J&A 6.302-3 for JHU-APL.pdf

J&A No.: 038-09

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. 253(c) (3)

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR Subpart 6.3 and in accordance with the requirements of FAR 6.302, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.302-3 as follows:

1. Agency and Contracting Activity:

The Department of Homeland Security (DHS), Office of Procurement Operations, proposes to enter into a contract on the basis of other than full and open competition.

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

Domestic Nuclear Detection Office (DNDO) has a requirement on a sole source basis for the continued development of Archive and Retrieval Management System (ARMS) and independent engineering and research services to validate data collected from DNDO vendors and DOE labs at an estimated cost of $9,870,627.00.

The proposed contractor is Johns Hopkins University/Applied Physics Laboratory (JHU/APL), National Security Technology Department (NSTD) located at 11100 Johns Hopkins Road, Laurel, MD 20723.

3. Description of Supplies/Services:

The DHS DNDO has a requirement for the following:

a) Follow-on development of the ARMS Phase 2 to maintain the capability of a central Test and Evaluation (T&E) data repository. ARMS is an information repository that will store all T&E data in a centrally located and maintained repository. Because of the issues outlined in paragraph 9 of this document, the development and maintenance of ARMS was divided into 2 Phases. ARMS Phase 1 was developed under an Inter Agency Agreement with the Department of Navy (DoN) Naval Sea Systems Command (NAVSEA). JHU/APL designed and developed ARMS Phase 1 and delivered it in December 2008. The first phase of ARMS is loaded with Advanced Spectroscopic Portal (ASP) T&E data and defined the CONOPS, system requirements, and data model for ARMS Phase 2.

ARMS Phase 2 is a follow-on effort for the continued development and maintenance of ARMS in accordance with the design outlined in Phase 1. The second phase of ARMS requires the retrieval, population, and maintenance of historic and future T&E data.

b) Optional independent engineering and research services to perform independent validation and verification (IV&V) and store data collected from DNDO vendors and DOE labs into ARMS. This service is necessary to ensure that the data collected during T&E test campaigns is complete and accurate.

JHU/APL will maintain non-disclosure agreements with DNDO vendors and DOE labs in order to perform IV&V on their T&E data and proprietary algorithms on behalf of the Government.

DNDO intends to issue a cost-plus-fixed-fee (CPFF) contract to JHU/APL for the development of ARMS for a period of performance of a base year and four option years.

The total estimated cost is $9,870,627.00 as detailed in the below table.

PERIOD ESTIMATED COST

Base Year 1,900,000.00$ Option Year 1 1,680,000.00$ Option Year 2 1,873,200.00$ Option Year 3 2,088,618.00$ Option Year 4 2,328,809.00$ Estimated Total Cost 9,870,627.00$

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.

253(c)(3) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-3 entitled “Industrial Mobilization; Engineering, Developmental, or Research Capability; or Expert Services.”

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited:

The application of FAR 6.302-3(a)(2)(ii) exempts full and open competition when it is necessary “to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center.” The use of the authority cited in paragraph 4 is justified because the continued use of JHU/APL is necessary to maintain continuity, quality, and institutional knowledge pertaining to the DNDO T&E data and algorithms.

If the Government does not maintain the essential engineering services that JHU/APL provides, this will have a negative impact on the programmatic schedule, costs and programmatic assessment of detection systems. The Government will incur significant risk such as finding an independent organization with equivalent subject matter expertise, established data analysis tools, knowledge of the detection systems and existing performance, ability to create and provide technical assessment of the algorithm and data architecture.

Extensive market research was conducted to determine which organization could provide the independent research and assessment capabilities required. The market research yielded no immediate alternative sources that could quickly overcome the learning curve of the DNDO programs for the required services. Therefore, the conclusion is drawn that only JHU/APL can provide and maintain the essential research and development capabilities required as further detailed in paragraph 8.

It would take at least two years for another source to learn the process, store, and validate the T&E data. This delay would have a negative impact on the program and current requirements. In addition, the quality of the DNDO T&E data could be compromised if this experience and knowledge base is lost by starting over with another organization.

JHU/APL has partnered with DNDO vendors and DOE labs to establish trusted relationships in handling and safeguarding their intellectual property data rights. There is a risk that other sources may not be able to obtain the same level of trust that JHU/APL currently has established.

6. 6. Description of Efforts Made to Ensure that the Offers are Solicited From as Many Potential Sources as Practical:

Pursuant to FAR 5.102(a)(6) a Request for Information (RFI) notice titled, “Archive and Retrieval Management System (ARMS)”, was publicized on FedBizOpps on August 26, 2008.

7. Determination by the Contacting Officer that the Anticipated Cost to the Government will be

Fair and Reasonable:

The negotiation and establishment of a fair and reasonable cost will be conducted by the contracting officer in accordance with FAR 15.4. The contracting officer will determine a fair and reasonable price based upon a detailed cost analysis that evaluates each element of cost. The Contractor will be required to submit certified cost or pricing data with sufficiently detailed information to support the accuracy and reliability of the proposed price. Based upon evaluation of the contractor’s proposal and historical cost data, the contracting officer together with the DNDO technical personnel will have adequate information with which to determine fair and reasonable price.

8. Description of Market Research:

The DNDO program office has taken the step to identify and evaluate other similar engineering and research organizations, which include university affiliated laboratories, federal funded research and development centers, and non-profit consortia for the purpose of making a cursory determination of whether the DNDO’s need to acquire an active engineering and research assessment paradigm could be successfully met by an organization other than JHU. Specific organizations that were identified and considered as potential resources where the National Science Foundation, the U.S. Department of Energy, the Pennsylvania State University, and the MITRE – Applied Engineering Technology Center. These organizations were selected because they currently provide independent technology evaluation across the federal Government in various areas of research, development, test, and evaluation. In determining the possibility of each organization meeting the DNDO engineering and research requirement, the program office conducted a review of each organization’s marketing and public relations material, published works, and met with multiple cognizant, government program managers to inquire of the status of ongoing research program development. The range of the technology areas that each organization had regarding facilities, expertise, and capabilities was vast. Still the program office determined that none of the organizations considered has the present capability to perform the specific effort.

A Request for Information (RFI) was publicized on FedBizOpps on August 26, 2008, seeking interested parties to submit a statement demonstrating that their technical capabilities can meet DNDO requirements outlined in the sources sought notice. Two of the National Labs responded to the source sought notice: Sandia National Lab and Los Alamos National Lab. Although the National Labs possess the technical capability, their participation in DNDO test campaigns compromises the essential independence necessary for this effort due to their participation in DNDO test campaigns. It is acknowledged that some commercial vendors may have experience in one or more facets of this effort. However, no commercial vendors responded to the RFI. Members of DNDO, who are uniquely knowledgeable of the very limited field of expertise, also noted that commercial vendors who have the capability to perform validation and verification of this type of data also have interest in competing in the Nuclear Radiation Detection market for development and production of these detection systems. Having DOE laboratories or commercial vendors conduct independent verification and validation of data will likely encompass organizational conflicts of interest that could compromise, or appear to compromise, an objective assessment review.

9. Any other Facts Supporting the Use of Other than Full and Open Competition:

This procurement is a follow-on acquisition to an Inter-Agency Agreement (IAA) with the Department of the Navy (DoN) to support the ARMS requirements. The option to continue to leverage the services of JHU/APL via an IAA with NAVSEA is no longer available to DHS as of 31 December 2008. DNDO is at risk of losing JHU/APL expertise without the issuance of a follow-on contract.

10. Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition:

Two of the National Labs responded to the source sought notice: Sandia National Lab and Los Alamos National Lab.

11. 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:

At this time, there are no plans to compete this effort for reasons identified in paragraph 5 above. Hence, DHS/OPO has begun the acquisition process for the development of a DHS-wide JHU/APL solicitation. The prospective award will encompass the continued maintenance of ARMS, the collection, storage and maintenance of data, and independent engineering and research services. Thus, it is likely that option periods for this requirement will not be exercised after award of the DHS-wide JHU/APL contract.

Contracting Officer’s Certification:

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief

Terry Coley Date Contracting Officer

12. Technical/Requirements Personnel Certification:

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Bob Dilonardo Date Technical Representative

APPROVAL:

Terry Coley Date Contracting Officer (Not Exceeding $550k)

Jan Wisor Date Competition Advocate ** ($550k to – Not Exceeding $11.5 million)