20200820 KO Determination - Rockwell - signed.pdf

Control No: LRE-FY20-0001

Contracting Officer’s Determination – Limiting Competition at or below the

Simplified Acquisition Threshold

1. Contracting Activity: Detroit District Contracting Office.

2. Description of Action:

Nature: X - New Requirement Follow-on Requirement

Contract Vehicle: X Purchase Order - PANGLR-20-P-0000 003777

Blanket Purchase Agreement (BPA) Order/BPA against FSS Contract #_____ _________ Order against Multiple Award IDIQ Contract #______________ Order against a single award IDC Contract

Modification to existing PO/TO/DO/Call Order

Pricing/Contract Type: X - Fixed Price 100% Time & Materials/Labor Hours

Cost Reimbursable Hybrid

Funds: FY2020 - Civil Works O&M

Name of Proposed Contractor(s) and Address:

Rockwell Automation 1 Allen-Bradley Drive Cleveland, OH 44124

Brand Name Buy: X - Yes No

3. Description of Services or Supplies: This procurement is for a Contract Support Agreement for existing Rockwell Automation products installed at the Soo Area Office that have a Rockwell perpetual license. These perpetual licenses were supplied in prior years as part of a construction contract or purchased directly by the Government.

These perpetual licenses are for programmable controllers (PLC), programmable automation controllers (PAC), variable frequency drives, machine level Human Machine Interfaces (HMI), and a facility client/server HMI system. Rockwell Automation is the original manufacture for these.

Contract Support excludes machine and process level support. For instance, it does not include programming support of a navigation lock, nor of a hydroelectric generator.

Contract Support is limited to typical component level support a manufacture is responsible for during the life cycle of their product. Contract Support shall consist of access to a technical call-in desk to a subject matter expert, 24x7 access to an online knowledgebase, and 24x7 access to download firmware and software updates of Rockwell Automation products. Rockwell’s proposal lists these requirements as: 1) 24x7x365 Product support for automation control hardware; 2) 24x7x365 Product support for drives control hardware; 3) 8 to 5 Application support for legacy hardware; 4) 24x7x365 support for HMI Software.

This procurement is for a base contract of one year with four option years. No significant additions to the contract are expected over this time period. There will be minor changes due to hiring actions, projects, and paperwork issues. Hiring actions typically increase the number of licenses since additional licenses (in the form of a serial number) are required to support the new employee. The initial purchase of a Rockwell Automation product is not covered by this document. The product list may expand as the initial warranty periods expires. We’ve also added products to the list that were purchased, but never added due to paper lapses. Legacy products may be removed as they are decommissioned.

Base Period 1 Sep 2020 To 31 Aug 2021 Value $17,660.50 Option Period 1 1 Sep 2021 To 31 Aug 2022 Value $17,660.50 Option Period 2 1 Sep 2022 To 31 Aug 2022 Value $17,660.50 Option Period 3 1 Sep 2023 To 31 Aug 2024 Value $17,660.50 Option Period 4 1 Sep 2024 To 31 Aug 2025 Value $17,660.50

Total $88,302.50

4. Authority:

X - FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

Or

FAR 8.405-6(a)(1)(i)(B) and 8.405-6(b)(1)Brand Name FAR 8.405-6(a)(1)(i)(A) Urgency FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable FAR 8.405-6(a)(1)(i)(C) Logical Follow-on

Or

FAR 16.505(b)(2)(i)(B) Only One Awardee is Capable FAR 16.505(a)(4) Brand Name FAR 16.505(b)(2)(i)(A) Urgency FAR 16.505(b)(2)(i)(C) Logical Follow-on FAR 16.505(b)(2)(i)(D) Minimum Guarantee

5. Reasons for Authority Cited:

a. Background

The goal of this Contract Support Agreement is to retain the ability to technically maintain existing industrial control systems used in the hydroelectric plant and the adjoining navigation locks. This agreement allows technical staff to discuss issues in real-time directly with the products manufacturer. This agreement also grants access to a secure online knowledge base and grants access to download updates, which is critical for resolving issues and maintaining a strong cybersecurity posture. Rockwell restricts access per product serial number. Access to the call-in-center, the online knowledge base, and the download center are granted by an active Contract Support Agreement.

b. Justification

This procurement is for a Contract Support of existing Rockwell products that have a perpetual license. These items were supplied in past years as part of a construction contract or purchased directly by the Government. The licenses are perpetual (they do not expire) however they are out of warranty. A Contract Support Agreement directly with Rockwell Automation, the manufacture, is justified for staff to download updates as technology advances. Otherwise, an item becomes outdated and has to be decommissioned. For instance, this procurement includes firmware support of a PAC and for its associated programming software; both of which were purchased several years ago. The version of firmware originally purchased does NOT meet current cyber security standards and the software version purchased would not work in the current Army Gold Master (AGM) operating system; such as Windows 10. The PAC and its associated software package would have to be either decommissioned by turning the system off, repurchase the items, or update them using this procurement. There are no other options. These products are part of the control system of a hydroelectric plant and two navigation locks located at the Soo Area Office. Turning these systems off is not feasible. The hydroelectric generators are a scheduled resource that is part of the public electric-utility grid and is necessary to operate the SAO locks for the use of commercial vessels. It’s also not feasible to repurchase the items every six months – which would be cost prohibitive. The feasible solution adopted industry wide is to have a contract Support Agreement directly with the component manufacture, which in this case is Rockwell Automation.

c. Alternatives

There are no alternatives without replacing the entire hydroelectric system with one from another manufacturer that would be cost prohibitive and that would create a new sole source situation. Rockwell Automation is the manufacturer of record for these components. This procurement is limited and excludes general knowledge of a navigation lock, water pump, or hydroelectric generator. This procurement is limited to the component level expected of a manufacture during the life cycle of their product.

Rockwell is the only source available that can provide updated firmware to a PAC or a software patch to its programming software package, requirements for security of a public utility.

With respect to cybersecurity, as an example, Rockwell Automation is the only entity that can mitigate the cyber vulnerability posted the Department of Homeland Security on 14Jul2020 as ICS Advisory ICSA-20-163-02. Their solution is to apply Rockwell “Patch Roll-up for CPR9 SRx”, which is downloaded via this Contract Support Agreement. As indicated above, this Contract Support procurement can only be provided by Rockwell Automation and thus they are the only manufacture capable of meeting the Governments requirements as described herein.

d. Impact.

One impact is the Federal Information Security Management Act of 2002 (FISMA) requires formal certification and accreditation for all computer systems and data networks. Industrial Control (IC) Systems (aka: SCADA’s) are accredited per FISMA and DoD procedures. This IC System is accredited and has a formal Authority-to- Operate (ATO). This system will be turned off if the ATO is revoked due to lack of maintenance. Maintenance includes ‘patching’, which is the essence of mitigating cyber-terrorism. This Contract Support Agreement enables maintenance personnel to access to all patches and is required to maintain an IC System per FISMA and DoD standards.

Another impact is Soo Area Staff would be unable to fix machinery issues within the hydroelectric plant and on the navigation locks. Minor impacts would be loss of service since these type of issues usually trip equipment offline. An intermediate impact would be the critical loss of equipment if significant damage were to occur, which could take 2-plus years to fix given the budget cycle. A major impact could be personal injury or loss of life due as personnel respond to a critical failure or if working near an “energetic” failure.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, X apply and will be followed, or do not apply due to an exception at

5.202 ______________________.

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

Action is NOT a brand name restriction and is under SAT, no posting required Action is a brand name restriction, under $15K, no posting required.

X Action is a brand name restriction, over $15K. It will be redacted and posted with the solicitation.

Action is a brand name restriction over $25K but will not be posted due to exception:

FAR 6.305(f) FAR 8.405-6(b)(3)(iii)(A)

FAR 8.405-6(b)(3)(iii)(B) FAR 8.405-6(b)(3)(iii)(C) FAR 16.505(a)(4)(iii(C)

7. Market Research: The cost of the Contract Support Agreement is similar to other support contracts issued by Rockwell Automation and is similar in cost to contracts released by other manufactures of similar products as determined by the IGE.

8. Other Facts: N/A

9. Technical/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.

___________________________________ 21Aug2020 Walter Hart, Electrical Engineer Date LRE ISSM for Operational Technology LRD RTS for Operational Technology

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon the Government IGE and historical pricing.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

MAJ Derek Gibson, Contracting Officer Date