A04._Sole_Source_Attachment_One_-_2012_JA_Redacted.pdf

For Official Use Only

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

ACQUISITION DIRECTORATE

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

JUSTIFICATION AND APPROVAL (J&A) FOR OTHER THAN FULL AND OPEN

COMPETITION

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below pursuant to the authority of 10 USC 2304(c)(I).

1. Identification of agency and contracting activity.

a. Requiring Activity:

Pentagon Force Protection Agency (PFPA)

Security Services Directorate (SSD)

9000 Defense Pentagon

Room 4A150

Washington, DC 20301-9000

b. Contracting Activity:

Washington Headquarters Services (WHS)

Acquisition Directorate (AD)

1155 Defense Pentagon

Polk Building – Suite 3000

Washington, DC 20301-1155

2. Nature/ description of action. Washington Headquarters Services/ Acquisition Directorate

(WHS/ AD) intends to award a sole source commercial firm-fixed-price (FFP) contract for maintenance of thirty-seven commercial X-Ray machines manufactured by American

Science & Engineering, Inc. (AS&E), Cage Code 21802.

AS&E provided an initial one-year parts and services warranty for all machines.

Following the end of the initial warranty period, the Government issued a sole source award to acquire the necessary maintenance services in 2009 from AS&E through a contract with a 12-month base period and two 12-month option periods. This resulted in the award of Contract HA0034-09-C-3005 with a date of 03 March 2009.

On 14 December 2011, the Government contemplated a sole source award to acquire the necessary maintenance services in 2012 from AS&E through a contract with a 12-month base period and four 12-month option periods. On 12 January 2012, the Government contacted AS&E and two competing Backscatter X-Ray Machine contractors: Rapiscan and Tek84. All three were directly asked if they could service, repair and maintain

AS&E specific X-Ray backscatter machines. All three stated that due to proprietary hardware and software, only AS&E could maintain their specific machines. On 14

January 2012, the Government submitted a Sources Sought marketing request through

FedBizOpps seeking competing contractors who could service, repair and maintain the

AS&E specific X-Ray backscatter machines. No responses beside AS&E were received.

HQ0034-12-C-0020

For Official Use Only 2

On 16 January 2012, the Government issued a Request for Proposal (RFP) for maintenance services to AS&E for the AS&E X-Ray machines. On 25 January 2012, AS&E submitted their proposal in response to the solicitation for the services of its machines. On 06 February 2012, a Justification & Approval for Other than Full and

Open Competition was prepared and executed. Based on the absence of actual competition, the original strategy of sole-sourcing the requirement seems to been the most efficient and proper one.

As discussed below in item 9, the requiring activity is actively engaged in the process of analyzing its long-term strategy for its follow-on system of X-Ray machines. Until that acquisition planning process is completed however, due to interoperability issues, any replacement X-Ray machines must be provided by AS&E.

1. Description of supplies/services. The Government requires an "all inclusive" parts and labor maintenance contract for all twenty-six AS&E X-Ray machines and associated equipment located on the Pentagon Reservation and supporting facilities under the PFPA

SSD responsibility.

2. Identification of statutory authority. The statutory authority permitting other than full and open competition is 10 USC 2304(c)(I), implemented through Federal Acquisition

Regulation Part 6.3021 (a)(2)(iii)(A), substantial duplication of cost to the Government that is not expected to be recovered through competition; consequently, only one responsible source and no other supplies or services will satisfy agency requirements.

3. Applicability of exception. AS&E is the only company authorized to maintain their specialized equipment. AS&E does not authorize other manufacturers to perform maintenance on their X-Ray equipment. The majority of the parts used to manufacture the AS&E X-Ray machines are proprietary to AS&E. There are routine proprietary software upgrades to the machines that outside vendors cannot support. If the

Government were to have another service provider maintain the X-Ray machines, the

Government could not be assured the machines would perform as required and detect threats to security.

4. Efforts to ensure other potential sources were sought. The Government posted a Notice of

Intent to FedBizOpps on 14 January 2012, for five business days, to advertise this action and solicit capability statements from other potential maintenance service providers. No vendors expressed an interest in the requirement.

5. Determination of fair and reasonable cost. The Government conducted price analysis to determine that the proposed price of this action is fair and reasonable. In accordance with

FAR 15.404l(b)(2)(ii) and (v), comparison of a proposed price to prices for similar work and to an independent government cost estimate, respectively, can serve as adequate evidence of a fair and reasonable price. The Government based their estimate on six years of relevant cost data. The proposed price of for the first year is less than the

IGCE by an amount of 0.52%. The monthly price for the repair of one AS&E machine ranges from . In comparison to the IGCE and contract prices for similar services, AS&E's proposed prices are fair and reasonable.

6. Market research. The Contracting Office has conducted market research every year since

For Official Use Only 3 the onset of the requirement and has found that AS&E is the only vendor able to provide maintenance, a commercial service, for the X-Ray machines they manufacture because all software and parts are proprietary to AS&E. X-ray machine maintenance services are not available through GSA sources.

7. Other factors supporting other than full and open competition. AS&E is the sole manufacturer of the majority of the parts comprising the AS&E X-Ray machines. If the

Government uses parts other than those supplied by original equipment manufacturer, the

Government increases the risk of equipment malfunction or failure, thereby permitting the increase possibility of security breaches.

8. Listing of interested sources. No other vendors expressed an interest in this procurement.

9. Actions taken to remove barriers to competition. The requiring activity is currently in the process of reviewing a long-term strategy to satisfy the requirements for ensuring packages entering the Pentagon facilities do not pose a threat. In March 2011, the

Government completed full installation of the current X-Ray machine system solution. In

March 2012, the warranty period for the last X-Ray machines installed and the service and maintenance services covered by this J&A will expire. Prior to expiration of warranties and maintenance services, the Government will approve a comprehensive acquisition strategy and develop the acquisition plan to ensure packages entering the

Pentagon facilities do not pose a threat. Accordingly, the Government will ensure the accepted comprehensive plan will provide for competition, to solicit from industry solutions to best satisfy the requirements.

10. Statement of delivery requirements. The Contractor shall provide maintenance services to various X-Ray machines at DoD facilities beginning 01 March 2012.

11. Total estimated dollar value of the acquisition covered by this J&A. The five-year total for one 12-month base and four12~month option years is .

12. Reference to the approved acquisition plan. This requirement does not meet the threshold for written acquisition plan; however, the original equipment purchase anticipated annual maintenance service agreements for the useful life of the equipment.

13. Technical and requirements certification required by FAR Part 6.302-2(b):

American Science & Engineering. Inc. (AS&E), X-Ray machine service and maintenance, Justification and Approval (J&A) for other than full and open competition

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Timothy Darr Date

Program Officer/ COTR

For Official Use Only 4

Legal Review:

Andrew Bramnick Date

Legal Counsel

CONTRACTING OFFICER CERTIFICATION REQUIRED BY FAR Part 6.302-2(a)(12)

I certify that this justification is accurate and complete to the best of my knowledge and belief.

John Hundley Date

Contracting Officer

Richard Shelby Date

Competition Advocate