JA-2024-05-1130 NELS 20240912 1622dr.pdf

JA No. JA-2024-05-1130

JA-2024-05-1130

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, proposes to enter into a contract on a basis other than full and open competition.

2. Nature and/or Description of the Action Being Approved. Toxic Inhalation Hazard/Rail Security- Sensitive Material Railcar Car Location Message and Global Positioning Satellite reporting support services to monitor the risk associated with the freight rail transportation of shipments, and reports allowing for forecasting inspection and assessment processes.

(a) TSA intends to procure on a sole source basis a contract;

(b) Contractor: Northeast Logistics Systems, LLC (NELS), 2 Central Street, Suite 107, Framingham, MA 01701

(c) Contract type: Firm Fixed Price

(d) Estimated total value (including options):

Period Price

Base Year $1,453,776.00 Option Year 1 $1,453,776.00 Option Year 2 $1,480,044.00 Option Year 3 $1,480,044.00 Option Year 4 $1,506,840.00

Total $7,374,480.00

Period of Performance End Date for Current Contract No. 70T05019C9NSTR006 - 29 September

(e) Type of Funding: Operations and Support

(f) Year of Funding: FY24

(g) Solicitation Number: 70T05024R5900A240

(h) Background Information: The Surface Operations and Policy, Programs & Engagement are responsible for creating inspection and assessment procedures, providing guidance when needed, and equipping and supporting different TSA inspectors with effective and competent databases and reporting systems to effectively carry out the agency's surface transportation security and assessment mission. It has been determined that one of the major security vulnerabilities in freight rail transportation is the movement of Rail Security-Sensitive items (RSSM), which includes items designated as Toxic Inhalation Hazards (TIH). TSA has developed a program that objectively measures the risk associated with the transportation of TIH materials through High Threat Urban Areas (HTUA).

3. Description of Supplies/Services. The requirement is to provide TIH/RSSM Railcar Car Location Message and Global Positioning Satellite (CLM GPS) reporting support services for TSA’s Surface Operations, and Policy, Programs & Engagement.

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. Identification of Exception to the Buy American Statute – Not Applicable

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

The rationale for using FAR Subpart 6.302-1 is that NELS, the contractor, is the only source which meets TSA requirements. It is the only company to have an agreement for real-time raw data exchange and report generation with Railinc to provide the consolidated raw CLM data. In order to deliver Rail Security- Sensitive Material Railcar Car Location Message and Global Positioning Satellite reporting for Toxic Inhalation Hazard, it is critical to have access to the consolidated raw CLM data via Railinc. NELS transforms the consolidated raw CLM data into a structured format using Rail Asset Integrated Logistics System (RAILS™), its proprietary Analytical Tools to identify and locate interchange frequency and locations, waybill information, TIH/RSSM routing to include shipments and destination reporting.

7. Description of Efforts Made to Ensure that Offers Are Solicited from as Many Potential Sources as is Practicable. On April 30, 2024, a Request for Information (RFI) was distributed by GSA to notify of TSA’s intent to solicit. On April 29, 2024, an Acquisition Planning Forecast System (APFS) Forecast Record No. F2024065763 was published to provide industry the opportunity to learn about this prospective business opportunity.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The contracting officer determines that the anticipated price is fair and reasonable based on comparing proposed prices to historical prices paid under previous contracts for this service. Furthermore, the contracting officer determines that issuing a contract to NELS for the continuation of Toxic Inhalation Hazard/Rail Security- Sensitive Material Railcar Car Location Message and Global Positioning Satellite reporting support services represents the best value to meet the government needs.

9. Description of Market Research.

O/A April 26, 2024, the Program Office reviewed the DHS Mandatory Strategic Sourcing Vehicles (SSVs) – IT found no similar services/software under all of the categories: IT Services, Specialty IT Services, GWAC IT Services, Communication Equipment & Services, IT Hardware & Software and IT Software.

On April 26, 2024, GSA Market Research as A Service (MRAS) issued an RFI for DHS - Car Location Messaging (CLM) and GPS. RFI No. RFQ1692736 closed on May 10, 2024. The GSA MRAS Market Research Report included responses from two (2) small businesses: End-To End Enterprise Solutions and WIN Trio, LLC. As a result of the APFS Forecast Record No. F2024065763 published on April 29, 2024, the Government received responses to this business opportunity from two (2) businesses: Adept Engineering Solutions and SRA Office Solutions.

Based on a comparative analysis between the current vendor, NELS and responses from the GSA MRAS results (End-To- End Enterprise Solutions and WIN Trio LLC), and the APFS responses (Adept Engineering Solutions and SRA Office Solutions) only NELS was found to have access to the consolidate raw data and the software solution necessary to provide TIH/RSSM Railcar Car Location Message and Global Positioning Satellite (CLM GPS) reporting.

No known changes in market conditions have occurred. The Government has determined that NELS is the only company capable of providing the services required by TSA.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition. There are 45 specific reports required by TSA to measure and track TIH/SSM in the freight rail system. TSA requires the reports on a daily, monthly, quarterly and annual basis. NELS is the only company to provide the level of report detail required by TSA’s deliverables, and can obtain the consolidated raw data from Railinc.

Access to current data within deliverables is dependent upon rail industry CLM rail event data and certain information on rail shipments derived from transportation waybills. NELS currently has active data connections between its data center, Railinc and each Class I railroad and NELS is fully conversant with and experienced with the rail industry requirements, procedures and technical methods for procuring, Rail Shipment and CLM Information. The rationale for using FAR Subpart 6.302-1 is that currently NELS is the only company to have an agreement with Railinc, a subsidiary of the Association of American Railroads (AAR) to provide the consolidated raw data to NELS who then deciphers the data for TSA use.

11. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition. Under the RFI that closed 5/15/24, only 2 companies, End-To End Enterprise Solutions and WIN Trio, LLC expressed an interest by submitting a capability statement. As a result of the Acquisition Planning Forecast System (APFS) Forecast Record No. F2024065763 published on April 29, 2024, the Program Officer received communication from two (2) interested small business concerns: SRA Office Solutions and Adept Engineering Solutions.

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. TSA’s Surface Operations will continue to monitor the industry for any new sources capable of meeting these specific requirements.

13. 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.

Lisa Hendrick, Contracting Officer Date

14. 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.

Ronald Pavlik, Deputy Assistant Administrator Date

APPROVAL:

Denise L. Randolph, Competition Advocate Date