SAM.gov JA Smiths Detection.pdf

FEDERAL BUREAU OF INVESTIGATION

FINANCE AND FACILITIES DIVISION | PROCUREMENT SECTION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION IN

ACCORDANCE WITH 41 U.S.C. 3304 (A) (1)

Requisition Number: SHOP-PR-24-000869

1. Identification of the agency and contracting activity.

The U.S. Department of Justice, Federal Bureau of Investigation (FBI), National Acquisition Programs Unit (NAPU), has prepared this justification for other than full and open competition on behalf of the Physical Security Unit (PSU), Security Division (SecD).

2. The nature and/or description of the action being approved, i.e., sole source, limited competition, establishment of a new source, etc.

FBI’s Security Division intends to establish a sole source, firm fixed price definitive contract using FAR Part 15 for the corrective and preventative maintenance of existing Smiths Detection X-Ray machines. The Period of Performance will be for one (1) base year and four (4) option years.

3. A description of the supplies or services required to meet the agency’s needs.

The Security Division has a requirement to acquire corrective and preventive maintenance services for previously acquired X-Ray equipment that will be located in FBI Field Offices and FBI leased facilities across the United States. This will allow the PSU/SecD to accomplish its mission by providing protection and oversight of FBI Facilities, personnel, and equipment through the application of construction design reviews, sensitive compartmented information facilities (SCIFs) and Secure Area certifications, accreditations and de-accreditations, risk-based analysis research, liaison, and the development of policies and procedures related to effective physical and technical security.

There are eight (8) types of X-Ray devices procured from Smiths Detection that are built with unique, proprietary specifications and patents that require corrective and preventive maintenance services.

Description/Model Number Quantity 6040 118

6030DI 1

5030 311

145180 4

145180-2IS 1

100100T-21S 29

130130-2IS 1

180180-2IS 1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION IN

ACCORDANCE WITH 41 U.S.C. 3304 (A) (1)

The FBI requires 24 hours, 365 days of maintenance service with on-site response within 36 hours after reporting.

Preventive maintenance is required to be completed for each machine on an annual basis. The contractor and COR may coordinate a monthly schedule to ensure equipment is operational.

This annual maintenance evaluation will include technical, generator, image performance, computer, video, environmental, and electrical tests, with health and safety considerations.

Quarterly reports of the machines serviced will be supplied by the contractor to the COR.

4. The 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) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Demonstrate the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

There are currently 466 Smiths Detection X-Ray machines in use throughout the FBI. Smiths Detection is the sole manufacturer of the X-Ray equipment and is the only vendor capable of providing proper support to ensure optimal performance throughout the life of the product. They have no authorized resellers and have provided a sole source letter.

This proprietary X-Ray equipment is comprised of assemblies, subassemblies, and parts that are designed and developed by Smiths Detection. In addition to proprietary rights, Smiths Detection X-Ray equipment has been identified by the Department of Homeland Security as an approved technology vendor via the SAFETY Act.

Based on FBI Policy Directive 0994D for X-Ray Screening (dated 2017-10-03), the purpose of X- Ray screening machines is to provide two indispensable functions; to screen visitor items and packages brought into FBI space, and to screen mail and parcels delivered to FBI facilities. The X-Ray screening machine is one of the primary lines of defense used to protect FBI personnel, facilities, assets, and national security information from contraband such as weapons and explosives in the facilities. To ensure maximum facility protection, standardized screening equipment has been deployed to all FBI facilities. Therefore, an effective preventive and corrective service plan from a vendor with extensive knowledge of Smiths Detection X-Ray equipment is required.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

The Smiths Detection X-Ray machines were competitively acquired in their initial procurement, and due to their proprietary nature, only Smiths Detection can provide the required maintenance.

Smith Detection does not authorize any vendors to quote on their services. Smiths Detection services the FBI equipment directly with their own Field Service Engineers and has provided the FBI with a sole source letter. To maintain the existing equipment, it is imperative they are serviced at the correct intervals, and that only standardized parts are utilized. Repair parts that are not specific to the machine or designed by Smiths Detection will cause damage to the equipment, void the warranty, and may cause the X-Ray machines to malfunction.

Due to the proprietary nature of these products and their maintenance, this is intended to be a sole source procurement to Smiths Detection. A Notice of Intent to Sole Source will be posted to SAM.gov for 15 days to allow vendors to provide their capability statements should they choose to compete for this requirement.

7. The Period of Performance of the proposed acquisition, including options if applicable, and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The period of performance for these services will consist of one (1) Base Period plus four (4) option periods.

Option PoP Dates Base Year 09/07/2024 – 09/06/2025 Option Year 1 09/07/2025 – 09/06/2026 Option Year 2 09/07/2026 – 09/06/2027 Option Year 3 09/07/2027 – 09/06/2028 Option Year 4 09/07/2028 – 09/06/2029

The Contracting Officer will use cost analysis techniques per FAR 15.404-1 to determine fair, reasonable, and realistic pricing for the proposed price/cost. In addition, prices will be compared to the current contract to control cost increase to the maximum extent.

8. A description of the market research conducted and the results.

Market research was conducted through discussions with vendors, routine liaison, internet searches, and reviewing company websites. The resulting determination is that only Smiths Detection is capable of providing the required services and preventative maintenance.

https://www.acquisition.gov/far/html/Subpart%205_2.html#wp1107980 https://www.acquisition.gov/far/html/Subpart%205_2.html#wp1107990

The FBI conducted research in an attempt to find small businesses that may be able to provide the service/maintenance for the requirement. Smiths Detection is the only vendor found to be able to provide the necessary services and preventative maintenance for this X-Ray equipment. Smiths Detection is a large business and there are no opportunities for small businesses at this time.

Pricing

The X-Ray security monitoring service contracts are normally based on equipment purchased, capabilities, and existing warranties. Therefore, pricing is not typically posted by the vendor on the open market, only variations of service, timelines, and special package deals.

9. Any other facts supporting the use of other than full and open competition.

Smiths Detection is the sole source supplier and warranty service provider for all Smiths Detection X-Ray machines. They are only sold as a direct transaction between Smiths Detection and the end user.

The scope of this effort supports the acquisition of fixed-price annual maintenance services (fixed-price to include all labor, travel, replacement parts) for 466 FBI X-Ray machines currently in use throughout the US including the following:

1) Prompt On-Site Coverage (response time of not more than 36 hours).

2) 24x7 help-desk support, and annual preventive maintenance check with radiation survey.

This includes a preventive and corrective maintenance service agreement for previously acquired Smiths Detection X-Ray equipment that supports Smiths Detection X-Ray equipment requirements.

The maintenance and upkeep of X-Ray machines is crucial, requiring the FBI to have access to 24 hours, 365 days of maintenance service with on-site response within 36 hours after reporting.

Preventive maintenance is to be completed annually on each machine.

10. A listing of any sources that expressed a written interest in the acquisition.

Since the procurement has not yet been advertised, no other companies have expressed an interest either orally or in writing.

11. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated.

A Notice of Intent to Sole Source will be posted to SAM.gov for 15 days to allow vendors to provide their capability statements if they choose to respond to the FBI’s need. The FBI will continue to monitor the market and new products as they develop.