. MVACIS maintenance will include: preventive maintenance, as well as parts necessary for proper MVACIS truck operation.

The total estimated cost for this requirement is $1,320,000.00 which will be funded with 3400 funds. Periods of performance are 6 Sep 15 through 5 Sep 16 (base year); 6 Sep 16 through 5 Sep 17 (option year 1); 6 Sep 17 through 5 Sep 18 (option year 2); 6 Sep 18 through 5 Sep 19 (option year 3) and 6 Sep 19 through 5 Sep 20 (option year 4). Estimated costs are approximately $264,000.00 per year.

Statutory authority permitting Other than Full and Open Competition.

41 U.S.C. 1901 as implemented by FAR 13.501(a)(ii)

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

In accordance with Base Security procedures all commercial vehicles are required to be scanned. The MVACIS is a highly specialized system used by 87 SFS that can perform these services for approximately 200-300 vehicles daily, capturing/ recording images of internal/external vehicle contents within 20 seconds. Originally purchased by the Army at an unknown price, there have been numerous maintenance contracts (W911S1-09-P-0015 and FA4484-10-P-0017 (expires 5 Sep 15)) which were sole sourced to SAIC/Leidos. The maintenance is critical to the successful operation of the MVACIS; specifically: the truck so that the system can be transported to the site and provide its own power; the detector tower which receives radiation through the scanned vehicle and is the basis of the picture; the source housing which provides the radiation held by a hydraulic system that spans 22' x 17.5'; the hydraulic system; and the leak test. Without this system, SFS would be required to perform vehicle inspections via canine and manually which could take approximately 10-15 minutes per vehicle.

Leidos, Inc., (previously Science Applications Intl Corp (SAIC)), the original equipment manufacturer, is the sole provider of the follow-on maintenance services for the JB MDL MVACIS without incurring a substantial duplication of cost to the Government through procurement of a similar system/maintenance. Furthermore, no other third party in the USA is authorized to provide these services on behalf of Leidos, Inc. Therefore, 87 CONS believes that a sole source follow-on contract to Leidos, Inc., should be let without incurring a substantial duplication of costs to the Government through the procurement of a similar system/maintenance that would not be expected to be recovered through competition.

In addition to Leidos being the owner of this intellectual property, there is a Nuclear Regulatory Commission (NRC) requirement that requires the manufacturer to possess an approved Sealed Source and Device Registry for each product and have a valid Possession and Distribution license relative to the jurisdiction in which the product is manufactured and distributed. Under the Sealed Source and Device Registry for the VACIS(r) inspection systems, only an authorized specific licensee (Leidos) may perform maintenance on this product and amongst other important service, the annual leak test. Therefore, this acquisition will be a follow-on contract for the continued performance of the highly specialized maintenance services to the MVACIS trucks.

Accordingly, Leidos, Inc. is the only firm capable of providing the services described in Section III above without the Government experiencing substantial duplication of cost that could not be expected to be recovered through competition.

87 CONS believes that award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition.

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

A sources sought notice (FA448415R0019) was posted on FBO on 20 May 15 which invited potential qualified offerors of maintenance services for the Leidos vehicle and cargo inspection system trucks to submit their information to the contract specialist. No responses were received.

A separate synopsis will be posted on FBO in accordance with FAR 5.201 explaining that the Government intends to award a sole source contract to Leidos, Inc. for the maintenance of the MVACIS trucks.

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

The contracting officer will utilize price analysis of the two previous contracts, the current offer, and Leidos MVACIS contracts awarded to other bases (found through FPDS NG and EDA) to form the basis of fair and reasonableness of price.

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

Part of the market research included discussion with a representative of Leidos, Inc., Ms. Maria-Elana Cantero. Ms. Cantero stated that Leidos was the only authorized dealer for the JB MVACIS and is the only company authorized to conduct repairs. She stated the MVACIS system was created specifically for government facilities in order to prevent unauthorized intrusion of weapons, explosives, chemicals, drugs, illegal cargo, stowaways, etc. and that the MVACIS is certified and approved by Homeland Security. Ms. Cantero further stated that no third party is authorized to provide these services on behalf of Leidos and in addition to Leidos being the owner of this intellectual property, there is a Nuclear Regulatory Commission requirement that requires the manufacturer to posses an approved Sealed Source and Device Registry for each product and have a valid Possession and Distribution license relative to the jurisdiction in which the product is manufactured and distributed. Under the Sealed Source and Device Registry only the authorized specific licensee (Leidos) may perform maintenance on this product and amongst other important services, the annual leak test.

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

No.

List of sources, if any, that expressed interest in the acquisition.

See Section VI above.

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.

At the present time Leidos Inc. is the only company authorized to perform maintenance of the JB MVACIS. Should the

Government purchase another MVACIS CONS will recommend that training be provided so the Government may perform their own maintenance.

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.

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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