Redacted_JA_Dataminr_2018.pdf

09/25/2018

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION FAR Part 6.3

1. Identification of the agency and the contracting activity:

The Department of State Office of Acquisition Management is conducting this acquisition of other than full and open competition for the First Alert social media monitoring, alert, and early warning platform on behalf of S/ES-O. The total estimated cost is $XXXX

2. Nature and/or description of the action being approved.

This is a sole-source FFP action to provide licenses to access First Alert software to Watch

Officers, Senior Watch Officers, and executive staff of the Department of State Operations

Center at a cost of $XXXX. These effort was previously purchased under XXXX and expires September 28. Dataminr, the developer and sole owner of First Alert software, requires all parties who use the software to have a unique user license at a cost of $XXXX per user, per year.

3. A description of the supplies or services required to meet the Department’s needs.

The requirement is to provide First Alert software at the State Department Operations Center at a total cost of $XXXX. The Operations Center requires access to the First Alert software for its mission-critical social media data streams. First Alert relies on access to Twitter's

API, an unfiltered stream of data sent from Twitter's internal network rather than gathered from the open internet. Dataminr, through their unique position as a part owner of Twitter, Inc., has exclusive access to this API. Dataminr uses this exclusive access to provide relevant information faster than all their competitors, and the Operations Center uses this information to respond first to news on terrorist attacks, military actions, epidemiological events, natural disasters, and other topics affecting the safety and security of American

Citizens overseas. Dataminr is the only company with full access to Twitter’s API.

Dataminr software was procured for the 2018 fiscal year via XXXX, and a robust analysis performed by the Operations Center on its efficacy over newswire notifications shows the software frequently delivers actionable information on developing situations affecting American citizens overseas and national security priorities several times a week.

Since that procurement, Dataminr further improved the software and rebranded it as First

Alert, adding the ability to search Facebook, YouTube, VK and "dark web" sources like

Pastebin in real time via customizable filters. First Alert’s indicators and warning services are uniquely suited to these tasks.

4. An identification of the statutory authority permitting other than full and open competition. This acquisition is conducted under the authority of 41 U.S.C. 3304, as implemented by FAR 6.3 and substantiated by the following:

☒ FAR 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

a. Dataminr is the only company with access to Twitter's Application Programming

Interface (API), providing them an unfiltered stream of information faster than their competitors can gather it from the open internet. Dataminr has access to this API due to their ownership agreement, wherein Dataminr owns a small portion of Twitter and

Twitter owns a small portion of Dataminr. No other company has a similar relationship with Twitter or any other major social media provider, and no other company has access to an API delivering real time information. Competitors rely on "scraping" the open internet, using machines to attempt to automatically ingest and sort information presented in a format designed to be viewed by humans. This approach can be useful, but is not as fast, reliable, or effective as direct API access.

b. The Operations Center is the Department's lead in crisis response. When American lives are threatened overseas, Ops conducts conference calls, briefs principles, drafts Situation

Reports and Spot Reports, and coordinates global response. The State Department's ability to protect American lives overseas and respond quickly to events impacting national security relies on accurate and timely information, which First Alert is in a unique position to provide because of their proprietary access to the Twitter API.

c. Market research was conducted to assess the efficacy of First Alert software, and to evaluate competing software from other companies. Representatives from the Operations

Center met with technical and sales teams from four companies offering a competing product, and found none of those companies currently offered software able to monitor and alert in real-time on developing news around the world. Other vendors have access to the social media data streams, but not in real time, and not with the robust human translation of source material First Alert employs. Competitors update their databases once per day to build predictive models – a format that is wholly unsuited to the

Operations Center model. The following sources were considered, but not qualified per the above explanation: Hyperion/Geo-Spark, IBM Watson, and Predata.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

The Department of State's IRM bureau recently conducted an RFI seeking information on social media monitoring services, of which First Alert is one. This process would eventually result in a Department-wide Enterprise acquisition that would undergo competitive bidding.

At present there is no firm date when the Department might make that acquisition. In the interim period, it would significantly disadvantage the Operations Center to be without a monitoring, alert, and early warning platform. In light of a possible pending Department-wide acquisition, this action is an interim solution planned to prevent a gap in monitoring capability for one year. A gap would greatly impact the Operations Center’s ability to monitor social media and would put at risk both the Department’s ability to respond to events that impact the lives of Americans overseas and national security in a timely manner.

7. A determination by the ordering activity Contracting Officer that the anticipated cost to the Government is fair and reasonable.

The Contracting Office determines that the anticipated price(s) will be fair and reasonable based on market research. By signing the justification the Contracting Officer makes a determination that the cost/price to the Government are expected to be fair and reasonable.

8. A description of the market survey conducted (see Part 10) and the results or a statement of the reasons a market survey was not conducted.

Representatives from the Operations Center and S/ES-IRM met with technical and sales teams from four companies offering a competing product. In their technical demos, none of the competitors were found to offer API access to social media streams, human translation of media not originally posted in English, user customization of alerts, or compatibility with emerging social media platforms like Telegram, VK, or "dark web" sources like pastebin.

None of those companies currently offered software able to monitor and alert in real-time on developing news around the world that was competitive with Dataminr.

9. Any other facts supporting the use of this justification.

Other vendors do have access to the same social media data streams, but not in real time, and not with the robust human translation of source material First Alert employs. Competitors update their databases once per day to build predictive models – a format that is wholly unsuited to the Operations Center.

10. A listing of any sources that expressed a written interest in the acquisition.

There was no expressed interest in the acquisition by other sources, as they were not able to provide direct API access to social media sites.

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 the supplies or services required.

S/ES-O will continue to seek out and meet with companies offering competing social-media monitoring and notification products to ensure open competition. S/ES-O will also participate in the Department-wide Enterprise acquisition that would undergo competitive bidding, by providing input in requirements and participating in technical evaluations.