HC1028-16-F-0853_J A_Redacted.pdf

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION

REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule/Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, Department of Defense FAR Supplement

(DFARS) 216.505-70, Procedures, Guidance and Information (PGI) 216.505-70

Purchase Request Number: MIPR6JDAJ16101

Contract Number: To be determined (TBD)

Task/Delivery Order Number: TBD

Procurement Title: United States (U.S.) Army User Activity Monitoring (UAM) Support

Estimated Value:

Authority: FAR 16.505(b)(2)(i)(B)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA16-116

Upon the basis of the following justification, I, as the Head of the Contracting Activity, hereby approve this exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(B).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Department of the Army

U.S. Army Intelligence and Security Command

8825 Beulah Street

Fort Belvoir, VA 22060-5246

Contracting Activity:

Defense Information Systems Agency (DISA)

Defense Information Technology Contracting Organization (DITCO)

2300 East Drive, Bldg. 3600

Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to award a sole source task order for a base period of one-year and four one-year option periods to Raytheon Company, a large business, against the General

Services Administration Alliant suite of contracts. The task order will be firm fixed price to acquire Raytheon Company’s InnerView UAM product. The period of performance for this award is September 30, 2016 through September 29, 2021, if all options are exercised.

Operations and maintenance and other procurement Army funds will be used for the base and option years, if exercised. The estimated cost for the base year contract is Total estimated life cycle cost is

US Army User Activity Monitoring Support-JA16-116

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3. DESCRIPTION OF SUPPLIES/SERVICES:

The requirement is to obtain a turn-key UAM capability, including on-site system operations and maintenance services, that complies with Department of Defense (DoD) and Office for the

Director of National Intelligence (ODNI) directives. As discussed herein, only Raytheon

Company is capable of providing this UAM capability through its InnerView product.

UAM is the technical capability to observe and record the actions and activities of an individual, at any time, on any device accessing U.S. Government information in order to detect insider threats and to support authorized investigations. The UAM tool deploys a client to an endpoint

(workstations and servers). The client contains software “triggers,” which represent specific user behavior. When the user’s action matches the trigger, the UAM client records the event and returns the specified collected data.

The contractor will provide the following services at various points throughout the base year and option years, if all options are exercised:

InnerView software (licenses) and computer hardware to conduct the Army’s UAM mission on two classified networks.

System delivery and installation.

Security engineering services to complete system security testing to allow for connection to the Government’s classified networks.

On-site system operations and maintenance services.

Software and hardware warranty services.

UAM technical consulting services.

Additional UAM licenses to allow for further deployment on Army’s networks.

Additional computer storage.

The estimated cost for this support is :

Base - September 30, 2016 – September 29, 2017

Option 1 - September 30, 2017 – September 29, 2018

Option 2 – September 30, 2018 – September 29, 2019

Option 3 – September 30, 2019 – September 29, 2020

Option 4 – September 30, 2020 – September 29, 2021

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity. In accordance with (IAW) 16.505(b)(2)(i)(B).

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

(b) Description of the Justification.

(1) The justification is based on the Army’s need to comply with DoD and ODNI UAM requirements. Raytheon Company’s InnerView software is the only product that satisfies these federally mandated requirements.

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(2) The DoD requirements are defined in the Committee on National Security Systems

Directive (CNSSD) No. 504, (U) Directive on Protecting National Security Systems from Insider Threat, February 4, 2014. Annexes A and B define the technical requirements that only the Raytheon Company product (InnerView) satisfies.

(3) The ODNI requirements are defined in Intelligence Community Standard (ICS)

Number 500-27, (U) Collection and Sharing of Audit Data, June 2, 2011, Section D4 and Appendix B, defines specific technical requirements that only the Raytheon

Company product (InnerView) satisfies.

(c) Justification.

(1) Minimum Government requirements. Presidential Memorandum National Insider

Threat Policy and Minimum Standards for Executive Branch Insider Threat

Programs, November 21, 2012, tasks the Executive Branch to implement user behavior monitoring on Government network to identify insider threats. On July 31, 2013, the Secretary of the Army directed UAM deployment in support of Army’s insider threat program in Army Directive 2013-18 (Army Insider Threat Program).

On February 10, 2015, the Army Management Action Group approved and funded the

Army insider threat program, which included UAM. The CNSSD 504 and ICS 500-

27 define minimum UAM operational and technical requirements.

(2) Proposed sole source contractor. The sole source contactor is Raytheon Company.

The following describes InnerView’s unique capabilities against the Army’s minimum

UAM requirements as specified in CNSSD 504 and ICS 500-27.

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Raytheon Company’s InnerView has been used by Army on its top secret

(TS)/sensitive compartmented information (SCI) network, with limited deployment to its secret network, since 2012. The Army’s experience is that it meets all DoD, IC and Army requirements. The Army UAM team collaborates with DoD and IC organizations executing their UAM mission and all are using the InnerView product. Internal Government discussions to identify alternative solutions have to date not identified any viable alternatives. In 2015, Army contracted with Carnegie Mellon’s Software Engineering Institute (SEI) for technical insider threat consulting services. They were tasked to support Army’s insider threat, to include UAM, future planning efforts. During their final report presentation, they were asked to comment on the availability of potential UAM tools. The response was that InnerView was the only commercially available tool that satisfies DoD & IC requirements.

(5) Procurement discussion.

Procurement constraints follow.

Failure to award a new contract will result in the Army losing its UAM capability.

The Army is required to meet CNSSD 504 and ICS 500-27 UAM requirements.

The Raytheon Company’s InnerView UAM tool satisfies these requirements.

(6) Impact. If the Army loses its UAM capability, they will become non-compliant with

CNSSD 504 and ICS 500-27. This will increase Army’s insider threat risk on its

TS/SCI network.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The contracting officer will obtain certified cost or pricing data, IAW FAR 15.403-4 and will use comparative pricing from previously purchased InnerView software to determine fair and reasonableness. After completion of negotiations, a Certificate of Current Cost or Pricing Data will be obtained.

6. MARKET RESEARCH:

Market research was conducted to see if there was another turn-key product on the market that could meet the requirements of CNSSD 504 and ICS 500-27. Two sources sought announcements (SSAs) were posted on FedBizOps. The first one was posted March 24, 2016 for

15 days and requested responses from both small and large businesses. The posting included the performance work statement (PWS). Two responses were received, one from Raytheon Oakley

Systems, LLC (Raytheon Company Business) (large business) and one from Tanager, Inc.

(woman-owned small business). The Raytheon response indicated the company was able to meet all sources sought technical requirements using InnerView. The Army requires a turn-key solution because they do not have the technical capability to undertake system integration or operations. Tanager did not offer a product, they offered the information technology services to support the InnerView software which does not meet the requirement of a turn-key solution.

The second sources sought was posted on FedBizOps on May 17, 2016 for 15 days. The PWS was submitted with the SSA. This SSA requested responses from small businesses. Again, two

Page 6 of 7 Pages responses were received. The first one was from Raytheon Oakley System, LLC (Raytheon

Company Business). Raytheon was informed that this SSA was restricted to small business.

Their response did not change from the one they submitted in March 2016. The other response was from TSPi, an 8(a) contractor who offered the HP ArcSight product that did not meet any of the requirements listed in paragraph 4.(c)(2) above) which are required by CNSSD 504 and ICS

500-27.

It was determined that InnerView is the only product that can meet the federally mandated requirements of CNSSD 504 and ICS 500-27. Raytheon does not allow resellers for the

InnerView product.

7. ANY OTHER SUPPORTING FACTS: Not applicable.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History.

HC1028-08-D-2024/0008, September 29, 2011. Sole source to Raytheon under the

ENCORE II suite of contracts, base plus four one-year options.

HC1028-08-D-2014/0007, September 30, 2010. Sole source, one-year contract to BAE

Systems Information Technology, Inc. (large business). Raytheon was a subcontractor to

BAE Systems and provided the InnerView product for the UAM capability.

(b) Proposed Actions to Promote Full and Open Competition.

In February 2016, the DoD Cost Assessment and Program Evaluation office tasked the

Under Secretary for Defense, Intelligence, to conduct a study to determine the feasibility of the Department acquiring and operating an enterprise UAM capability. The objective is to gain efficiencies and reduce cost. The study is tentatively scheduled for completion 4 th quarter of 2016. Based on the results of this study, the Army will make a determination on the future of this program and any follow-on acquisition strategies.

Promoting full and open competition will be considered by the DoD and IC security forums that define UAM requirements. These bodies have the authority to consult and promote industry involvement in requirements development, enhancing the government’s desire to achieve full and open competition. Army will engage these forums to advocate for this initiative.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): AP was not accomplished as it was not required for this action.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Richard Marcell SIGNATURE: See Separate Signature PDF

TITLE/ORGANIZATION: Program Manager, ARCC-UM User Activity Monitoring, JWICS

PHONE: DATE:

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

NAME: James K. McA!ary SIGNATURE: See Separate Signature PDF

TITLE/ORGANIZATION: INSCOM Assistant Chief of Staff/G-2

PHONE: DATE:

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

NAME: JANE M. UHLES SIGNATURE: See Separate Signature PDF

TITLE/ORGANIZATION: Contracting Officer, DISA/DITCO

PHONE: 618-229-9458 DATE:

HEAD OF THE CONTRACTING ACTIVITY APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification does not exceed $93M, this review serves as approval.

NAME: DOUGLAS W. PACKARD SIGNATURE: See Separate Signature PDF

TITLE/ORGANIZATION: Head of Contracting Activity, DISA/PSD

PHONE: 301-225-4120 DATE:

QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Marlene

Harris, 618-229-9270, marlene.a.harris,civ@mail.mil.