J_and_A_Executed_Redacted.pdf

CLASS JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. 3304(a)(1-7)

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 Transportation Security Administration (TSA), Office of Contracting and Procurement (OCP), proposes to enter into multiple contract modifications on the basis of other than full and open competition in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

2. Nature and/or Description of the Action being Approved.

The resulting action will execute multiple ordering period extensions for the following Multiple-Award Indefinite Delivery Indefinite Quantity (IDIQ) contracts:

i. HSTS04-12-D-CT1200 with L-3 Communications, Inc.

ii. HSTS04-12-D-CT1173 with Morpho Detection, LLC.

The IDIQs are for the procurement of Medium Speed Explosive Detection Systems (EDS) along with associated installation and ancillary equipment required to operate the systems. The EDS provides Transportation Security Officers (TSOs) the capability to screen checked baggage at airports nationwide.

The technology provides automated detection algorithms, threat image projection, primary and secondary viewing stations, EDS networking functionality for On-Screen Alarm Resolution Protocol (OSARP) and Checked Baggage Resolution Area (CBRA) activities, and the hardware and software infrastructure to deploy improved capabilities to detect emerging threats and meet enhanced functionality objectives.

These IDIQ contracts were competitively awarded under Qualification Product List (QPL) solicitation announcement HSTS04-11-R-CT1091, which was published on the Federal Business Opportunities (FBO) website May 31, 2011 for high-speed, medium-speed, and reduced-size EDS. The QPL was publically available for four (4) years and two (2) vendors met the certification and qualification requirements for the Medium Speed EDS configuration: L-3 Communications, Inc. (L-3) and Morpho Detection, LLC (Morpho).

Contract HSTS04-12-D-CT1200 was awarded to L-3 for the purchase of Medium Speed EDS with an ordering period from August 21, 2012 to August 20, 2017. The contract has a maximum ceiling of

. To date, has been obligated under this IDIQ contract, leaving a remaining ceiling of .

The modification to L-3’s IDIQ contract will include the following:

(a) Type of action: IDIQ Contract Modification, ordering period extension to June 30, 2018

(b) Amount: $0.00

(c) Type of funding: N/A

(d) Year of funding: N/A

(e) L-3 Communications, Inc. 10E Commerce Way, Woburn, MA 01801

Contract HSTS04-12-D-CT1173 was awarded to Morpho for the purchase of Medium Speed EDS with an ordering period from August 21, 2012 to August 20, 2017. The contract has a maximum ceiling of

. To date, has been obligated under this IDIQ contract, leaving a remaining ceiling of .

The modification to Morpho’s IDIQ contract will include the following:

(a) Type of action: IDIQ Contract Modification, ordering period extension to June 30, 2018

(b) Amount: $0.00

(c) Type of funding: N/A

(d) Year of funding: N/A

(e) Morpho Detection LLC., 7151 Gateway Blvd., Newark, CA 94560-1012

3. Description of Supplies/Services.

IDIQ ordering period extensions for the IDIQ contracts would provide continuity of the production and delivery of Medium Speed EDS as well as program management, systems engineering management, quality assurance, configuration management, test and evaluation, and training to meet program requirements throughout Fiscal Years 2017 (FY17) and 2018 (FY18), until the follow-on Security Technology Support Services (STSS)1 and Purchase and Install (P&I) IDIQ contracts are awarded.

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 Nature of the Acquisition Require Use of the Authority Cited.

TSA requires multiple IDIQ ordering period extensions in order to support multiple mission critical requirements anticipated for award in FY17 and FY18 that must be executed to meet program goals and objectives. These efforts can only be supported by the original equipment manufacturers (OEMS)2 as the vendors identified in this Justification are the proprietary holders of the EDS. The proprietary information of the EDS consists of the software, firmware, design and hardware associated with the EDS and may include networking configuration for applicable EDS. The TSA does not own the intellectual property or full data rights for any EDS equipment. Based on proprietary data restrictions and the complexity of the equipment, only the original equipment manufacturer is capable of fulfilling EDS requirements at the level of expertise required to ensure that the work is completed to the TSA specifications without jeopardizing the proprietary nature of the equipment. As such, the OEMs are the only responsible source capable of satisfying TSA’s requirements at the level of expertise needed.

1 The STSS Contract for Morpho was awarded on April 6, 2017. OCP is finalizing negotiations with L3 for their STSS contract. The resultant contract modifications will clarify that the extension is limited to purchase and installation requirements once the STSS contract is awarded, as all engineering and program management initiatives should be completed under STSS.

2 The CO intends to complete a separate Justification and Approval document for any requirement that will not be competed under the IDIQ contracts.

Therefore, the IDIQ extensions will allow for the award of the following FY17 and FY18 requirements, as both the STSS and P&I follow-on contracts may not be awarded prior to the expiration of the IDIQs:

a. The program intends to purchase Medium Speed EDS units in the first quarter of FY 18. This award is intended to include site installation at the airport location where systems are required in furtherance of checked baggage screening operations.

b. Extending the Period of Performance will allow the program office to quickly issue orders for engineering support services to meet capability initiatives and other OEM specific services of technical nature in support of the Electronic Baggage Screening Program.

c. The program anticipates awarding multiple orders for the purchase of ancillary equipment, including, but not limited to, upgrade kits and long lead items.

TSA’s Security Technology Acquisition Division (STAD) is in the process of establishing new engineering service contracts in order to provide support for all deployed Transportation Security Equuipment (TSE), including EDS, located at all airports nationwide. The new engineering contracts have been awarded for Morpho and will be awarded for L3 later this FY. These contracts will provide continued sustainment support, to include program management, configuration management, security compliance and oversight, and engineering services for TSA’s fleet of EDS.

Concurrently, TSA is in the process of initiating activities to implement separate contracts for purchase and installation of Medium Speed EDS at airport locations that require a specific EDS configuration based on the Checked Baggage Installation System (CBIS) design or to maintain current screening operations. The new EDS purchase and installation contracts are anticipated to be awarded in Quarter 1 of FY18 due to competing, unforeseen end of FY activities.

Therefore, it is important to extend the L-3 and Morpho IDIQ contracts to align with the intended contract awards for two reasons: 1) to ensure a contract vehicle is available for continuity should a new or emerging threat be presented that TSA must respond to; and 2) to ensure there isn’t a lapse in contractor vetting. It is critical that L-3 and Morpho personnel remain vetted through personnel security under the current contract and then seamlessly transition to the follow-on contracts. Allowing a lapse in service would result in L-3 and Morpho losing its security status and preventing any further services from the OEM on the EDS. The personnel security vetting process can take months for approvals and is costly for both the Government and the contractors.

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

A FBO notice of intent to procure using other than full and open competition was publicized, as required by FAR Subpart 5.102(a)(6) and 5.2, on May 11, 2017 under solicitation number TSA25-04-02885, and no interested parties have responded to TSA.

In addition, The QPL solicitation was publicized on the FBO website for four years to ensure that viable EDS solutions that meet TSA certification and qualification requirements are solicited from as many potential sources as practicable. The QPL was closed in May 2015. As previously stated, only two vendors provided certified and qualified Medium Speed EDS to date.

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

The IDIQ ordering period extensions will not increase the contract ceiling or change the already established labor categories and labor rates3. Anticipated delivery and task order contracts issued during the extensions will be awarded under the terms and conditions of the IDIQ Contract, which includes fully burdened fixed labor rates and other firm fixed price (FFP) CLINs that were determined to be fair and reasonable at the time of award. Further, the Contracting Officer will make a determination that pricing is fair and reasonable prior to awarding the order. For example, the Contracting Officer will use the labor rates already established in the IDIQ contracts which were determined to be fair and reasonable at the time of the contract award as a basis for determination as well as using past proposals and similar efforts to compare costs.

8. Description of Market Research.

During the planning and solicitation phase of IDIQs, market research was conducted in accordance with FAR Part 10. Market research included sources sought notifications and one-on-one interviews with vetted vendors. Based on the market research analysis, TSA established a QPL for all systems that successfully pass the testing requirements established by the TSA. In addition to technology readiness and certification, potential EDS needed to successfully complete Transportation Security Lab (TSL) Certification testing (CERT), TSA Systems Integration Facility (TSIF) Integration testing and Initial Operational Test and Evaluation (IOT&E) field test activities in order to be placed on the QPL. Only equipment that was placed on the QPL was considered for contract awards to satisfy program requirements. At this time, L-3 and Morpho are the only vendors on the QPL for the procurement of Medium Speed EDS and there are no additional sources that possess the technical capabilities necessary to meet the Government’s requirements.

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

None

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

A synopsis was issued on FBO May 11, 2017 under solicitation number TSA25-04-02885, which requested that parties express their interest in writing to the contracting officer. No interested parties responded to the synopsis.

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.

TSA has initiated a new procurement strategy that will allow for the purchase of Medium Speed EDS as the result of a competition following the approval of the 30 percent CBIS design instead of procuring after an EDS configuration is selected during CBIS construction, when possible. TSA intends to fully engage industry stakeholders prior to solicitation and maximize transparency through use of market research tools, such as Request for Information (RFI), Industry Days, and Draft Request for Proposals (RFPs).

In addition, the program is in the process of developing next generation EDS requirements which result in a new EDS QPL to procure systems that meet TSA’s updated standard. A test window to certify and qualify EDS that meet TSA’s new requirements under the new QPL is expected to be opened in FY18.

3 The CO has verified with the OEMs that the Year 5 approved labor rates which were found fair and reasonable will continue to be used through the extensions.