Justification Approval for Other Than Full and Open Competition_FS_080521 Final_V7PJK8262021Redacted_AS_signed.pdf

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

Office of the Chief Procurement Officer Version 3.2

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c)(1) J and A Approval No. FY 21-00249

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 Department of Homeland Security, Office of

Procurement Operations (OPO), Science and Technology Acquisitions Division (STAD) prepared this justification to enter into a contract on a basis other than full and open competition.

2. Nature and/or Description of the Action being Approved. Pursuant to the 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, DHS/OPO/STAD intends to award a Purchase Order for the procurement of a Technology Subscription Service from Frost and Sullivan by restricting the consideration to items peculiar to one source. DHS/OPO/STAD intends to award a Firm-Fixed-Price (FFP) Purchase Order for the acquisition of a technology subscription service access to Frost and Sullivan Research Databases, Subject Matter Experts, and consulting services for a period of 12 months.

Period Unit Price Total

Base Year 12 mos. $258,000

$265,740

Optional Subscription for up to 5 additional licenses

$212,592

Total $478,332

DHS S&T currently has a contract with Frost and Sullivan 70RSAT20P0000029 for 12 months with a period of performance beginning 15 September 2020 ending 14 September 2021.

3. Description of Supplies/Services.

The U.S. Department of Homeland Security (DHS) is committed to using cutting-edge technologies and scientific talent in its quest to make America safer. The DHS Science and Technology Directorate (DHS S&T) is tasked with researching and organizing the scientific, U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition engineering, and technological resources of the United States and leveraging these existing resources into technological tools to help protect the homeland. Technology Scouting supports this effort.

Technology Scouting provides mission critical technology scouting services to the entire DHS enterprise. By thoroughly scanning industry, academia, and the startup ecosystem for existing Commercial Off The Shelf (COTS)/Government Off The Shelf (GOTS) solutions, Technology Scouting helps reduce Research and Development (R&D) redundancy, finds ways to modify existing solutions to meet full requirements, and inform program managers as they make critical investment decisions.

In order to enhance DHS’s scouting services to the DHS enterprise, Technology Scouting is seeking to leverage Frost and Sullivan which is uniquely positioned, to provide the specific scope of services to accomplish:

o Access to market research informed by employees strategically located in multiple countries. Frost and Sullivan has offices in over 60 countries around the world to gather real time market information across all technology areas of interest to the Homeland Security Enterprise.

o Ad-hoc research and reports on trends, forecasts, market analysis, technical insights, and best practices research. Frost and Sullivan provides unlimited support for questions on information provided from its global industry experts that no other subscription service provider can provide on the same breadth of market areas.

o Access to analysts and Subject Matter Experts (SMEs) in the 7 market areas of:

o Aerospace and Defense o Cybersecurity, o Electronics and Sensors o Energy o Information and Communications technologies o Personal Protective Equipment o Visionary Science

Frost and Sullivan provides 200 hours of consultation time with their analysts and SME’s that can help with conducting research and producing DHS focused market research deliverables without additional cost.

The anticipated period of performance is 12 months from the date of contract award.

The estimated value for this Firm Fixed Price task order is the Not-to-Exceed (NTE) amount of $478,332.

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

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

OPO intends to procure on a sole source basis as the only responsible source and no other supplies or services will satisfy agency requirements capable of delivering the subscription services, Frost and Sullivan. Therefore, the below information regarding the sole source justification as the only responsible source and no other supplies and services will satisfy agency requirements capable of delivering the subscription services is provided as required by FAR 6.302-1. The exception for this sole source purchase is based on FAR 6.302-1, only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Frost and Sullivan provides DHS S&T with a holistic 360-degree perspective of global markets and industries through access to hundreds of growth opportunity research deliverables. For the past 60 years, Frost & Sullivan has partnered with corporations, cities, governments, and the investor communities to identify, prioritize, and execute on new business opportunities powering clients such as DHS S&T toward a future shaped by growth. Frost and Sullivan has a sizable research body of knowledge available spanning 10 industries, 35 sectors and 300 markets to help navigate economic changes, industry convergence, disruptive technologies and transformative business models by creating a continuous flow of growth opportunities with innovative go-to-market strategies and proven implementation best practices. This data is not available through any other means at a reasonable cost. In addition, the Frost and Sullivan’s growth pipeline and similar propriety products based on their research are immensely valuable to S&T.

In April 2020, DHS S&T issued a full and open request for proposal (RFP) for technology scouting subscription database research service and Frost and Sullivan was the only company that responded to the RFP. As such, at the recommendation of the contracting officer, DHS S&T seeks a sole source procurement.

Market research has indicated that the subscription provided by the vendor pull from a unique data set different from any other vendor’s offerings, and that there is no feasible way to insert competition into the fulfillment of this specific requirement because the other research- based vendors’ datasets are unique to their more focused offering in other fields.

5. Identification of Exception to the Buy American Statute

N/A

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The Contracting Officer’s Representative performed market research and determined that the combination of technical, industry and federal expertise makes Frost and Sullivan the sole option available to support Tech Scouting in the time and manner required.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

There are other companies that provide a technology subscription service similar to Frost and Sullivan. What differentiates Frost and Sullivan’s Subscription service and makes it unique and the only source is that Frost and Sullivan is the only company that has global subject matter experts in the 7 market areas that are directly linked to Homeland Security Enterprise (HSE) needs that entail gaps and requirements that have not previously been met:

o Aerospace and Defense o Cybersecurity o Electronics and Sensors o Energy o Information and Communication Technologies o Personal protective equipment o Visionary Science

Additionally, Frost and Sullivan integrates seven unique perspectives into the factors that impact every industry that include Monitoring and Analyzing Competitive Intensity, Customer Dynamics, Industry Convergence, Disruptive Technologies, Global Mega Trends, New Business Models, and Emerging Markets. This composite view of the market coupled with comprehensive industry coverage and “on the ground” analysis in over 60 countries and virtually every region of the world is a service unique to Frost and Sullivan.

Lastly, Frost and Sullivan provides consultation by way of “ research as a service” which allows DHS S&T to leverage a team of Frost and Sullivan research analysts that can help with conducting research and producing deliverables that will reduce cost and improve efficiency to technology scouting efforts.

By thoroughly scanning industry, academia, and the startup ecosystem for existing COTS/GOTS solutions, Frost and Sullivan’s subject matter expertise in the 7 market areas linked to the HSE needs, composite view of the market area, and research as a service capability; helps Tech Scouting achieve the following:

• Reduce R&D redundancy

• Find ways to modify existing solutions to meet full requirements, and

• Inform program managers as they make critical investment decisions.

Though DHS S&T utilizes other subscription services to aid in conducting technology scouting market research, there are no other vendors in the marketplace that are capable of immediately applying the expertise that Frost and Sullivan can provide across the broader current global marketplace specifically in the research areas of Aerospace and Defense, Cybersecurity, Electronics and Sensors. Energy, Information and Communications technologies, Personal Protective Equipment, and Visionary Science. This is another aspect of the Technology Scouting Subscription Services offered by Frost and Sullivan which makes it especially unique and differentiates it from other companies offering technology scouting subscription services.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

There are multiple large vendors in the marketplace who have spent the last 10-20 years acquiring smaller vendors to consolidate their databases of trends and surveys to expand upon their offerings. The nature of the requirement is that a small business with its comparably small catalogue of knowledge products would not be able to deliver the value needed by S&T. The specific value that S&T needs which cannot be provided by a small business, which Frost and Sullivan can provide is its unique ability to provide subject matter expertise from a large pool of globally located experts in the 7 market areas aligned to the HSE. This ability, along with their “research as a service” capability, allows DHS S&T to leverage a team of Frost and Sullivan research analysts that can help S&T’s Technology Scouting office with conducting research and producing deliverables that will reduce cost and improve efficiency to technology scouting efforts.

The emerging large vendors each have a sourced vehicle available to government procurement which are maintained by some government entity. While their relationship is formally that of competitors, they differentiate in the kinds of information housed in their database which ultimately makes them complimentary products rather than substitutes.

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

Efforts will be made to ensure that offers are solicited from as many potential sources as possible. A combined synopsis/solicitation will be posted to SAM.gov on or around August 25, 2021 that the Department of Homeland Security Office of Procurement Operations intends to award a sole source fixed price purchase order to Frost and Sullivan, Inc. for a Technology Scouting Subscription Service will be posted in SAM.gov on around August 25, 2021

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

As detailed in the Frost and Sullivan Independent Government Cost Estimate (IGCE), The annual subscription rates required to perform these services are considered to be fair and reasonable. The pricing provided by the vendor is consistent with the previous contact award

70RSAT20P0000029.

9. Description of Market Research.

In April 2020, DHS S&T issued a full and open request for proposal (RFP) for technology scouting database research service and Frost and Sullivan was the only company that responded to the RFP. As such, at the recommendation of the contracting officer, DHS S&T seeks a sole source procurement with Frost and Sullivan.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

DHS S&T Tech Scouting does utilize other research database subscription services as additional streams of market research tools that aids DHS Technology Scouting in conducting more thorough technology scouting efforts, however, in pursuing this market research, S&T Technology Scouting reviewed previous market research, attended the Consumer Electronics Show (CES) 2021, used web searches, and spoke to federal and private-sector subject matter experts. CES is the considered to be the premier electronics technology showcase in the world. CES 2021 had over 83,000 qualified industry attendees from 167 countries, almost 2,000 exhibitors and 700 startups While the marketplace for Tech Scouting subscription tools is abundant, after comprehensive reviews, the resulting finding is that there are a few main vendors which perform the general requirement being sought. Other potential providers lack the proper volume of collected knowledge products required for S&T being able to fulfill its mission of delivering technology solutions created in accordance with; emerging technology trends, interoperable with others being developed elsewhere in industry, and will have the greatest success in implementation, commercialization, and adoption.

The vendors are not perfect substitutes for one another as they each present unique offerings which provide a broader understanding of trends when utilized side by side rather than one being awarded in place of the other. Additional procurement is in the works to also acquire access to some of those databases.

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

Market research has indicated that that the subscription provided by Frost and Sullivan pulls from a unique data set different from any other vendor’s offerings, and that there is no feasible way to insert competition into the fulfillment of this specific requirement because the other research - based vendors’ datasets are unique to their offerings in other fields.

In April 2020, DHS S&T issued a full and open request for proposal (RFP) for technology scouting subscription database research service and Frost and Sullivan was the only company that responded to the RFP. As such, at the recommendation of the contracting officer, DHS S&T seeks a sole source procurement.

There are no other vendors in the marketplace that are capable of immediately applying the expertise that Frost and Sullivan can provide in the current global marketplace, specifically in the research areas of Aerospace and Defense, Cybersecurity, Electronics and Sensors.

Energy, Information and Communications technologies, Personal Protective Equipment, and Visionary Science.

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.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

Prior to issuing any subsequent contracts, Market Research will be conducted to monitor the environment at that time to determine if similar subscription services exist to meet S&T needs.

If another subscription service is developed, then S&T will evaluate to decide if a competitive procurement is warranted.

(Remainder of this page left blank intentionally)

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

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.

Sharon Flowers Contracting Officer Date

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.

Andrea Stevens Technical Representative

APPROVAL:

Date

Sharon Flowers Contracting Officer

Date