JOTFOC TERMA IDIQ 03-30-2022_Redacted.pdf

TERMA Scanter 2001 RADAR Systems Support Justification and Approval for Other than Full and Open Competition

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104

The resultant IDIQ contract will include a minimum guarantee, which is expected to be satisfied with the award of the initial Task Order on a Firm Fixed Price basis with an estimate value of $233,000. The above estimated total value includes supplies in the amount of $7.7M and services in the amount of $2.2M for the 5 year Ordering Period.

(e) Type of funding: Operating Expense (OE) funding will be utilized

(f) Year of funding: Fiscal Year 2022

(g) Solicitation number: To Be Determined (TBD).

(h) Background information about the requirement: This is a sole-source requirement as TERMA North America, Inc. is the only company who can provide the supplies and services for the Scanter 2001 Radar Systems.

3. Description of Supplies/Services. The requirement is for the following supplies and services limited to the TERMA Scanter 2001 RADAR system:

Purchase and replenish parts inventory in order to provide immediate spare parts delivery for maintenance and equipment casualty response.

Onsite field technical and engineering support services to maintain up to date system configuration.

Telephone and onsite technical/engineering support services to provide technical support for troubleshooting and repair assistance for USCG Tier 1 technicians.

Onsite maintenance and repair services for casualty responses to equipment failures in the field that cannot be remedied through telephone support.

Repair services for RADAR parts that cannot be repaired in the field.

This requirement includes OEM authorized training on maintenance and repair of TERMA Scanter 2001 RADAR system. TERMA, Inc. is the only manufacturer of the Scanter 2001 RADAR system and therefore provides the required continued support of this requirement

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

This requirement is being conducted under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR Subpart 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

5. Identification of Exception to the Buy American Act.

No exceptions of the Buy American Act have been identified for this requirement.

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

The USCG is required to provide vessel traffic services to seven critical ports as required by Ports and Waterways Safety Act of 1972 (PWSA), Title 33 USC §1221. Under this provision the Coast Guard has a statutory responsibility to ensure the safety and environmental protection of U.S. ports and waterways. The PWSA authorizes the Coast Guard to "...establish, operate and maintain vessel traffic services in ports and waterways subject to congestion."

The TERMA Scanter 2001 RADAR system is a $28M sensor system that was deployed in 2001 and is an integral part of the Ports and Waterways Safety System (PAWSS) designed for the Coast Guard by Lockheed Martin. The TERMA Scanter 2001 RADAR equipment uses proprietary software/firmware embedded within the RADAR in order to perform as designed with the rest of PAWSS data inputs.

TERMA North America (TNA) is the only authorized distributor for parts, technical and engineering support services, and OEM authorized training on the TERMA Scanter 2001 RADAR. Substantial duplication of cost to the Government that is not expected to be recovered through competition is estimated at $21.5 million to replace all Scanter 2001 RADAR equipment deployed within the PAWSS system and to configure that radar to perform within PAWSS.

TERMA safeguards all proprietary technical and engineering knowledge concerning the TERMA Scanter 2001 RADAR equipment and its associated software, firmware, and hardware. In addition, they maintain system revision records to ensure compatibility among the different software, firmware, and hardware revisions.

TERMA is the only vendor who can provide telephone and onsite technical/engineering support services information due to proprietary software and firmware rights and their knowledge regarding which component revisions are acceptable for parts interchangeability.

Telephone and onsite technical/engineering support services are not for general RADAR support questions but for specific and in depth questions that require a TERMA technician's/engineer's full knowledge, understanding, and design of the RADAR system in order to answer unique equipment maintenance questions. The goal is to resolve maintenance questions over the phone before requiring onsite technical/engineering support services to resolve maintenance concerns.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable.

Acquisition Planning Forecast System (APFS) Record F2021056287 for this requirement was published on the DHS APFS website. A notice will be publicized at least 15 days prior to the issuance of the solicitation as required by FAR 5.203 at the Government-wide Point of Entry (GPE) to solicit as many potential sources as practicable. In accordance with FAR 6.305(a), the justification will be publicly available within 14 days after contract award at the GPE.

8. 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 the Independent Government Cost Estimate (IGCE) and published Commercial Price Lists as well as the prior acquisition history from the current IDIQ contract. If needed, the Contracting Officer will conduct a cost analysis and request other than certified cost and pricing data in accordance with FAR 15.403-3 to ensure that all prices are deemed fair and reasonable.

9. Description of Market Research.

The Government conducted research to identify any vendors who could provide these particular services, which resulted in negative results. Within this search the Government identified a known vendor, Chugach, who responded by stating they would need to sub-contract the work back to TERMA due to the specialized equipment and tightly held software as well as firmware compatibility of parts with other parts, which would cause for higher costs to the Government. The Contracting Officer received a letter from TERMA as the Sole Distributor for sales and repairs for TERMA Scanter 2001. The Coast Guard has invested in identifying and researching replacement parts for the TERMA radar and found that some parts can be purchased on the open market such as magnetrons and motor controller units. The Coast Guard currently purchases these parts on the open market.

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

TERMA provided a letter to the Government identifying they are the sole authorized distributor for the Scanter 2001 radar due to the proprietary equipment, data rights, as-delivered configuration records, technical expertise, and the fact that TERMA has the only approved repair facility. TERMA does not have any authorized nor factory trained third party dealers, companies, or organizations to support, repair or distribute spares for the Scanter 2001 radar systems.

11. A Listing of the Sources, if Any that Expressed, in Writing, an Interest in the Acquisition.

No other sources have expressed an interest in the proposed acquisition and response to the efforts made while conducting Market Research.

12. 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 C5ISC Command, Control, and Navigation Systems Navigation Branch (C2PL- NAV) and the Command & Control Branch (C2PL-C2B) are engaged with USCG Headquarters and have started identifying and developing operational requirements to allow a replacement RADAR system to be competitively procured. The goal is to merge PAWSS RADAR and cutter forces requirements to acquire a small set of RADAR systems that may be used on multiple platforms to allow for economies of scale and a smaller logistics footprint. At this time, it is expected that this RADAR effort to be completed by 2027.

13. 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.

Contracting Officer

14. 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.

Technical Representative/COR

APPROVAL:

Contracting Officer

Chief of the Contracting Office

Command Procuring Activity Competition Advocate (CPACA)