ITAC SSJ JW018 Domo Tactical Communications - PAAC signed 9.8.2023.pdf

Sole Source Justification (SSJ) FAR subpart 13.5, including Brand Name

Sole Source Justification for Simplified Acquisitions exceeding the SAT including brand name Rev. 4/2022 SSJ No.: FY23-00174 1

SSJ No.: FY23-00174

Date: 09/08/2023 PR Number: RUIO-23-JW018

Pursuant to the requirements at 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) subpart 13.5 and consistent with the content requirements of FAR 6.303-2.

1. Agency and Contracting Activity. Identification of the agency and the contracting activity, and specific identification of the document as a “sole source justification.”

The Department of Homeland Security (DHS), Office of Procurement Operations (OPO), Information Technology Acquisition Center (ITAC), proposes to enter into a contract on behalf of the Office of the Chief Information Officer (OCIO), Joint Wireless Program Management Office (JWPMO), on a basis of other than full and open competition.

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

DHS intends to award a sole source Firm Fixed Price contract to Domo Tactical Communications (DTC) 20122 Ashbrook Place, Suite 150, Ashburn, VA 20147 USA to install, configure, network, and integrate proprietary DTC radio communications equipment and software along the Southwest Border (SWB) from McAllen, TX to Laredo, TX. The government intends to award a contract in accordance with the procedures prescribed in FAR Part 13.5 “Simplified Procedures for Certain Commercial Items.” The estimated price is $1,818,286.95.

The source of this funding is the Office of the Chief Information Officer (OCIO) AWS-3 Fiscal Year 2023 (FY23) Spectrum Relocation Funds (SRF). DTC is the only company that provides the type of services required to support the agency needs.

3. Description of Supplies/Services.

The objective of this effort is to install nine (9) Radio Frequency (RF) Sites and DHS video aggregation points in the DHS-DEA Rio Grande Valley (RGV), Federated Wireless Data Transport Network (FWDTN) Area of Responsibility (AOR), along the Southern Border of the United States, to support DHS enforcement operations. This major system will support the use of covert video and data transport capabilities and provide DHS investigators with the ability to operate locally and remotely, as well as to capture, monitor, and record video surveillance data via safe and secure means. The Department of Justice (DOJ), Drug Enforcement Administration (DEA), has deployed an existing operational DTC network in the greater McAllen, TX area and is expanding their DTC network from McAllen, TX to Brownsville, TX. The DHS segment of this DTC network deployment extends from McAllen, TX to Laredo, TX and will foster the collaboration between DHS/CIO/JWPMO and DOJ and allow for DHS to utilize the DEA system to foster interoperability between the agencies.

The original contract was to purchase DTC equipment and services and to install and implement the DHS FWDTN at nine (9) RF sites in the RGV from McAllen, TX to Laredo, TX. This contract was executed on 9/22/22 in the amount of $4,933,040.60 (Original Contract Number http://uscode.house.gov/

Sole Source Justification for Simplified Acquisitions exceeding the SAT including brand name Rev. 4/2022 SSJ No.: FY23-00174 2

DJD17K0012, Order Number 70RTAC22FR0000111). DTC equipment and software was purchased under this contract, however, the contract expired on 5/30/2023 before DHS was able to secure leases at the nine (9) DHS sites. As a result of the delay in lease execution, DTC was not able to complete the installation within the Period of Performance (POP) of the original contract. This follow-on contract is being initiated to complete the installation, configuration, and implementation of the previously purchased DTC equipment and software at the identified nine (9) RF sites, and to connect those sites to the DEA AOR, which will allow DHS Components the ability to install and monitor video surveillance systems along the Southern Border of the United States, from Brownsville, TX to Laredo, TX, which encompasses the DEA and DHS AOR’s at a total cost of $1,818,286.95. This requirement will enable DHS and its Components to conduct criminal and civil investigations involving national security threats, terrorism, drug smuggling, child exploitation, and human trafficking that threaten or seek to exploit the customs and immigration laws of the United States.

Period Unit Price Total Base Year 12 mo. $1,818,286.95 $1,818,286.95

4. Identification of the authority.

This action is being taken in accordance with 41 U.S.C. 1901 as implemented by FAR subpart

13.5 Simplified Procedures for Certain Commercial Products and Commercial Services.

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

A follow-on contract with DTC for the continued development and deployment of this major system is justified because an award to any other source would likely result in both substantial duplication of costs to the Government that would not be recovered through competition and unacceptable delays in fulfilling the agency’s requirements. The FWDTN is a major system as defined in FAR 2.101 because it involves a combination of elements that will function together to produce the capabilities required to fulfill a mission need and because the total expenditures for the system are expected to exceed $2.5 million.

As described in #3 above, the DTC equipment for this major system was already purchased, received, and factory acceptance tested by DHS under Contract Number DJD17K0012, Order Number 70RTAC22FR0000111. This follow-on contract requirement with DTC is for the installation, network configuration, implementation, and integration of the already purchased proprietary DTC equipment and software. In addition, the DHS DTC system requires connectivity to an existing DEA DTC network as described in #3 above (spanning from McAllen, TX to Brownsville, TX). The integration with the DEA DTC network is required to complete this joint interoperability project (FWDTN) between Agencies. Market research shows that there is no other FWDTN system, other than DTC’s system, that will be compatible with the agency's existing previously purchased DTC system and DEA’s existing DTC system. Therefore, to purchase a different system from a company other than DTC would require DHS to replace its

Sole Source Justification for Simplified Acquisitions exceeding the SAT including brand name Rev. 4/2022 SSJ No.: FY23-00174 3 existing DTC system. In addition, purchasing another system would render the current DTC equipment useless and result in unnecessary replacement costs of duplicating/replacing the agency's existing DTC equipment with another companies incompatible system. This would far exceed any alternative system's price advantage over DTC in a competition for this follow-on requirement. In summary, purchasing another company’s system would:

• Result in purchase of equipment and software from another company which would be incompatible (i.e., lack of interoperability) with the DEA DTC system being installed from McAllen, TX to Brownsville, TX.

• Result in duplicative and cost prohibitive practices because DHS already purchased DTC equipment.

• Render the previously purchased DTC equipment unusable.

• Result in duplicating site surveys at previously identified tower sites.

DTC is the sole designer and developer of the proprietary DTC Mesh radio communications equipment and software that was previously purchased by DHS for the FWDTN. DHS AWS is limiting competition as the market has only one logical solution based on DTC’s unique knowledge and ability required to install, configure, and integrate its proprietary equipment and software. Another vendor cannot meet the requirements to complete this project without unwarranted delays, duplicative costs, and incompatibility with the DEA’s DTC network.

Completing installation, configuration, and deployment of the RGV network benefits the AWS Program’s mission to restore lost wireless video transmission capabilities and provide interoperable technology to DHS Components, particularly DHS AWS Stakeholders: United States Secret Service, Immigration and Customs Enforcement, Homeland Security Investigations, Customs and Border Protection, and the Office of the Inspector General.

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

The AWS Program has held numerous industry vendor meetings with the manufacturers of similar hardware and software defined Mesh radios, and it was determined that the DTC radios were best suited for operability and interoperability in the RGV AOR. In addition, since this project is a joint interoperability effort with DEA, it was determined that it was paramount to purchase and deploy DTC radios in the DHS AOR to enable seamless secure connectivity to an existing DEA DTC radio system extending from McAllen, TX to Brownsville, TX. Similar software defined Mesh radios manufactured by other industry vendors were not compatible with the existing DEA DTC network.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer (CO) anticipates the price to the Government will be fair and reasonable based on comparison with the Independent Government Cost Estimate (IGCE), and review of

Sole Source Justification for Simplified Acquisitions exceeding the SAT including brand name Rev. 4/2022 SSJ No.: FY23-00174 4 previous historical data. In addition, as there is limited competition, the Government will request data other than certified cost or pricing data as necessary to establish a fair and reasonable price.

The Government will request data such as established catalog or market prices and labor categories, rates, and hours to provide the level of effort to provide the services. The Program Manager who has technical knowledge of the requirements will validate the price information (labor categories and hours) provided to validate reasonableness. The CO will validate the rates.

The preceding process will ensure that the price to the Government will be fair and reasonable.

8. Description of market research.

Prior to the first contract being awarded, the DHS AWS Program first became aware of DTC by introduction from DEA representatives, who had already deployed and operated a successful DTC Mesh radio network in McAllen, TX. Many meetings and technical evaluation sessions were held between DHS HQ and DHS Components to demonstrate the operation and detailed functionality of the DTC system. It was determined that DTC met all technical requirements, such as compatibility standards with current DEA DTC deployed equipment which supports interoperability requirements between DHS Components and DOJ Components.

Market research was conducted via researching existing contract vehicles, industry vendor meetings and demonstrations, meetings with field operators, and a search of the open market. In doing so, the government gathered information on various software defined Mesh radio vendors, their capabilities, and limitations. This information assisted the government in defining requirements that not only met the government’s needs but were also feasible. While there are other vendors in the software defined Mesh radio industry, market research determined that only DTC could meet all of the requirements to complete the installation, configuration, and integration of this project.

Additional market research conducted reveals that the marketplace offers several competing technologies that are NOT compatible with the existing DTC RGV FWDTN solution. DTC manufactures a proprietary turnkey solution addressing lost video transport capabilities due to the release of spectrum that will meet the federal law enforcement investigative video mission along the Southern Border and is compatible with the existing DEA DTC RGV FWDTN.

9. Any other facts supporting the justification

In addition to hardware, DHS purchased Mission Commander (MC) software which is proprietary to DTC. MC software is designed to control and configure the DTC equipment and network infrastructure. DTC is the sole manufacturer of the hardware and software to be configured and installed in the RGV FWDTN, is uniquely qualified to perform the work, and is the only company able to perform the required work.

In addition to the above Sole Source Justification, if we do not limit competition and another vendor is awarded a services contract to install, configure, and implement the already purchased DTC equipment, we will likely have to pay pass through costs. Pass through costs will be incurred based on the rationale that another company must negotiate subcontracts with DTC and

Sole Source Justification for Simplified Acquisitions exceeding the SAT including brand name Rev. 4/2022 SSJ No.: FY23-00174 5 other vendors to install, configure, and implement the FWDTN, since the hardware and software is proprietary to DTC. A new vendor will have start over on work already accomplished in the previous task order, such as site surveys to determine structural analysis, environmental studies etc. In addition, duplicative factory acceptance testing and additional delivery and storage charges will be incurred with a new vendor from the already purchased and staged equipment.

The transition of equipment to a new contractor will cause substantial duplicative and unnecessary costs because approximately 50% of the work has already occurred in the previous contract, such as pre-staging equipment at prime and subcontractors locations. Much of that work would have to happen again in some fashion with a new contractor.

If the government were to not procure this follow-on work from the original source DTC, the estimated duplication costs that are not anticipated to be recovered via competition of this follow-on requirement would be $4.9M. This estimate is derived from the original contract price, because all of the work--and the price paid for that work--under the original contract would be wasted if we scrap our progress and start over with a different contractor.

10. A listing of the sources, if any that expressed, in writing, an interest in the acquisition.

N/A

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.

DHS JWPMO has a requirement to complete the installation of nine (9) RF Sites and DHS video aggregation points in the DHS-DEA RGV FWDTN AOR, along the Southern Border of the United States, to support DHS enforcement operations. Through market research it was determined that only one source can provide the required services for the installation, network configuration, implementation, and integration of proprietary DTC Mesh radio communications equipment and software that was previously purchased under DHS Contract Number DJD17K0012, Order Number 70RTAC22FR0000111. Once the installation, network configuration, implementation, and integration of the DTC Mesh radio communications equipment and software is completed, market research shows that other manufacturers may be able to compete for this requirement Any subsequent requirements will be acquired with the proprietary radio communications equipment and software being considered for the use of covert video and data transport equipment that will provide DHS investigators with the ability to operate locally and remotely, and the ability to capture, monitor, and record video surveillance data via safe and secure means.

12. DHS intends to post the requirement pursuant to FAR 13.501(a)(1)(iii) and 6.305(a).

13. 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.

Sole Source Justification for Simplified Acquisitions exceeding the SAT including brand name Rev. 4/2022 SSJ No.: FY23-00174 6

Ashley Gorham Technical Representative/COR

14. Contracting Officer Certification

Randy Dreyer Contracting Officer Office of Procurement Operations

15. Approval:

Antoinette Clay Procuring Activity Advocate for Competition Office of Procurement Operations