JA NAIS_FINAL Redacted_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3204

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) 6.103 (FAR Class Deviation 25-11) and in accordance with the requirements of RFO 6.104 (FAR Class Deviation 25-11), the justification for the use of the statutory authority under RFO 6.103 (FAR Class Deviation 25-11) is justified by the following facts and rationale required under RFO6.104-1 (FAR Class Deviation 25-11) as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Command, Control, Communications, Computers, Cyber and Intelligence Service Center (C5ISC), Contracting and Procurement, Kearneysville (CG C5I C21) located at 408 Coast Guard Drive Kearneysville, WV 25430 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.

The nature of this action will be a sole-source contract to Marine Exchange of Alaska (MXAK) for the Terrestrial Automatic Identification System (AIS) data monitoring and maintenance support services for designated regions/ports in and around the coastal and inland waterways of the State of Alaska, 24 hours a day, 7 days a week. The AIS is operated and owned by MXAK. As the owner of the AIS sites, MXAK will provide system monitoring and site maintenance services required to ensure the functionality of the AIS site electronics suite.

3. Description of Supplies/Services.

The USCG requires continued, uninterrupted data monitoring and maintenance support services for designated regions/ports in and around the coastal and inland waterways of the State of Alaska 24 hours a day, 7 days a week.

The Coast Guard’s Nationwide Automatic Identification System (NAIS) enhances maritime domain awareness with a focus on improving security, navigational safety, search and rescue, and environmental protection services. NAIS is based on the Automatic Identification System (AIS), a technology sanctioned by the International Maritime Organization (IMO) as a global standard for ship-to-ship, ship-to-shore and shore-to-ship communications. NAIS uses digital Very High-Frequency (VHF) wave forms to continually transmit and receive voiceless data.

The system combines AIS data — such as vessel location, source and speed — with other government information and sensor data to form a holistic view of maritime vessel traffic near the continental United States (US) and its territorial waters.

Informed by a comprehensive view of traffic on the nation’s waterways, decision makers are better positioned to respond to safety and security risks. NAIS improves the safety of vessels and

4. Identification of Statutory Authority Permitting Other Than Full and Open

Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a)(1) implemented by the FAR Subpart 6.103-1 (FAR Class Deviation 25-11) entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

MXAK currently provides coverage to AIS sites in Alaska and the current contract is due to expire. Unacceptable delays in fulfilling the agency's requirements would severely jeopardize the Coast Guard’s ability to execute its statutory missions, including maritime domain awareness, search and rescue, and environmental protection/response. Therefore, award to MXAK is the only viable path to satisfy the government's requirements without a disruption to these critical operations.

MXAK possesses unique expertise and an established operational understanding of the NAIS architecture, system interdependencies, and the complexities associated with AIS data services.

Transitioning AIS services to a new vendor would require comprehensive onboarding, integration, and training process to achieve the same level of proficiency and reliability. During such a transition, there is an increased risk of service interruptions, degradation of AIS data availability, and delayed identification and resolution of system issues. Additionally, existing security vulnerabilities could remain unresolved while new vulnerabilities may be introduced because of system access changes and integration activities. These risks could adversely impact the Coast Guard’s ability to maintain continuous AIS monitoring, support maritime domain awareness, and execute time-sensitive operational missions. MXAK’s proven performance and specialized capabilities are critical to ensuring uninterrupted delivery of AIS services in support of the Coast Guard’s mission objectives.

MXAK’s unique position stems from their established infrastructure and experience. In Alaska, MXAK has already deployed, and currently operates, a comprehensive enterprise network of terrestrial AIS base stations. This existing infrastructure and MXAK's historical performance providing uninterrupted AIS operations are integral to mitigating the risk of a service disruption while a long-term competitive solution is put in place. As such, it is in the best interests of the Coast Guard to award a contract to the MXAK to meet critical mission requirements to mitigate unacceptable delays in providing AIS data services.

The work required to maintain uninterrupted NAIS operations is highly specialized integrated, and transitioning these services to a new provider would involve complex system onboarding, integration, and training. Such a transition presents risks to operational continuity and security, as the nature of the services does not allow for reasonable segregation or phased competition without jeopardizing mission-critical AIS data availability. Therefore, awarding the interim contract to the incumbent, MXAK, is necessary to ensure uninterrupted NAIS operations and maintain the Coast Guard’s ability to support maritime domain awareness and time-sensitive.

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

The Government intends to pursue a competitive follow-on contract for the long-term requirement. Market research, conducted via a Request for Information (RFI), indicated that at least one other contractor could successfully perform the Government’s requirements. However, as the incumbent, MXAK is the only contractor that can continue providing the same level of support without a break in service, or, more critically, any interruption of vital AIS data for the Alaska region.

This requirement was published in the Acquisition Planning Forecast System (APFS) on 15 December 2025. In addition, a Request for Information (RFI) was published through SAM.Gov on October 3, 2025, to identify potential sources capable of meeting the Government’s requirements. The Government received a total of 4 responses by the due date of 17 October 2025, of which 2 could meet the Government’s requirements. MXAK and Swish, which is a value-added reseller (VAR) of KPLER, are the only AIS providers in the Alaska AOR capable of meeting the Government’s requirements. MXAK provides terrestrial-based technology to collect Maritime AIS data, which is imperative to acquire real-time data as required by NAIS. Swish, while lacking a terrestrial footprint in Alaska, offers satellite-based coverage that meets the Governments requirements within the established latency threshold.

To further strengthen acquisition planning and contract transition processes, DHS will implement enhanced project management oversight, establish stricter internal review timelines, and initiate earlier planning for future contract transitions.

7. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable.

The contracting officer will determine the anticipated prices fair and reasonable based on comparison with historical prices paid by the Government for the past 15 years of MXAK AIS services and comparison with the Independent Government Cost Estimate (IGCE).

8. Description of Market Research.

Market research was conducted to identify all capable sources for the required NAIS services in the Alaska Area of Responsibility (AOR). A Request for Information (RFI) was posted to SAM.Gov from October 3, 2025 to October 17, 2025 under RFI # 70Z0G326RFI_NAIS Terrestrial. The purpose of this RFI was to ascertain the capabilities of potential contractors to provide the required AIS data services.

The Government received two (2) responses to the RFI: one from the incumbent, Marine Exchange of Alaska (MXAK), and another from Swish Technology Solutions, a value-added reseller for Kpler S.A.S. (Kpler).

Technical analysis of the responses concluded that both vendors were capable of meeting the Government's performance requirements. MXAK’s response was based on its existing terrestrial

AIS network, while Swish/Kpler’s was based on a satellite-based AIS solution.

While market research confirms there is more than one vendor capable of fulfilling the long-term requirement, the impending expiration of the current contract on 29 March 2026 makes it impossible to conduct a full and open competition without incurring a significant break in service. The time required to solicit, evaluate, award, and most critically transition to a new provider would create a hazardous gap in mission-critical maritime domain awareness.

Therefore, based on the urgency of maintaining continuous operations, it has been determined that the only course of action that can satisfy the Government’s need for uninterrupted service is to award a short-term, sole-source contract to the incumbent, MXAK. This action will serve as a bridge to ensure continuity of service while the Government prepares and executes a competitive procurement for the follow-on requirement.

The RFI closed on October 17, 2025, and in response the Government received four (4) responses, two (2) of which could successfully meet the Governments’ requirements. .

However, there is a significant lack of time to solicit, compete, evaluate, and award a new contract within the short timeframe needed between the expiration of the current contract and the solicitation, evaluation and award of the NAIS follow-on contract. Transitioning AIS services to a new vendor during this period would require substantial time for onboarding, integration, and training in order to understand the existing NAIS architecture, system interdependencies, and operational complexities. During this transition period, there is a heightened risk of service interruptions, degradation of AIS data availability, and delayed identification and resolution of system issues. Additionally, existing security vulnerabilities could remain unresolved while new vulnerabilities may be introduced as a result of system access changes and integration activities.

These risks could adversely impact the Coast Guard’s abilities to maintain continuous AIS monitoring, support maritime domain awareness, and execute time-sensitive operational missions. As such, awarding to the incumbent contractor is necessary to mitigate these risks and ensure uninterrupted NAIS Operations. This will allow adequate time to compete the follow-on contract appropriately.

Therefore, MXAK remains the only terrestrial based AIS provider in the Alaska AOR capable of meeting the Government’s need. Based on the results of the market research, it has been determined that the requisite service is available only by the incumbent, Marine Exchange of Alaska at this time.

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

None.

11. 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.

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13. Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

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