FINAL JandA MEP IDIQ Redacted.pdf

Justification & Approval for Other Than Full and Open Competition Template v3.7 (Oct 2025)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

For contracts or orders above the Simplified Acquisition Threshold (SAT) (41 U.S.C. 3304(a)(7))

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO), Non-Intrusive Inspection (NII) Program, proposes to extend the Period of Performance on multi-award Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts 70B03C21D00000003, 70B03C21D00000004, and 70B03C21D00000005.

All 3 IDIQ contracts currently end on 02/28/2026, and this extension will extend the Period of Performance from 03/01/2026 to 11/15/2026.

2. Nature and/or Description of the Action being Approved.

(a) Nature of action CBP Non-Intrusive Inspection (NII) proposes extending the Period of Performance of the existing Multi-Energy Portal (MEP) Systems IDIQs for an additional 8 months and 15 days beyond the current expiration date (02/28/2026). This extension is necessary to address urgent national security requirements, and ensure uninterrupted deployment and operation of critical inspection systems at Ports of Entry while the new competitive procurement vehicle is finalized and awarded.-

(b) Name and address of the contractors.

Contract Number Contractor Address

70B03C21D00000003 Rapiscan Systems Inc. 2805 Columbia St, Torrance, CA 90503

70B03C21D00000004 Leidos Inc. 1750 Presidents St, Reston, VA 20190

70B03C21D00000005 Smiths Detection Inc. 2202 Lakeside Blvd, Edgewood, MD 21040

(c) Contract type Firm Fixed Price and T&M.

(d) Estimated total value Combined Ceiling for all 3 IDIQ Contracts: $576,000,000.00

Period Total Ceiling Extension: 3/1/2026 – 11/15/2026 remains unchanged at $576,000,000.00

(e) Type of funding.

N/A

(f) Year of funding.

Working Family Tax Cut Act (WFTC Act) previously OB3A

(g) Solicitation number.

N/A

(h) Background information about the requirement.

CBP’s continuing operative need for MEP’s systems is heightened by evolving threats and legislative mandates, such as those articulated in the (WFTC) Act. These systems are indispensable tools for safeguarding the nation’s borders, enabling rapid and effective detection of illicit materials, contraband, and threats at POEs. The current contract is set to expire on 02/28/2026, but unforeseen operational, logistical, and unique installation requirements at each port of entry necessitate an extension in order to comply with statutory requirements as set forth in CBP policy, in addition to the legislative WFTC Act.

Consequently, work on a new IDIQ contract needed to begin as soon as possible.

However, progress on the new IDIQ was postponed due to end-of-FY25 activities, which prioritized actions with funding expiring at the end of FY25.

Work on the new requirement and acquisition documents for the MEP IDIQ re-compete commenced in October 2025, and these documents have since been submitted to the Contracting Officer for review. CBP was aware of the expiration of the current IDIQ on February 28, 2026. Prior to the introduction of WFTC Act requirements, NII could have allowed for a brief gap between the end of the current contract and the start of the new one, which is expected to be in place later this year. This gap was tolerable due to task orders being placed under the IDIQs which had periods of performance extending beyond those of the IDIQs.

However, due to the requirement that WFTC funding CBP cannot afford to wait for the new IDIQ to be fully established. New requirements have been developed, necessitating the issuance of new Task Orders, which require the current IDIQ to remain active. Immediate action is necessary to ensure timely procurement and deployment of MEP x-ray systems, and CBP must begin placing orders as soon as possible to comply with the statutory deadline.

CBP will place additional Task Orders under the existing IDIQ once this extension is approved and finalized.

The extension will allow CBP to meet the deployment goal set forth in the WFTC Act, which requires full operational capability by the statutory deadline.

3. Description of Supplies/Services.

CBP has an ongoing operational need to inspect vehicles and cargo for illegal contraband, including narcotics and terrorist weapons. Due to the high volume of commercial vehicles passing through U.S. Ports of Entry (POE), a system allowing drivers to operate their vehicles through non-intrusive inspection (NII) X-ray systems significantly enhances the efficiency of scanning operations.

The purpose of the MEP systems is to enable CBP to conduct effective and efficient non-intrusive inspections of conveyances, including occupied commercial vehicles, for contraband such as illicit drugs, terrorist weapons, and currency. These systems are utilized to inspect larger vehicles, including buses, recreational vehicles, and truck tractors with laden semitrailers and trailers. Each system delivers NII imaging with the required quality and performance characteristics to assist CBP personnel in identifying anomalies and potential contraband within the conveyance.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 41 U.S.C.

3304(a)(1), implemented by FAR Subpart 6.103-1(b), entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

The authority set forth in FAR 6.103-1 permits the use of restricted competition for the development and production of major systems or highly specialized equipment. MEP systems are encompassed within this definition and are therefore eligible under this authority.

This authority is applicable and essential for several critical reasons. The extension of these IDIQ contracts is paramount to ensuring the continuity of operations for vital U.S. Customs and Border Protection (CBP) programs. Without this extension, there is a significant risk of operational disruption, which could severely impact national security and legislative mandates.

The three incumbent contractors - Rapiscan, Leidos, and Smiths Detection - are uniquely positioned to meet the program's immediate needs. They are the original installers of the existing MEP systems at various designated ports. This historical involvement has provided them with unique expertise, proprietary knowledge, and established relationships with port points of contact. These factors make them the only responsible sources currently capable of efficiently and effectively meeting CBP's operational and legislative requirements within the required timeframe.

Transitioning to new contractors without this extension would incur substantial risks and costs, including:

System Integration Challenges: New contractors would require significant time and resources to understand and integrate with the existing complex MEP systems, leading to potential compatibility issues and operational downtime.

Construction Activity Disruptions: Ongoing construction and system installation activities would face delays and potential rework, increasing project timelines and costs.

Unnecessary Delays and Disruptions: Any interruption in service or transition period could compromise mission-critical operations, particularly those related to national security.

Furthermore, the need for this extension has been exacerbated by unprecedented operational expansion mandated by 2025 Executive Orders. Specifically, the following Executive Orders have significantly increased operational demands and timelines:

1. Executive Order 14159: "Protecting the American People Against Invasion" (January 20, 2025)

2. Executive Order 14160: "Declaring a National Emergency at the Southern

Border" (January 20, 2025)

3. Executive Order 14161: "Ending 'Catch and Release'" (January 21, 2025)

These mandates, in addition to the provisions set out in the WFTC, have created a need for sustained operational capacity, which the current contractors are uniquely equipped to provide. The proposed 8.5-month extension will serve as a crucial bridge, allowing the Department of Homeland Security (DHS) to maintain critical operations while a new competitive procurement process is completed. This extension is vital to mitigate the potential operational and financial injury that would inevitably arise from the expiration of these three IDIQ contracts, thereby safeguarding national security and ensuring compliance with legislative directives without interruption.

5. Identification of Exception to the Buy American Statute (Section is required to be completed when the J&A includes the exception listed under RFO 25.103(b)(2) or RFO 25.202(a)(2)).

Identify the nonavailability exception listed under RFO 25.103(b) or RFO 25.202(a)(2).

No exception to the Buy American Statute is being requested for this justification and approval (J&A). The requirement complies with the Buy American Statute and does not involve the exceptions listed under RFO 25.103(b)(2) or RFO 25.202(a)(2).

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

(a) Rationale for using the authority cited in section 4 of the J&A;

The proposed use of the statutory authority 41 U.S.C. 3304(a)(1), implemented by FAR Subpart 6.103-1(b), entitled "Only One Responsible Source and No Other Supplies or

Services Will Satisfy Agency Requirements," is necessitated by both the unique qualifications of the incumbent contractors and the critical nature of the acquisition.

This extension is required for the continued installation of MEP systems to support established NII operations at designated ports of entry. All 3 contractors possess extensive experience operating within port environments, including a demonstrated understanding of the unique construction challenges, operational constraints, and regulatory requirements inherent to these locations. This familiarity ensures each Contractor can efficiently address unforeseen issues that may arise during the installation and upgrade process, thereby minimizing risk to project execution.

Additionally, each Contractor has established strong working relationships with key port personnel and points of contact, which are critical for effective coordination and execution of the required tasks. These relationships facilitate rapid problem-solving and streamlined communication, both of which are essential for maintaining operational continuity during construction activities.

CBP has agreed to install additional systems at these Ports of Entry under the provisions set out in the WFTC Act. To maximize efficiency and cost savings, CBP seeks to utilize the 8.5-month extension to place more Task Orders for installations concurrently with ongoing construction activities at a multitude of sites within the existing ceiling. Each contractor is currently engaged at these ports and fully integrated into the existing operational environment. Engaging a new contractor at this juncture would necessitate a substantial transfer of institutional knowledge, establishment of new working relationships, and familiarization with the port environment and existing systems. This would result in significant delays, increased costs, and heightened risk to the successful and timely completion of the various projects.

No other contractor possesses the unique combination of qualifications, proprietary knowledge of the existing systems, and established relationships with port personnel required to fulfill the agency’s requirements within the required timeline. Attempting to compete this requirement would jeopardize CBP’s ability to meet critical operational and legislative deadlines and could disrupt ongoing port operations.

For these reasons, Rapiscan, Leidos, and Smiths Detection are the only responsible sources capable of meeting the agency’s requirements efficiently and effectively. At this time, full and open competition is not feasible for this procurement, as no other contractor can provide the necessary NII MEP systems and associated services without compromising national security, operational continuity, schedule, or cost.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition;

The requirement to add new and upgrade existing NII MEP systems at designated port locations necessitates the use of other than full and open competition procedures.

Rapiscan, Leidos, and Smiths Detection are already present at these ports or are scheduled to be onsite under existing contracts. They have completed detailed site surveys and system designs for the contracted NII MEP systems, giving them a distinct operational advantage. The contractor’s specialized knowledge of the specific port environments, including land requirements, infrastructure, and logistical, enables them to efficiently plan and execute system installations. Their familiarity with specific locations and integration needs ensures that any new NII MEP systems can be installed with minimal disruption.

Importantly, any current NII MEP systems are proprietary to each contractor. Introducing a new vendor at this time would not be feasible due to significant system compatibility and integration risks. A different vendor would face challenges interfacing with each contractor’s proprietary technology, potentially resulting in incompatibility with existing infrastructure and operational systems. This would also require additional training for CBP personnel, resulting in further delays in deployment and increasing costs.

Each contractor’s ongoing engagement at these ports means they have established relationships with port authorities and key points of contact, facilitating efficient coordination and timely execution of required tasks. Their comprehensive understanding of the existing systems and site-specific operational requirements is critical to minimizing operational risks and ensuring continuity. Bringing in a new vendor at this stage would require CBP to start from ground zero, losing valuable time to transfer operational knowledge, familiarize the vendor with the systems and port environment, and establish new working relationships. This would likely result in significant project delays, increased costs, and potential disruption to mission-critical operations, jeopardizing CBP’s ability to meet the WFTC Act timeline for system deployment.

After careful review, it has been determined that no portion of the work can be reasonably segregated to allow for competition. The required services are highly integrated with ongoing projects and existing site conditions. Attempting to divide the work among multiple vendors would introduce significant coordination challenges, increased risk of incompatibility, and potential impacts to operational timelines. The integration of new systems with existing proprietary infrastructure and ongoing construction activities requires a single, qualified contractor with site-specific expertise.

Segregating the work would create inefficiencies, increase the risk of delays, and compromise the success of the project and the agency’s mission objectives. Therefore, the entirety of the requirement must continue to be performed by the current incumbent contractors to ensure seamless execution, operational continuity, and mission success, while minimizing risks to system compatibility, integration, training and schedule.

CBP is fully aware of the expiration date of the current IDIQ contract for MEP x-ray systems, which is set for February 28, 2026. CBP recognizes the importance of timely acquisition planning and the need to avoid any interruption in mission-critical capabilities.

Over the past seven months, significant changes in statutory and funding requirements have impacted the timeline for re-competing this requirement.

Upon receipt of this directive, CBP’s NII program determined that, , it was imperative to initiate procurement of additional MEP x-ray systems without delay. This necessitated the immediate commencement of work on a new IDIQ contract. However, progress on the new IDIQ was temporarily postponed due to end-of-FY25 activities, which required prioritization of actions associated with funding expiring at the end of FY25.

Work on acquisition documents for the new MEP IDIQ began in October 2025 and these documents have since been submitted to the Contracting Officer for review. Prior to the introduction of WFTC Act requirements, CBP anticipated that a brief gap between the expiration of the current IDIQ contract and the establishment of the new IDIQ would be manageable, with the new IDIQ contract expected to be in place later this year.

However, the statutory requirement to execute WFTC funding has necessitated a change in approach. CBP cannot afford to delay procurement activities until the new IDIQ is fully established. Immediate action is required to ensure the timely procurement and deployment of MEP x-ray systems and to comply with the statutory funding deadline. As a result, new requirements have been developed, necessitating the issuance of new Task Orders, which require the current IDIQ to remain activeAccordingly, CBP must begin placing orders as soon as possible to meet mission requirements and statutory obligations.

(c) Summarize alternatives considered and why they will not work; and several alternatives were considered to determine whether full and open competition could be used for this procurement. These alternatives included:

1) Deferring the Requirement to Allow for Competitive Procurement:

Deferring the requirement to allow time for a competitive procurement process was also considered. However, this alternative would result in unacceptable delays that would negatively impact operational readiness and mission objectives. The NII requirements are time-sensitive and critical to maintaining national security and operational continuity.

Under the WFTC Act, CBP is required to procure a set number of systems

CBP is working on a new IDIQ contract, however competitive procurement will require additional time. While CBP works on this new procurement, extending the period of performance on the current contract would enable CBP to begin procuring systems that must be deployed by 2028. If the process does not begin now, it will be impossible to meet this statutory requirement. The timeline mandated by the Act further underscores the urgency and necessity of proceeding without delay.

After evaluating these alternatives, it was determined that none would adequately meet the agency’s current requirements without introducing significant risks, delays, or additional costs. The incumbent contractors are the only responsible sources capable of fulfilling the requirement efficiently and effectively within the required timeline.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

Failure to approve the J&A and consequently procure the required Multi-Energy Portal (MEP) systems would significantly hinder CBP's ability to perform effective and efficient non-intrusive inspections of conveyances, including occupied commercial vehicles, for contraband such as illicit drugs, terrorist weapons, and currency. This would directly impact CBP’s operational readiness and its ability to secure U.S. Ports of Entry (POE) against threats.

The original equipment manufacturers (OEMs) no longer provide parts or maintenance support for the existing systems. Without the recapitalization and upgrades to the existing systems, CBP would face delays in inspections, reduced operational efficiency, and increased risks of contraband entering the country undetected. The inability to meet the required timeline for system upgrades would compromise the agency’s mission to safeguard national security and public safety, while also increasing the likelihood of operational disruptions and inefficiencies at critical POE locations.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quantity (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

N/A.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

(a) If an announcement has already been made in SAM.gov, provide the date of publication;

The original IDIQ contract was competitively awarded on March 1, 2021, to three vendors—Leidos, Rapiscan, and Smiths Detection—using full and open competition. No additional announcements were made in SAM.gov.

(b) If an announcement is being planned for posting in SAM.gov, provide the estimated date of publication.

(c) If an announcement will be published, identify the applicable exception under FAR 5.302.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The pricing structure established under the IDIQ contract was determined to be fair and reasonable.

9. Description of Market Research.

(a) Describe the market research techniques utilized, the specific results of the market research, the date when the market research was conducted, and how the market research was used by the contracting officer to determine price reasonableness.

The U.S. Customs and Border Protection (CBP) Non-Intrusive Inspection (NII) Program Management Office (PMO) conducted extensive market research to determine the IDIQ award in accordance with FAR Part 10. The techniques utilized included:

Internet Research: CBP conducted searches to identify vendors capable of delivering Multi-Energy Portal (MEP) systems that meet agency requirements.

Historical Contract Data: CBP reviewed past contract awards for similar systems, including the MEP and Low Energy Portal (LEP) systems, to develop an Independent Government Cost Estimate (IGCE).

Technology Demonstrations: Vendors participated in demonstrations at various locations, including Rapiscan/AS&E (World Trade Bridge), Leidos (Veterans Bridge), and L3 (Savannah Seaport).

Draft Requests for Proposals (RFPs): CBP issued two Draft RFPs in FY 2017 and FY 2020 to gauge vendor interest and capability. The FY 2020 presolicitation notice (NII-MEP-051219 DAR) resulted in responses from four large vendors:

Leidos, Rapiscan/AS&E, Smiths Detection, and L3.

Follow-Up Survey: A follow-up survey conducted in April 2020 identified three vendors—Rapiscan, Leidos, and L3—offering systems that could be reasonably modified to meet CBP’s requirements.

The results of the market research revealed that while no vendor solution met all requirements as-is, reputable firms could deliver production-ready systems with modifications. CBP identified three viable vendors (Leidos, Rapiscan, and Smiths Detection) capable of fulfilling the requirements, and the initial IDIQ contract was competitively awarded to these vendors on March 1, 2021. The systems procured under the original IDIQ, as a result of this market research, have met the functional requirements of CBP. Therefore, the findings and conclusions of the original market research remain valid.

(b) Describe the market research results that support the determination that the items are non-available (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

This section is not applicable, as the procurement complies with the Buy American statute and no exception under FAR 25.103(b)(2) or FAR 25.202(a)(2) is being requested. Market research has confirmed that sufficient domestic sources are available to meet CBP’s requirements.

(c) If market research was not conducted, a reason for its absence must be cited here.

Not applicable, as extensive Market Research was conducted to support this acquisition.

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

Not Applicable. The acquisition does not involve patented, copyrighted, or proprietary systems, and no intellectual property restrictions limit competition or the ability to modify the systems to meet CBP’s requirements.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

The legacy MEP IDIQ contracts were competitively awarded on March 1, 2021, to three vendors: Leidos, Rapiscan, and Smiths Detection. The technical data packages and specifications for the MEP systems were developed in collaboration with these vendors as part of the IDIQ contract. Due to above specified collaboration with the selected vendors, the technical data and specifications are specific to the awarded contractors and cannot be used to solicit offers from other vendors without breaching the terms of the IDIQ or incurring significant risks to operational continuity.

(b) Discuss why your requirement cannot be modified to enhance competition.

The requirement cannot be modified to enhance competition, as the IDIQ was competitively awarded using full and open competition to ensure that all qualified vendors had an opportunity to participate. Under the IDIQ structure, delivery orders are issued to the awarded contractors in accordance with Fair Opportunity procedures.

Modifying the requirement to allow for competition outside the IDIQ would violate the terms of the contract and undermine the procurement strategy established to meet CBP’s long-term operational needs.

CBP remains committed to maximizing competition in future procurements. Market Research and recent RFI results indicate that the existing IDIQ contract holders remain the primary vendors in this MEP X-ray systems space. Therefore, we do not anticipate any concerns from the vendor community regarding the extension of the current IDIQ period of performance. Additionally, CBP is actively working on the new requirement package for the recompete IDIQ procurement of MEP systems, which will be solicited and awarded using full and open competition. However, the anticipated award date for the new MEP IDIQ contracts is not expected until November of 2026. In the interim, the 8.5-month extension is critical for ensuring CBP can procure the required MEP systems now and meet the funding and deployment timelines established under the WFTC Act.

This approach enables CBP to maintain operational continuity and fulfill mission objectives while preparing for enhanced competition in future acquisitions.

(c) For a proposed contract subject to the restrictions of FAR 6.103 (FAR Class Deviaiton 25-11) for follow-on acquisitions as described in 6.103-1(c)(2)(i) (FAR Class Deviation 25-11), all Components must provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived.

Transitioning to a new contractor outside of the already established contracts would result in significant duplicated costs. These costs include:

Re-engineering Costs: Developing new systems to meet CBP’s specifications, estimated at $10–15 million per system based on prior acquisition history.

Integration Costs: Re-integrating new systems with existing infrastructure at Ports of Entry (POEs), estimated at $5 million per location.

Training Costs: Retraining CBP personnel to operate and maintain new systems, estimated at $2 million.

Operational Downtime: Delays in deployment and operational readiness, resulting in potential mission impacts and increased risks at POEs.

These estimates are based on historical data from similar acquisitions and the costs associated with transitioning to a new contractor. By extending the current IDIQ’s by 8.5 months, CBP avoids these duplicated costs and ensures continuity of operations.

(d) For a proposed contract subject to the restrictions of FAR 6.103-2(c) (FAR Class Deviation 25-11) or HSAR 3006.103-2(c)(70) (HSAR Class Deviation 25-01) and where FAR 6.103-2 (FAR Class Deviation 25-11) is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation.

This acquisition is not subject to the restrictions of FAR 6.103-2(c) (FAR Class Deviation 25-11) or HSAR 3006.103-2(c)(70) (HSAR Class Deviation 25-01) for unusual and compelling urgency.

11. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

Not Applicable. The 3 IDIQ’s were competitively awarded on March 1, 2021, to three vendors: Leidos, Rapiscan, and Smiths Detection. As this extension falls under the scope of the existing IDIQ, no additional sources were solicited or requested to express interest in writing.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

(a) Will the Government revise overly technical specifications, acquire data rights, etc?

The MEP IDIQ contracts were competitively awarded on March 1, 2021, to three vendors:

Leidos, Rapiscan, and Smiths Detection. The IDIQ structure is designed to promote competition among the awardees for subsequent delivery orders under Fair Opportunity procedures, ensuring that barriers to competition are minimized within the scope of the IDIQ.

For future acquisitions beyond the scope of the current IDIQ, CBP will take the following actions to increase competition:

Market Research: CBP will conduct updated market research to identify additional vendors capable of meeting the agency’s requirements for Multi-Energy Portal (MEP) systems, including assessing emerging technologies and solutions that may expand the pool of qualified sources.

Specification Review: CBP will review and revise overly technical specifications, if applicable, to ensure that requirements are not unnecessarily restrictive and allow for broader vendor participation.

Data Rights Acquisition: CBP will evaluate whether acquiring data rights or technical documentation from the current vendors would enable other contractors to compete for future requirements without compromising system performance or operational continuity.

Small Business Outreach: CBP will continue to engage with the Small Business Office to explore opportunities for small business participation, including subcontracting plans and partnerships with larger vendors.

The IDIQ contracts remain an effective mechanism for promoting competition among the awarded vendors, and CBP will continue to leverage this structure to meet emergent and future needs while exploring ways to enhance competition for subsequent acquisitions.