5e._2016-12-02_JA_MSC_Bridge_Contract_signed.pdf

U.S. Customs and Border Protection Justification and Approval For Other Than Full and Open Competition

For contracts or orders above the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2016

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity.

Department of Homeland Security (DHS) Customs and Border Protection (CBP) Office of Acquisition (OA) proposes to enter into a contract on a basis other than full and open competition.

2. Nature and/or description of the action being approved.

This justification seeks authority to award a sole source firm-fixed price (FFP) contract valued at approximately $36,574,284. The intended planned funding for the initial award includes FY 2017 Operations and Sustainment funds.

3. Description of Supplies/Services.

The Mobile Surveillance Capabilities (MSC) system is an integrated surveillance system that is rapidly deployable, and operates as a stand-alone system. The MSC system is a truck-mounted, self-contained mobile system of surveillance equipment driven to remote locations for long-range monitoring of people and vehicles (i.e., Items of Interest (IoIs)) and is designed for rugged terrain. The MSC system consists of integrated suite of sensor equipment attached to the flat skid cargo bed of a 4x4 Government Furnished Equipment (GFE) truck, with an operator workstation located inside the truck cabin.

Between Fiscal Years (FY) 2013 and 2017 seventy-nine (79) MSC systems are anticipated to be delivered by FLIR Systems, Inc. (FLIR) and deployed in the Tucson, San Diego, El Paso, Yuma, and El Centro Sectors.

Under the anticipated contract, FLIR will provide the following requirements to the government to sustain MSC systems prior to transition to Federal Aviation Administration Logistics Center (FAALC) for follow-on MSC sustainment:

Requirement Description

Maintenance Training Maintenance training will instruct Government technicians on how to maintain and repair the MSC system.

Train-the-Trainer (T3) Operator Training

T3 Operator Training will instruct Border Patrol trainers in Yuma on how to teach Border Patrol agents to operate the MSC unit safely and effectively.

Contractor Depot Logistics Support

(CDLS)

CDLS includes material replenishment, inventory control, telephone technical support, and On-Site Subject Matter Expertise.

Requirement Description

Software Maintenance Software maintenance includes the labor required to update and patch the MSC software.

Procurement of Spare Parts

New spare parts may be required to continue sustainment of the MSC units.

Engineering Change Proposals (ECPs)

ECPs may be required to resolve operational issues or improved MSC system performance.

Other MSC Repairs

Other repairs that were not planned as part of preventive or corrective maintenance on the MSC (e.g., due to incidents, acts of nature, sabotage, malicious damages, corrosion, restoration, etc)

Total Estimated Cost $36,574,284

Period of Performance

February 2017 - July 2018 12-month Base + 6-month Option

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 the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Demonstration That the Nature of the Acquisition Requires Use of the Authority Cited.

Given the proprietary nature of the systems and the lack of available technical data at this time, FLIR is the only vendor with the requisite expertise, knowledge, and resources needed to meet the requirements described herein. For these reasons it has been determined that the program’s requirement can only be satisfied by awarding a new sole-source contract to

FLIR.

FLIR is the only vendor that can effectively and efficiently support the program’s transition to FAALC for long term sustainment of MSC systems without significant interruption to the CBP mission. The CBP Office of Information Technology (OIT) is currently working side by side with FLIR to gain hands on experience and training for performing Organizational-level (O-Level) maintenance on deployed MSC systems. O-Level maintenance is defined as preventive and corrective maintenance of border enforcement technology at the field level.

Tasks include fault isolation; removal and replacement of faulty Line Replaceable Units (LRUs); reimaging of laptops; test points and parameters to determine if the LRU is fully functional; calibration and alignment of sensor and communications systems and subsystems; cleaning and lubrication of identified systems and subsystems; and disposal actions authorized at the field level. Additional maintenance training will have to be procured from FLIR to complete the transition of O-Level maintenance. Due to the proprietary nature of the MSC technical data and system components, a sole source contract with FLIR is the only viable option to deliver the aforementioned products and services.

Technical data that FLIR has deemed proprietary includes CBP Vendor Maintenance Training Materials, Sub Vendor Component Manuals, MSC Operations and Maintenance Manual, MSC Intermediate (Level 2) Maintenance Manuals, Product Drawings, and Train the Trainer Documentation.

MSC units also require depot level repair, warranty and other MSC repairs, supply chain management, software maintenance, and engineering change proposals. FLIR is the sole manufacturer of CBP’s FLIR MSC units, which are composed of a significant amount of FLIR proprietary equipment and data. Although the government does not currently possess the necessary FLIR proprietary equipment, data, and training required for continued operation and non-FLIR MSC system sustainment, the government has procured the necessary technical data under the current MSC contract. Delivery of the draft technical data has been received and is under review. Final delivery is expected no later than Feb 28, 2017. Furthermore, as market research indicates, due to the proprietary nature of the required MSC equipment and data, and lack of necessary expertise, another company would not be able to efficiently transition the MSC maintenance and training to the government.

After the current contract expires on January 31, 2017 this contract will cover the Government’s MSC sustainment needs during the transition between FLIR and FAALC.

Without continued FLIR sustainment support, operational availability of the MSC units to U.S. Border Patrol would be severely impacted, as the Government would not be able to maintain, troubleshoot, repair, or continue to operate the MSC systems as required. This would result in significant schedule delays, increased costs to CBP, and harm to the CBP mission.

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

In accordance with FAR Subpart 5.102 and 5.2, this effort will be publicized on Fbo.gov.

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

Given the commercial nature of the supplies and services to be provided under the anticipated contract, the CO will use price analysis and/or other available data/information in order to ensure that the award price is fair and reasonable.

8. Description of Market Research.

Market research shows that there are no other sources available to fulfill this immediate requirement besides FLIR.

On June 20, 2016, the Program Management Office (PMO) developed and issued a Request for Information (RFI) to solicit input from industry to provide insight into market conditions, availability of commercial contractors to provide Depot Level Support Services in the required Sectors in the time frame required.

Four (4) companies provided information in response to the request. Based on their responses, there is ample capability within the commercial marketplace for providing CDLS, software maintenance, training, etc. in general; however, none of the respondents were able to demonstrate they had the capability to provide the necessary services and supplies to perform these services on FLIR’s proprietary components and processes. Based on the RFI and market research, the PMO has determined that there are no companies with the requisite experience, facilities and spare parts availability to fulfill the Depot Level Logistics Support services requirement, given that none of the companies, other than the incumbent FLIR, demonstrated the capability to provide and/or repair FLIR parts and equipment as required, nor demonstrated any agreements or arrangements to provide or repair FLIR items, technical data, or training materials.

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

None.

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

Acquisition.

If any interest is received from the posting then it will be addressed accordingly.

11. 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.

To minimize reliance on sole-source contractor support, the Government currently performs organic organizational level (O-level) maintenance on the FLIR MSC systems, which includes truck maintenance, hardware, and expendable items, etc. However, a capability gap will still exist in the government’s ability to maintain the entire MSC system, in that the government does not have the technical capabilities, technical materials or trained resources in order to perform depot level logistics support, including repair of major system components, such as cameras, radars and other proprietary equipment and hardware.

In order to fulfill this capability gap, the Program Office has decided the best approach for long term sustainment of the MSC units is to utilize the FAALC IAA so that the FAALC can either perform all services organically, or to establish contracts with suppliers to provide required services that the FAALC will not perform themselves. This anticipated short-term sole source Bridge award for contractor Depot Logistics Support Services will ensure the combination of CDLS and organic O-Level maintenance will sustain MSC operations until such time that the FAALC is fully capable. When the transition from FLIR provided CDLS to FAALC provided sustainment support is complete, this requirement will no longer be required from FLIR on a sole-source basis. It is anticipated that the transition to FAALC sustainment support will take place between the first and fourth quarter of fiscal year 2018.

Additionally, there are no known barriers to competition regarding any new requirement for additional mobile surveillance capability systems at this time.

12. Planning and Funding Statement.

The sources for this requirement are not being limited due to poor planning or the expiration of funds, but due to the fact that only one source is capable at this time of providing the uninterrupted capabilities needed at the level of quality required.

For contracts or orders above the Simplified Acquisition Threshold (SAT)

Signature: ~~ ~· Date: 1t/t s-/;r, ..... J&A APPROVALS

17. COMPETITION ADVOCATE (Per FAR 6.304(a)(2) -Above $700,000)

D Approved D Disapproved

Name (Print): Richard Gunderson Competition Advocate

18.

Signature: /wLJ¥~ Date: JJ/3vbo/6

HEAD OF CONTAAC GAcTIVITY (Per FAR 6.304(~)(3) - $13.5M to $68M)

D Approved D Disapproved

Name (Print): Diane Sahakian Head ofthe Contracting Activity

Signature: __________ _

Version 2.0

Date: ------

November 2016

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