Redacted JA.pdf

Justification and Approval FAR Part 6 Authority technical expertise that only the OEMs possess about their respective CT systems which is critical to perform any of the work on the TTAs. As a result, only the OEMs are capable of fulfilling specialized technical support requirements at the level of expertise required to ensure that the developmental enhancements and services are completed to TSA specifications. Given the limitations above and the specialized required technical competency and expertise on the actual CT systems, these work areas cannot be completed by a third-party vendor or other OEMs because they lack current, system specific knowledge.

System engineering and upgradability of the CT systems are especially critical to improving the detection capabilities in the field to meet TSA security technology missions and objectives. As such, the OEMs are the only responsible source capable of satisfying TSA’s requirements at the level of expertise needed.

Non-CT OEM companies participated in TSA’s open competition for CPSS Increment 1. However, these non-CT OEM participants subcontracted with the CT OEMs listed in this J&A for the CT scanner, the key component in the CT system. This indicates that non-CT OEM entities that may wish to participate in the checkpoint CT market are lacking the critical technical knowledge and manufacturing capability that TSA needs to for purposes of this J&A.

In summary, each OEM (e.g., Analogic, IDSS, and Smiths) is the only source that possesses the proprietary rights of the system and specialized expertise specific to each individual system to fulfill the requirements of each TTA. Further, awarding these sole source contracts will allow TSA to leverage all the investments made to date while keeping the current CPSS operational capacity.

6. Description of Efforts Made to Ensure that Offers Are Solicited from as Many Potential Sources as is Practicable TSA is actively working towards increasing competition in CPSS and other checkpoint security technology, and one example is the open architecture (OA) framework. The OA framework enables third-party vendors to participate in algorithm development for explosives and prohibited items detection, networking, and advanced material discrimination to name a few capabilities. OA for checkpoint CT is covered under the Checkpoint Automation (CPAM) effort which aims to define, develop, and integrate the open checkpoint screening architecture. TSA’s current systems are highly complex and proprietary with little data, image, or interface standardization, which limits TSA’s ability to engage with new and innovative partners to solve problems, increases development and acquisition costs, and can impede the response to emerging needs.

As a result, TSA will continue to work on OA efforts using other contract vehicles, such as RCA’s Requirement Human Performance& Engineering Division (RHPED), which is pursuing multiple, parallel open architecture initiatives to advance open architecture goals and establish an integrated and open checkpoint screening architecture. Currently RHPED is supervising the installation of the Threat Recognition Server (TRS) prototype at the TSA Systems Integration Facility (TSIF), which is a major milestone to support upcoming TSIF demonstrations to further mature the capabilities and prepare the system for a field demonstration in Fiscal Year (FY) 24. Therefore, the only current and viable option for CPSS systems to continue to respond to active threats and technology maturation is to further develop the current CT Systems by contracting with the existing OEMs to perform this work.

The goal of these Sole Source Contracts is to further develop capabilities by testing and procuring OEM hardware and software upgrades, enhancements and modifications that address current capability gaps and emerging requirements, as well as comply with federal mandates to advance TSA beyond its existing capabilities. Once APS has tested the enhancements and identified the requirements, the requirements are then used by the CPSS program office to develop the Functional Requirements Document (FRD) to be used for the next generation of checkpoint x-ray technology.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable The Contracting Officer will ensure that proposed pricing will be evaluated to determine fairness and reasonableness through price/cost analysis techniques in accordance with FAR 15.404-1 prior to award. In order to determine fair and reasonable pricing, the Contracting Officer anticipates using historical contract data under the current APSS and CPSS contracts, as well as the United States Bureau of Labor Statistics (www.bls.gov) website to compare the labor escalation rates for service type requirements.

The Contracting Officer’s Representative (COR), a Subject Matter Expert (SME), and Project Manager (PM) also will review the proposed labor mix to ensure they are appropriate for the specific project.

All proposed pricing, labor hours, and materials will be evaluated based on the requirements in the Statement of Work in order to make a determination regarding technical acceptability and fair and reasonable pricing.

8. Description of Market Research A combination of methods were used to perform Market Research, which included a review of the acquisition history, interviews with knowledgeable individuals in industry and the Government, a review of existing contract vehicles, site visits and one-on-one discussions with OEMs.

Based on the research conducted, it was determined that though there may be other entities able to perform the work, the OEMs are still required to provide support due to the proprietary rights in data. Therefore, until open architecture requirements are introduced which would allow for anyone to perform the requirements without the involvement of the OEM, the most efficient method of obtaining these services in terms of cost and schedule is continuing to invest in the systems TSA already has with the existing OEMs.

Additionally, a review of the acquisition history revealed that APS 1.0 was competitively awarded against a Targeted Broad Agency Announcement (T-BAA) in 2017, which resulted in systems from four (4) OEMs being obtained and deployed to different airports and laboratories nationwide. APS 2.0 was awarded as sole source contracts to further build upon / enhance the capabilities of these systems. Similarly, APS 3.0 will build upon the work completed under APS 2.0 to further enhance capabilities. Therefore, awarding sole source contracts to the existing OEMs is in the best interest of the Government in terms of cost and schedule as the systems are currently deployed and operational at multiple sites across the United States.

Removing these systems that are still in the early useful life would be costly to TSA, which would not be recovered through competition. Additionally, the systems in their current state have helped TSA to determine additional capabilities that should be pursued under APS 3.0.

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.

In March 2022, TSA released an update to CPSS Capabilities Maturation Roadmap on SAM.gov to solicit any additional industry interest for advancement of the checkpoint CTs. In this release, TSA indicated interest in advancing the explosives detection of the checkpoint CT scanners which is a pre-requisite for all other activities. No additional entities have been qualified to date. Meanwhile, TSA continues to collaborate with DHS S&T for further data collection for any other interested source that comes forward through the CRADA process outlined in the Market Research Section.

Additionally, and in accordance with FAR 5.203(a), TSA posted notice of intent to sole source for engineering services and capability enhancements on June 27, 2023, which is more than fifteen (15) days prior to the issuance of a solicitation notifying industry that the TSA intends to contract using other than full and open competition for enhancements to engineering services, materials, and capabilities of the OEM systems. No inquiries have been received as a result of this posting.

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 In accordance with TSA Checkpoint Property Screening Capability Maturation Roadmap and Data Collection/ Certification Process2, in March 2022 TSA informed vendors whose systems are not currently certified to the latest Accessible Property Screening Systems (APSS) Detection Standard v6.2 of an opportunity to participate in the CT data collection and certification process with the TSA. This data collection effort is a precursor process established to support the CPSS Program outlined in Section 6, by expanding vendor participation.

The subject sole source contracts under this J&A will be limited to the OEMs providing enhancements to engineering services, materials, and capabilities for checkpoint CT explosive detection prototypes.

TSA anticipates taking steps to attempt to remove barriers to competition for subsequent acquisitions by creating a more modular and open approach, leveraging TSA Open Architecture solutions which include open standards and ability to procure and integrate Commercial off the Shelf products (e.g., software and hardware). TSA is committed to competitive procurements and will continue to seek innovative ways to procure the required services using competition in the future. TSA will continue to perform industry outreach to the maximum extent practicable and will compete any follow-on requirement when possible.

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2 TSA Checkpoint Property Screening Capability Maturation Roadmap and Data Collection/ Certification Process can be found here: https://sam.gov/opp/cf1d10a27ad04e26868d48614ab34e5d/view