JA-2022-04-0768.pdf

Justification and Approval FAR Part 6 authority

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

(41 U.S.C. 3304(a) (1-7))

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 use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2:

1. Agency and Contracting Activity.

The Transportation Security Administration (TSA), Acquisition Program Management (APM), Requirements and Capabilities Analysis (RCA), and Contracting and Procurement (C&P), propose to enter into a contract on a basis of other than full and open competition in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, with Idemia Identity and Security USA, LLC (Idemia) to provide Credential Authentication Technology (CAT) maintenance support, cybersecurity, and engineering support services for fielded units.

The Justification and Approval (J&A) tracking number for this document is JA-2022-04-0768.

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

Contract details:

(a) Nature of action: The resulting action will be for a sole source contract with Idemia to procure maintenance support, cybersecurity support, and engineering support services for currently fielded CAT units.

(b) Contractor: Idemia Identity and Security USA, LLC (Idemia), 296 Concord Rd, Ste 300, Billerica, MA 01821

(c) Contract Type: Firm Fixed-Price contract

(d) Purchase Request(s): 227672B047, 227672B048 and 227672B049

(e) Solicitation Number: 70T04022R7672N006

(f) Type of funding: 2022, Procurement Constructions & Improvements

(g) Year of funding: Fiscal Year 2022

(h) Background information about requirement: See Section 5 below.

(i) Estimated total value including options: $18,673,099.54

3. Description of Supplies/Services.

This requirement is to provide the TSA with 48 months of additional maintenance for fielded CAT units in use at TSA airports, training and testing facilities, engineering support services for critical upgrades and enhancements, and continued cybersecurity support. In April 2014, Idemia was awarded a competitive Indefinite Delivery Indefinite Quantity (IDIQ) contract, HSTS04-14-D-CT2002, for CAT systems, maintenance, cybersecurity support, and engineering support services. The IDIQ ended in April 2021, but it is imperative to obtain additional maintenance, engineering support and cybersecurity support in order to keep the systems operational in airports to ensure continued screening at the checkpoint.

a. Engineering Support is required to perform upgrades and enhancements to currently deployed CAT systems to support TSA’s constantly evolving requirements.

a. Cybersecurity support is required to ensure that continued antivirus (AV) maintenance and ongoing operating system (OS) security patching is conducted on the CAT system. Cybersecurity support is critical to ensure all vital system updates and patches are completed and system security is maintained.

b. Maintenance support services are required for up to 1,001 CAT systems that will come off of warranty in the near future. Maintenance support services for these units was previously covered by an order under the IDIQ contract with the Original Equipment Manufacturer (OEM) that will expire in June 2022 and it is necessary to continue this maintenance support. This award will ensure continued maintenance support services. This maintenance support includes corrective and preventive maintenance. Corrective maintenance consists of unscheduled maintenance activities performed to repair or restore failed CAT systems to an operational condition. Preventative maintenance consists of all scheduled system maintenance activities, conducted to increase CAT system reliability and prevent equipment failure through regular maintenance.

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), as implemented by the 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 Require Use of the Authority Cited.

The mission of APM is to develop and implement the best procedures and technologies that deter, prevent, and/or render ineffective any attempt to sabotage commerce and transportation. RCA is charged with exploring, evaluating, and validating requirements that address complex mission security scenarios, including use cases that incorporate identity. TSA’s current fleet of over 1500 CAT systems requires continuous maintenance support, enhancements to mitigate on-going operational and safety changes, and continuous cybersecurity support.

In 2014, as stated above, TSA awarded a competitive IDIQ contract, HSTS04-14-D-CT2002, to Idemia to purchase CAT systems, maintenance support, engineering support, and cybersecurity support. The IDIQ has since ended but the services mentioned above are required to ensure the CAT fleet remains fully operational, capable of meeting evolving requirements, and able to ensure security effectiveness at the checkpoint.

Idemia is the OEM of the CAT system and the only vendor capable of fulfilling specialized technical support requirements for their system at the level of expertise required to ensure that the work is completed to the TSA specifications as outlined in the program requirements and technical documentation. System engineering, maintenance, and cybersecurity support of the CAT system is critical to improving the operational capabilities in the field to meet TSA security technology mission and objectives, including the objective to read mobile driver’s license and Real IDs. As such, Idemia is the only responsible source capable of satisfying TSA’s requirements at the level of expertise needed.

The threat to transportation security evolves constantly while the systems and solutions TSA deploys to counter terrorist threats may remain in service for many years. In order to maintain effectiveness while maximizing return on fielded technology, TSA requires flexible solutions that can adapt to maintain a high level of effectiveness as threats and adversaries change. If the subject Justification were not approved, and consequently, if the contract is not available to provide the needed technical support, CAT systems may not continue to meet updated security and safety requirements, could fail to operate due to hardware or software obsolescence, may not be able to address known deficiencies experienced after deployment, and may not be able to be upgraded to meet new evolving threats.

TSA requires this sole source contract as noted above in order to support multiple mission critical requirements beginning in Fiscal Year 2022 (FY22) and beyond that must be executed to meet program goals and objectives. TSA requires this contract in order to maintain security in the checkpoint environment. Without the procurement of maintenance, engineering support, and cybersecurity support for the CAT systems in the field, TSA will be unable to ensure the systems are safe, sustainable, and capable of meeting performance standards in the field.

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

The 2014 CAT production IDIQ contract was competitively awarded. TSA anticipates issuing a competitive solicitation for the Next Generation of CAT (CAT-2) systems, maintenance, engineering, and cybersecurity in FY22.

On November 4, 2020, TSA issued a Request for Information (RFI) for potential vendors on Sam.gov (TSA-04-03473) as a market research tool for CAT-2. In addition, on August 9, 2021, TSA released draft requirements for CAT-2 on sam.gov (TSA25-04-3640) and held an Industry Day for potential vendors.

The results of the CAT-2 market research and industry day participation does demonstrate the need for a competitive solicitation in FY 22 to fulfill the CAT-2 requirement. This does not negate the current need to continue OEM support for CAT systems currently in the field. The scope of this requirement is to continue OEM support for already purchased and fielded systems, and the only vendor capable of fulfilling this requirement is the OEM, Idemia. Following the expiration of this contract, TSA anticipates awarding the OEM an additional engineering support contract unless the OEM is awarded a competitive CAT-2 IDIQ contract. Once the maintenance expires under this contract, TSA anticipates maintenance will transition to the TSA Integrated Logistics Support (ILS) contract.

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

The Contracting Officer anticipates using procedures in accordance with FAR 15.404-1 to determine fair and reasonable pricing by utilizing comparison of proposed prices to historical prices paid for similar work on TSA contracts and in comparison to market pricing.

8. Description of Market Research.

The OEM has proprietary rights in the technology. This consists of the software, firmware, design, and hardware associated with the CAT. TSA does not own the intellectual property or data rights for the CAT.

As a result, only the equipment manufacturer is capable of fulfilling specialized technical and engineering, warranty, and cybersecurity support requirements at the level of expertise required to ensure that the work is completed to the TSA specifications.

Market research was conducted to refresh previous market research completed in FY 2021 by the Contracting Officers Representative, Peggah Farid, reviewing current TSA contracts and the General Services Administration (GSA) website. As a result of the research, the Idemia CAT system is not a commercial off the shelf product but considered a commercial item with modifications to the software version. The CAT systems are commercial with software and integration developed specifically to meet TSA requirements. TSA competed the IDIQ award for CAT systems, maintenance, and cybersecurity support previously and now that systems are in the field, they must be continuously maintained by the OEM as stated above. These services are especially critical to improving the capabilities of CAT systems in the field and necessary to meet TSA security technology mission and objectives. As such, Idemia is the only responsible source capable of satisfying TSA’s requirements at the level of expertise needed.

Based on market research, TSA found that no other vendor is capable of providing CAT maintenance, engineering support, and cybersecurity support as Idemia, the OEM that holds all proprietary data for the system.

TSA is actively seeking out opportunities that will improve the interoperability of Transportation Security Equipment through standardized interfaces for security system components and establishing standard image and data formats for certain technology systems. The standardization of component interfaces will allow accelerated independent development of critical component technologies as well as the establishment of modular security system platforms. Standardized image and data formats will reduce barriers to integration that exist because of the technical differences between vendor proprietary systems.

It will also provide flexibility to acquire capabilities that have the potential to be integrated with independently developed detection algorithms, imaging programs, and operating platforms. Efforts such as development of common graphical user interfaces (CGUI) are ongoing to support common system platforms as well. Once common system architecture is developed, TSA intends to engage in new partnerships to increase the number of vendors to support TSA security technology.

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.

None.

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.

As explained in section 6 above, TSA anticipates releasing a solicitation for CAT2 which will be posted on sam.gov as a means to remove or overcome any barriers to competition before any subsequent acquisition of ID verification products for the checkpoint.

12. 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.

Megan Kesler Contracting Officer

Date

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.

Angela Matos Technical Representative

14. Legal Counsel Review: I reviewed this Justification and Approval for Other Than Full and Open Competition in accordance with HSAM 3006.304-70 and find it legally sufficient.

Tom McGivern Legal Counsel

APPROVAL:

J. William Weinberg Head of Contracting Activity Transportation Security Administration