J ACPEDSIIRedacted.pdf

Justification and Approval (J&A) Review Document For Other Than Full And Open Competition

Program/Equipment: CheckPoint Explosrves Detection System-11 (CPEDS-11)

Authority: 10 U.S. C. 2304(c) (1) and FAR 6.302-1(a)(2)(iii) Amount: $14,950,000.00

Prepared By:

Contract Specialist: J2 _ Ms.4dsa ~rOijory fm, /9 Contract Specialist ACC-APG-RTP Division p;~~~~J:XZ~~~?E~'I' M' I Technical Representative: ~ Mr. Mitchell Wathen ( 5&8e/cU Pro;ect Engmeer Army Research Laboratory (ARL) mitchel!.s.wathen2.c,v@mait.ma

Requirements Representative:

Mr. Paul Pellegrino PELLEGRINO.PAU ~··::~ .--:,.., •. ,.

Branch Chief, OPI L.M.1239711240 ~.-;:.::.;~~~.:-;;;;·

ARL

paul.m.pelleqrino.civ@mail.mil

Date Reviewed: 08} I t:J;l.D\ 4 Number: (919) 541- q'tl5

Date Reviewed:

Number: (301) 394-3802

Date Reviewed: 08/14/14 Number: (301) 394-2030

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

Program Manager:

Mr. Mitchell Wathen Project Engineer

ARL

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_,,.·,.' . '·'' Signature _,.J.1Jf2,62?:92<e9<;9,;5g5;>_3 __ Date:

Special Competition Advocate:

Mr. Dennis Longo

ACC-APG

Dennis.P.Lonqo.civ@mail.mil Signature:

LONG

Date:

Date: 11 Sep 2014

Justification and Approval (J&A) For Other Than Full And Open Competition

1. CONTRACTING ACTIVITY:

U.S. Army Contracting Command (ACC) - APG Research Triangle Park (RTP) Division 4300 S. Miami Blvd Durham, NC 27703-9142

2. DESCRIPTION OF ACTION:

The Government proposes to award a new Cost Plus Frxed Fee (CPFF) contract for planned upgrades for CheckPoint Explosrves Detection System - (CPEDS) II on an other than full and open competition basis. The base period will be funded with FY 14

Pursuant to Department of the Army Financial Management Guidance for dated, 28 June 2012, funding maybe utilized for research and development projects required for than can be delivered in 12 months. The proposed Sole Source contractor is as follows:

Alakai Defense Systems, Inc.

8285 Bryan Dairy Rd., Suite 125Largo, FL 33773

(727) 541-1600

3. DESCRIPTION OF SERVICES:

The CPEDS-11 increased operational capabilities program includes: engineering and technical services, research and development, rapid prototyping and testing, low rate production of systems. components and related systems hardware and software.

This effort will continue the engineering development and address the urgent need for increased range, shoot~on~the-move capabilities as well as other engineering improvements dedicated to increase operational usage. The contract will also cover requirements for upgrade of two Government Furnished Equipment (GFE) units, several replicate units (2 in the base and 2 in the option) and testing and support. All of the above actions are anticipated under this contract as the CPEDS-11 system is matured, integrated and demonstrated for Counter-lED applications various areas of responsibility. The anticipated contract type is Cost Plus Fixed Fee (CPFF) with one 12 month base period with an estimated cost of $8,793,261, and two options periods for phase II with an estimated cost of $3,091,082 per option. The total estimated cost of the proposed action is $14, 975,425. The IGCE cost is based upon historical data associated with research and development and testing of CPED II.

Under the base year, two CPEDs II systems will be upgraded and coined CPEDS Ill and two additional replicas (CPEDS Ill) built based upon the operational assessments of those two systems. Options will be included to further upgrade the four systems to CPEDS IV and purchase two additional systems.

4. AUTHORITY CITED:

The statutory authority cited permitting Other than Full and Open Competition is Section 2304(c) (1), Title 10, United States Code as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(iii) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. REASON FOR AUTHORITY CITED:

Alakai Defense Systems Inc. (ADS) located at 8285 Bryan Dairy Rd., Suite 125Largo, FL 33773 is the designer, developer, and manufacturer of the CheckPoint Explosives Detection System II (CPEDS II), which is also known as the Standoff Covert Eyesafe Explosives Detection System (SCEEDS). CPEDS-11 is a ruggedized explosive detection system capable of detection and identifying hazardous compounds at various standoff ranges and contamination levels in an eyesafe manner. ADS invested its own private independent research and development dollars to develop key components CPEDS and therefore own the proprietary rights to these modular components that include the eyesafe laser illumination system, hardened excimer laser system and the ruggedized virtual slit spectrograph. The US Government did not possess the full technical data rights to legally reproduce CPEDS-11. ARL procured CPEDS-11 for evaluation and experimentation by various components of RDECOM (Edgewood Chemical Biological Center [ECBC], Communications-Electronics Research, Development and Engineering Center- Night Vision Electronics Sensor Directorate [CERDEC-NVESD]). The anticipated cost for procuring the remaining technical data package to the ADS CPEDS- 11 system would encompass costs associated with Ieveii II design data and licensing patent packages, that includes; software development, a full suite requirements document, a functional code requirements document, actual code, hardware processes and procurement specifications for vendors sets and performance specifications. The costs to produce these documents with source code are estimated in the tens of millions and is considered cost prohibitive at this point in the system acquisition process.

There is a current need to design, develop and support system modifications to increase the operational capabilities of the CPEDS-11 for increased range and sensitivity, shoot-on-the-move and shoot moving target ability and increase in identification library. These modifications support the flexibility for various operation requirements and will begin to address enduring requirements moving forward. No other commercial off-the-shelf (COTS) or government off-the-shelf (GOTS) system is MIL SPEC 810-G tested and is capable of providing the same capability as CPEDS-11 without significant time and cost to develop. For instance, the Government has invested seven (7) years to develop CPED technology to the current state, which includes five years R&D and two years building the prototype. The contractor must use a robust systems engineering approach to the design, creation, and manufacturing effort This approach must consist of identification and quantification of system goals, creation of alternative system design concepts, periormance of design trades, selection and implementation of the best design, verification that the design is properly built and integrated, and post-implementation assessment of how well the system meets the requirements. Without the full technical data package and proprietary rights, several years will be required for industry to either reverse engineer or develop a comparable system to meet current requirements. Failure to continue the on-going development of CPEDS-11 will cause the government to lose approximately $26 million dollars in development, evaluation, testing, and experimenlation, and will waste the last 5 years' investment in testing and certification. The loss of dollars spent is based upon $7.5M in R&D contracts, $11.4M in Prototype development and an additional $7.5M in other ARL R&D projects.

Based upon the aforementioned, the requirement to upgrade CPEDS-11 technology, and subsequently ADS is deemed to be available only from Alakai Defense Systems, Inc.

and it is likely that award to any other source would result in a substantial duplication of cost and unacceptable delays that is not expected to be recovered through competition.

The proposed contract will be awarded with three phases. Phase I consist of a twelve month base period to Upgrade 2 each CPEDS II to CPED Ill and to construct two additional Prototypes pursuant to the CPEDS Ill specifications. Phase II consist of options to upgrade the four CPEDS Ill to CPEDS IV. Phase Ill is to acquire two additional CPEDS IV systems. Phase II and Phase Ill will be identified as options, and exercised subject to Government acceptance of the CPEDs Ill upgrades and funding to support CPEDS IV. The options will be pnced and identified as separate contract line items.

6. EFFORTS TO OBTAIN COMPETITION:

A Special Notice of the Government's intent to issue a sole source contract to ADS was publicized on the Federal Business Opportunities Site (www.fbo.gov) on 16 June 2014.

A 45-day response time was granted in order to allow sufficient response time for interested sources to respond with interest and capabilities to the requirement. During this period only one response was received from iK9, LLC and this response was determined to be technically unacceptable. See paragraph 9 Interested Sources for further information. Based on information in paragraph five (5) above and nine (9) below; competition for this action is not feasible.

7. ACTIONS TO INCREASE COMPETITION:

The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed. However, it is anticipated that future acquisitions will need to be awarded on a sole source basis due to the lack of the necessary Technical Data Package (TDP). Currently the best means of increasing competition is for the U.S. Government to procure the TDP allowing data and material rights to this technology and then provide currently proprietary data to potential source candidates in an effort to stimulate future competition. However, without a formal program of record this action exposes the Government to excessive risk and, is therefore. not recommended. The Government will request that ADS provide the price to procure propnetary rights to the technical data package in the request for proposal. A review of costs to procure the technical data package will be made to determine whether efficiencies can be achieved through full and open competition for future acquisitions.

8. MARKET RESEARCH

Market research was conducted between January- July 2014.

This technology has been under development over the past seven-years as part of various ongoing RDT&E projects. During this time ARL-SEDD has worked extensively with the ECBC, CERDEC-NVESD, the Joint Improvised Explosive Device Defeat Organization, HQDA G-3/5/7, Operations Directorate G-38, Adaptive C-IED/EOD program offices to develop this technology for C-IED and general hazard detection purposes. Since this technology is being developed by the U.S. Government and ADS., there is no other source for this innovative and proprietary solution for providing a completely eye-safe laser interrogation system that demonstrates ranged detection and identification of homemade explosives materials, explosively related compounds and military explosives without costly and time-consuming reverse engineering by other competitive vendors. ARL has been supporting the Army's C-lEO requirements for several years. ARL began looking for specific solutions for C-lEO mission based on ranged chemical detection and identification in 2007. ARL evaluated numerous concepts including laser-induced breakdown spectroscopy, infrared reflectance spectroscopy and other variants of Raman scattering in an attempt to meeting the original Army requirement During this exhaustive RDT&E process, testing from various Army laboratories discerned that provide the optimum response to the requirement based on demonstrated petformance, reliability and projected spiral development. The C-IED user community (HQDA G-38) was presented with the results and projected research path has fully endorsed the selection of CPEDS-

11. CPEDS-11 development and design was accomplished through multiple contract vehicles and vendor teams. In an effort to secure continuing support to the CPEDS-11 program, several acquisition alternatives were considered. After an extensive review, it was determined that utilizing existing contract vehicles such as Government Wide Acquisition Contracts (GWAC) or Department of Defense (DoD) Wide contracts were not feasible to support the requirement. Specifically, it was determined that use of such contract vehicles would require subcontracting to ADE, the designer and manufacturer of the CPEDS-11 who maintains proprietary rights to the various sub-systems that make up the CPEDS-11 concept. One of the goals of this planned acquisition is to consolidate the CPEDS-11 projects to reduce the resources required by the government to manage pending and future CPEDS-11 tasks. Award directly to the manufacturer is considered the best way to satisfy this requirement, given that the technical data package was developed and is proprietary to ADS. Finally. market research results in the determination that due to the innovative and proprietary nature of this technology, no competition currently exists.

9. INTERESTED SOURCES:

The Government's intent to issue a contract to ADS on an other than full and open competition basis was synopsized on www.FBO.gov under notice (W911 NF-14-R-0016) on 16 June 2014, with a 31 July 2014 response date. As previously stated, during this period only one response was received from iK9, LLC describing a technology that was worn by canines to jam RF-detonated lEOs. The capability was reviewed by the Army Research Laboratory (ARL), SEDD Division. It should be noted that, CPEDS is an existing device that allows for the standoff detection of explosives. However, iK9 LLC proposed a DogJammerCF. that appeared to be an RF Jammer to block (i.e. Jam) remote detonators such as modified cell phones, garage door openers, key fobs, remote car controllers, etc. Though interesting, the DogJammer® would be something employed once a potential threat has been identified from a system such as CPEDS.

Also, CPEDS is a device employed statically (at fixed site) or on a mobile platform via a mast verse a canine. DogJammere and CPEDS are both used for countering explosive threats but are two very different technologies. ARL subject matter experts determined that the capability submitted by iK9 LLC did not address the request in the synopsis for improvements of a ranged detection system analogous to CPEDS-11 and therefore determined technically unacceptable. The Government notified iK9 LLC of the unacceptability of their capability on 28 July 201 4. No additional inquires were received from iK9 LLC.

10. OTHER FACTS:

a. Procurement History.

The following is a list of contracts used in the development of the CPEDS-11.

Contracts:

Contract Number Tvoe I Award Date Award Amount

W911 OX-07-C-0044 CPFF 03/02/20007 $ 7,573,440

W91 CRB-11-D-0006 CPFF 09/13/2012 $11,430,914

Task Order 07

• W911 QX-07-C-0044, Advanced Detection of Explosives, ALAKA'I CONSULTING & ENGINEEERING, INC- (Novation to current name)- 03/02/2007-$7,573,440.00

The US Army RDECOM Acquisition Center (ACC-APG) located in Adelphi, MD awarded Contract W911 OX-07-C-0044 through full and open competition under ARL Broad Area Announcement (BAA) W911 NF-07-R-0001-05.

• W91CRB-11-D-0006- TO 7, Operational Prototype System Ruggedization Checkpoint Explosives Detection System II (CPEDS II), WINTEC ARROWMAKER, INC.

(Aiaka'i Defense Systems, Inc.- Subcontractor)

ARL Ill, IDIQ Multiple Award Contracts (MAC) W91 CRB-11-0-0001-0007 were utilized to competitively award W91 CRB-11-D-0006 Task Order 0007 pursuant to FAR subpart

16.505. While the technical scope of ARL Ill supports the CPEDS-11 requirement, the elimination of excessive management, overhead and pass through costs will decrease the overall cost to the Government. Furthermore, the proposed period of performance extends beyond conclusion of the ARL-111 MAC 1010. Therefore, use of ARL Ill is not in the Government's best interest. Award directly to the manufacturer is considered the most efficient method to satisfy this requirement and allow direct privity with the contractor responsible for supporting CPEDS-11.

b. Acquisition data availability.

The Government does not own the complete TDP. Due to the RDT&E nature of the previous developmental work on CPEDS-11 (which is proprietary to ADS), it was deemed too costly to obtain the TOP on "non-certified" designs. The previous development work led to government testing to validate the performance, safety and operational aspects of i the CPEDS~!I to obta1n safety releases and capabilities and limitations documentation for fielding purposes. As the different DOD organizations experiment with the mission enhancements CPEDS-ll can provide, it is in the best interest of the program of record to acquire specifications and technical data packages on the configuration they select to acqu1re and field

c. Unusual and compelling Urgency_

Not applicable.

d. Subcontracting Competition

ADS is a small business; therefore. a subcontracting plan is not required. However.

ADS will be encouraged to utilize small busmesses for subcontract opportunities to the maximum extent practicable

11. TECHNICAL CERTIFICATION: I certify tl1at the supporting data under my cognizance \Vhich are included in this JUStification are accurate and complete to the best of my knowledge and belief. WATHEN.MITCHE ~1~~~~~,;x~~~[Ls1mcM-·> _

D\1 c~U'. o~us GoY<"•M>e,-r t~~v,[J

NAME· Mitch Wathen TITLE Project Eng1neer

LL S 29 553

ou~PI(I.Qo=VSit.

Date: .. 1229 9 c=WATHEKM1KPm51l24.1'i~051 Dole 2014 O-a2S 16 31 4l -04 X

S1gnature· -------------

12. REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in t11is justification are accurate and complete to the best of my knowledge and belief.

NAME: Paul Pellegrino TITLE: Branch Chief. OPI

PELLEGR!NO.PAUL. ::._-;;::.;;.:'_~~~-~-,,- "" Date.

Slgnature:M.1239711240

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13. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the costs for this sole source contract award will be fair and reasonable. The basis for any determination will Include cost analysis techniques m accordance with FAR Part 15.404- 1 (c). Certified Cost or Pricing data will be obtained pursuant to FAR 15.403.

NAME.

TITLE

Emily S Hobbs Contracting Officer

Date: HOBB5.EMILY.5TACY r;;:~:c; ...

LAlJRA.1101914131 ::.::: Signature ___________ _

14. PROCURING CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME Emily S. Hobbs TITLE: Contracting Officer

"""""""'~''""""''~-··"' Date HOBBS.EMIL Y.STACY :::.-:·.;.'\'':·.:~"'"'"''-' '" -LAURA.ll01914131 '1,;;1;,;-,.~·'""'···~-

Signature: ________ "_""_"•_·'_-_'_"_• __

Approval

Based on the foregoing justification, I hereby approve the award to award le Alakai Defense Systems, Inc. on an Other Than Full and Open Competition basis pursuant to the authority of Section 2304(c)(1), Title 10, United States Code as implemented by Federal Acquisition Regulation 6.302-1 (a)(2)(iii). Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Subject to the availability of funds, and provided the property and services herein described have otherwise been authorized for acquisition.

SIGNATURE: ~1'1~7

Mr. Bryon J. Young 'f" Principal Assistant Responsible for Contracting