SAM. GOV J_A OEM EOS IDIQ revised FINAL.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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) 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 (DHS), U.S. Customs and Border Protection (CBP), Enterprise Services, Office of Information and Technology, Office of Enterprise Infrastructure and Operations Directorate (EIOD), and the Office of Acquisition Procurement Directorate (PD) prepared this Justification and Approval for Other than Full and Open Competition.

2. Nature and/or description of the action being approved.

The Integrated Logistics Branch (ILB) within EIOD has a requirement to increase the scope of the contract and bilaterally incorporate FAR Part 52.217-8 Option to Extend Services (OES) to procure maintenance support and on-demand services.

American Science & Engineering, Inc. (AS&E) (70B04C18D00000016) 829 Middlesex Turnpike Billerica MA 01821-3907

Smiths Detection, Inc. (70B04C18D00000018) 2202 Lakeside Blvd.

Edgewood MD 21040-1102

Varex Imaging Corporation (70B04C18D00000017) 6883 Spencer Street Suite LV5 Las Vegas NV 89119-4601

As a result of this action, each indefinite-delivery, indefinite-quantity (IDIQ) ceiling will be increased from:

AS&E: From: $140,287,474.45 By: $21,941,016.10 to a new ceiling value of $162,228,490.55

Smiths Detection: From: $65,790,225.00 By: $23,570,820.30 to a new ceiling value of $89,361,045.30

Varex Imaging: From: $22,432,711.91 By: $1,989,101.23 to a new ceiling value of $24,421,821.14

The total increase in value across all three (3) IDIQs is $47,500,937.63.

Each IDIQ period of performance will be extended from July 1, 2023 to December 31, 2023 if all option periods are exercised.

3. Description of Supplies/Services.

ILB has a requirement to procure maintenance support and on-demand services in support of existing Large Scale NII security technology equipment.

The Large Scale NII equipment is comprised of fielded, specific NII Gamma Imaging/X-ray equipment. The services include scheduled preventive and corrective maintenance, as well as other on-demand services that may be needed throughout the term of this contract, such as relocations, engineering, installation, disposal, and other activities that are peculiar to the equipment or may be required on short notice. An example of one such requirement will be the requirement to add the capability for relocation of X-ray equipment or branding of vehicles.

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 6.302-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

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

The equipment to be maintained (1,322 individual pieces of equipment deployed, both CONUS and OCONUS) used under CBP/ILB enterprise is comprised of fielded, specific Non-Intrusive Inspection (NII) Gamma Imaging/X-ray equipment. These systems detect illicit material as well as radiological threats that are attempting to enter or exit the borders.

The systems must be operational 24x7x365 to ensure people, cargo, mail, and transportation continue to move safely and securely with minimal or no delays in service. A lapse in services to these vendors will adversely impact the mission of CBP, keeping America safe.

Without this equipment deployed and functional, the nation's border security would be compromised.

The OEM vendors provide technically complex and high-value inspection, detection, and surveillance equipment systems, currently being used by CBP/ILB to assist in securing the land border crossings, airports, seaports, rail crossings, mail handling, and express cargo consignment facilities within the United States and participating countries. Under this requirement, the contractor will continue to provide the necessary supplies, parts, maintenance services, and subject matter expertise to fully sustain and transition Non- Intrusive Inspection (NII) equipment under the NII Program, currently operational at CBP land, sea, air, and rail ports of entry. The location of this support is required at the continental United States (CONUS) and outside continental United States (OCONUS) CBP locations and includes, at a minimum, program management, configuration management, warranty transitions, preventative maintenance, trouble call handling, corrective maintenance, and other requested services. Other requested services shall include engineering, site surveys, parts provisioning, retrofits, relocations, corrosion control, source change outs, disposal, maintenance training, operator refresher training, special event support, and emergency services on a case-by- case basis. In addition, the contractor may be required as on-demand services to repair damage resulting from accidents, incidents, natural disasters, and weather events, regardless of warranty status.

In June 2022, Enterprise Infrastructure Operations Directorate began the acquisition process to procure the requested services from a small business based on market research results. The Request for Quote (RFQ) was released on December 22, 2022. However, an appeal of the North American Industry Code Standard (NAICS) code designated in the solicitation was filed with the U.S. Small Business Administration (SBA), Office of Hearings and Appeals (OHA) on February 8, 2023. Initial offers were due on February 10, 2023. OHA allowed any person with general interest raised by the appeal to provide a response until February 24, 2023. A decision was reached on March 23, 2023, denying the appeal. For additional information, please see a copy of the Notice and Order from OHA, Docket No. NAICS- 2023-02-08-155 (February 9, 2023). As a result of the protest, the anticipated award date of these requirements (RDE and LS NII) is August 2023.

The Government anticipated the incorporation of the additional equipment (increase in scope) on the new Blanket Purchase Agreements (BPA) for the Large Scale (LS) Non- Intrusive Inspection (NII) and Radiation Detection Equipment (RDE). However, due to the delay in the award, the Government must incorporate it, at this time, under this contract to ensure the requested services are covered.

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

The current requirement is being competed as a small business set-aside.

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

The Contracting Officer will determine that the anticipated price will be fair and reasonable based on a comparison with the acquisition history from the current contract managed by EIOD and labor rates within other similar Government wide contracts, such as Alliant 2 (47QTCK18D0008), GSA MAS Information Technology (IT) and Office Management (GS- 35F-116AA) and National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC) CIO-SP3 Government-Wide Acquisition Contract

(GWAC) (HHSN316201200044W). A breakout of these costs over the life the contract will be used to help determine the prices proposed are fair and reasonable.

8. Description of Market Research.

Government technical experts conducted DHS-wide, CBP-wide, and nation-wide market research in 2020 as part of the competitive award process for this requirement. Market research was not conducted specifically for this interim contract but rather considered as the extensive market research previously conducted for the competitive BPA awards. In addition, this is not a new Task Order, but rather a request to increase the Period of Performance, bilaterally incorporate FAR Part 52.217-8 and the requirement of the evaluation of the OES.

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

N/A

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

N/A

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.

There are no barriers to future competition. To maximize competition for the competitive BPAs, RFIs were released in 2020. The solicitation will result competitive procurement awards whereby a tradeoff analysis will be conducted to determine the proposals that offered the best value to the Government. This continues to demonstrate CBP’s commitment to competitive awards. These actions are only requested since a competitive action would interrupt critical services. The proposed actions of this J&A are only for the minimum duration expected to be needed to award the BPAs for RDE and LS NII.

12. Planning and Funding Statement.

This request does not result from a lack of planning or expiration of funds.

13. Posting Requirement. CBP will post this requirement on SAM.gov pursuant to FAR 6.305.