JA EMD JA-2024-04-1143_Redacted.pdf

Justification and Approval FAR Part 6 Authority

JA-2024-04-1143

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 Acquisition Program Management (APM), propose to modify contract 70T04021C7672N002 on a basis other than full and open competition to procure additional CEIA Enhanced Metal Detectors (EMDs) required to sustain safety/contingency stock inventory and support new federalized airports and airport expansion requirements. This equipment is used to detect potentially dangerous metallic threats to aviation security. A safety/contingency stock of this equipment will also enable the TSA to support emergency/unplanned deployments and National Special Security Events (NSSE) where additional surge equipment is required.

The Justification and Approval tracking number for this document is JA-2024-04-1143.

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 modification on a basis other than full and open for CEIA EMDs required to sustain safety/contingency stock levels and for deployment to support airport growth objectives. EMDs are Walk Through Metal Detectors (WTMDs) modified to meet configuration and detection requirements specific to TSA’s unique needs. TSA uses EMDs to detect potentially dangerous metallic threats to aviation security and to support other Department of Homeland Security (DHS) agencies managing surge events. The mission of the EMD Program is to sustain adequate levels operational legacy equipment to support checkpoint needs. CEIA EMDs serve as the primary passenger screening technology for TSA Pre✓® lanes and secondary screening for standard lanes. This equipment will go through Factory Acceptance Testing (FAT), will be shipped to a TSA warehouse as safety/contingency stock, and will include Site Acceptance Testing (SAT) prior to deployment.

On April 28, 2021, Justification and Approval (J&A) JA-2021-04-06 was approved for the TSA to pursue a sole source purchase of up to 100 CEIA EMDs as a stop-gap measure in order to maintain optimum safety/contingency stock inventory levels while pursuing a future competitive Department of Homeland Security (DHS) strategic sourcing contract once new requirements for a metallic and non-metallic detectors were established and approved through a new TSA program. On September 13, 2021, contract 70T04021C7672N002 was awarded for the purchase of CEIA EMDs, fewer than approved as part of JA-2021-04-06.

To develop requirements for a future competitive EMD procurement, the TSA requested concept paper submissions under Broad Agency Agreement (BAA) 70T04023BAA7573N001, posted on a full and open basis to www.sam.gov on June 28, 2023. This BAA was tailored to potential On-Person Screening advancements and improvements, specifically interested in the development of new requirements for metallic and non-metallic detectors as well as advancements in other screening technologies. The TSA received one (1) concept paper addressing new requirements for metallic and non-metallic detectors. As such, the Requirements and Capabilities Analysis (RCA) Division is continuing the research for new technology and the development of new requirements for a metallic and non-metallic detector to support a competitive EMD procurement. However, the project to substantiate the new program is still in the beginning stages (Pre-ADE-1), and is not an approved program/program of record. The EMD Program Office must continue sustainment activities until the new program is approved and funded to procure next generation equipment. The purpose of the subject J&A is to procure an additional EMDs via a modification to contract 70T04021C7672N002.

TSA’s EMD safety stock baseline is a minimum of deployable units. As of August 2024, TSA has deployable CEIA EMDs in safety stock to support federalized airports, annual surge events, and ad hoc special events. This sole source purchase via a contract modification will allow TSA to maintain its target inventory level of

EMDs throughout the period of performance of this modification, ending September 30, 2025.

The table below outlines the CEIA EMD Independent Government Cost Estimate (IGCE) to procure an additional EMDs under contract 70T040C7672N002 with the necessary Site Acceptance Testing:

Table 1: CEIA EMD Independent Government Cost Estimate

DESCRIPTION Quantity Unit Price Extended Price

EMD Systems

Systems Acceptance Testing

Total

See below information for additional contract details:

CEIA USA, 9155 Dutton Drive, Twinsburg, OH 44087

(a) Type of Action: Procurement of CEIA EMD for TSA safety/contingency stock.

(b) Contract Type: Firm Fixed Price

(c) Total Estimated Procurement Value:

(d) Type of Funding: PSP Legacy EMD Procurement for Safety Stock and Airport Growth

(e) Year of Funding: FY 2024

(f) Anticipated Period of Performance (PoP): twelve (12) months

3. Description of Supplies/Services.

TSA requires establishment of a sole source contract modification to procure CEIA EMD systems. The sole source contract modification unit price per EMD will include FAT as well as shipping to the TSA warehouse and

SAT.

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 accordance with FAR 6.302-1, CEIA is the only one responsible source and no other supplier can satisfy the agency requirements. CEIA is the only supplier that meets and has completed certification testing against TSA’s EMD detection performance and functional requirements. The objective of this EMD procurement is to fulfill a need to purchase an additional EMDs as a stop-gap measure to maintain safety/contingency stock inventory levels until a future TSA program is established with new metallic and non-metallic detector requirements.

The TSA inherited a fleet of WTMDs from the Federal Aviation Administration (FAA) in 2003 to be retrofitted to meet TSA-specific EMD requirements. At that time, WTMDs from three (3) Original Equipment Manufacturers (OEMs) were in use; CEIA, Garrett, and Metorex. However, since 2003, only CEIA EMDs have been successfully modified to meet TSA’s current additional EMD requirements (enhanced detection standards). Due to issues with the detection specifications and parts availability the Garrett and Metorex Metal Detector units have since been retired fleet-wide, and TSA no longer has Garrett or Metorex units deployed in the field or in safety stock. To date, CEIA EMD systems are the only systems currently qualified, manufactured, configured, tested, and deployed by TSA. Deployed technologies must meet strict requirements and standards, and CEIA EMD systems have been tested, approved, and measured against these standards.

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

As previously noted, the RCA Division is continuing the research for new technology and the development of new requirements for a metallic and non-metallic detector, to established future competitive procurement. The TSA requested concept paper submissions on a full and open basis under BAA 70T04023BAA7573N001 in support of potential On-Person Screening advancements and improvements, specifically interested in the development of new requirements for metallic and non-metallic detectors as well as advancements in other screening technologies. The EMD Program Office must continue sustainment activities, for which CEIA EMDs are the only qualified systems supporting safety stock, until the new program is approved and funded to procure next generation EMDs.

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/cost analysis techniques in accordance with FAR 15.404-1 prior to award. To determine fair and reasonable pricing, the Contracting Officer anticipates reviewing historical pricing under this current contract and using existing commercial prices for similar systems found on the General Services Administration (GSA) website and other commercial marketplace pricing.

8. Description of Market Research.

Currently CEIA is the only tested and qualified EMD manufacturer. After sole source contract 70T04021C7672N002 was awarded to CEIA, the Program Office conducted market research to review industry offerings. Sources reviewed were from: a) direct vendor responses to a Request-For-Information (RFI); b) vendor literature from vendor websites; c) the WTMD Market Survey Report of June 2014 prepared by the National Urban Security Technology Laboratory for DHS Science and Technology Directorate; and d) Subject Matter Experts in the EMD integrated project team.

The RFI was posted to www.sam.gov on June 10, 2021, under Notice ID TSA25-04-03606. Four (4) vendors responded to the RFI. The submitted responses identified five (5) models of WTMDs available in the commercial marketplace that the PSP-L Program Office reviewed for a potential competitive procurement.

It was determined from the responses that all products identified (four vendors, five models of WTMD) had the following basic capabilities: multiple-zone detectors which can visually indicate the approximate location of the metal target(s) or weapon(s) on the person passing through the portal; audible alarm to indicate the presence of metal target(s) or weapon(s); adjustable sensitivity levels that can be set on the detector to optimize detection while minimizing false alarms; traffic counter to record the number of people passing through the portal; operate on 60 cycle, 115 volts; ability to be shut down safely in the event of line voltage disruption and automatically self-calibrate on power-up; and the ability to operate in extreme temperature and humidity conditions.

However, System-1 did not meet the TSA requirements for location targeting, random alarm, remote programming, or access control. System-3 and System-5 did not meet the requirement for access control.

Therefore, only System-2 and System-4 met the publicized detection specifications; one of them being the incumbent, CEIA. Extensive testing which requires over 300 days to complete would be required to determine if the other unit meeting the publicized requirements would be able to meet the requirements deemed sensitive security information.

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

As illustrated in Table 2 below, if no procurement action is taken, the EMD safety/contingency stock inventory will remain below the minimum of deployable EMDs, reaching a quantity of total ( % below the minimum number of units needed in safety stock).

Table 2: EMD Inventory Shortfall Projection

Inventory Anticipated Annual

Deployment Remaining Inventory

After Annual Deployment

FY 24-25

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 will post a notice of intent to sole source for EMD systems on www.sam.gov at least fifteen (15) days prior to the issuance of a solicitation notifying vendors that the TSA intends to contract using other than full and open competition for the number of EMD systems listed in Table 1.

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.

To overcome competition barriers in the future, the TSA anticipates finalizing new EMD requirements and developing an approved TSA program to test, competitively procure, and deploy EMDs.

12. Approvals ( ):

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.

Name (Printed) Signature

Program Manager 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.

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.