JA-2022-04-0850_Redacted.pdf

Justification and Approval FAR Part 6 Authority

JA-2022-04-0850

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(41 U.S.C. § 3304(a)(1))

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 Transportation Security Administration (TSA), Contracting and Procurement (C&P), and Requirements & Capabilities Analysis (RCA) propose to enter into a contract on a basis other than full and open competition to procure High Definition – Advanced Imaging (HD-AIT) Wide Band Upgrade Kits for certification, demonstration, testing, and ultimate future fielding of approved kits throughout the AIT fleet. These kits are meant to provide and allow the reduction of outerwear divestment, improve detection and enabling material discrimination, utilize superior lateral resolution that supports improved imaging of object edges and resolution, and achieve improved detection and false alarm reduction, all in order to improve throughput at the checkpoints.

The Justification and Approval tracking number for this document is JA-2022-04-0850.

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

This Justification for Other than Full and Open Competition sets forth the Agency’s rationale to award a contract on a basis other than full and open. AITs are the primary technology used for screening passengers for metallic and non-metallic items on the person at TSA checkpoints. Enhancing the AIT fleet with wideband technology is necessary to meet current detection standards and emerging threats.

This technology was developed by the Department of Energy’s Pacific Northwest National Laboratory (PNNL) and licensed to Liberty Defense Technologies.

(a) Contract Details: Nature of Action: The resulting action will be for a sole source contract with Liberty Defense Technologies to procure HD-AIT Wideband Upgrade Kits.

(b) Contractor: Liberty Defense Technologies, Inc. (LDT), 2 Sun CT STE 230, Peachtree Corners, Georgia 30092-2816

(c) Contract Type: Firm Fixed Price

(d) Purchase Request:227573B084

(e) Solicitation Number: 70T04022R7672N006

(f) Type of Funding: Research and Development (R&D) Funding

(g) Year of Funding: FY 2022

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

(i) Total estimated value including options:

3. Description of Supplies/Services.

RCA requires a sole source purchase of HD-AIT wideband upgrade kits to support field testing.

This requirement also seeks to finalize the next generation configuration of the system to meet requirements outlined in the draft AIT Functional Requirements Document version 2.8. Without procurement of the upgrade kits, TSA risks AIT fleet obsolescence, resulting in failure to meet objectives outlined by the Administrator within the FY23 TSA budget profile.

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 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.

In 2016, TSA and the Department of Homeland Security, Science and Technology (S&T) began work with PNNL to develop the next generation of millimeter wave technology for passenger screening. PNNL developed a prototype for testing millimeter wave frequency energy. In order to commercialize the development of the HD-AIT kits, PNNL has licensed the HD-AIT kit design to Liberty Defense Technologies for production. TSA needs to test the HD-AIT kit technology in an operational environment to determine suitability for field use. This operational test is a critical step in approving the HD-AIT enhancements to the AIT fleet.

In accordance with FAR 6.302-1, Liberty Defense Technologies is the only responsible source for the HD-AIT kits and no other supplier can satisfy the agency requirements. Liberty Defense Technologies is the only supplier that has the license with PNNL to build the HD-AIT kits. The objective of this HD-AIT kit contract is to fulfill a need to finalize development of, build, and install the upgrade kits on fielded AIT systems for testing purposes.

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

Liberty Defense Technologies in the only company that has the licensed design and architecture to meet the hardware needs of the HD-AIT kits. TSA continues to work with as many industry partners as possible to mature open architecture sensors that are compatible with the HD-AIT architecture.

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

The Contracting Officer will ensure that proposed pricing will be evaluated to determine fairness and reasonableness through price analysis techniques in accordance with FAR 15.404-1 prior to award.

8. Description of Market Research.

There is a current Interagency Agreement (IAA) with PNNL which in March 2020 exclusively licensed the HD-AIT technology to Liberty Defense Technologies. Liberty Defense Technologies remains the sole licensee of the platform developed by PNNL in accordance with 37 C.F.R. Part 404, Licensing of Government Owned Inventions. Part 404 provides terms, conditions, and procedures for the accord of patent licenses, both nonexclusive and exclusive, on DOE-owned patents and patent applications.

Because of the unique proprietary nature of the HD-AIT kits and Liberty Defense Technologies being the sole licensed entity, Liberty Defense Technologies is the only vendor with the knowledge, expertise, licensing, and authorization to fulfill the stated requirement.

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.

In accordance with FAR 5.203(a), TSA posted TSA25-04-03723 on July 5, 2022, notice of intent to sole source on www.sam.gov. The notice provided notification of TSA’s intent to sole source and provided other vendors with an opportunity to express interest in the requirement. The notice was open for response for 15 days and TSA did not receive any responses.

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, Liberty Defense Technologies in the only company that has the licensed design and architecture to meet the hardware needs of the HD-AIT kits but TSA continues to work with as many industry partners as possible to mature open architecture sensors that are compatible with the HD-AIT architecture. For example, TSA issued a Targeted Broad Agency Announcement (T-BAA), 70T04021BAA7573N001 in May 2021 allowing vendors to submit innovative concepts supporting open architecture. TSA awarded two contracts as a result of that T-BAA. Lastly, as mentioned in section 5 above, TSA is testing the HD-AIT kit technology in an operational environment to determine suitability for field use. These results will be used to develop next generation AIT requirements. TSA anticipates developing a new procurement strategy for next generation AIT requirements to allow for competition.

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.

er Date

Contracting Officer

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.

Date

Program Manager

8/25/22

14. Legal Counsel Review.

I reviewed this Justification and Approval for Other Than Full and Open Competition for legal sufficiency in accordance with HSAM 3006.304-70.

rn Date

Legal Counsel

APPROVAL:

Date

Competition Advocate