Sound_Masking_JA_sole_source.pdf

Version – February 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS –

SOLE SOURCE JUSTIFICATION AND APPROVAL

(J&A Log #: T-17-018)

Program/Equipment: req requires four (4) sound masking systems with 5-year warranties and two (2) talker systems.

Authority: Brand Name & Sole Source authority UP FAR 13.501(a) and 10 USC 3304(a)(1)

Amount: $ 156,549.00

Prepared by: Sutherland DSN: 483-5502 Contract Specialist Date: 1 March 2017 Em l.sutherland.civ@mail.mil

Contracting Officer: McGurk DSN: 483-5517 Contracting Officer Date:

Em .mcgurk.civ@mail.mil

Technical: DSN:

Date:

Email:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

DSN:

Signature:

Legal Counsel:

Major Samuel Gregory

DSN: 483-5153

Signature:

1086582402.civ Typewritten Text

1086582402.civ Typewritten Text

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source Justification and Approval

1. Contracting Activity: 409th TCC, Kleber Kaserne Bldg 3233, Kaiserslautern Germany

2. Description of Action: requests a firm fixed-price sole source contract with Intelligent Devices, Inc; 9101 Guilford Rd, Columbia, MD. The Government projects award for April 2017 and fiscal year 2017, Operations & Maintenance, Army funds will be used.

X An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: requires four (4) sound masking systems as well as two (2) “Two Talker Systems.” The system(s) are used to block eavesdropping during Classified, Secret, or Top Secret communications while the Commander is traveling and away from a secured area. A 5 year commercial warranty is required for the talker systems.

Anticipated Delivery Date: June 2017 Total Value: $ 156,549.00

4. Authority Cited:

Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 (or 41 U.S.C. 1903 for Special Emergency Procurement) as implemented by FAR Subpart 13.5:

Unusual and compelling urgency

Exclusive licensing agreements

Industrial mobilization X Other: Brand Name & Sole Source authority UP FAR 13.501(a) and 10 USC

3304(a)(1)

5. Reason for Authority Cited:

The competition requirement is waived under the authority of 10 USC 3304(a)(1), as implemented at FAR 13.501(a). Based on information from and further market research by my office, only Intelligent Devices, Inc. currently produces and sells a device or combination of devices capable of meeting the portable communications security needs of the commander.

The devices are commercial items because they are sold to a number of governmental and private organizations and the amount required places this requirement squarely within the purview of FAR subpart 13.5. While a number of relatively similar devices are available from other vendors, none of those meet the stringent security and portability requirements of the commander.

A requirement has been directed by the Only one source has been identified as meeting the identified equipment salient characteristics. Intelligent Devices, Inc. holds all copyrights on hardware and software components of the discussed system, both individually and as an integrated system. Intelligent Devices, Inc. is the manufacturer and sole provider of a Maxwell-In-A-Briefcase (MIB) Generation 2 Two Talker System. The MIB Generation 2 Two Talker System protects sensitive conversations in unsecured areas using a proprietary audio mask. The system is transportable and Transient Electromagnetic Pulse Emanation Standard (TEMPEST) approved. TEMPEST is the National Security Agency (NSA) specification on energy emanations from communications or IT systems. The MX8 Travel aka Maxine 8, works in conjunction with the

Two Talker System in a complementary fashion. Intelligent Devices, Inc. is the only source capable of providing this specific system in a portable configuration.

other than currently possess the same equipment from this company. If this justification is not approved, then the Commander will not be able to conduct classified discussions in non-secure environments which will seriously impede the decision making process for mission requirements and communication with required activities.

6. Efforts to Obtain Competition: As per FAR 13.501(a)(1)(iii), the J&A must be hung on FBO within 14 days after award

Market research, including from previous acquisitions resulting in the same devices being purchased, did not indicate any viable competition could be expected.

7. Actions to Increase Competition: Queries of other U.S. Government contract awards, GSA, and various websites indicated that sound masking equipment is fairly widely available as system components meant for relatively permanent installation in offices and other similar settings. Only the two products by Intelligent Devices were identified as having the required functionality, security features and portability.

8. Market Research:

Market research was conducted September 2016 and March 2017 within the Government and commercial marketplace. Queries of Government contract awards did not locate other sources that provided similar sound masking systems in form, fit, and/or function. Using Google search engine, two sound masking system vendors were identified as potentially having sound masking equipment: Cambridge Sound and Spy Associates. Although multiple portable sound masking devices were identified in the commercial marketplace, none were identified, other than the MIB Generation 2 Two Talker System, as being capable of meeting the identified salient characteristics, see Attachment 1, Market Research Comparison of Potential Vendors.

Contracts for the same equipment have been awarded to a other than , the current Requesting Activity (RA). A contract for the same requirement was awarded 20 April 2016 to the same vendor, Intelligent Devices, Inc. using sole source. When the sole source J&A was posted on FBO, no comments were provided during that time. The contract awarded 28 September 2016 was advertised using full and open competition. The combined synopsis/solicitation was posted to Federal Business Opportunities on 7 September 2016 for 15 days and the result was 1 response, Intelligent Devices, Inc.

9. Interested Sources:

To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement History:

(1) Contract numbers and dates of the last several contracts for these same requirements:

W91WFR-16-P-0033, 28 September 2016;

W91WFU-16-P-0009, 20 April 2016.

(a) The competitive status of these actions: W91WFU-16-P-0009 awarded under sole source.

W91WFR-16-P-0033 was awarded under unrestricted, full and open competition.

(b) With both contracts, the requirement was awarded to the same company, Intelligent Devices, Inc.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Jeffrey Schmidt Date:

Title: Project Manager Signature:

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Date:

Title: Project Manager Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: cost analysis price Analysis should cost X IGE audit: other:

As a part of this basis, certified cost or pricing data:

X will not be required and the following exception applies (FAR 15.403-1(b)(3)).

X A commercial item is being acquired.

K e:

Contracting Officer Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

K Date:

Contracting Officer Signature:

Attachment:

1) Market Research Comparison of Potential Vendors

Attachment 1: Market Research Comparison of Potential Vendors

The following market research was conducted by Chris Paitson, Deputy Chief, RCO – Stuttgart on 6 September 2016 and Teri Sutherland, Contract Specialist, 409th CSB TCC on 24 March 2017.

Salient Characteristics Intelligent Devices Spy Associates Cambridge Sound

MIB Gen 2 MC Pro Acoustic Dynasound DS2600

Protection of secure conversations in unsecure locations

YES YES YES

Deployment of equipment in vehicle and residence like areas

YES NO

YES

Approved to be set up and used in Government workspaces

YES NO YES

TEMPEST tested and approved YES NO NO

Tested and approved deterrence of technical collection attempts and eavesdropping from unauthorized personnel

YES NO YES

Support 2 active users simultaneously YES NO YES

Locking capability to secure device YES NO NO

Less than 25 pounds YES YES NO

Multiple interface capabilities to include STE Phone, Secure VTC, Secure Cell, Secure VoIP, and Defense

DRSN

YES NO NO

Portable Maneuverability YES YES YES