A04_Sole_Source_Justification_FBO_Redacted.pdf

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DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION DIRECTORATE

Control No. 2018-WHS-0059

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION (FAR) SUBPART 13.5

1. AGENCY AND CONTRACTING ACTIVITY:

Agency:

Department of Defense (DoD) Defense for Acquisition and Sustainment (OUSD(A&S)), Logistics and Materiel Readiness (L&MR)

Contracting Activity:

Department of Defense (DoD) Washington Headquarters Services, Acquisition Directorate (WHS/AD)

2. DESCRIPTION OF ACTION:

WHS/AD, on behalf of L&MR, will award a sole source purchase order to ASIS

International (1625 Prince Street, Alexandria, VA, 22314-2882; CAGE Code: 1QCH1) for private security company (PSC) third party certification services. A firm-fixed-price

(FFP) contract type and pricing arrangement will be used as the services are commercial in nature and the scope of work can be reasonably estimated. Operations and

Maintenance (O&M) funding will be used for this effort.

This action is required pursuant to Section 833 of the National Defense Authorization Act

(NDAA) of 2011, which directed the DoD to develop and implement business and operational standards for PSCs. This work included development of a conformity assessment standard, published as American National Standards Institute (ANSI) standard ANSI/ASIS PSC.2-2012. Conformity assessment is the process used to demonstrate that a product, service, management system, or body meets specified criteria and requirements. This standard:

a) Is a sector specific standard based on the ISO/IEC 17021:2011;

b) Describes the process that needs to be followed to conduct attestation of fulfillment of the requirements of the standard ANSI/ASIS PSC.1-2012, Management System for Quality of Private Security Company Operations –

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Requirements with Guidance;

c) Provides requirements and guidance for conducting conformity assessment of

ANSI/ASIS PSC.1-2012;

d) Provides requirements for bodies providing auditing and third party certification of PSCs working for any client (public, private, non-governmental, or not-for-profit);

e) Provides requirements and guidance of the management of audit programs, conduct of internal or external audits of the management system and PSC operations, as well as on competence and evaluation of auditors; and

f) Provides confidence and information to internal and external stakeholders that the requirements of the ANSI/ASIS PSC.1-2012 are being met.

ANSI rules require standards to be reviewed every five years with decision to reaffirm, revise, or withdraw the standard. Therefore, to maintain its validity for use in DoD contracting, this standard should have been reviewed and either affirmed or revised prior to October, 2017. Pending a decision on maintaining this standard, ANSI granted a one year extension from the October, 2017 date, so long as action is initiated to revise or reaffirm the standard during that extension period. If there is no maintenance action before that date, ANSI will withdraw the standard. DoD participation in the maintenance of these standards is consistent with Office of Management and Budget (OMB) Circular

A-119 and implements requirements in Section 833 of NDAA 2011.

3. DESCRIPTION OF SUPPLIES/SERVICES:

OMB Circular A-119, Federal Participation in the Development and Use of Voluntary

Consensus Standards and in Conformity Assessment Activities, encourages the

Government to work with industry to develop and maintain standards. Following this policy, the DoD proposed working within the ANSI framework to maintain the current standard. The general outline of work includes engaging ANSI accredited standards developers appropriate to the particular standard, issuing a program initiation and notification statement (PINS -- similar to the Notice of Proposed Rule Making for the

Government), assembling a voluntary team of subject matter experts, reviewing the standard, proposing revisions, and submitting the revised standard for review and comment before submitting the revised standard to ANSI for approval and publication.

The initial publication of the PINS is estimated to take four weeks. Formation of a committee will take one month, but can run concurrently PINS preparation. Review and recommendation for affirmation or revision is estimated to require four months. Revision of the standard, building upon the preceding work is expected to take another four months. Review, necessary correction, and submission for approval is expected to take between 30 and 60 days. The overall project should be complete within 12 months over two Fiscal Years (FYs), FY18 and FY19. These estimates are based on development timelines proposed by ANSI, ASIS International (the ANSI accredited standards developer for commercial security and PSCs), and historical experience developing the previous private security standards. It is estimated that this project will require

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hours with labor costs of $ , and other direct costs of $ for a total cost of

Performance

Periods

Performance Period Dates Amount

Base Period 31 July 2018 to 30 July 2019 $

4. AUTHORITY CITED:

This action is under the procedures of Federal Acquisition Regulation (FAR) Subpart

13.5 under the authority of:

☒41 U.S.C. 1901, Simplified Acquisition Procedures

☐41 U.S.C. 1903, Special Emergency Procurement Authority

5. REASON FOR AUTHORITY CITED:

ASIS International is the only organization accredited by ANSI to develop standards for security related services. As ASIS International is an accredited standards developer for private security, it has produced internationally accepted guidelines for private security officer selection and training, which will be the crux of any industry standard for business and operational standards for security services. This includes the existing ANSI/ASIS

PSC.1-2012 standard, the reissuance of this standard in 2017, and the present ANSI/ASIS

PSC.2-2012 conformity assessment standard.

6. EFFORTS TO OBTAIN COMPETITION:

A “Notice of Intent to Sole Source” will be posted to the Governmentwide Point of Entry

(GPE), FBO.gov, and publicized in accordance with FAR 5.201 and 5.207, and the solicitation will be available by request in accordance with FAR 5.102(e). The aforementioned notice will allow other potential sources to view the opportunity and decide whether they can fulfill the requirement.

For the previous effort/acquisition in relation to these services, WHS/AD posted a

“Notice of Intent to Sole Source” to ASIS International in July 2016 and received no responses, quotes, or challenges from industry. The non-competitive landscape has not changed since efforts were made in July 2016, so another “Notice of Intent to Sole

Source” will be issued for this requirement.

7. FAIR AND REASONABLE COST DETERMINATION:

The Contracting Officer determines that the anticipated prices will be fair and reasonable by using the techniques identified at FAR 13.106-3(a)(2)(ii), comparison of the proposed price with prices found reasonable on previous purchases, and FAR 13.106-3(a)(2)(vi), comparison to an independent Government cost estimate (IGCE). Certified cost or pricing data will not be obtained as the intended dollar value of the requirement does not

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meet the certified cost or pricing data threshold and the services are commercial in nature.

8. MARKET RESEARCH:

Market research, in accordance with FAR Part 10, was conducted by reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers online. ANSI produces an “Accredited Standards Developers List,” which outlines each applicable industry’s accreditation vendor. The list has been updated as recently as May 2018 and: 1) ASIS International is still included in the list; and 2) ASIS

International is still listed as the only accredited standards developer for private security related standards. As such, ASIS International is the only accredited standards developers authorized to provide third party security provider certification in accordance with

Section 833 of the National Defense Authorization Act of 2011, as certified and accredited by ANSI.

Furthermore, WHS/AD directly contacted ASIS International to discuss whether the company was the sole source accreditation standards developer for the intended work.

ASIS International confirmed it is the sole source accreditation standards developer for the private security standards and provided a signed letter on company letterhead to further attest and certify this fact.

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE:

ASIS International is intimately familiar with all aspects of the standard to be revised.

Any other organization that might potentially bid on this contract would have to subcontract with ASIS to access this expertise and background knowledge necessary for the review and possible revision.

10. INTERESTED SOURCES:

To date, no other sources, other than ASIS International, have expressed an interest in writing. A notice in accordance with FAR 5.201 and 5.207 will be published to the GPE, FBO.gov, to delineate the Government’s sole source effort to ASIS International. Any quotes, bids, proposals, or inquiries received in response to the notice will be considered.

11. ACTIONS TO INCREASE COMPETITION:

Removal of barriers to competition or actions to increase competition would require other standards developers to become accredited by ANSI for the development and management of security services. As this is a small market area, it is unlikely that other vendors will spontaneously arise. The alternative U.S. national standards organization, the National Institute of Standards and Technology (NIST), does not develop organizational management standards, and is therefore not a suitable alternative. The

International Organization for Standardization (ISO) has, in the course of developing the international version of this standard, relied upon ASIS International. Furthermore, FOR OFFICIAL USE ONLY 5 management practices, changing procedures, and administrative issues within ISO drove a product that was not delivered on time and exceeded projected cost. Therefore, moving from ANSI to ISO for future standards is not a cost-effective option for competition.

12. IS THIS ACQUISITION FOR A NON-COMPETITIVE FOLLOW-ON

ACQUISITION PREVIOUSLY AWARDED ON A NON-COMPETITIVE BASIS?

☒Yes. A copy of the previous justification is attached.

The Actions to remove any barriers to competition cited on the previous justification were completed:

☒Yes. Market research was conducted to determine if any other viable accrediting standards developers other than ASIS International existed and could fulfill the needed work; no other vendors were found. ASIS International will continue to be the sole source provider of these needed services. If another capable vendor arises in the future, the Government will open the needed services to competition.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Christopher Mayer

L&MR Program Manager

Date

Eric U. Darby

WHS/AD Contracting Officer

Date