J_A - HSBP1016C00103-P00018 FINAL.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

41 U.S.C. 3304(a)(l)

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, 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 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States (U.S.) Customs and Border Protection (CBP), Office of Enterprise Network & Technology Support Directorate (ENTSD), and the CBP Office of Acquisition's Procurement Directorate (PD), intend to modify an existing contract (HSBP1016C00103 -Leidos, Inc.) and increase its ceiling without considering other offers.

2. Nature and/or Description of the Action Being Approved.

CBP intends to procure continued services on a sole-source basis and modify an existing contract with the following vendor:

Leidos, Inc.

10260 Campus Point Dr.

San Diego, CA 92121-1522

The services were previously awarded under HSBP1016C00103 (Leidos, Inc) (sole source Finn Fixed Price contract award), which, following the exercise of an Option to Extend Services, has a Period of Performance (PoP) end date of February 28, 2022. As a result of this action, the contract's ceiling will be increased by $19,970,670.00 to $179,818,150.34 and the PoP will be extended through December 31, 2022, if all options are exercised. This modification will be awarded as Firm Fixed Price (FFP)

Type of funding: Operations and support funds Year of funding: Fiscal Year 2022

Period Period of Performance Total

Base Award and Option Periods

9/1/16-8/29/17 (Base Award) 8/30/17-8/29/21 (OPs 1-4)

$154,749,427.00

Please see note below ($9,108,315.16) Subtotal $145,641,111.84

Option to Extend Services

8/30/21-2/28/22

$14,206,368.50

Subtotal $159,847,480.34 Proposed

Increase (2-3 month OPs, 1-1 month OP)

3/1/22-12/3 l/22

$19,970,670.00

Total Amount

$179,818,150.34

Note: $9,108,315.16 was deobligated from the total ceiling amount in modification P000lS, therefore, the new contract ceiling amount was decreased to $145,641,118.84

CBP's intent with this requirement is to increase the ceiling amount and the PoP of the current contract to provide continued services while the re-compete of the follow-on award is completed. This action is required to avoid disruption of mission critical services. The Government will minimize the length of the proposed action through the use of options which will be exercised upon need.

ln FY 22 Q3, CBP anticipates releasing a competitive solicitation that will support the sustainment of Radiation Detection Equipment (RDE) and Large Scale (LS) Non-Intrusive Inspection (LS NII) Equipment. The Government anticipates awarding two (2) Task Order (TOs) awards utilizing the General Services Administration (GSA) Multiple Award Schedules (MAS) Information Technology (IT) and Office Management 54151S. This acquisition is subject to change. Two (2) program areas will comprise the scope of work for the Task Orders (TOs). They are as follows:

• Sustainment of RDE

The scope is to provide supplies, parts, and services required to sustain required CBP RDE, associated ancillary and all additional software used in operational support of CBP RDE. IT products, services, equipment and commercial-off-the-shelf (COTS) software will be purchased in support of this procurement. This requirement will provide required systems administration and maintenance services and support for CBP LS RDE (i.e., Fixed and Mobile Radiation Portal Monitors (RPMs), and associated Ancillary equipment and all related peripherals).

• Sustainment of LS NII The scope is to provide Maintenance and Technology Support Services for CBP fielded LS NII Equipment, Gamma Imaging/X-ray Equipment within the Continental U.S.

(CONUS) and outside of the Continental U.S. (OCONUS). IT products, services, equipment and commercial-off-the-shelf (COTS) software will be purchased. This requirement will ensure CBP's ability to provide required systems administration and maintenance services for CBP LS NII Equipment (i.e., Fixed and Mobile LS NII systems and associated Ancillary equipment).

3. Description of Supplies/Services.

CBP/Integrated Logistics Branch (ILB) within the Enterprise Networks and Technology Support (ENTSD) Directorate of the Office of Information and Technology (OIT) has a requirement to procure maintenance support and on-demand services in support of existing Leidos security technology equipment.

The Leidos equipment is comprised of fielded, post-warranty Radiation Isotope Identification Devices (RIIDs), specific NII Gamma Imaging/X-ray equipment, and Radiation Portal Monitors (RPMs). The services include scheduled preventive and corrective maintenance, as well as other on-demand services that may be needed throughout the term of this contract, such as relocations, engineering, installation, disposal and other activities that are peculiar to the equipment or may be required on short notice.

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)(l) implemented by the FAR 6.302-1 entitled "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Identification of Exception to the Buy American Statute.

N/A

6. Demonstration that the Proposed Contractor's Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited.

Leidos is the only vendor that can provide the required levels of service to the existing equipment and no other supplies or services will satisfy agency requirements. As the Original Equipment Manufacturer (OEM), Leidos has an established team with current CBP background investigation (BI) clearances and possesses the specialized knowledge and experience necessary to perform the required near-term services without disruption.

The equipment to be maintained (1,322 individual pieces of equipment deployed, both CONUS and OCONUS) used under the CBP/ILB is comprised of fielded, post-warranty RIIDs, specific Non-Intrusive Inspection (NII) Gamma Imaging/X-ray equipment, and

RPMs. These systems detect illicit material as well as radiological threats that are attempting to enter or exit the borders. The systems must be operational 24x7x365 to ensure people, cargo, mail and transportation continues to move safely and securely with minimal to no delays in service. A lapse in services to the Leidos systems will adversely impact the mission of CBP, keeping America Safe. Without this equipment deployed and functional, the nation's border security would be compromised.

Leidos provides technically-complex and high-value inspection, detection and surveillance equipment systems, currently being used by CBP/ILB to assist in securing the land border crossings, airports, seaports, rail crossings, mail handling, and express cargo consignment facilities within the United States and participating countries. Under this requirement, the contractor will provide the necessary supplies, parts, maintenance services, and subject matter expertise to fully sustain and transition Radiation Detection and Non-Intrusive Inspection (NII) equipment under the NII Program, currently operational at CBP land, sea, air, and rail ports of entry. The location of this support is required at the continental United States (CONUS) and outside continental United States (OCONUS) CBP locations and includes, at a minimum, program management, configuration management, warranty transitions, preventative maintenance, trouble call handling, corrective maintenance, and other requested services. Other requested services shall include engineering, site surveys, parts provisioning, retrofits, relocations, corrosion control, source change outs, disposal, maintenance training, operator refresher training, special event support, and emergency services on a case-by-case basis. ln addition, the contractor may be required as on-demand services to repair damage resulting from accidents, incidents, natural disasters, and weather events, regardless of warranty status.

The existence of limited rights in data, patent rights, copyrights, and trade secrets make a subset of the requirement available only from Leidos as the OEM. Leidos, Inc. develops, and is the only company that has access to, the source code and programming information for the RIIDs, RPM and Vehicle Cargo Inspection System (VACIS) integration. Leidos is the sole manufacturer of the VACIS Viewer Image analysis product line. Neither Leidos's proprietary manuals, nor their maintenance training on equipment are commercially available to other vendors. No other vendor has access to the proprietary OEM capabilities of Leidos. The technical data and software for the VACIS, Radiation Portal Monitors and RIIDs is proprietary information. Leidos will not sell data rights, maintenance training, technical manuals, drawings, schematics or special tools associated with this equipment. They do not provide spare parts outside a maintenance plan. Without Leidos’ unique capabilities, this equipment could not be maintained or fixed in the field.

As the OEM and owner of the proprietary technical data, Leidos is uniquely qualified to provide the required services for the near-term need. As described in Section 12 below, based on recent market research and discussions with Leidos, CBP anticipates being able to compete a long-term contract. Leidos has established partnerships to provide a majority of the required services.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

This justification will be posted as soon as practicable on SAM.gov.

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

The Contracting Officer determines the anticipated price will be fair and reasonable based on a comparison with the acquisition history from the current contract managed by ILB and labor rates within other similar Government wide contracts, such as Alliant 2 (47QTCK18D0008), GSA MAS Information Technology (IT) and Office Management (GS- 35F-116AA) and National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC) CIO-SP3 Government-Wide Acquisition Contract (GWAC) (HHSN316201200044W). A breakout of these costs over the life the contract will be used to help determine the prices proposed are fair and reasonable.

9. Description of Market Research.

ln preparation for a competitive procurement, a Request for Information (RFI) was released on December 2, 2020. The basis of this RFI was to determine the viability of industry partnering with the OEMs and subcontracting agreements with small businesses versus sole-source direct awards with the OEMs. CBP obtained four (4) responses from industry.

Another RFI for RDE and LS NII were released on November 3, 2021 through GSA E-Buy and November 9, 2021 on SAM.BETA to determine an acquisition strategy. CBP received eight (8) responses from GSA E-Buy for RDE requirement. Six (6) of the interested parties were small businesses. Nine (9) responses were received for the LS NII requirement, seven

(7) were small businesses.

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

The configuration management of this equipment is currently managed and controlled by this vendor as the OEM. The source code and programming for VACIS integration is owned by Leidos and the devices are regulated by the Nuclear Regulatory Commission. Leidos proprietary software provides the true capability of these systems. Leidos has access to unique engineering design data and drawings, proprietary fabrication and repair processes, as well as special tools and test equipment that currently make them the only vendor capable of maintaining and repairing this critical, expensive equipment in a manner that meets CBP availability targets.

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

CBP did not solicit any responses on this proposed action. Based on a combined LS NII and RDE Request for Information (RFI) from GSA E-Buy, CBP received the following industry responses indicating interest in the long-term competitive procurement:

LS NII effort:

• Leidos; Inc.

• Total Solutions; Inc.

• Constellation Inc.

• Sensor Concepts & Applications; Inc / Tr des Corp

• Cayuse Technologies; LLC

• S&K Engineering and Research; LLC

• Information Technology Strategies; LLC

• Parsons Government Services Inc.

• NTT Data

RDE effort:

• Leidos, Inc

• Total Solutions; Inc

• Constellation Inc,

• Sensor Concepts & Applications Inc/Trandes Corp

• Cayuse Technolgies: LLC

• Parsons Government Services Inc.

• S&K Engineering and Research; LLC

• Information Technology Strategies; LLC

12. 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 maximize competition for the follow-on competitive award, numerous engagements with industry were performed, such as multiple Request for Information (RFIs) with draft PWSs and public notices. This continues to demonstrate CBP's commitment to competitive awards and this justification is only necessary to continue critical services. The extension proposed is only for the minimum duration expected to be needed to award the follow-on competitive award.

Based on this market research, the Government has identified several credible industry partners that can accomplish the repairs on the equipment currently sustained by Leidos.

Numerous responses were received by small businesses under GSA MAS IT and Office Management 54151S. As a result, CBP anticipates that a small business set aside will provide ample competition through the teaming arrangements/industry partnering to overcome the OEM requirement to maintain these systems.

Based on the Market Research, CBP intends to solicit two follow-on competitive contracts, one for Radiation Detection Equipment (RDE) and another for Large Scale Non-Intrusive Inspection (LS NII) equipment utilizing on solicitation. By separating the requirements into two distinct categories, the Government will compete in a more focused maintenance environment. Based on the history of this contract and recent market research, it was extremely difficult for another vendor, other than the OEM, to sustain the systems under a single contract, thereby limiting competition due to the broad range of capabilities of the equipment.

The Government will, also, incorporate additional equipment and products, regardless of the manufacturer, to be sustained by a single prime contractor who will consult the OEMs for any proprietary repair beyond their capability. Based on analysis accomplished by ILB, only about 10% of repairs require OEM capabilities, all others can be performed by other maintenance teams.

These competitive procurements are expected to be solicited and awarded by the end of

FY22.