Justification for Other Than Full and Open Competition LRIT 23-20-PR6002 - GPE_Final.pdf

Table 1. Estimated Total Value

This effort will be funded using fiscal year (FY) 20-25 Operations and Support type appropriated funds on a delivery order basis. The Solicitation Number is 70Z02320RPR600200. This effort was previously awarded to Pole Star through Contract Number HSCG23-15-C-PCI035. Contract Number HSCG23-15-C-PCI035 is expiring on August 31, 2020.

3. Description of Supplies/Services. The requirement is to provide long range identification tracking of flag vessels, in accordance with the IMO agreement. The agreement requires contracting governments to establish a data center to request, collect, receive, and distribute data within the LRIT system. The IMO agreement also requires an Application Service Provider (ASP), whom is authorized to conduct conformance tests and issue conformance test reports on behalf of contracting governments. The LRIT system should be designed to allow USCG access to flag, port, and coastal state information. Along with complying with the IMO agreement, the USCG will utilize tracking data for USCG mission requirements such as Automated Mutual-Assistance Vessel Rescue System (AMVER), Authoritative Vessel Identification Service (AVIS), Nationwide Automatic Identification System (NAIS), Search and Rescue (SAR) and Optical Imagery, Vessel Sanctions and Port State Control Screening, and other associated vessel data requirements.

Therefore, the contractor must provide the following information technology supplies and services: (1) National Data Center (NDC) system with an ASP User Interface (UI); (2) Conformance testing for all U.S. flagged vessels, subject to the IMO agreement; (3) Integration of vessels into the USCG’s LRIT system; (4) Data services, to include position reports, for all vessels subject to the IMO agreement; (5) 24-hour, 7-days a week NDC customer support to vessels and the USCG, to include position transmission failure reporting.

LRIT system/equipment troubleshooting, and a phone number where the U.S. vessel(s) may call; (6) System status messages every thirty (30) minutes between the ASP and NDC to verify component status; (7) A separate pre-production LRIT testing environment to facilitate new or updated system releases and software testing of the NDC and ASP instance, prior to moving them into production; and (8) Management of all receipt and reconciliation of data center to data center data agreements on behalf of the U.S. for foreign flag position purchases. This includes managing and confirming data center to data center data purchasing arrangements with foreign NDCs and contracting governments to enable foreign flag data transfer capabilities and invoicing.

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

Competition. The statutory authority permitting other than full and open competition is 10 U.S.C. § 2304(c)(1) implemented by the FAR Subpart 6.302-1 entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

In accordance with FAR 6.302-1(b)(1)(ii), the USCG has a reasonable basis to conclude that the agency’s minimum needs can only be satisfied by the one source.

5. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited. The proposed contractor’s, Pole Star, unique qualifications as USCG’s current NDC and ASP preclude full and open competition; Pole Star is unique because it has IMO compliant information technology software, currently is the only authorized ASP for the U.S., and provides NDC and ASP services to several other Governments. The LRIT system requires a contractor to have an integrated system that maintains NDC functions, ASP functions, and have the ability to communicate between international data centers. Those functions include having an understanding of the USCG’s international agreement with the IMO.

Due to the fact that Pole Star presently is providing NDC services to other participating Governments, it can obtain data center to data center reports without establishing contracts or agreements with those other Governments’ NDCs. Pole Star has been authorized by the International Mobile Satellite Organization (IMSO), appointed by the U.S. and recognized by the IMO as the NDC and is currently the only authorized ASP for the U.S. per the IMO’s Global Integrated Shipping Information System

(GISIS).

For any other source to perform this requirement would demand considerable start-up cost to include developing an integrated system in compliance with USCG’s IMO agreement, obtaining subject matter experts in IMO regulations to update systems and processes as changes arise. Sources would also have to establish ASP functions to include conformance testing and reporting. Any other source would then have to be authorized and appointed by the IMO as the U.S’s NDC and as one of the U.S.’s ASPs.

The Contracting Officer submitted a request for information to determine if any other source would be capable of fulfilling this requirement. No other source, outside of Pole Star, responded to the request showing that they are capable of fulfilling this requirement. Pole Star’s unique qualifications in the international LRIT market and the absence of any other qualified company is why full and open competition is neither a feasible nor a reasonable course of action for this procurement.

The unique services and supplies delivered through this requirement ensures the U.S. is compliant with the Maritime Transportation Security Act of 2002; any failure to approve this justification for other than full and open competition would result in failure to comply with the Act; and mission critical functions such as SAR and vessel tracking would be more difficult, if not impossible.

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

Potential Sources as is Practicable. This effort was posted on the Department of Homeland Security Acquisition Planning Forecast System (APFS) on September 3, 2019, notifying potential sources that this requirement will be noncompetitive. On February 12, 2020, the Contracting Officer posted a request for information notice on the Contracting Opportunities website; this announcement was posted in effort to ensure that proposals could be solicited from as many potential sources as is practicable. Both efforts resulted in the proposed contractor, Pole Star, being the only source.

As required by 10 U.S.C. 2304(l), this justification shall be made publicly available within fourteen (14) days after contract award and remain posted for a minimum of thirty (30) days.

7. Determination by the Contracting Officer that the Anticipated Cost to the

Government will be Fair and Reasonable. The Contracting Officer determines that the anticipated prices will be fair and reasonable based on historical contracts and prices established by the IMO international agreement, Maritime Safety Committee (MSC) 330 (90). The USCG current Contract Number HSCG23-15-C-PCI035 provides prices that can be compared to proposed prices to ensure fair and reasonable prices. Also, the IMO establishes set prices for reports and services associated with the LRIT system. The latest prices are from MSC.330 (90) adopted on 25 May 2012.

8. Description of Market Research. The USCG used historical contract data, IMO regulations, and industry engagement in its market research efforts. The market research showed that only Pole Star is able to provide the LRIT services and supplies necessary.

The USCG reviewed current and past contract data for terms, possible sources, and pricing.

This information lead to the development of the USCG’s Independent Government Cost Estimate (IGCE) and the determination that only one source can perform this effort. The IMO regulates report and auditing prices, in which contractors must abide by. This allowed the USCG to determine the report pricing and include the pricing in the development of the

IGCE.

On February 12, 2020, the Contracting Officer published a request for information notice, through the Contracting Opportunities website www.beta.sam.gov, requesting capabilities from sources within the commercial market. Concurrently, the USCG sent email notifications, of the request for information notice, to eight (8) known LRIT sources.

Responses were due on February 27, 2020. Four sources responded. European Maritime Safety Agency (ESMA) responded to state they cannot provide any commercial services to the USCG. Deltek and D.G. Shipping of Mumbai didn’t provide meaningful information in their response to determine their capabilities for fulfilling this USCG requirement. Pole Star provided their capabilities in accordance with the request for information. The results of the publication and emails showed that only Pole Star has the capabilities to fulfill this LRIT requirement. No other source responded with its capabilities to perform the LRIT effort.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition. In accordance with MSC.84 (24), the LRIT system consists of the shipborne LRIT information transmitting equipment, the Communication Service Provider(s), the Application Service Provider(s), the LRIT Data Centers, including any related Vessel Monitoring System(s), the LRIT Data Distribution Plan, and the International LRIT Data Exchange. Certain aspects of the performance of the LRIT system are reviewed or audited by an LRIT Coordinator acting on behalf of all contracting governments. Each aspect of the LRIT system is interconnected and requires knowledge of IMO regulations to successfully perform.

Although, functions are unclassified and commercially available it is difficult for sources to obtain knowledgeable employees to compete and deliver the USCG’s needs. Therefore, historical data has shown sources that have entered the market have departed for other contracting opportunities. The proposed source, Pole Star, provides unique qualifications based on years of experience worldwide that eliminates administrative waste and satisfies the USCG’s need.

10. A Listing of the Sources, if Any that Expressed, in Writing, an Interest in the Acquisition. A request for information notice was issued in Contracting Opportunities on February 12, 2020 requesting that parties express their interest in writing to the Contracting Officer. Pole Star, EMSA, Deltek, and D. G. Shipping of Mumbai responded. However, only Pole Star provided enough information that demonstrates their capabilities. EMSA responded to confirm they could not provide services to the USCG. Deltek and D. G.

Shipping of Mumbai did not provide any information to determine their capabilities for fulfilling the requirement.

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 USCG published this requirement on the APFS and on the Contracting Opportunities website without any other source showing interest. No other source, besides Pole Star provided written capabilities in response to the request for information notice. However, prior to the end of the anticipated contract term, the USCG will release another publication seeking sources to overcome any barriers for companies in this highly unique commercial market. Also, the Program Office will regularly check the IMO website for any updates to determine any new sources capable to perform the USCG’s mission requirement.

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