SF 1013 - JA BPS X9_Redacted.pdf

Treasury Standard Form – 1013 (Rev 2/24)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the Office of Currency Manufacturing, and the contracting activity is Bureau of Engraving and Printing.

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

The purpose of this sole source justification is to obtain approval to award a Firm-Fixed Price contract to Giesecke and Devrient Technology America (G&D) for the purchase of spare parts for the base year and four option years for the preventative maintenance and repair of the Banknote Processing X9 Systems (BPS X9) located at both the Washington D.C. and the Fort Worth, Texas facilities. The period of performance will be for a 12-month base period with four 12-month option periods as follows:

Base year: 1 October 2024 - 31 September 2025 Option year 1: 1 October 2025 - 31 September 2026 Option year 2: 1 October 2026 - 31 September 2027 Option year 3: 1 October 2027 - 31 September 2028 Option year 4: 1 October 2028 - 31 September 2029

2.b Name of the vendor. Giesecke and Devrient Technology America, Inc.

2.c Requisition No.: TBD 2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☐ Yes ☒ No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition is for the contractor to provide all spare parts, personal, equipment, supplies, facilities, transportation, tools, materials, supervision, other items, and non-personal services necessary to perform a total care service plan to support operation of the BPS X9 systems. The service plan will include preventative maintenance, remedial maintenance, replacement parts, software support, telephone support and on-call maintenance as well as travel, delivery, time, labor, equipment (e.g. test equipment and tools) that are necessary to support the service plan.

3.b Includes IT: ☐ Yes ☒ No 3.c IGCE/Estimated dollar value:

The IGCE is inclusive of four twelve-month option periods. Refer to the IGCE for additional details.

4. Identification of the authority being used (Check the box that applies):

☒ 41 U.S.C. 1901 – Simplified acquisition procedures.

☐ 41 U.S.C. 1903 – Special emergency procurement authority.

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

The proposed contractor’s unique qualifications and the nature of the acquisition requires use of the authority cited are as follows:

The proposed contractor is the Original Equipment Manufacturer (OEM) of the Federal Reserve’s Banknote (FRB) Optical Banknote Inspection System machines designated as BPS X9. This equipment has been designed specifically to inspect United States (US) currency designs and the only one to have the functionality to examine Next Generation Currency designs. The proposed contractor is currently the only approved manufacturer of banknote

Tracking No.

machines for the FRB and the only one approved by the Secret Service for inspection of US currency. Therefore, G&D is the only company that can provide the parts and technical expertise needed to repair and maintain the BPS X9 systems.

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

In accordance with FAR subpart 5.2, a notice of intent to award a sole source contract under the authority of FAR subpart 13.5 was posted on the Government Point of Entry, SAM.gov on 14 May 2024 with a closing date of 28 May 2024. This notice afforded an opportunity for all responsible sources to submit a capability statement which would be considered by the Government. No responses were received.

7. A 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(s) will be fair and reasonable based on an evaluation of other than certified cost or pricing documents received from contractor, a comparison of historical pricing, as well as the proposed prices with the Independent Government Cost Estimate (IGCE).

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Market research was conducted by the Contracting Officer and Program Office between March 2024 and June 2024. The results of the market research supported the Government’s determination to obtain these services under a sole source basis. Refer to the SF 1010 Market Research Summary Report for specific details.

9.a Any other facts supporting this justification:

There is no procurement history for the maintenance and repair of the X9 systems.

However, there are current and previous contracts for other systems with the similar requirements.

The BPS 3000 was sole sourced in 2011 from G&D under Contract TEP-11-0024. The Procurement Identification Identifier (PIID) was changed to TEPS12-1413 in the CLM contract writing system that ended on April 30, 2016. The contract was for a base plus four

(4) option years and the award amount was $982,084.02.00. The service entailed maintenance and service the BPS 3000. The BPS 2000 equipment was put on a maintenance contract in 2016 after coming out of manufacturer warranty. The initial contract was a 3-month bridge contract (TEPS12-1413 MOO12), followed by a two-month extension (TEPA16-34994) as documentation was completed, reviewed, and processed for a full five-year contract (1 base year with 4 option years) Contract Number TEPS16-34716 that ultimately ended on 30 November 2021.

Contract 2031ZA22C00070 was awarded on 06 December 2024 to G&D for the preventative maintenance and remedial repair for BPS 2000 and 3000 located at both Washington, DC and Fort Worth facilities. The contract is for a base plus four (4) option years and the award amount was $3,178,652.00. This procurement was awarded on a sole source basis.

9.b Attachments: ☐ Yes ☒ No

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

To date, no other sources have written to express an interest in this acquisition and no additional sources are expected based on procurement history.

13.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT requirements that are over $75 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.e Senior Procurement Executive (if over $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date:

Signature: