5000166421-SF1013GPE.pdf

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

Treasury Standard Form – 1013 (Rev 5/18)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

1. Identification of the requiring activity and the contracting activity:

Requiring Activity: Enterprise Digitization and Case Management Office Contracting Activity: Area Operation Branch, Southern Region- Atlanta 2.a Nature and/or description of the action being approved:

The purpose of this sole source justification is to obtain approval to award a Firm Fixed Price follow-on contract with The Outpost, LLC for consulting services in support of the development of digital modernization strategies in the areas of crypto-currency, fintech, quantum finance, cybersecurity, AI/ML and other emerging digital transformation initiatives as described in section 3.a below. The initial period of performance will be from July 01, 2023 through Jan 31 2024 with possible 3 month option period for continuation of services until April 30, 2024.

2.b Name of the vendor. The Outpost, LLC 2.c Requisition No.: 5000166421 2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☐ Yes ☒ No 3.a A description of the supplies or services required to meet the agency’s needs:

The government intends to place a follow-on sole source order to The Outpost, LLC. for the development and conduct of “Think Tank Roadshows” to assist government security leaders in development of forward-looking strategies for modernization in the areas of crypto-currency, fintech, quantum finance, cybersecurity, and other emerging digital transformation. Specific tasks include (1) curating mission partner needs/advocacy through Think Tank Roadshow events, (2) delivery of a fellowship program that cultivates government intrapreneurs, and transformation sprints for digitization technologies and architecture. The Outpost would support the IRS to complement the modernization strategy of the IRS Modernization Business Plan; expanding the future of crypto, fintech, quantum finance, cybersecurity, artificial intelligence/machine learning (AI/ML) and other emerging digital transformation initiatives for the IRS. This additional support from The Outpost will extend and amplify the IRS’ modernization objectives by bringing cutting-edge problem solvers and industry experts to the forefront of the conversation, addressing IRS needs by curating IRS and mission partner needs/ advocacy through a think tank roadshow, develop content and deliver workshops/secure intrapreneurship /fellowship programming, and delivering transformation sprints for digitization technologies and architecture. This approach will also allow the IRS to handle shifting priorities more effectively through a formal process of focused decision-making, prioritization, and review of results against initial expectations. The Outpost is a boutique advisory and & technology accelerator helping clients solve problems at the intersection of Technology, National Security and Capital:

- Scouting for the Best in Breed Technologies

- Strategizing Business Development

- Supplying the right capital at the right time

- Iterating Solutions for Government

- Addressing Gaps in Government and Warfighter needs

- Creative acquisition strategies

The general nature of actions/activities are aligned/focused on providing outcomes across 4 primary areas of emphasis designed to support the modernization strategy and goals of the IRS. Some of the key benefits of the schedule are; (1) that it conducts stakeholder mapping and engagement to identify use cases that will help the IRS meet its objectives and (2) it brings together dual-use technologies, problem solvers, and industry experts to address the specific needs of the IRS. The approach of developing outcomes along the 4 areas of emphasis; (1) industry collaboration, (2) innovation culture,

(3) innovative technology, identification, iteration, implementation and (3) innovation procurement, is expected to lead to innovative solutions and increased efficiency to deliver value to the American taxpayers.

3.b Includes IT: ☐ Yes ☒ No 3.c IGCE/Estimated dollar value:

REDACTED

4. Identification of the authority being used (Check the box that applies):

☒ 41 U.S.C. 1901 – Simplified acquisition procedures.

http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1901

Treasury Standard Form – 1013 (Rev 5/18)

Prescribed by Treasury: DTAP 1013.501 Tracking No.

☐ 41 U.S.C. 1903 – Special emergency procurement authority.

4.b Supporting Rationale:

The Outpost, LLC was selected to perform consulting services in support of the development of strategies related to digital modernization/transformation initiatives for inclusion in the IRS Modernization Business Plan on a sole source basis under Purchase Order 2043FY-22-P-00225.

Services began in October 2022 and continue through June 2023. This initial award to Outpost was made after no vendors expressed an interest or capability to perform the required services in response to notice of intent to sole source order published in SAM in August 2022. At the time Outpost was considered to be uniquely qualified primarily based on their experience in the development of AFWERX & SPACEWERX. AFWERX is the Air Force’s innovation arm creating an ecosystem of technology for our nation built with innovators, academia, businesses, and airmen. AFWERX was ranked #16 on Fast Company’s Best Places to Work for Innovators list in 2020, placing the program ahead of both Amazon and Salesforce. Their unique capability centered around being the only vendor in the marketplace that had experience building both government and commercial innovation ecosystems. Specifically, the Outpost has the unique characteristic of being the only firm to perform these types of support services for the government through the innovation programs they have created while serving in the DoD and in the commercial world while working with Fortune 100 companies and Non-Profit Organizations. The unique blend of execution across all major sectors of business supports determination that the Outpost team is uniquely qualified. Additional details support the unique qualifications of the Outpost are:

a) The Outpost is positioned to provide industry leading technical SMEs and consultants capable of addressing the most difficult challenges currently facing the IRS. By iteratively identifying requirements and developing against them, the IRS will have the ability to rapidly move from abstract concepts to concrete solutions with minimal risk. Additional characteristics the uniquely qualify the Outpost are:

b) The Outpost has an exclusive set of talent that has successfully scaled the types of consulting services it offers inside and outside the government. The work the team has done in creating organizations such as AFWERX and SpaceWerx are transforming how numerous Federal agencies are engaging with small businesses. The talent that began this movement has experience in building and executing these programs inside of government as well as a team that has experience in building and executing these programs in the non-profit and commercial space. These include Spark Tank and creative acquisition programs never previously envisioned within large bureaucracies.

c) The combined skillsets of these consulting services are not found in another company. The Outpost has access to this exclusive set of talent (that has built dual-use technology ecosystems across the United States) the network spans into local startup communities across 49 states, over 200 local representatives and access to thousands of companies. Other companies either are applying theories they think will work or have a framework they always consult towards. Since these innovation tools are fairly recent and personnel are now just leaving government, other companies don’t have access to this talent that ACTUALLY implemented successful programs and outcomes, mobilizing billions of dollars of private capital and government funding.

This current requirement is a continuation of services aimed at expanding/amplifying the initial strategy development actions/activities during the previous 9 months. Under the existing order, the contractor is involved in various stages of strategy development for the 5 modernization/transformation areas. The Enterprise Digitization and Case Management Office has expended time and financial resources working with the contractor to customize and detail standard processes and formats required to extend and amplify modernization objectives for inclusion in the Modernization Business Plan. Based on the contractor’s work under the initial contract and participation in the development of the standard process and formats, they possess a unique experience/capability to continue performance. The time and internal resources required to acclimate a new contractor’s capability to continue to build on the progress without setback or duplication of effort is expected to be significant. Therefore, in the interest of economy, efficiency, leveraging lessons learned and avoiding duplication of administrative efforts, this follow-on work represents a logical follow-on/continuation of the original order.

Lastly, additional market research (reference Section 6 for details) conducted via a Sources Sought Synopsis failed to identify any additional vendors capable of performing the required services.

http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1903

Prescribed by Treasury: DTAP 1013.501 Tracking No.

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:

A sources sought synopsis was posted to the GPE (SAM Notice ID# IRS5000166421) on April 19, 2023 with vendor responses due by May 03, 2023. The notice requested interest vendors to detail their experience, qualifications and capability to provide consulting services focused on the 5 primary digital modernization initiatives and 3 strategy development objectives. Vendors were asked to provide (1) a company profile, (2) recent and relevant experience, and most consequentially (3) respond to 5 specific questions which will be evaluated by a technical team and used as the primary determining factor in assessing capability to perform. A total of 25 vendors responded, however 18 did not provide sufficient information for the technical team to assess/rate their qualification/capability to perform. While the a few (2) of the 7 compliant respondents had some relevant experience, the experience of the other 5 was either “somewhat relevant” or “not relevant” at all. Based on the technical team’s review of the 7 compliant vendor responses to the 5 specific questions, it was determined that none of the vendors had sufficient capability/experience to develop forward-looking strategies for modernization across all 5 areas required (crypto-currency, fintech, quantum finance, cybersecurity, and artificial intelligence / machine learning (AI/ML).

Additionally, in accordance with FAR subpart 5.2, a notice of intent to award a sole source contract under the authority of FAR subpart 13.5 will be posted on the Government Point of Entry. This notice will afford another opportunity for all responsible sources to submit a capability statement which shall be considered by the Government.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer was able to determine that the established price(s) for the initial order was fair and reasonable based on a comparison to previous prices paid for the same/similar services IAW FAR 13.106-3(a)(2)(ii). The expectation is that the same price evaluation technique/method will be used for the follow-on order.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Treasury Mandatory Sources were considered in accordance with DTAP part 1008 as well as small businesses in accordance with DTAP part 1010 and 1019. See SF 1010 Market Research Summary Report. The following types of notices have been posted to the GPE related to the related to the services required; (1) Aug 2022- Notice of Intent to Sole Source (initial order), (2) Apr 2023- Sources Sought Notice (follow-on requirement) and (3) Jun 2023- Notice of Intent to Sole Source (follow-on requirement). The results of the market research supported the Government’s determination to obtain these services under a sole source basis. Refer to the SF 1010 Market Research Summary Report for specific details.

9.a Any other facts supporting this justification: N/A

9.b Attachments: ☒ Yes ☐ No; Sources Sought Notice Response Evaluation

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

A sources sought notice for proposed contract action was posted on the GPE on 04/19/2023, requesting that parties (small business concerns only) express their interest in writing to the Contracting Officer. Responses were due by 6pm EST on 05/18/2023. Twenty-five (25) responses were received and evaluated by technical team (See Attachment- reference Section 9b for details).

11. A statement of the actions, if any, the Requiring Activity or Contracting Activity may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The Requiring Activity will continue to attend industry trade shows and other forums for purposes of seeking potential sources of supply.

12. Certifications and Approvals:

Prescribed by Treasury: DTAP 1013.501 Tracking No.

12.a Program Office certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Date:

Signature:

12.b Contracting Officer certification and approval. I hereby determine the circumstances of this acquisition support the justification to acquire the item(s) on a sole source (including brand name) basis under the authority of FAR subpart 13.5. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve this justification.

Name: Date:

Signature:

13. Additional Reviews and Approvals (As applicable):

13.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

13.b Advocate for Competition (if over $700,000, but not exceeding $13.5 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the Advocate for competition, I hereby approve this justification.

Name: Date:

Signature:

13.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT requirements that are over $68 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Prescribed by Treasury: DTAP 1013.501 Tracking No.

Name: Date:

Signature:

13.e Senior Procurement Executive (if over $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date:

Signature:

Prescribed by Treasury: DTAP 1013.501