Liberty Defense JA-2023-04-1004 Redacted.pdf

Justification and Approval FAR Part 6 Authority

JA-2023-04-1004

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 Requirements & Capabilities Analysis (RCA) propose to issue a modification to contract 70T04022C7573N004 with Liberty Defense Technologies, Inc. (LDT) to incorporate additional scope on a basis of other than full and open competition in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

The Justification and Approval tracking number for this document is JA-2023-04-1004.

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 issue a modification to incorporate the addition of improvement and efficiency work within scope to support the completion of a prototype High Definition Advanced Imaging Technology (HD-AIT) wideband upgrade kit.

The current contract is for the development of a prototype HD-AIT wideband upgrade kit. The HD-AIT wideband upgrade kit is required to support test and evaluation ahead of modernizing the aging fleet of TSA owned AITs. AITs are the primary technology used for screening passengers for metallic and non-metallic items on the person. Enhancing the AIT fleet with wideband technology is necessary to meet current detection standards and emerging threats.

The modification will include the following:

a) Contractor: Liberty Defense Technologies (LDT), Inc., 187 Ballardvale Street, Suite 110 Wilmington, MA 01887

b) Type of Action: Modification to add improvement and efficiency work within scope.

c) Estimated Modification Amount:

d) Contract Type: Firm Fixed Price

e) Purchase Request: PR237573B123

f) Type of Funding: Research and Development

g) Year of Funding: FY 2023/2024

h) Background Information: See section 5 below

i) Current Total Contract Amount:

3. Description of Supplies/Services.

TSA requires a modification to contract number 70T04022C7573N004 to incorporate design improvements and efficiency work to support final design of the prototype to be delivered under this contract.

Contract 70T04022C7573N004 was awarded on September 30, 2022, with a twenty-four-month Period of Performance (PoP) for the design and delivery of a field-deployable HD-AIT wideband upgrade prototype kit from technology that is licensed from Pacific Northwest National Laboratory (PNNL). The sought after hardware and imaging platform must be designed to extend the life of the current AITs that do not accept open architecture algorithms or software, and do not have the imaging capability needed to meet current TSA Detection Standards. This upgrade kit must be capable of addressing emerging threats and future detection requirements and provide next-generation imaging performance to facilitate advanced features on the TSA Open Platform Software (OPS) roadmap (material discrimination, full object viewing, reduced alarm rate, etc.). Designed to maintain the footprint of currently deployed AIT units, the HD-AIT upgrade kit must support rapid field upgrades to reduce deployment costs and disruption to checkpoint screening operations associated with the installation of new security equipment configurations. The upgrade kit must be built specifically to support TSA’s open architecture concepts and be enabled by new/emerging AI-based capabilities. The upgrade kit will also deliver the design for manufacturing and achieve a unit and lifecycle cost acceptable to TSA in order to retrofit the current AIT fleet.

During performance of this contract, improvements and efficiencies to the PNNL technology were identified that would make for a more reliable, maintainable and cost effective design for TSA over time.

This modification will incorporate these identified improvements to the original design, critical to reducing risk associated with meeting the availability Key Performance Parameter (KPP) outlined in the Advanced Imaging Technology 2 Functional Requirements Document v2.8.

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, LDT is the only one responsible source and no other supplier can satisfy the agency requirements. LDT is the only supplier that has licensed with PNNL to build the HD- AIT. The objective of this HD-AIT contract is to fulfill a need to finalize prototype development, to test the prototype, and eventually to test the upgrade kit to be installed in fielded AIT systems.

In 2016, TSA and DHS S&T began work with PNNL to develop the next generation of millimeter wave technology for passenger screening. Working off their previous efforts to design a rotational scanner, PNNL developed a prototype rotational scanner that works on a wider band of mmw radio frequency energy. Utilizing wideband 10 to 40 ghz energy enables the scanner to capture clearer images than the incumbent technology.

After collecting images with this new prototype, TSA used these data to hold an algorithm challenge through the Kaggle corporation. This challenge sought developers who could create machine learning algorithms that would utilize these images to create higher performance in detection and false alarm. The result was the acquisition of eight winning algorithms that have the potential to meet TSA’s latest detection standards.

After the Kaggle contest, PNNL developed the next prototype of wideband technology that incorporates the wideband sensors into the currently fielded Provision 100 systems in TSA’s fleet. This new system, named HD-AIT, was provided to TSL to continue data and image collection. With new sets of data, TSA is working with Sandia National Laboratory to train the Kaggle algorithms and develop the Automated

Threat Recognition (ATR) software for use with the HD-AIT. This ATR utilizes Open Platform Software Library (OPSL) software, which is an open architecture platform that enables third party algorithm developers and user interface designers to contribute to the HD-AIT.

In order to commercialize the development of the HD-AIT, PNNL has licensed the HD-AIT design to LDT for production. TSA seeks to test the HD-AIT technology in conjunction with the Kaggle algorithms in an operational environment to determine suitability for field use. This operational test is a critical step in realizing the HD-AIT enhancements to the AIT fleet. This modification will ensure the prototype kit in the process of being designed will meet TSA’s functional requirements. LDT holds the exclusive license for this technology and is the only responsible source capable of satisfying TSA’s requirements at the level of expertise needed, without extensive additional development work that would be costly and time-consuming to TSA.

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

Currently, LDT in the only company that has the licensed design and architecture of the PNNL technology to meet the hardware needs of the HD-AIT. TSA continues to work with as many industry partners as possible to mature open architecture sensors that are compatible with the HD-AIT architecture.

TSA issued Broad Agency Announcement (BAA) 70T04023BAA7573N001 in May 2023 allowing vendors to submit innovative concepts to provide near term improvement of security capabilities, to include concepts for AIT Wideband Technology. Vendors with other solutions were identified. It is anticipated that a full and open solicitation will be possible when the HD-AIT is procured for fleet upgrades post operational test and acquisition decision.

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 analysis techniques in accordance with FAR 15.404-1 prior to award.

8. Description of Market Research.

There is a current Interagency Agreement (IAA) with the Department of Energy (DOE) PNNL, which in turn have exclusively licensed LDT the HD-AIT technology in March 2020, and LDT remains the sole licensee of the platform instituted by DOE in accordance with 37 C.F.R. Part 404, Licensing of Government Owned Inventions provides terms, conditions, and procedures for the accord of patent licenses, both nonexclusive and exclusive, on DOE-owned patents and patent applications. Because of the unique proprietary nature of the HD-AIT systems frequencies within PNNL, a solely licensed entity of LDT, LDT is the only vendor with the knowledge, expertise, licensing, and authorization to fulfill the stated requirement.

On April 4, 2023, TSA issued a RFI for potential vendors on Sam.gov (TSA25-04-03473) as a market research tool for OPS solutions. TSA received responses from two large businesses, with a wideband solution for AIT.

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.

In accordance with FAR 5.203(a), TSA posted TSA25-04-03872 on August 9, 2023 notice of intent to sole source on www.sam.gov. The notice provided notification of TSA’s intent to sole source and provided other vendors with an opportunity to express interest in the requirement. The notice was open for response for 15 days and TSA did not receive any responses.

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.

The modification to this contract is for development and testing of a prototype. The goal of this work is to refine specifications of the PNNL HD-AIT Wideband upgrade kit. The upgrade kit prototype developed under this contract is limited to developmental and testing purposes and this contract will not be used for the acquisition of HD-AIT wideband upgrade kits to be used for large scale operational deployment. TSA intends to compete any future requirement for HD-AIT wideband upgrade kits for large scale operational deployment.

12. 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.

Date

Contracting Officer

13. 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.

Technical Representative

APPROVAL:

Contracting Officer