J A Justification and Approval Signed_Redacted.pdf

U.S. Department of Homeland Security J&A No: FY25-059 Justification and Approval for Other Than Full and Open Competition Office of the Chief Procurement Officer Version 3.2

The System Support Directorate (SSD), Acquisition Division (ACQ) is charged with procuring devices and systems capable of deterring chemical, radiological, nuclear, biological, and explosive threats against the Homeland. The ACQ Division streamlines procuring equipment to combat Weapons of Mass Destruction (WMD) related threats to the Homeland and to equip DHS Components and Federal, State, local, tribal, and territorial (FSLTT) leadership/first responders. Furthermore, these devices assist the first line responders in rectifying threats, with state-of-the-art equipment, procured by CWMD and the ACQ Division.

The Helium-3 Alternative Implementation Backpack Project (HAIBP) performs an extended user evaluation of backpack rad/nuc detection systems combining the wide-area search, detection, and identification functions into a single data-streaming enabled device using Helium-3 alternative technology for neutron detection.

3. Description of Supplies/Services.

The HAIBP system is currently being utilized by the Mobile Detection Deployment Program (MDDP) and Transportation Security Administration Visible Intermodal Prevention and Response Teams (TSA VIPR). After Action Reports (AAR) and feedback from operational users indicate that the HAIBP system requires enhancements, to maximize detection capability for front line FSLTT DHS first responders and achieve the following goals:

Goal 1: Improves operational system use Goal 2: Enables joint operations with STC and DoE partners.

In September 2024, Teledyne FLIR was awarded contract No. 70RWMD23C00000031 to develop six (6) software enhancements:

1. providing the capability to pair multiple detectors to a single mobile device,

2. differentiating sounds for R700’s gamma and neutron alarms,

3. providing capability of generating and retaining data records for all radioisotope identification events regardless of whether a manual or automatic identification (if available) method is used and whether or not an identification is successfully completed,

4. providing the ability to disable spectroscopy mode,

5. providing the ability to get the radionuclide information from the CWMD Radiation Field

Guide within the system’s user interface/smart phone application upon user’s request,

6. making additional parameters visible and adjustable in the mobile app user interface application behind a password without the use of external devices.

Additional enhancement request:

In October 2024, the DHS CWMD Operations Support Directorate (OSD) requested the CWMD Acquisition Division for support in awarding an additional contract to provide the HAIBP system with the capability to stream data directly to Application Programming Interface(s) (APIs) of record including those utilized by the DoE partners. The requested additional enhancement addresses the Goals listed above.

4. Current Requirements for reference:

HAIBP Requirements Traceability Matrix (RTM) 3.0 (dated 23 June 2023). Based primarily on:

U.S. Department of Homeland Security J&A No: FY25-059 Justification and Approval for Other Than Full and Open Competition

• ANSI N42.53-2013 (June 2013)

• International Electrotechnical Commission (IEC) 62694 (March 2020)

• DHS/DNDO Technical Capability Standard for Backpack BRDs (August 2013)

5. 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 the FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

6. Identification of Exception to the Buy American Statute No exception is required.

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

Rationale for using the authority cited in section 5 of the J&A;

In FY 2022, CWMD deployed the Teledyne FLIR identiFINDER R700, which was found to be the only backpack radiological/nuclear detection system compliant with the HAIBP requirements. This was done through an open competition program. Since then, users have identified a need to enhance the deployed systems through a software upgrade. To achieve the proposed system enhancements for the Teledyne FLIR identiFINDER R700, CWMD intends to procure the solution on a logical follow-on basis.

• Required Level of Quality and Expertise Needed:

The rationale for using section 5 of the J&A is due to FLIR being the vendor, having produced the identiFINDER R700 system initially. The HAIBP system is among the solutions addressing DHS’s mission of Preventing Terrorism and Enhancing Security by, “Preventing the hostile use of nuclear materials against the homeland by deterring or preventing adversaries from smuggling nuclear weapons and materials and enhancing the ability to detect nuclear weapons and materials out of regulatory control.” It is crucial to pay great attention to the level of quality when selecting a vendor supporting building and maintaining such a system. The current vendor has Subject Matter Experts (SME) who have extensive and invaluable experience on the HAIBP program and R700 system. This knowledge base is critical to enabling the requested system enhancements, due to the intrinsic understanding of the system performance to include the cyber, system security, reach back, equipment features, and overall system characteristics of the identiFINDER R700.

• System Developed to DHS CWMD Requirements:

The identiFINDER R700 backpack radiation detection system (BRDS) comprises the identiFINDER R700 and its associated mobile application. The identiFINDER R700 system is result of follow on from the competitive HAIBP award involving development of a system to a set of specific DHS CWMD requirements. Teledyne FLIR owns, maintains, and provides the identiFINDER R700 to the HAIBP program and commercial customers. Teledyne FLIR has gained unparalleled knowledge and expertise on the R700 and how it is being deployed and used in the field through their execution on the HAIBP program. This knowledge

U.S. Department of Homeland Security J&A No: FY25-059 Justification and Approval for Other Than Full and Open Competition includes not only the hardware and software of the R700, but also the reachback and cybersecurity aspects as well. The vendor has been maintaining the system configuration and providing data supporting the CWMD’s sustainment process as well as the CWMD’s configuration management monitoring process. To date, Teledyne FLIR has provided hardware and software updates to the R700, as well as tracking the performance and quality of the deployed systems.

• Intellectual Property Rights:

The identiFINDER R700 BRDS contains Intellectual Property (IP) owned by Teledyne FLIR, therefore, any system enhancements desired could only be performed most efficiently by Teledyne FLIR due to the development knowledge and IP restrictions. Teledyne FLIR could only support another vendor, but only under a negotiated term under FLIR’s discretion, which would introduce a delay of approximately 6 to 9 months to establish the terms and payment, introducing additional cost and time to deliver and deploy the enhancements to end users.

The IP rights include both hardware and firmware within the backpack detector, as well as, within the mobile application. Among the IP contained within the firmware of the R700 system are alarming and spectroscopic algorithms, quantum gain stabilization and the machine learning capability to train the system on the various backgrounds the instrument may see and allow it to handle background fluctuation accordingly. The Quantum Gain Stabilization is a technique which uses photon noise charge measurement without using a built-in source to compensate for gain shifts and temperature effect upon the detector to enable an accurate spectroscopic analysis. Within the mobile app IP includes reachback methods, communication and cybersecurity.

• 5-year Warranty Void in case of Third-Party Alterations:

Lastly, the HAIBP R700 systems were purchased with a five-year warranty covering system defects and a preestablished maintenance plan to accommodate system updates, changes, and this coincides with the request for system enhancements. Per the warranty agreement language, the warranty currently in place will be compromised or voided should another entity modify the device.

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; Summarize alternatives considered and why they will not work.

• Events leading to the idea of having a sole producer of the enhancements involves FLIR being the vendor who produced the R700 system and has a large hand in the operational stability of the system, due to them providing continuous reachback support, system updates, as well as performing maintenance through a five-year warranty on all 173 Full Operational Capability (FOC) units that were deployed.

• Alternatives include seeking out a vendor who can provide similar services; however, they would be required to collaborate with, or integrate through FLIR to ascertain information, and the initial learning curve of the R700 system. Also, the identiFINDER R700 system contains Intellectual Property (IP) owned by Teledyne FLIR, therefore, any system enhancements desired could only be performed by Teledyne FLIR due to the IP restrictions, therefore, it is unreasonable to expect that Teledyne FLIR would support third-party vendor

U.S. Department of Homeland Security J&A No: FY25-059 Justification and Approval for Other Than Full and Open Competition modifying their system. However, even if such a collaboration or IP rights transfer were possible, it is predicted to add substantial cost and cause significant schedule delays.

Moreover, various funding sources or contracts for a third-party vendor would need to be available, to ascertain the education and knowledge on the specific system characteristics, to even be able to facilitate the required system enhancements on the R700, for a third-party vendor outside of FLIR.

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

If the J&A were not approved and consequently the product or service was not provided, the end users would continue to fall short of their operational capability and initial expectations of the R700 system; furthermore, this would place an enormous burden on the everyday operations on those MDDP and TSA VIPR users in the field.

9. Rationale for use of the non-availability exception to the Buy American statute N/A

10. If using “Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements” as your authority, also include the following:

The specific requested requirements for enhancements on the HAIBP systems are described in the HAIBP Requirement Traceability Matrix v3.0 dated (23 June 2023).

11. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential

Sources as is Practicable.

Due to the nature of the enhancements, and the R700 being proprietary to Teledyne FLIR, no solicitation was created or posted to Sam.gov to ascertain other offers.

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

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on prior acquisition history and Independent Government Cost Estimate (IGCE) performed within

CWMD.

13. Description of Market Research.

Market research on the requested HAIBP enhancements has been ongoing since June 2022. Various market research techniques have been utilized to include meeting with knowledgeable individuals in government, reviewing government databases, analyzing acquisition history, open forum discussion with industry SMEs, and reviewing the prior HAIBP market history. The market research, in conjunction with an Independent Government Cost Estimate is underway, to justify price reasonableness to the contracting officer.

To reiterate, this is intended to be a non-competitive enhancement procurement, reenforced by the justification of, “The statutory authority permitting other than full and open competition is 41 U.S.C.3304(a)(1) implemented by the FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Furthermore, the market

U.S. Department of Homeland Security Office of the Chief Procurement Officer

Justification and Approval for Other Than Full and Open Competition Version 3.2 research to accompany includes a rough order of magnitude analysis and breakdown, historical information, present and updated requirements, a tentative schedule of planned enhancements, broken down by phases, as well as various means of methodology utilized to ascertain the information within the Market Research.

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

• The FLIR R700 system has characteristics that are proprietarily owned, operated, and maintained through Teledyne FLIR. That said, if the system enhancement were produced by another private industry partner, proprietary rights, warranty contract, intellectual property rights, and many other facets of the enhancements would need to be reviewed. FLIR has been able to provide all units and required updates, responsible in tracking performance of backpacks. Under warranty, FLIR has been cooperative, and software updates are needed.

• All 173 deployed units include 5-year warranty provided by FLIR. It is likely that in if any alteration is made to the units by a third-party vendor, the warranty conditions will be compromised.

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

N/A

16. 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.

N/A. CWMD is looking to satisfy end user operational requirements and Standard Operating Procedures (SOPs). Currently, Teledyne FLIR is the only private contractor that can provide these requests.

U.S. Department of Homeland Security Office of the Chief Procurement Officer

Justification and Approval for Other Than Full and Open Competition Version 3.2

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