JA__MorphoTrust_TDT_Book_Printer_-Post-2.docx

JUSTIFICATION AND APPROVAL (J&A) FOR OTHER

THAN FULL AND OPEN COMPETITION – EXTENSION OF CONTRACT

1. Identification of the agency and the contracting activity. The agency is the U.S. Department of State, Consular Affairs, Office of Consular Systems Technology (CA/CST). The Contracting Activity is the Office of Acquisition Management, International Programs Division, International Affairs Branch (A/LM/AQM/IP/IAB).

2. Nature and/or description of the action being approved. Extend MorphoTrust (TDT) contract SAQMMAD0046 for 12 months. This action will ensure the continuation of critical IT services until the successor contract is awarded. The successor contract will be referred to as the Next Generation Passport Printer. This has been on ongoing procurement for over two years. On November 30th, 2015 the Next Generation Passport Printer was awarded. On December 7th, 2015 a GAO Bid Protest was filed. GAO dismissed the protest however; The Department is currently working on corrective action. The current task order is set to expire on April 26, 2016. This justification requests approval to extend the period of performance for twelve (12) months.

3. A description of the services required to meet the agency’s needs (including the estimated value). The Passport Services Directorate of the Bureau of Consular Affairs (CA/PPT) is responsible for issuing passports to eligible citizens and nationals who apply for them nationwide. As such, CA/PPT manages a system of 27 domestic passport issuance locations and 2 print centers located in Atlanta, Boston, Buffalo, Chicago, Connecticut, El Paso, Miami, Philadelphia, Washington, Special Issuance Agency (Washington), New York, New Orleans, Houston, Honolulu, San Diego, San Juan, Vermont San Francisco, Los Angeles, Seattle, Dallas. Detroit, Minneapolis and Colorado as well as large passport production and print centers in Portsmouth NH, Charleston SC, Hot Springs AK, and Tucson AZ. In Fiscal Year 2016, these agencies and production centers are expected to issue over 14 million passports and over 17 million in fiscal year 2017. In addition to routine passport requests, all agencies and production centers must be able to issue expedited passports and emergency, same day issuance of passports. The passport business is highly seasonal with increased requirements during the peak season, which usually begins in January and continues through the early fall. Particularly during the peak season, the passport book printers are used for extended operational periods to include weekend hours. The printers are the key element of passport production and must remain operational at a high level of performance to satisfy the increasing demand for passports. These printers require differing levels of support and maintenance that will continue as long as they are in operation.

In 2006, DHS announced requirements for the Western Hemisphere Travel Initiative (WHTI) in compliance with the Intelligence Reform and Terrorism Prevention Act of 2004. WHTI requirements mandated a passport for the return of U.S. citizens and nationals into the United States from Canada, Mexico, and Caribbean nations. Public concern for these requirements resulted in the largest increase in demand for passports in history, with 19 million passports issued in 2007. In 2017 the majority of these passports will expire, and the issuance of new ones will be needed. DoS must be able to sustain timely and uninterrupted issuance of passports during the anticipated period of exploding growth in passport demand that will occur during the contract period. Hence, DoS must be able to rely on the timely and uninterrupted delivery of printer consumable materials, spare parts, and printers, and provision of technical support and maintenance services during the contract period. All provided materials and maintenance services must be identical to those currently used and must have been demonstrated to work successfully and compatibly with DoS' existing fleet of 603 MP300US printers.

To meet the increasing demand for passports, DoS is currently engaged in a transition to newer and more secure and efficient printers. While this contract will not require the actual preparation for the transition of the new printers, it will provide a mainstay of maintenance services of the remaining MP300US printers during the period of time it will take to fully transition to new printers.

The current effort must be extended to ensure there is no interruption to Passport Services’ ability to produce passport books for their customers, and to ensure there is a proper support mechanism in place to support the existing printers during the transition to a new system. This transition is expected to be rolled out in phases and last for multiple years. MorphoTrust (TDT) is the only known contractor with the demonstrated specialized experience, expertise, trained personnel, and the security clearances required to provide the services during the requisite time frame as they own the proprietary right to these specific printers and only their technicians are certified and authorized to work on their machines. To meet the Task Order objective, the Contractor must not have a service gap and maintain their current course of action. The Contractor must also have demonstrated an ability to manage and deliver work products to CA/CST and PPT quality expectations.

Contracted services include project management, maintenance of machines, staffing of technicians to work in two shifts, and limited travel.

Project Management Services requirements include:

· Management of the infrastructure, including network components, hardware, and software.

· Cost and schedule monitoring and reporting

Legacy Printer Maintenance requirements include:

· Preventative Maintenance

· Routine Maintenance

· Emergency Maintenance

· Procurement and Storage of Replacement Parts

· Service Technicians (3 Shift Teams and some weekend support to support Passport SURGE of approximately 20 million passports)

4. Identification of the Authority Permitting other than full and open competition. The statutory authority permitting other than full and open competition is 41 USC 253(c)(1). FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. Consumable supplies in support of the Passport Book Personalization Printers must continue to be produced and supported in an uninterrupted and undiminished manner. The Department cannot have a break in service due to federal mandate on the issuance of passports. MorphoTrust (TDT) is the only known contractor with the demonstrated specialized experience, expertise, trained personnel, and the security clearances required to provide the services during the requisite time frame as they own the proprietary right to these specific printers and only their technicians are certified and authorized to work on their machines.

5. Demonstration that the Contractor’s Unique Qualifications or the nature of the acquisition requires use of the Authority cited. MorphoTrust (TDT) is the incumbent contractor through April 26, 2016 and is the only current supplier to DoS of Passport Book Printer Maintenance. The use of any other contractor would require significant capital investment, an extensive period of familiarization with the printer, to include understanding how the printer works with the issuance system software, understanding of the customized drivers and firmware used with the printers which would require extensive and rigorous testing by both DoS and outside laboratories. This learning curve would result in unacceptable interruptions in the type hardware support provided to the agencies and centers. Other concerns would be the capability of the vendor being able to provide critical supplies needed for the printer in a timely manner.

As MorphoTrust (TDT) already has substantial history under the current contract, there is sufficient data within DoS to verify if the proposed prices are fair and reasonable. An independent government cost estimate has also been developed to confirm current and anticipated prices, for the extension period of performance.

Without MorphoTrust’s involvement, the Government will experience cost, schedule, and performance degradation as well as a gap in mission critical programs and a threat to national security. Other sources will require additional “ramp up” and discovery time to learn business process and CA/CST development practices. MorphoTrust’s history of performance mitigates the need for extended ramp up and discovery. Other sources will likely require additional Government oversight to maintain quality and meet technical specifications. The combined additional time and necessary oversight for other sources to deliver will result in higher costs for performance. Therefore, MorphoTrust (TDT) provides the most efficient economies for cost, schedule, and performance.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. In concert with this action, CA/CST has identified several possible acquisition strategies which will provide future support for this program. The follow-on contract will be competed.

7. Determination of the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. A price analysis will be performed prior to award. MorphoTrust (TDT) has a substantial history under the current contract; there is sufficient data within DoS to verify if the proposed prices are fair and reasonable.

8. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted. Because of the rationale provided in the Unusual and Compelling Urgency justification, that no other source can provided the required supplies and services within the specified timeframe, a market survey was not conducted. TDT is the only company currently in live printer and supplies production for the Department who can provide these items and related services for the brief period of time required without incurring significant additional costs and unacceptable delays.

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

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisitions. 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 the supplies or services required:

The passport supplies requirements will be processed using full and open competitive procedures, including functional and operations requirements and selection criteria established by CA and approved by AQM. It is anticipated that negotiations and award will be made in FY 2017.

Initial out-years acquisition planning and strategy identified the need for a complete transition between the Next Generation Passport Book printer and the current MP300US passport book printers under SAQMMA15D0046 in sufficient time to allow a seamless transition to take place between both printers. As such, CA/CST anticipated a complete, phased-replacement of the MP300US passport book printers, and all related support items and services in-line with the award of the Next Generation Passport Book requirement. Formal acquisition planning and strategy concentrated primarily on the Next Generation Passport Book printer, with the expectation that the acquisition timeline for the award of the NGP RFP had sufficient lead-time for the transition to successfully occur. Various delays incidental to the conduct of the NGP RFP have now required the extension of the current SAQMMA15D-0046 to permit uninterrupted continuation of critical consumables, support services, and requirements.

This J & A for other than full and open competition will be published on FedBizOpps in accordance with FAR Section 6.305 within 14 days of award.

UNCLASSIFIED

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