Justification for LEP PoP Extension__Redacted.pdf

Justification & Approval for Other Than Full and Open Competition Template v3.7 (Oct 2025)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

For contracts or orders above the Simplified Acquisition Threshold (SAT) (41 U.S.C. 3304(a)(1))

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO), Non-Intrusive Inspection (NII) Program, proposes to extend the Period of Performance on multi-award Indefinite Delivery, Indefinite Quantity (IDIQ) Contracts 70B03C21D00000035, 70B03C21D00000036, and 70B03C21D00000037.

All three IDIQ contracts currently end on 09/20/2026, and this extension will extend the Period of Performance from 09/21/2026 to 03/31/2027.

2. Nature and/or Description of the Action being Approved.

(a) Nature of action CBP Non-Intrusive Inspection (NII) proposes extending the Period of Performance of the existing Low-Energy Portal (LEP) Systems IDIQs for an additional six months and 10 days beyond the current expiration date (09/20/2026). This extension is necessary to address urgent national security requirements and ensure uninterrupted deployment and operation of critical inspection systems at Ports of Entry (POEs) while the new competitive procurement vehicle is finalized and awarded.

(b) Name and address of the contractors.

Contract Number Contractor Address

70B03C21D00000035 Astrophysics Inc. 31481 Ferrero Pky, City of Industry, CA 91789

70B03C21D00000036 Leidos Inc. 1750 Presidents St, Reston, VA 20190

70B03C21D00000037 Rapiscan Systems Inc. 2805 Columbia St, Torrance, CA 90503

(c) Contract type Firm Fixed Price and T&M.

(d) Estimated total value Combined Ceiling for all three IDIQ Contracts: $468,000,000

Period Total Ceiling Extension: 09/21/2026 – 03/31/2027 remains unchanged at $468,000,000.00 were necessary because the follow-on requirement had to account for expanded WFTC Act deployment timelines, additional sites, evolving integration requirements, and lessons learned from performance under the current IDIQs.

The additional review and refinement were required to ensure that the recompete package would support full and open competition, provide offerors with clear and complete requirements, and reduce the risk of ambiguity, protest, or post-award performance issues. The package was resubmitted to the Contracting Officer on July 15, 2026, following completion of the AMD review. However, given the remaining steps required to complete procurement review, finalize and issue the solicitation, allow adequate proposal preparation time, evaluate proposals, conduct any discussions if necessary, make award decisions, address any required approvals, and account for potential protest risk, CBP cannot reasonably complete the competitive procurement and begin issuing new task orders under the follow-on vehicle before the current IDIQs expire on September 20, 2026.

CBP was aware of the expiration of the current IDIQ on February 28, 2026. Prior to the introduction of WFTC Act requirements, NII could have allowed for a brief gap between the end of the current contract and the start of the new one, which was expected to be in place by the first quarter in Fiscal Year 2027. This gap was tolerable due to task orders being placed under the IDIQs which had periods of performance extending beyond those of the IDIQs. However, due to the requirement that WFTC funding be executed by the end of FY27, CBP cannot afford to wait for the new IDIQ to be fully established. New requirements for LEP x-ray systems have emerged, which are within the scope of the current IDIQ but outside of scope of existing Task Orders. This situation requires the issuance of new Task Orders under the current IDIQ. To facilitate this, the current IDIQ must be extended.

Immediate action is necessary to ensure timely procurement and deployment of LEP x-ray systems, and CBP must begin placing orders as soon as possible to comply with the statutory deadline.

CBP will place additional Task Orders under the existing IDIQ once this extension is approved and finalized. The extension will allow CBP to meet the deployment goal set forth in the WFTC Act, which requires full operational capability by the statutory deadline.

3. Description of Supplies/Services.

CBP has an ongoing operational need to inspect vehicles for illegal contraband, including narcotics and terrorist weapons. Due to the high volume of vehicles passing through U.S.

POE, a system allowing drivers to operate their vehicles through non-intrusive inspection (NII) X-ray systems significantly enhances the efficiency of scanning operations.

The purpose of the LEP systems is to enable CBP to conduct effective and efficient non-intrusive inspections of conveyances, including occupied passenger vehicles, for contraband such as illicit drugs, terrorist weapons, and currency. These systems are utilized to inspect smaller vehicles, including cars and other light vehicles. Each system delivers NII imaging with the required quality and performance characteristics to assist CBP personnel in identifying anomalies and potential contraband within the conveyance.

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 FAR Subpart 6.103-1(b), entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

The authority set forth in FAR 6.103-1 permits the use of restricted competition for the development and production of major systems or highly specialized equipment. LEP systems constitute major systems and/or highly specialized equipment within the meaning of FAR 6.103-1(c)(2) because they involve complex, site-specific x-ray inspection technology, integration with port infrastructure, civil works coordination, operational testing, training, and mission-critical deployment at POEs. The proposed extension is a follow-on action for the continued production, integration, installation, and deployment of these LEP systems.

This authority is applicable and essential for several critical reasons. The extension of these IDIQ contracts is paramount to ensuring the continuity of operations for vital CBP programs.

Without this extension, there is a significant risk of operational disruption, which could severely impact national security and legislative mandates.

The three incumbent contractors – Astrophysics, Leidos, and Rapiscan are uniquely positioned to meet the program's immediate needs. They are the original installers of the existing LEP systems at various designated ports. This historical involvement has provided them with unique expertise, proprietary knowledge, and established relationships with port points of contact. These factors make them the only responsible sources currently capable of efficiently and effectively fulfilling CBP's needs as opening this short bridge requirement to full and open competition at this time, rather than extending the existing IDIQs while the competitive follow-on procurement is completed, would result in unacceptable delays in fulfilling CBP’s requirements. A new vendor would need time to understand the site-specific designs, existing infrastructure, proprietary system configurations, port operating constraints, safety and training requirements, and ongoing construction schedules before performance could begin. Those delays would prevent CBP from timely issuing new task orders needed to meet CBP’s current operational and legislative requirements. within the required timeframe.

Transitioning to new contractors without this extension would incur substantial risks and costs, including:

System Integration Challenges: New contractors would require significant time and resources to understand and integrate with the existing complex LEP systems, leading to potential compatibility issues and operational downtime.

Construction Activity Disruptions: Ongoing construction and system installation activities would face delays and potential rework, increasing project timelines and costs.

Unnecessary Delays and Disruptions: Any interruption in service or transition period could compromise mission-critical operations, particularly those related to national security.

Furthermore, the need for this extension has been exacerbated by unprecedented operational expansion mandated by 2025 Executive Orders. Specifically, the following Executive Orders have significantly increased operational demands and timelines:

1. Executive Order 14159: "Protecting the American People Against Invasion" (January 20, 2025)

2. Executive Order 14160: "Declaring a National Emergency at the Southern

Border" (January 20, 2025)

3. Executive Order 14161: "Ending 'Catch and Release'" (January 21, 2025)

These mandates, in addition to the provisions set out in the WFTC, have created a need for sustained operational capacity, which the current contractors are uniquely equipped to provide. The proposed six month and 10-day extension will serve as a crucial bridge, allowing the Department of Homeland Security (DHS) to maintain critical operations while a new competitive procurement process is completed. This extension is vital to mitigate the potential operational and financial injury that would inevitably arise from the expiration of these three IDIQ contracts, thereby safeguarding national security and ensuring compliance with legislative directives without interruption.

5. Identification of Exception to the Buy American Statute (Section is required to be completed when the J&A includes the exception listed under RFO 25.103(b)(2) or RFO 25.202(a)(2)).

Identify the nonavailability exception listed under RFO 25.103(b) or RFO 25.202(a)(2).

No exception to the Buy American Statute is being requested for this justification and approval (J&A). The requirement complies with the Buy American Statute and does not involve the exceptions listed under RFO 25.103(b)(2) or RFO 25.202(a)(2).

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

(a) Rationale for using the authority cited in section 4 of the J&A;

The proposed use of the statutory authority 41 U.S.C. 3304(a)(1), implemented by FAR Subpart 6.103-1(b), entitled "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements," is necessitated by both the unique qualifications of the incumbent contractors and the critical nature of the acquisition.

The need for this limited extension is not the result of a lack of advance planning. CBP began preparing for the follow-on LEP IDIQ before expiration of the current contracts and has continued to pursue a competitive procurement. However, during acquisition planning, CBP had to incorporate significant changes to the requirement, including the WFTC Act funding execution and deployment timelines, additional system quantities and locations, evolving site-specific integration needs, and a revised phased/milestone approach to ordering and performance. These changes required additional programmatic, technical, and acquisition review to ensure the competitive solicitation accurately reflects CBP’s minimum needs and can support full and open competition.

This extension is required for the continued installation of LEP systems to support established NII operations at designated ports of entry. All three contractors possess extensive experience operating within port environments, including a demonstrated understanding of the unique construction challenges, operational constraints, and regulatory requirements inherent to these locations. This familiarity ensures each Contractor can efficiently address unforeseen issues that may arise during the installation and upgrade process, thereby minimizing risk to project execution.

Additionally, each Contractor has established strong working relationships with key port personnel and points of contact, which are critical for effective coordination and execution of the required tasks. These relationships facilitate rapid problem-solving and streamlined communication, both of which are essential for maintaining operational continuity during construction activities.

CBP has agreed to install additional systems at these Ports of Entry under the provisions set out in the WFTC Act. To maximize efficiency and cost savings, CBP seeks to utilize the six month and 10-day extension to place more Task Orders for installations concurrently with ongoing construction activities at a multitude of sites within the existing ceiling. Each contractor is currently engaged at these ports and fully integrated into the existing operational environment. Engaging a new contractor at this juncture would necessitate a substantial transfer of institutional knowledge, establishment of new working relationships, and familiarization with the port environment and existing systems. This would result in significant delays, increased costs, and heightened risk to the successful and timely completion of the various projects.

No other contractor possesses the unique combination of qualifications, proprietary knowledge of the existing systems, and established relationships with port personnel required to fulfill the agency’s requirements within the required timeline. Attempting to compete this requirement would jeopardize CBP’s ability to meet critical operational and legislative deadlines and could disrupt ongoing port operations.

For these reasons, Astrophysics, Rapiscan, and Leidos are the only responsible sources capable of meeting the agency’s requirements efficiently and effectively. At this time, full and open competition is not feasible for this procurement, as no other contractor can provide the necessary NII LEP systems and associated services without compromising national security, operational continuity, schedule, or cost.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition;

that would negatively impact operational readiness and mission objectives. The NII requirements are time-sensitive and critical to maintaining national security and operational continuity.

Under the WFTC Act, CBP is required to procure a set number of systems by FY27 and have them deployed by FY28. CBP is working on a new IDIQ contract; however, a competitive procurement will require additional time. While CBP works on this new procurement, extending the period of performance on the current contract would enable CBP to begin procuring systems that must be deployed by 2028. If the process does not begin now, it will be impossible to meet this statutory requirement. The timeline mandated by the Act further underscores the urgency and necessity of proceeding without delay.

After evaluating this alternative, it was determined that it would not adequately meet the agency’s current requirements without introducing significant risks, delays, or additional costs. The incumbent contractors are the only responsible sources capable of fulfilling the requirement efficiently and effectively within the required timeline.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

Failure to approve the J&A and consequently procure the required LEP systems would significantly hinder CBP's ability to perform effective and efficient non-intrusive inspections of conveyances, including passenger cars and other light vehicles, for contraband such as illicit drugs, terrorist weapons, and currency. This would directly impact CBP’s operational readiness and its ability to secure U.S. Ports of Entry (POE) against threats.

The inability to meet the required timeline for system deployments would compromise the agency’s mission to safeguard national security and public safety, while also increasing the likelihood of operational disruptions and inefficiencies at critical POE locations.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quantity (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

N/A.

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

(a) If an announcement has already been made in SAM.gov, provide the date of publication;

The original IDIQ contract was competitively awarded on September 21, 2021, to three vendors—Leidos, Rapiscan, and Astrophysics—using full and open competition. No additional announcements were made in SAM.gov.

(b) If an announcement is being planned for posting in SAM.gov, provide the estimated date of publication.

No new announcement is planned for publication in SAM.gov for this Period of Performance extension.

(c) If an announcement will be published, identify the applicable exception under FAR 5.302.

An exception to publicizing this requirement applies under FAR 5.302(b)(3), which exempts actions under an existing indefinite-delivery contract that was previously awarded through full and open competition. The original IDIQ contract was publicly announced and competed, ensuring that offers were solicited from as many potential sources as practicable at that time.

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

The pricing structure established under the IDIQ contract was determined to be fair and reasonable.

9. Description of Market Research.

(a) Describe the market research techniques utilized, the specific results of the market research, the date when the market research was conducted, and how the market research was used by the contracting officer to determine price reasonableness.

The CBP NII Program Management Office conducted extensive market research to determine the IDIQ award in accordance with FAR Part 10. The techniques utilized included:

Internet Research: CBP conducted searches to identify vendors capable of delivering LEP systems that meet agency requirements.

Historical Contract Data: CBP reviewed past contract awards for similar systems, including the LEP and Multi-Energy Portal (MEP) systems, to develop an Independent Government Cost Estimate (IGCE).

On September 10th 2018, CBP hosted a pre-solicitation conference to engage industry to ask questions and voice concerns regarding the Draft Request for Proposal (RFP) for the P3S SYSTEM and the eventual IDIQ contract. Fourteen Vendors attended the meeting, and of the 14, 9 attended Post Industry Day exchanges which were held on September 10-12th, 2018.

CBP conducted a follow-up market research survey and Technology Demonstration in April 2020 of current LEP systems available. There were five vendors identified, three large businesses: Rapiscan, Leidos, and Smiths Detection, and two small businesses: Viken and Astrophysics.

The results of the market research revealed that while no vendor solution met all requirements as-is, reputable firms could deliver production-ready systems with modifications. CBP identified three viable vendors (Leidos, Rapiscan, and Astrophysics) capable of fulfilling the requirements, and the initial IDIQ contract was competitively awarded to these vendors on September 21, 2021. The systems procured under the original IDIQ, as a result of this market research, have met the functional requirements of CBP. Therefore, the findings and conclusions of the original market research remain valid.

(b) Describe the market research results that support the determination that the items are non-available (Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

This section is not applicable, as the procurement complies with the Buy American statute and no exception under FAR 25.103(b)(2) or FAR 25.202(a)(2) is being requested. Market research has confirmed that sufficient domestic sources are available to meet CBP’s requirements.

(c) If market research was not conducted, a reason for its absence must be cited here.

Not applicable, as extensive Market Research was conducted to support this acquisition.

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

Not Applicable. The acquisition does not involve patented or copyrighted products, and no intellectual property restrictions limit competition or the ability to modify the systems to meet CBP’s requirements.

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

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

The legacy LEP IDIQ contracts were competitively awarded on September 21, 2021, to three vendors: Leidos, Rapiscan, and Astrophysics. The technical data packages and specifications for the LEP systems were developed in collaboration with these vendors as part of the IDIQ contract. Due to above specified collaboration with the selected vendors, the technical data and specifications are specific to the awarded contractors and cannot be used to solicit offers from other vendors without breaching the terms of the IDIQ or incurring significant risks to operational continuity.

(b) Discuss why your requirement cannot be modified to enhance competition.

The requirement cannot be modified to enhance competition, as the IDIQ was competitively awarded using full and open competition to ensure that all qualified vendors had an opportunity to participate. Under the IDIQ structure, delivery orders are issued to the awarded contractors in accordance with Fair Opportunity procedures.

Modifying the requirement to allow for competition outside the IDIQ would violate the terms of the contract and undermine the procurement strategy established to meet CBP’s long-term operational needs.

CBP remains committed to maximizing competition in future procurements. Market Research and recent RFI results indicate that the existing IDIQ contract holders remain the primary vendors in this LEP X-ray systems space. Therefore, we do not anticipate any concerns from the vendor community regarding the extension of the current IDIQ period of performance. Additionally, CBP is actively working on the new requirement package for the recompete IDIQ procurement of LEP systems, which will be solicited and awarded using full and open competition. However, the anticipated award date for the new LEP IDIQ contracts is not expected until January of 2027. In the interim, the six month and 10-day extension is critical for ensuring CBP can procure the required LEP systems now and meet the funding and deployment timelines established under the WFTC Act. This approach enables CBP to maintain operational continuity and fulfill mission objectives while preparing for enhanced competition in future acquisitions.

(c) For a proposed contract subject to the restrictions of FAR 6.103 (FAR Class Deviation 25-11) for follow-on acquisitions as described in 6.103-1(c)(2)(i) (FAR Class Deviation 25-11), all Components must provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived.

Transitioning to a new contractor outside of the already established contracts would result in significant duplicated costs. These costs include:

Re-engineering Costs: Developing new systems to meet CBP’s specifications, estimated at $10–15 million per system based on prior acquisition history.

Integration Costs: Re-integrating new systems with existing infrastructure at POEs, estimated at $5 million per location.

Training Costs: Retraining CBP personnel to operate and maintain new systems, estimated at $2 million.

Operational Downtime: Delays in deployment and operational readiness, resulting in potential mission impacts and increased risks at POEs.

These estimates are based on historical data from similar acquisitions and the costs associated with transitioning to a new contractor. By extending the current IDIQ’s by six months and 10 days, CBP avoids these duplicated costs and ensures continuity of operations.

(d) For a proposed contract subject to the restrictions of FAR 6.103-2(c) (FAR Class Deviation 25-11) or HSAR 3006.103-2(c)(70) (HSAR Class Deviation 25-01) and where

FAR 6.103-2 (FAR Class Deviation 25-11) is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation.

This acquisition is not subject to the restrictions of FAR 6.103-2(c) (FAR Class Deviation 25-11) or HSAR 3006.103-2(c)(70) (HSAR Class Deviation 25-01) for unusual and compelling urgency.

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

Not Applicable. The three IDIQ’s were competitively awarded on September 21, 2021, to three vendors: Leidos, Rapiscan, and Astrophysics. As this extension falls under the scope of the existing IDIQ, no additional sources were solicited or requested to express interest in writing.

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 LEP IDIQ contracts were competitively awarded on September 21, 2021, to three vendors: Leidos, Rapiscan, and Astrophysics. The IDIQ structure is designed to promote competition among the awardees for subsequent delivery orders under Fair Opportunity procedures, ensuring that barriers to competition are minimized within the scope of the IDIQ.

CBP is already taking steps to remove or reduce barriers to competition for the follow-on LEP IDIQ. These steps include conducting updated industry engagement, reviewing and refining the requirements package, incorporating a phased/milestone-based approach to improve clarity and performance accountability, reassessing technical specifications to avoid unnecessary restrictions, and evaluating whether additional data rights or technical documentation may enhance future competition.

For future acquisitions beyond the scope of the current IDIQ, CBP will take the following actions to increase competition:

Market Research: CBP will conduct updated market research to identify additional vendors capable of meeting the agency’s requirements for LEP systems, including assessing emerging technologies and solutions that may expand the pool of qualified sources.

Specification Review: CBP will review and revise overly technical specifications, if applicable, to ensure that requirements are not unnecessarily restrictive and allow for broader vendor participation.