JA for Stratovan RCA_366 Redacted _ Redacted.pdf

Justification and Approval FAR Part 6 Authority

JA-2020-04-0528

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Authority: 41 U.S.C. 3304(a)(1)

Only one responsible source and no other supplier or services will satisfy agency requirements.

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 and Capability Analysis (RCA) propose to enter into a contract on a basis other than full and open competition, where one responsible source and no others supplies or services will satisfy the agency requirements (FAR 6.302-1).

The Justification and Approval tracking number for this document is JA-2020-04-0528. The Procurement Request number is: 2120-200-RCA366.

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

(a) Nature of action.

The purpose of this action is to provide a justification and obtain approval to award a single source firm fixed price (FFP) contract to Stratovan Corporation for 2 years/24 months. Under this contract, Stratovan Corporation will finish the necessary development efforts of the Open Platform Software Library (OPSL) which was started under the Interagency Agreement (IAA) between TSA and the Department of Energy Sandia National Labs (SNL) HSTSFT15XCT7201_06 with Sandia National Labs (SNL) and their sub-contractor, Stratovan Corporation. The IAA established the Open Threat Assessment Platform (OTAP) project which encompasses multiple efforts to advance open architecture concepts to promote a diverse marketplace for transportation security technologies and to increase participation of small business innovators in the marketplace.

Stratovan Corporation has demonstrated unique capabilities in the open architecture space and represents the original developer of the OPSL where an award to any other source would result in substantial duplication of cost and unacceptable delays in fulling TSA’s requirements. SNL uses the FAR to conduct full-and-open contracting process just like any other federal agency.

(e) Type of funding: Research and Development

(f) Fiscal Year Funding: FY20/21

(g) Solicitation number: 70T04020R9NRCA366

(h) Background information: Stratovan Corporation as the subcontractor to SNL, developed and designed the current OPSL software package. Stratovan Corporation is currently the only source with the knowledge and capability to deliver all five (5) Phase 1 requirements and six (6) Phase 2 requirements. TSA-RCA worked collaboratively with SNL to establish a well-defined project framework that helped them perform effective timing characterization testing. TSA completed an Increment 1a demonstration. This demonstration leveraged the OTAP CPAM implementation and was a critical demonstration to prove out the feasibility of an open architecture construct, leveraging the OPSL and transfer of DICOS files, that supports the timing needs in the operational environment. Increment 1b is targeted for completion now. Since the execution of the current contract work has been transitioned from a research-focused R&D approach into a development focused R&D project, TSA has established an effective plan that will allow for continued engineering maturity of OPSL to achieve the desired end state. The target end-state for OPSL is when the software is developed, tested, and deployed to the field as part of a future CPSS acquisition across each qualified vendor to enable interoperability between the scanning system and OEM or 3rd party algorithms and GUIs. Following the deployment, the software may still require minor software updates to account for changes in technology and cybersecurity.

3. Description of Supplies/Services.

TSA created Administrator Intent (AI) objectives that serve as guiding principles to empower open system architecture as means to breakdown and move past its current challenges with capability development and acquisition. AI 2.0 initiative simplifies the concepts: Achieve Technology Readiness Level 7 and support future adoption by 1) baselining the current prototype’s performance 2) next generation standardized interface protocol development and existing OEM detection algorithm integration 3) collect stream of commerce image data and make available for OEM and third party algorithm development 4) integration of a common workstation and 5) development and demonstration of third-party detection algorithms operating on the system.

The objective of this project is to build on the increment 1 success by conducting the necessary development activities to implement the end state depicted in Figure 1.

Figure 1: CPAM end state for carry-on screening

As a mature solution achieving TRL 7 (system prototype demonstration in an operational environment), the solution will provide several benefits over the existing implementation of the proprietary checkpoint CT systems in the field.

These benefits include:

Checkpoint CT exports DICOS v2.0A Toolkit compliant format files.

Information and Commands communicated across a non-proprietary interface, OPSL.

Multiple detection algorithms available to process DICOS files, with logic to select which to use:

o CT Vendor 1 o CT Vendor 2 o 3rd Party

Leverage non-proprietary Common Workstation

Over the last decade, TSA has added open architecture and standard data interface requirements to a wide variety of RFPs through SNL giving the industry the opportunity to compete for and offer alternative solutions. Stratovan Corporation led the efforts in the development of DICOS and OPSL, which represent the two critical open architecture principles of open data and open interface.

As mentioned earlier, Stratovan Corporation has demonstrated success by its ability to provide software to the industry enabling the evolution towards the open architecture airport. No other company has worked with nor provided airport security software to as many airport security companies as Stratovan Corporation. Stratovan Corporation is currently the only source with the

1001 12 months from Oct 1, 2021 to Sept 30, Option year - Other OT&E – Carry On Open Platform Software Library (OPSL) - Expand OPSL Middleware Adoptability; Migrate Original Equipment Manufacturer (OEM ) ATRs to OPSL Compatible T-RECS Version; Cyber Security; Multiple ATR integration support for T-RECS; Common Viewer Integration as described in SOW Phase 2 Requirements 1, 3, 4 and 5.

FFP

1002 12 months from Oct 1, 2021 to Sept 30, Option year - Travel to include all cost elements, labor, indirect costs, other direct costs and fees Not to Exceed for option with only one ATR Vendor

NTE

1003 12 months from Oct 1, 2021 to Sept 30, Option -Other OT&E – Carry On Open Platform Software Library (OPSL) - Expand OPSL Middleware Adoptability; Migrate Original Equipment Manufacturer (OEM ) ATRs to OPSL Compatible T- RECS Version; Cyber Security; Multiple ATR integration support for T-RECS; Common Viewer Integration as described in SOW Phase 2 Requirements 2 and 6

FFP

1004 12 months from Oct 1, 2021 to Sept 30, Option -Other OT&E – Carry On Open Platform Software Library (OPSL) - Expand OPSL Middleware Adoptability; Migrate Original Equipment Manufacturer (OEM ) ATRs to OPSL Compatible T- RECS Version; Cyber Security; Multiple ATR integration support for T-RECS; Common Viewer Integration as described in SOW Phase 2 Requirements 1-6 with sub-contracting options for additional OEMS (IDSS, Analogics, L3 and Smiths)

FFP

1005 12 months from Oct 1, 2021 to Sept 30, Option -Other OT&E – Carry On Open Platform Software Library (OPSL) - Expand OPSL Middleware Adoptability; Migrate Original Equipment Manufacturer (OEM ) ATRs to OPSL Compatible T- RECS Version; Cyber Security; Multiple ATR integration support for T-RECS; Common Viewer Integration as described in SOW Phase 2 Requirements 1-6 with sub-contracting options for ATR vendor collaboration LOW, Medium and High

FFP

1006 12 months from Oct 1, 2021 to Sept 30, Option -Other OT&E – Carry On Open Platform Software Library (OPSL) - Expand OPSL Middleware Adoptability; Migrate Original Equipment Manufacturer (OEM ) ATRs to OPSL Compatible T- RECS Version; Cyber Security; Multiple ATR integration support for T-RECS; Common Viewer Integration as described in SOW Phase 2 Requirements 1-6 with scanner support option

FFP

1007 12 months from Oct 1, 2021 to Sept 30, Option - Travel to include all cost elements, labor, indirect costs, other direct costs and fees Not to Exceed for option with additional OEMS and ATR vendors

NTE

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.”

In accordance with FAR Subpart 6.305 this J&A will be posted to the Government Point of Entry, betaSAM.gov, within 14 days of award for a minimum of 30 days.

5. Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited.

To meet AI 2.0 objectives and to deliver all five (5) Phase 1 requirements and six (6) Phase 2 requirements as defined in the scope of work within time and budget with the least risk to government, Stratovan Corporation is currently the only source with the knowledge and capability to deliver all the requirements. After Stratovan Corporation completed the DICOS SDK, TSA recognized the need for an open software platform complementary to DICOS that could facilitate screening workflow needs and provide interoperability among airport screening devices. As such, Stratovan Corporation began work with SNL on developing what is now known as OPSL under the OTAP effort. Under SNL, Stratovan Corporation has been the sole source software development team responsible for OPSL during this overall effort. Stratovan Corporation and SNL have been striving to produce an OPSL SDK that mimics characteristics of the DICOS SDK to achieve the same successful adoption of a standardized open airport security platform. As the original source for OPSL, switching to a different source would result in substantial duplication of cost to TSA and result in unacceptable delays to the open architecture initiatives outlined in the TSA Administrator Intent.

Stratovan’s unique expertise in developing software platforms and SDKs that are adopted industry wide is proven with the DICOS SDK track record. Stratovan Corporation has the expertise to not only work with a wide variety of airport security vendors but also understands the technical needs of the individual systems and can navigate complex system architectures that ultimately meet TSAs capability needs. Stratovan’s experience in developing ATR software and the multitude of challenges in doing so demonstrate Stratovan’s competence in understanding and meeting the unique needs this effort will demand in helping third party algorithm developers to enter the marketplace.

As mentioned earlier, TSA started OPSL development efforts with SNL. SNL used FAR to conduct full-and-open contracting process just like any other federal agency. Over the course of OTAP, SNL did four such major contracting actions to bring subcontractors on board, three of which were full and open in nature. SNL was able to do a sole-source contract with Stratovan Corporation because of their work with DICOS toolkit and their knowledge and expertise with CT machines in handling 3-D images.

For the reasons stated above, full and open competition is not a reasonable alternative for this requirement as it introduces significant risk to the Government. In the event the Government would have to revise its strategy and compete the requirement for the added development, the result would be that TSA will have to unnecessarily spend taxpayers money to train and bring other vendors up to speed, plus TSA will not be able to meet deadlines projected in the project plan.

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

A notice of the intent to sole source was posted to BetaSAM on August 7, 2020. As of August 28, 2020, no responses were received in response to the posting.

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

Based on the Governments Independent Government Cost Estimate (IGCE), the estimated cost to acquire the services is for a base and one option year for a total of 24-month period of performance. First the required hours assessed to each phase were estimates created when planning the Statement of Work and developing the primary tasks and subtasks with Program Manager and technical staff. Each task was evaluated for the number of estimated working hours and which roles would be assigned to each task. Once each subtask was estimated, the total hours were compiled and applied to the appropriate labor rates to arrive at the staffing costs.

Based on the above and in comparison to the IGCE the Contracting Officer anticipates being able to determine that the price of the base year and options will be fair and reasonable. The Contracting Officer (CO) will ensure that all labor rates proposed will be evaluated to determine fair and reasonableness through cost analysis techniques in accordance with FAR 15.404-1 prior to award. In order to determine fair and reasonable pricing, the Contracting Officer anticipates using historical contract data under the current SNL contracts, Stratovan Corporation contract, and other 3rd party algorithm developer data and the United States Bureau of Labor Statistics (www.bls.gov) website to compare the labor escalation rates for service type requirements.

The Contracting Officer’s Representative (COR) will review the proposed labor mix to ensure they are appropriate for the specific project. All labor categories, labor hours, labor mix and materials proposed will be evaluated and found technically acceptable based on the requirements in the Statement of Work.

8. Description of Market Research

Market Research is based on the internet search for companies involved in the development of complex software systems that integrate high-performance computing, large data analysis, GPU programming, 2D and 3D data, machine learning methods, graphical user interfaces, and development of both software products and software development kits that would facilitate further development of the CPAM and OPSL. Each technology on its own can be rather complex while integrating them together can often be overwhelming.

Hardware centric companies are not focused on providing software development kits for other companies to utilize—they are primarily focused on selling their hardware products with software as an afterthought. As such, a software focused company such as Stratovan Corporation is in a better position to provide a software platform for other companies to utilize. Software development kits are an excellent way to streamline the integration process of third party products. This is commonly used in many other industries, using software as the common platform that unites various products. Without a software development kit to standardize interface among hardware providers, third party providers must form relationships with each hardware vendor in order to integrate with and operate on data from those machines. However, a common platform facilitated by an SDK such as DICOS or OPSL, these individual relationships are no longer necessary and can in many cases be avoided altogether making it easier to transition new products into the field.

With an SDK, newcomers have the ability to review the SDK an understand how and where their products can fit into the ecosystem. And, more importantly, the use of a common SDK streamlines deployment to the field if that same SDK is in use as the core platform integrating all systems. DICOS SDK is an example of this adoption. The OPSL SDK currently has a smaller user base since access to the OPSL SDK has been purposefully limited to a select group of collaborators to aid in its development. The OPSL SDK currently has around 40 users spread across about 20 organizations around the globe and is expected to grow once it is made more widely available. TSA is not aware of any other company that works with this many airport security providers.

Over the past four years under the IAA contract with SNL for OPSL work that ends on September 30, 2020, Stratovan Corporation has engaged in an extensive Research and Development effort to move the OPSL project into a proven potential capability to allow for engineering development. In March and July of 2020, Stratovan Corporation with IDSS, partnered to execute Demonstrations A, A+, B, and B+ to establish a measurable quantitative baseline and showcase a successful proof of concept. With these demos recently completed and the data proving the concept is viable, OPSL stands ready to emerge from its research and development phase and enter the engineering development phase to mature from a TRL 6 into a TRL 7 ready technology. OPSL’s development aligns with TSA’s intention to adopt open software architectures to allow the latest and greatest algorithms and equipment to make direct impacts in airports and critical infrastructure security points around the world in real time.

In addition, standardization with an incumbent pool of OEMs requires significant time to overcome and requires several key building blocks to achieve; thus, based on several challenges, this type of work can take a significant amount of time. The key building block are (1) standard data format, (2) a large data set within the data format, and (3) a means of reading, analyzing, and generating decisions on the data set. Stratovan Corporation helped with item #1 and enabled image standardization (DICOS SDK); however, OPSL is needed as the final step in algorithm standardization (item #3). Furthermore, TSA has also struggled with data mining that has delayed and extended the POP with Stratovan Corporation. A second IAA with SNL only recently has effectively demonstrated DICOS-based images being gather at significant level (item #2) to help with ATR development.

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.

A notice of the intent to sole source was posted to BetaSAM on August 7, 2020. As of August 28, 2020, no responses were received in response to the posting.

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.

In short, none at this stage but at the completion of the project, mature OPSL solution achieving TRL 7 (system prototype demonstration in an operational environment), TSA shall allow for full