JA20030aRFIDVHardware.pdf

Control No: 20-030 Contractors: Savi Technology

Supply: aRFID Hardware Est Dollar Value:

JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply: Active Radio Frequency Identification (aRFID) Hardware and Ancillary Services

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Prepared by:

Contracting Officer: Julie L. Lawrence DSN: 793-4529

Contracting Officer Email: julie.l.lawrence.civ@mail.mil

Technical:

Requirements:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Legal Advisor:

Competition Advocate: Adelaide J. Tkatch DSN: 793-5313

Signature: TKATCH.ADELAI

DE.J.1228712503

Digitally signed by

TKATCH.ADELAIDE.J.12287125

Date: 2020.02.18 15:08:45 -06'00'

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Department of Army Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command - Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: Product Lead Automated Movement and Identification Solutions (PL AMIS) requests a firm fixed price, indefinite delivery indefinite quantity (IDIQ) contract for Active Radio Frequency Identification (aRFID) products (aRFID-V) with Savi Technology, Inc., hereafter referred to as Savi. The Government projects award for April 2020. Delivery orders under this contract will be decentralized and use a variety of funding types including Operations and Maintenance Army; Research Development, Test & Evaluation; and Other Procurement, Army. An acquisition plan is not required because this procurement does not meet the dollar threshold identified in Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

ACC-RI awarded the aRFID-IV contract, W52P1J-14-D-0014, to Savi in 2014 after conducting a competitive solicitation to which Savi was the only response. In April 2019, ACC-RI extended contract W52P1J-14-D-0014 for one year to April 2020, to allow ACC-RI adequate time to prepare and award a separate competitive acquisition for new technology-based aRFID products not requiring Savi’s proprietary technology to operate (Program Name: Next Generation Transponders [NGT]). PL AMIS anticipates the NGT contract will cover of existing aRFID customer requirements. The extension also allowed time for ACC-RI to put in place a follow-on contract with Savi for products using its proprietary data, which PL AMIS estimates will be

As such, the Government did not compete the requirement prior to this action under the authority of FAR 6.302-1.

Paragraph 7, Actions to Increase Competition, of the corresponding Justification and Approval, control number 19-041, stated:

PL AMIS is working the future NGT [Next Generation Transponders] acquisition effort in order to promote competition for products that are not restricted by the Savi-owned intellectual property. The anticipated award date for NGT is April 2020 as shown below. The new contract will require no transition time.

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The Government completed those actions with only slight delays by issuing the NGT solicitation on 20 December 2019, with proposals due 5 February 2020. The Government anticipates an award date of the NGT contract on 7 April 2020.

3. Description of Supplies/Services and Issues: The aRFID-V IDIQ contract will provide a suite of transponders and ancillary products that use Automatic Identification Technologies (AIT). The technologies include aRFID transponders, including fixed interrogators and hand-held interrogators, based on Savi-developed and patented technology. Savi's patented RFID technology is the basis for International Organization for Standardization (ISO) 18000-7, which the ISO ratified in 2004. The Savi-manufactured products conform to the ISO 18000-7 standard, “Information technology -- Radio frequency identification for item management – Part 7: Parameters for active air interface communication at 433 MHz.” Customers use the Savi-developed transponders to support the in-transit visibility of DoD assets across the global supply chain.

A February 2008, Army G-4 memorandum states, "The Program Executive Officer, Enterprise Information Systems (PEO EIS), Product Manager, Joint-Automatic Identification Technology (PM J-AIT) [now Product Lead, Automated Movement and Identification Solutions (PL AMIS)] is responsible for maintaining AIT product procurement contracts for the DOD [Department of Defense]. These contracts are a managed means of providing standardized commercial AIT products, services and sustainment support at the best value to the U.S. Army. All U.S. Army organizations and activities will procure AIT products and services from the PM J-AIT (now PL AMIS).

Direct procurement of AIT products and services from commercial sources is not authorized. U.S. Army organizations and activities are encouraged to coordinate directly with the PM J-AIT [PL AMIS] on any AIT initiatives and offer recommendations to include other value added AIT products to contracts.” The period of performance for aRFID-V, the follow-on contract to W52P1J-14-D-0014, will consist of a

The aRFID-V IDIQ contract will include de-centralized ordering procedures; allowing all warranted contracting officers and Government-wide Commercial Purchase Card holders that support the DoD, the U.S.

Coast Guard, North Atlantic Treaty Organizations, Coalition Partners, other foreign military sales, and other U.S. Government Federal agencies, the ability to issue delivery orders, task orders, and purchase card orders for products and services. Based on historical sales and projections PL AMIS received from data calls with other program offices within the armed services, the estimated value of hardware and support requirements for the aRFID-V

As Government users transition to emerging satellite and cellular technologies included on the NGT contract, PL AMIS projects demand for current aRFID hardware will decrease; however, there remains a need to contract with Savi to meet the needs of the DoD customers that continue to require aRFID products. At present, Savi proprietary transponders account for of the total transponder requirements. PL

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AMIS expects the satellite and cellular technology, provided by the NGT acquisition, will increasingly take over the Savi-developed transponder requirements until the Savi-developed items are no longer required. PL-AMIS anticipates Government users will phase in NGT technology . For the near term, DoD customers will continue to need Savi’s RF technology.

4. Authority Cited: 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2)(ii)(B), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

Savi continues to be the only responsible source for the current requirements. Savi owns the intellectual property for the 433 MHz band, which is required for ISO 18000-7 standards. These standards capture the air interface protocol by which the aRFID transponders communicate within the 433 MHz band used in logistics tracking applications.

Further, a February 2008 Army G-4 memorandum directs all U.S. Army organizations will procure AIT products and services from Product Manager, Joint-Automatic Identification Technology (PM J-AIT), which is now PL AMIS. Savi’s aRFID products fall under the 2008 Army G-4 memorandum and are the required source for all U.S. Army organizations.

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Supply: aRFID Hardware

A new aRFID contract with Savi is necessary so the Government can continue providing approved transponders and peripherals under common terms, at competitive rates, and with lower administrative costs, while the Government transitions user requirements to the NGT contract. In the interim, aRFID products will remain an important and integral part of DoD’s global logistical management processes and are necessary for the timely supply of critical equipment and supplies for the warfighters’ combat readiness and its mission.

6 Efforts to Obtain Competition: ACC-RI will publish the notices required by FAR

5.201. Because this is a sole source action, effective competition is not applicable.

ACC-RI will achieve subcontracting competition by including FAR clause 52.244-5, Competition in Subcontracting, in the contract which states that the contractor shall select subcontractors on a competitive basis to the maximum practicable extent.

7. Actions to Increase Competition: As discussed in paragraph 3, ACC-RI is awarding the NGT contract to promote competition for products that are not restricted by the Savi-owned intellectual property. The anticipated award date for NGT is April 2020. PL AMIS is encouraging use of the NGT contract by recommending it to its Army and DoD customers through presentations to senior leaders at quarterly asset working group meetings. PL-AMIS expects the NGT contract to become the primary contract for tracking equipment because it uses superior technology that it anticipates to be more cost effective and provide better worldwide coverage than the aRFID technology.

8. Market Research: In Accordance With (IAW) Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance, and Information 206.302-1(d), ACC-RI posted a sources sought notice to FedBizOpps on 10 October 2019 to gauge industry interest in fulfilling the aRFID requirement. As part of the notice, ACC-RI requested interested parties provide specific products that could meet aRFID-IV requirements. The sources sought was open for 30 days and closed on 11 November 2019.

Supply: aRFID Hardware

9. Interested Sources: To date, no other sources have expressed a written interest in this requirement.

10. Other Facts:

Procurement History:

Contract: W52P1J-14-D-0014, Single Award IDIQ (1-year Extension), aRFID-IV Contractor: Savi Technology Award Date: 7 April 2019 Competitive Status: Non-Competitive Authority: FAR 6.302-1, J&A 19-041

Contract: W52P1J-14-D-0014, Single Award IDIQ, aRFID-IV Contractor: Savi Technology Award Date: 8 April 2014 Competitive Status: Competitive, Only One Response Received ACC-RI solicited the acquisition using full and open competition with anticipation of awarding a Multiple-Award (MA) IDIQ. Unlike aRFID-III, aRFID-IV eliminated the annual program management Contract Line Item Number (CLIN), and offerors were instead required to incorporate program management within its hardware CLINs. ACC- RI believes this contract structure change (i.e. elimination of any guaranteed annual revenue) along with the continuation of Savi’s intellectual property ownership appears to have been reasons preventing other vendors from responding to the solicitation.

Contract: W91QUZ-09-D-0001, 0002, 0003, and 0004, MA IDIQ, aRFID-III Contractor: Savi Technology, Unisys, Northrop Grumman IT, Systems & Processes Engineering Corp (SPEC) Award Date: 18 December 2008 Competitive Status: Competitive Unisys offered Savi products but was unable to successfully compete on delivery orders with Savi’s prices. Northrop Grumman IT’s OEM Evigia filed bankruptcy over the course of the contract. SPEC’s OEM Identech stopped offering the products used on this contract. As a result, while the other vendors provided some program management services under the contract, no vendor other than Savi received awards for hardware.

Contract: DABL01-03-D-1002, Single Award IDIQ, aRFID-II

Supply: aRFID Hardware Est Dollar Value:

Contractor: Savi Technology Award Date: Jan 2003 Competitive Status: Non-Competitive

Contract: DAAB07-97-D-V007, Single Award IDIQ, aRFID-I Contractor: Savi Technology Award Date: 8 Aug 1997 Competitive Status: Competitive

Supply: aRFID Hardware Est Dollar Value:

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my

13. Fair and Reasonable Price/Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on price analysis. The Government expects the basis for Savi’s pricing proposal will utilize current contract pricing, previously determined fair and reasonable, with inclusion of standard escalation increases. Certified cost and pricing data will not be required as the products and related incidental services being acquired are commercial items and services IAW FAR 15.403-1(c)(3).

Date: _________________ ____________________________ Julie L. Lawrence Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: _________________ ____________________________ Julie L. Lawrence Contracting Officer

LAWRENCE.JULI

E.L.1380558382

Digitally signed by

LAWRENCE.JULIE.L.1380558382

Date: 2020.02.13 12:37:49 -06'00'

LAWRENCE.JULIE

.L.1380558382

Digitally signed by

LAWRENCE.JULIE.L.1380558382

Date: 2020.02.13 12:38:05 -06'00'

13 FEB 2020

13 FEB 2020

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Approval

Based on the foregoing justification, I hereby approve a aRFID acquisition, on an other than full and open competition basis, pursuant to the authority of 10 U.S.C.

Section 2304(c)(1) subject to availability of funds, and provided that the products and services herein described have otherwise been authorized for acquisition.

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