Fair_Opportunity_Exception_70Z02318RMCC03600_Final.pdf

Justification for an Exception to Fair Opportunity

Pursuant to FAR 16.505(b)(2)(ii)(B)

1. Agency and Contracting Activity. Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for an Exception to Fair

Opportunity.”

The Department of Homeland Security, United States Coast Guard (USCG) Assistant

Commandant for Acquisition (CG-9), Head of Contracting Activity (CG-91), Office of Contract

Operations (CG-912) has prepared this justification for an exception to fair opportunity.

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

The USCG intends to award a firm-fixed price task order without considering other awardees under PACTS II contract number HSHQDC-16-D-P2005 pursuant to FAR 16.505(b)(2)(ii)(C).

3. Description of Supplies/Services.

The USCG Office of Cyberspace Forces (CG-791) is responsible for developing and managing new capability competencies, capacities, and service-wide policy with respect to cyberspace operations, maintenance, readiness, geographic distribution, mission specific training, human factors determinations, analysis, and research and development. CG-791 is also responsible for cyberspace policy and changes, investigations of policy violations, surveys, and service-wide cultural adaptation to evolving cyber threats and policy change.

The purpose of this task order is to provide technical support services to the USCG Office of

Cyberspace Forces (CG-791) for the development and execution of Cyber Strategy, development and execution of the Cyber Human Capital Blueprint, development of the Cyberspace Operations

Manual, and mission execution support in the cyberspace operational domain. The task order will consist of a base period of 12 months (estimated $618,830.00) with one 12 month option period

(estimated $591,480.00). The estimated total value of this task order is $1,210,310.00. PR

2118238MCC036 for operational expense (OE), allotment fund code (AFC) 30,was received on

June 15, 2018 for the base period price of $618,830.00.

4. Identify the exception to fair opportunity and supporting rationale.

The Exception to Fair Opportunity is based on FAR 16.505(b)(2)(ii)(C) which states “the order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.” The selected vendor for award is:

Harrkcon Incorporated

43 Town and Country Drive, STE 119-331

Fredericksburg, VA 22405-8729

Harkcon’s (and their subcontractor Java Productions Incorporated) past performance supporting the USCG CIO-C4IT-Cyber Task Force (C3TF) and their extensive knowledge of cyber posture factored into their selection for award of competitive task order HSCG23-17-J-MCC011 for the current requirement. The Office of Cyberspace Forces Integrated Product Team (IPT) was chartered in FY 2016 but didn’t reach Initial Operating Capability (IOC) until September 2017, coinciding with the award of HSCG23-17-J-MCC011. The initial requirements were derived from the C3TF Blueprint, existing USCG cyber strategy, DHS cybersecurity policy, and alignment with DOD policy. With the development of the CG-791 Cyber Human Capital

Blueprint and the evolution of cyber threats, CG-791 realized during early execution of task order HSCG23-17-J-MCC011 that the current requirement was not well enough defined to provide the deliverables. CG-791 consulted with CG-831 (USCG Office of Resource

Management, Funds Control Division) and CG-9123 (USCG Office of Contract Operations

Division III) to discuss emerging requirements and modification to the current requirement.

CG-9123 executed two (in scope) modifications to better define the deliverables and add resources to maintain schedule for delivery. MOD P00001 added resources to shorten the schedule for delivery. MOD P00002 shifted the priority order of chapter development for the manual. This was required due to an internal review of current and future planned policy changes which would be inter-related with identified emerging requirements. New (emerging) requirements have been identified by CG-791 which require program and technical support. It’s critically important for the development of the Cyberspace Workforce (as defined below) to occur in parallel with development of the Cyberspace Operations Manual. The manual provides the policy under which the cyberspace workforce will operate; the cyberspace workforce will execute the policy. By developing the applicable policy chapters in conjunction with developing the workforce, the USCG can more quickly identify how each affects the other in real time, and how they affect other policy in real time, allowing for more flexibility merging the two. These new requirements include:

1) Development of the Cyberspace Workforce (competency and workforce development in alignment with DOD competencies and workforce framework, qualification criteria, research and recommendation regarding the need for an enlisted cyber rating, career guides, etc.).

2) Identifying cyberspace policy gaps across the USCG enterprise, incorporating these into the

Cyberspace Operations Manual, development of USCG bulletins, notices, manuals, instructions, and general messages that involve cyber policy or procedures, and de-confliction of USCG

COMDT Instructions and Manuals that possibly conflict with cyber policy or posture.

The USCG reviewed these requirements and determined that while they are intricately integrated with the current requirement they are not within the current task order scope. HSCG23-17-J-

MCC011 cannot be modified to incorporate these requirements. However, execution of these new tasks requires extensive knowledge of the cyberspace operations and current USCG cyber policy and posture. These tasks also require integration with the current requirements, since deliverables for the new requirements will be incorporated into current requirements.

The current task order requirement will expire on September 27, 2018 unless we exercise the available option period. We do not intend to exercise the option period. Instead, it is our intention to execute a sole source logical follow-on for the new requirement and incorporate the remaining tasks from the current task order option period into the new requirement. Competing these new requirements as a separate task order is not desirable for several reasons. First, it will require exercising the current option period prior to expiration of the order. Second, the new order would either be performed by the incumbent or a new vendor. Regardless, it would create two separate task orders where the requirements of one order directly affect the requirements of the other. If the incumbent vendor were awarded the new requirements, they would have to manage two orders for separate, but similar, interdependent work. If a different vendor is awarded the new requirement, it will require well managed and coordinated execution and integration between the two orders by the program office. This poses an increased risk to the successful execution of the requirements. If one Contractor performs less favorably than required, it will affect the success of the other order. The USCG also incurs the additional costs of awarding and administering two orders. Administration of an order or contract requires the efforts of a Contracting Officer Representative (COR), a Contracting Officer (KO), and a

Contract Specialist (KS). Using a combined annual salary estimate of $300,000.00 and 2% effort for an order, to administer an additional order is $6,000.00 per year, multiplied by the number of options exercised. These costs continue to increase if changes are required since it is highly likely that a change to one order will necessitate a change to the other order. Although difficult to quantify without a defined change request, it’s not uncommon for changes to increase price 5-

10% or contract costs, which would apply to two task orders instead of a single order.

Given the above facts, it is in the best interest of the USCG to award a new sole source task order to the incumbent vendor. The incumbent has extensive knowledge and experience with assisting and developing the CG-791 concept, functional statements, and standing up of the Cyberspace

Workforce. The efforts being undertaken by CG-791 are essential and require extensive knowledge of USCG culture, historical background, and the C3TF blueprint. Additionally, significant progress has been made by the incumbent developing the Cyberspace Operations

Manual which requires extensive knowledge of DoD Cyberspace Operations doctrine and CG

Cyber posture. It is critical to program success that progress in executing the Cyberspace Human

Capital Blueprint and developing the Cyberspace Operations Manual continues without delay.

5. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer anticipates that the price will be fair and reasonable. The USCG negotiated and awarded to the incumbent based on a fair and reasonable price for task order

HSCG23-17-J-MCC011. The USCG also negotiated two fair and reasonably priced modifications to this task order. The order will be awarded under the incumbent’s PACTS II contract and is subject to the terms and conditions of that contract.

6. Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

The task order must be awarded though other than full and open competition to ensure successful execution of the requirement. The USCG is undergoing a major transformation in how it conducts cyberspace operations, manages cybersecurity and applies a refined governance structure to managing IT. During this transformation, emerging cyber threats necessitate changes to cyber posture. These lessons learned are incorporated into USCG business practices and policy. The incumbent has been providing technical support and expertise to CG-791 in support of their effort to resource, train, and equip the cyberspace workforce. They have also been integral in helping develop and draft Cyberspace operational policy. The incumbent’s ability to adapt to constant evolving organizational priorities for Cybersecurity, to the immaturity of CG Cyber doctrine, and changing workforce management policies, has directly contributed to the program’s initial success. Limiting competition in the short term for this requirement is necessary as CG-791 matures and solidifies USCG cyber policy and posture.

7. USCG intends to post this requirement on FedBizOpps pursuant to FAR

16.505(b)(2)(ii)(D).

8. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the

Acquisition.

The USCG posted APFS # F2018042566 announcing the requirement. The following vendors responded to the APFS:

National Security Group, 7930 Jones Branch Drive, Suite 500, McLean VA 22102

This vendor requested the Statement of Work (SOW). The vendor was informed the requirement is not currently available for competition, and the Exception to Fair Opportunity and the SOW would be posted in accordance with the FAR and HSAM guidelines. The vendor is not identified as a PACTS II vendor.

Technuf, LLC (814) 218-2342

The vendor requested a copy of the draft RFP and the SOW. The vendor was informed the requirement is not currently available for competition, and the Exception to Fair Opportunity and the SOW would be posted in accordance with the FAR and HSAM guidelines.

This vendor is not an identified PACTS II contractor.

9. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any

Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services

Required.

The USCG competed HSCG23-17-J-MCC011. The USCG intends to compete future CG-791 cyber requirements based on the results of continuous market research.