Leidos-UPS JEFO Competition Template v3.9 (002)_Rev1_FJC signed_Jm signed.pdf

Justification & Approval for Other Than Full and Open Competition Template v3.9 (Feb 2026)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

(Cite authority, e.g., 10 U.S.C. 3204(a)(7) or 41 U.S.C. 3304(a)(7))

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) 6.103 (FAR Class Deviation 25-111) and in accordance with the requirements of RFO 6.104, the justification for the use of the statutory authority under RFO 6.103 is justified by the following facts and rationale required under RFO 6.104-1 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Office of Acquisition (OA), Information Technology Contracting Division (ITCD) proposes to modify 70B04C24C00000115 pursuant to FAR 6.103-1. The modification, to the initial contract, must be issued on a sole-source basis, as it represents an increase in the total value of a currently awarded sole-source contract, and there is only one responsible source that will satisfy agency requirements, pursuant to FAR 6.103.1.

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

(a) Nature of action.

CBP intends to modify its contract with Leidos for additional UPS equipment and additional support services on a sole source basis.

Additional performance will be incorporated into the contract via bilateral modification, resulting in an increase to the total contract value. The requirement for these additional services stems from a higher-than-expected need for services since the initial contract award. The original contract solicitation and awarded services were based on the Agency's requirements as of September 2024. These services were not included in the original contract and necessitate a contract modification.

(b)

(c) Name and address of the contractor.

Leidos, Inc., 10260 Campus Point Dr San Diego, CA 2121-1522

1 In this document, citations to RFO Parts 6, 10, 15, 25 are citations specifically to FAR Class Deviation 25-11 for FAR Part 6, FAR Class Deviation 25-06 for FAR Part 10, FAR Class Deviation 26-08 R1 for FAR Part 15, and FAR Class Deviation 25-09 R1 for FAR Part 25, which were issued as part of the Revolutionary FAR Overhaul (RFO), implemented in response to Executive Order 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025.

(d) Contract type.

Firm Fixed Price

(e) Estimated total value (including options). Provide breakdown as shown below:

Base Period 9/15/24 to 3/15/25

Option Period 1 3/16/25 to 3/15/26

Option Period 2 3/16/26 to 3/15/27

Option Period 3 3/16/27 to 8/29/27

TEPV

$21,993,054.35 $45,747,519.77 $63,710,767.05 $28,511,191.41 $159,962,532.57

The requested increase in OP2 is $11,952,183.

(f) Type of funding.

Operations and Support (O&S)

(g) Year of funding.

Fiscal Year 2024 (3-year)

(h) Solicitation number.

(a) 70B04C24P20151174

(i) Background information about the requirement.

Leidos provides corrective and preventative maintenance, system enhancements, equipment relocations and technology support services for Non-Intrusive Inspection (NII) and Radiation Detection Equipment (RDE) technology that enables United States Customs and Border Protection to detect contraband (e.g., narcotics and weapons) and materials that pose potential security threats.

3. Description of Supplies/Services.

The Leidos Large Scale (LS) NII and RDE equipment is a part of the CBP Non-Intrusive Inspection (NII) portfolio. This equipment is deployed to CONUS, OCONUS, and mission-related locations to detect illicit materials and radiological threats entering or exiting the United States and OCONUS locations. Leidos is the original equipment manufacturer (OEM) of the LS and SS NII equipment. As such, Leidos is the sole entity capable of performing the installation and sustainment services required for this equipment.

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 6.103-1 (FAR Class Deviation 25-11) entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Identification of Exception to the Buy American Statute

Exceptions to the Buy American Act are inapplicable, as the services and equipment, will be provided in the United States by an American firm.

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

The equipment requiring maintenance consists of 1,452 individual pieces of equipment deployed across CONUS and OCONUS. These systems are comprised of fielded NII equipment designed to detect illicit materials and radiological threats attempting to enter or exit the nation's borders. The systems must operate 24x7x365 to ensure the continuous, safe, and secure movement of people, cargo, mail, and transportation with minimal or no service delays. A lapse in service for the Leidos systems would adversely impact CBP's mission to secure America's borders. Without this equipment functioning properly, the nation's border security would be compromised.

Leidos provides technically complex and high-value inspection and detection equipment systems. These systems are currently utilized by CBP's Integrated Logistics Division (ILD) to assist in securing land border crossings, airports, seaports, rail crossings, mail handling, and express cargo consignment facilities within the United States and participating countries.

Under the proposed contract modification Leidos will continue to supply the necessary parts, maintenance services, and subject matter expertise to fully sustain and transition NII equipment under the NII Program, which is currently operational at CBP's land, sea, air, and rail ports of entry. This support encompasses program management, configuration management, warranty transitions, preventative maintenance, trouble call handling, corrective maintenance, and other requested services.

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

The Government must acquire these services from Leidos on a sole-source basis. As the original equipment manufacturer (OEM), Leidos is uniquely positioned to provide the necessary maintenance services. As the incumbent provider of these services under Contract 70B04C24C00000115, Leidos is also the only responsible source capable of meeting the requirement.

The existence of limited rights in data, patent rights, copyrights, and trade secrets restricts the availability of a subset of the requirement to Leidos. They developed and possess exclusive access to the source code and programming information for their x-ray systems, as well as the newly installed Medium Energy Portal (MEP) and Low Energy Portal (LEP) systems. Their proprietary manuals and maintenance training for this equipment are not commercially available from other vendors. No other vendor has access to Leidos’ proprietary capabilities. The technical data and software for CBP's detection systems are proprietary. The OEM will not sell data rights, maintenance training, technical manuals, drawings, schematics, or specialized tools associated with their equipment. Leidos also does not provide spare parts outside of a maintenance plan.

Without Leidos’ unique capabilities, this equipment could not be maintained or repaired in the field.

(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;

Corrective and preventative maintenance services for CBP's NII equipment portfolio have historically been procured through sole-source awards to the various OEMs. CBP published a Request for Information (RFI) on SAM.gov on November 2, 2020, to ascertain the extent to which small businesses might be capable of handling the maintenance requirements as an integrator. CBP received six responses from industry, four of which were from small businesses. Based on these responses, CBP initially determined that the entire requirement could be competed as a small-business set-aside through the General Services Administration (GSA) Multiple Award Schedule (MAS). It appeared that the interested small businesses possessed the requisite partnerships with current OEMs to support CBP's requirement and satisfy its entirety.

A competitive solicitation was subsequently released on December 22, 2022, for the award of two separate Blanket Purchase Agreements (BPAs) – one for RDE and one for NII LS and SS. Despite this attempt to compete the requirement, the solicitation was ultimately canceled when CBP determined that it would not yield a viable awardee for either BPA. It was discovered that businesses lacked the necessary partnerships with the OEMs, as well as the depth and breadth of experience required to satisfy the entirety of the requirements described in the RFQ.

(c) Summarize alternatives considered and why they will not work; and

CBP's market research and subsequent attempts to compete the requirement have not yielded an alternative to a sole-source contract. CBP reviewed DHS Strategic Sourcing Vehicles, but none were deemed appropriate for this requirement. In April 2022, the DHS Strategic Sourcing Office (SSO) conducted a scope compatibility review of these requirements (RDE and LS NII). It was determined that no current Strategic Sourcing Vehicles are available to meet the needs of these requirements.

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

Non-approval of the requested J&A would adversely affect the ability of agency personnel to fulfill their critical detection and law enforcement responsibilities, thereby impacting the agency's operational mission. Failure to continuously maintain the current fleet of Leidos NII equipment would lead to service disruptions affecting international trade and increasing the threat posed by undetected weapons and other contraband.

(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

The services, equipment, and software described above will be provided in the United States and OCONUS sites by an American firm. Exceptions to the Buy American Act are inapplicable.

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

Sources as is Practicable. Even where the agency has a basis to conduct a noncompetitive procurement, it is still required to request offers from as many potential sources as is practicable under the circumstances. This section should include the following information:

No additional sources have been solicited for a potential contract, considering the unique capabilities of the OEM and the results of past RFI and RFP releases. This justification for the modification will be posted on SAM.gov as soon as practicable.

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

The Contracting Officer determines the anticipated increase in the firm fixed price (FFP) of the existing contract is fair and reasonable, based on actual cost data under the current contract and appropriate escalation for the period of performance occurring in 2025-2026.

9. Description of Market Research.

New market research has not been conducted as Leidos holds Intellectual Property rights over their Large-Scale systems. Modifications cannot be facilitated by a Third-party. Only Leidos can ensure features and capabilities are compatible with existing deployed systems.

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

CBP’s requirement is for the modification of Large-Scale X-ray systems designed by Leidos. If Leidos is not awarded the contract, the new contractor will need to replace existing systems with systems including UPS capabilities. The estimated cost to re-procure and re-install new Large-Scale X-ray systems at the required locations is as follows:

Type Qty Unit Cost Total Cost HE Rail 2 $20,800,000.00 $41,600,000.00 LEPs 6 $14,600,000.00 $87,600,000.00

MEPS 4 $1,500,0000.00 $ 6,000,000.00

Total $135,200,000.00

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

Acquisition.

Leidos was the only source solicited for this requirement. They are the only source that can fully meet the CBP mission requirements due to the proprietary nature of the technology.

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. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service.

Due to the lack of partnerships with Leidos regarding the design of their proprietary systems, other sources will continue to be unable to meet CBP's requirements. CBP will continue to monitor the offerings of NII equipment industry providers, with the objective of identifying feasible ways to remove current barriers to competition without jeopardizing CBP's critical mission.

Completion already exists within CBP, as Leidos is not the only provider of Large Scale NII equipment.

(Remainder of this page left blank intentionally)

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 Date

14. 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 Date

APPROVAL:

Contracting Officer Date

Note: The Contracting Officer is the final approving official when the action does not exceed $900K.

Procuring Activity Advocate for Competition Date

Note: The Procuring Activity Advocate for Competition (PAAC) is the final approving official when the action exceeds $900K but is less than or equal to $20M.

Approval by the PAAC is not required if the J&A is reviewed and approved by an official designated by the Component who is a member of the armed services at the general or flag officer level or a civilian in a grade above the GS-15 (or equivalent) level. However, this exception does not apply to justifications citing that cite RFO 6.103-2 Unusual and Compelling Urgency as the authority.