JA-24-RI-EIS-181 aRFID Hardware - redacted.pdf

CUI Control Number: JA-24-Rock lsland/EIS-181

Reviews

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

CUI

CUI Cot ·ol Number: JA-24-Rock lsland/EIS-181

Justifi ation Review Doc ment for Other than Ful and Open Compe Won - FAR Part 6

Program/Equipment: Active Radio requency ldentificr,tion (aRFID) Hardware and Ancillary Services for U.S. Army P ogram Executive Office Enterprise Information Systems Army Data and Analytics latforms Product ead Logistics Information Systems

Authority: 10 United States Code 3 04(a)(1) as imple ented in Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(ii)( ), Substantial dupl cation of cost to the Government that is not expected to be recovere through competiti n. and (B) Unacceptable delays in fulfilling the agency's requireme ts.

Amount:

Prepared by:

Typed Name: John D. Kerch

Title: Cor~.t~~Specialist

E-mail: john.d.kerch.civ@arrny.mil

Contracting Officer:

Typed Name: Ben·amin L. Gerin e

Date Reviewed: 19 January 2024

Phone: 309-782-5830

Phone: 571-588-8567

E-Mail: en·amin.l. arm .mil

Controlled by: Arrpy Controlled By: ACC-APG

CUI Category: Ge~1eral Procurement and Acquisition Distribution/limit d Dissemination Control: FEDCON POC: John Kerch, 09-782-5830

Reviews

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

CUI Co trol Number: JA-24-Rock lsland/EIS-181

Jus ification and Appro al for Other than Full and Open Competilion - FAR Part 6

1. Contracting Activity: U.S. Army qontracting CommaJ d - Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 612 9-8000.

2. Description of Action: U.S. Army Program Executiv Office Enterprise Information Systems Army Data and Analytics latforms Product 4ead Logistics Information Systems (PL LIS} request a firm fix d price, Indefinite ~elivery Indefinite Quantity (IDIQ} follow-on contract with Savi Techn logy, Inc. (Savi}, 5~30 New Centre DR STE B Wilmington. North Carolina 28403-~735. United State1. for Active Radio Frequency Identification (aRFID) Hardware an Ancillary Servicel aRFID-VI will be used worldwide by Department of Defen . e (DoD), U.S. Coa~t Guard, North Atlantic Treaty Organization (NATO) Coalition Partners, and other Federal A encies. This IDIQ will have an initial delivery order estimJted at

-Operations and Maintenance, A~my (OMA) funds. l his IDIQ is decentralized and the remaining orders will use a variety f funding types inluding OMA; Research Development, Test & Evaluation; a d Other Procurem nt, Army funds, depending on the ordering activity. An acquisition! plan is not require because this procurement does not meet the threshold in Defense F\· ederal Acquisition !Regulation Supplement 207.103(d)(i)(B).

This action is a follow-on to contrac W52P1 J-2D"D-OOJ4, aRFI D-V. That contract was not competed under the authority o Federal Acquisitior Regulation (FAR) 6.302-1.

Discussion of the previous Justifica ion and Approval (1&A) is in paragraph 10b. Based on a review of the previous J&A an the information pr'fsented in this new J&A, it is determined by the approval authori that planned actifns to remove barriers, as outlined in the previous J&A's Acti ns to Increase Co petition paragraph, were completed. Therefore, this justificat on does not requir. approval authority one-level above the approval authority forth previous justificati n as discussed in FAR 6.304 and PGJ 206.304(a)(S-70).

3. Description of Supplies/Services The aRFID-VI IOI I contract will be the sixth iteration to provide a suite of aRFI transponders and roducts to various organizations within and outside the DoD. End-us r customers will uie the transponders to support in transit visibility of assets across the global supply chaim.

The transponders along with fixed, and-held, and po able interrogators are based on Savi developed and patented tech ology International rganization for Standardization (ISO) 18000-7. Ratified in 2014, IS~ 18000-7 standar states, "Information Technology

- Radio frequency identification for tern management Part 7: Parameters for active air interface communication at 433 M z." Currently, Savi s the only vendor that meets the ISO 18000-7 standard as further di . cussed in paragra h 5.

aRFID Vi's period of p rfi r total contract value of

Control Number: JA-24-Rock lsland/EIS-181 based on the Independent Government Estimate, shown below in Table 1, Independent Government Estimate Breakdown:

CUN

x001 x002 RFID Pod x003 x004 x005 x006 x007 Satellite Iridium Modem x008 Portable De lo ment Kit x009 Portable Bar Code Printer x010 Ex edited Delive

Con1ract Total Table 1 Independent Government Estimate Breakdown

4. Authority Cited: 10 United States Code 3204(a)(1) as implemented in FAR 6.302- 1 (a)(2)(ii)(A), Substantial duplication of cost to the Government that is not expected to be recovered through competition, and (B) Unacceptable delays in fulfi lling the agency's requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1 (a)(2)(ii), Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly sp.ecialized equipment, including major components thereof, when it is likely that award to any other source would result in; (A) subs1antial duplication of cost to the Government that is not expected to be recovered through competition, and (B) Unacceptable delays in fulfilling the agency's requirements. The supplies are considered highly specialized because they are items which have been specially developed or modified in a non-trivial way for the agency's use.

Item

RFID Transponders Fixed Interrogators Portable Deployment Kits Deinstall/Reinstall Fixed lnterro ators

CUI Co trol Number: JA-24-Rock lsland/EIS-181

Total Cost

PL LIS attempted to reduce he need for anothJ Savi aRFID contract by requestin_g Savi consider a ublic to Private Pa~nership (PPP) with Tobyhanna

Army Depot (TYAD) to assis in asset repair anifielding on 07 December 2022.

Personnel from PL LIS, TY A , Army Sustainme t Command Packaging Storage and Containerization Center and Savi had a Mi rosoft Teams meeting on 30 January 2023 to discuss the approach of a publ c to private partnership for PL LIS aRFID support. Savi wa asked to supply t chnical data for evaluation on capability, but the informatio was 1.Jltimately no provided to PL LIS or TYAD.

Savi responded on 06 Marc 2023 that they do ot believe there is value in a PPP with TY AD. This respo se ended the disc ssions of a PPP.

6. Efforts to Obtain Competition: ACC-RI will publish the notices required by FAR 5.201.

a. Effective competition. Because this is a sole source action, effective competition is not applicable.

b. Subcontracting competition. Savi is a small business. FAR clause 52.244-5, Competition in Subcontracting, will be added to the contract to ensure that Savi selects subcontractors on a competitive basis to the maximum practicable extent.

7. Actions to Increase Competitionf The Government , ontinues to look for options to replace Savi's technology; howeverl, due to the circum tances surrounding the patented technology that Savi owns and the mount of infrastru · ture that currently exists both inside and outside the continental .S., the Governme twill continue to use Savi's equipment for

8. Market Research: ACC-RI post~d a sources soughi notice to SAM.gov and to Computer Hardware, Enterprise S ftware and Solutio9.s Information Technology Enter rise Solutions- 3 Hardware or 11 da s. In addition to Savi Technolo ies, litrb., .

10. Other Facts:

a. Procurement History:

Contract: W52P1J-20-D-0034, Single Award IDIQ, aRFID-V Contractor: Savi Award Date: 17 July 2020 Competitive Status: Non-Competitive Authority: FAR 6.302-1, Justification and Approval (J&A}t2C,..030

ACC-RI solicited the acquisition through a sole source award to Savi. See section 1 Ob for additional information.

Contract: W52P1J-14-D-0014, Single Award IDIQ (1-year Extension), aRFID-IV Contractor: Savi Award Date: 7 April 2019 Competitive Status: Non-Competitive Authority: FAR 6.302-1, J&A 19-041

ACC-RI solicited the acquisition through a J&A w ith the knowledge that the NGT contract was projected to be awarded in March 2020. The NGT contract would promote competition by offering transponders that are not restricted by the intellectual property that Savi owns.

Contract: W52P1J-14-D-0014, Single Award IDIQ, aRFID-IV Contractor: Savi Award Date: 8 April 2014 Competitive Status: Competitive, Only One Response Received

ACC-RI solicited the acquisition using full and open competition with anticipation of awarding a Multiple-Award (MA) IDIQ. aRFID-IV eliminated the Program Management CUN, and offerers were instead required to incorporate program management within its hardware CLINs. It's the Government's understanding the contract structure change (i.e. elimination of any guaranteed annual revenue) along with the continuation of Savi's intellectual property ownership prevented other vendors from responding to the solicitation.

Contract: W91QUZ-09-D-0001, 0002, 0003, and 0004, MA IDIQ, aRFID-111 Contractor: Savi, Unisys, Northrop Grumman IT, Systems & Processes Engineering Corp (SPEC) Award Date: 18 December 2008 Competitive Status: Competitive

While aRFID-111 was a MA IDIQ awarded to four separate contractors, Savi was the only vendor that received awards for hardware. Unisys offered Savi products but was unsuccessful at winning delivery orders due to the cost of the Savi licenses. Northrop Grumman IT's original equipment manufacturer filed bankruptcy over the course f the contract. SP1c stopped offering the products used on this contract. j

Contract: DABL01-03-D-1002, S ngle Award IDIQ, a FID-11 Contractor: Savi Award Date: Jan 2003 Competitive Status: Non-Compe itive

Contract: DAAB07-97-D-V007, ingle Award IDIQ, RFID-I Contractor: Savi Award Date: 8 Aug 1997 Competitive Status: Competitive

b. Other facts.

J&A 20-030 aRFID-V dated, Feb 21, 2020 stat d; "7. Actions to Increase Competition: As discussed i paragraph 3, AC -RI is awarding the NGT contract to promote competition for ~roducts that are not restricted by the Savi owned intellectual property. The alicipated award dat~ for NGT is April 2020. Product Lead Automated Movement and Identification tlutions (PL-AMIS) is encouraging use of the NG contract by recom ending it to its Army and DoD customers through present ions to senior lead, rs at quarterly asset working group meetings. PL-AMIS e pects the NGT contract to become the primary contract for tracking equipm nt because it uses superior technology that it anticipates to be more cost ffective and provid better worldwide coverage than the aRFID technology."

ACC-RI awarded a single-a ard, IDIQ contract on 10 December 2020 promoting competition for tracking techinologies that were ot restricted by Savi's intellectual property rights. However. d e to the lack of ord ring and high investment costs the NGT contract did not re lace the need for Savi's technology. While PL LIS encouraged the use of the ~GT contract throug!h quarterly asset working group meetings there was not en~.~gh interest in the ewer NGT technology due to the significant cost increase betreen NGT and aR~ID transponder costs. In the base period of performance there were only three delivery orders placed totaling less than $300K. PL LIS believe such limited orderf did not justify continuing the contract and incurring its co~tinuing administrat ve costs and decided to not exercise the option period. herefore. the NGT ontract ended 09 December 2022.

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.

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.

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated price to the Government for this contract ac1ion will be fair and reasonable based on price analysis. The Government expects the basis for Savi's pricing proposal will utilize current contract pricing, previously determined fair and reasonable, with inclusion of standard escalation increases. In the event this chang,es, the Government will utilize other than certified cost and pricing data submitted _by Savi to determine a fair and reasonable price. Certified cost and pricing data will not be reqwlred as the products and related incidental services being acquired are commercial items and services IAW FAR 15.403-1(c)(3).

GERINGER.BENJAMIN.L.138 Digitally signed by

GERINGER.BENJAMIN.L.1387649154

Signature/Date: 7649154 Date; 2024.05.10 11:21:45 -05'00'

Typed Name: Benjamin L. Geringer

14. Contracting Officer Certification:

Title: Contracting Officer

I certify that this justification is accurate and complete to the best of my knowledge and belief.

GERINGER BENJAMIN L 138 Dioital ysiooedby

• • • GERINGER.BENJAMIN.L.1387649154

Signature/Date: 7649154 Date: 2024.05.1011:21:58-05'00'

Typed Name: Benjamin L. Geringer

Title: Contracting Officer

Approval

Based on the~ justificatio . I hereby approve he procurement of aRFID supplies for a ~rdering pe iod in the estimatep amount of-on an other than full and open compet tion basis pursuan~ to the auth~ States Code 32O4(a)(1) as implem nted in FAR 6.302j1 (a)(2)(ii)(A), Substantial duplication of cost to the Governm nl that is not expected to be recovered through competition, and (B) Unacceptable delays in fulfilling t~e agency's requirements, subject to availability of funds, and provide that the services nd property herein described have otherwise been authorized fo this acquisition.