JA23-091 USTRANSCOM CSO_MOD01_FINAL_Redacted.pdf

CUI

Controlled By: DISA Controlled By: PSD/PS8511 CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: Lara Chiaurro, JWCC Mailbox: disa.scott.ditco.mbx.ditco-jwcc@mail.mil

JUSTIFICATION & APPROVAL FOR FEDERAL ACQUISITION REGULATION

SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Contract

Orders under Fair Opportunity Federal Acquisition Regulation (FAR) 16.505, Defense FAR Supplement 216.505-70, Procedures, Guidance, and Information 216.505-70

Purchase Request Number: F3ST953191GC02 Joint Warfighting Cloud Capability (JWCC) Contract Number: HC105023D0005 Task Order Number: HC105023F0035 Procurement Title: United States Transportation Command (USTRANSCOM) Cloud Service Offering (CSO) Estimated Value:

Statutory and Regulatory Authority: 10 United States Code (U.S.C.) 2304c(b) and FAR 16.505(b)(2)(i)(B)

EXCEPTION TO FAIR OPPORTUNITY

Number: JA23-091 MOD 01

Upon the basis of the following justification, I, as the Head of Contracting Activity (HCA), hereby approve this exception to fair opportunity pursuant to the Statutory Authority of 10 U.S.C. 2304c(b) and Regulatory Authority of FAR 16.505(b)(2)(i)(B).

1. REQUESTING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

USTRANSCOM

508 Scott Drive, TCJ6 Bldg 1961 Scott AFB, IL 62225

Contracting Activity:

Defense Information Systems Agency/Defense Information Technology Contracting Organization/PS8511 2300 East Drive Scott Air Force Base, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

MOD 01: This modification is to increase the value by in support of two changes. The first increase amount is to account for unanticipated consumption increase in the amount of for Unclassified Cloud and Cloud Support (CLINs 0001/0002), and to include added Cloud, Compute and associated Enterprise Cloud Support packages in the amount of on Unclassified and Secret (CLINs 0001-0004). The second part of the

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JA23-091 MOD 01 USTRANSCOM Cloud Service Offering (CSO) increase is to add surge of 50% in the amount of There are several reasons for the above increase:

1) Cloud One migration was not factored into the original estimate and,

2) Original estimate relied upon historical usage and therefore surge was not considered to be necessary at the time.

Cloud One migration: The amount for Unclassified Cloud, including Compute, Memory, and GP Optimized Intel Windows; Compute, Memory, and GP Optimized Intel RHEL; and Data Egress was originally based on historical costs. However, during the base period of performance the compute and store consumption has increased due to programs of record supporting a spike in USTRANSCOM mission operations. This included the TRANSCOM Regulating and Command & Control Evacuation System program of record which was scheduled to remain in the JWCC Amazon Web Services (AWS) environment for 4-months but will now need to be utilized under the JWCC AWS environment for a longer duration.

This need is explained in depth in the section below labeled “Surge”.

Surge: The need to add surge is to support USTRANSCOM’s Commander’s cloud strategy redirection to remain in JWCC AWS vice migrating to Cloud One. The redirection for all programs to remain in JWCC AWS was necessary due to the threat from malicious cyber actors to global mobility Command and Control systems which remain constant, and the list of unaddressed security concerns within the Cloud One environment. Due to the USTRANSCOM’s Commander’s cloud strategy redirection, Unclassified Cloud and Unclassified Cloud Support are expected to grow over the lifecycle of the task order.

The estimated amounts for Secret Classified Cloud, including GP Optimized Intel 60% Compute Windows and 40% Red Hat Linux were based on historical costs. Due to the USTRANSCOM’s Commander’s cloud strategy redirection to remain in JWCC AWS vice migrating to Cloud One, the Secret Classified Cloud and Secret Classified Cloud Support are expected to also grow over the lifecycle of the task order.

AMD 01: The Independent Government Cost Estimate (IGCE) was created based on historical usage. The original IGCE estimated for Secret Classified Cloud. The mission partner submitted a revised IGCE for a revised estimate of to include Unclassified Cloud Support, Classified Secret Cloud and Classified Secret Cloud Support.

The estimated amounts for Unclassified Cloud, including Compute, Memory, and GP Optimized Intel Windows; Compute, Memory, and GP Optimized Intel RHEL; and Data Egress were based on historical costs. The proposed amount for Unclassified Cloud was higher than the estimate. The estimated amounts for Secret Classified Cloud, including GP Optimized Intel 60% Compute Windows and 40% Red Hat Linux were based on historical costs. The proposed amount for Secret Classified Cloud was higher than the estimate. The proposed amount for Secret Classified Cloud Support was higher than the estimate due to AWS Professional Services not included in the estimate, and variances in unit rates for the AWS Business Support Plan. Additionally, the Government did not estimate for the Enterprise and Basic Cloud Support packages. The proposed amounts for Enterprise and Basic Cloud Support Packages increased the value of Unclassified Cloud Support by

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This action is to issue a firm-fixed-price task order (TO) against the JWCC Indefinite Delivery/Indefinite Quantity Contract for USTRANSCOM CSO. This TO will be issued directly to Amazon Web Services (AWS). The anticipated period of performance (PoP) is for a 12-month base period, plus two 12-month option periods. The total estimated value is

(AMD 01 ) and (MOD 01 ) using Fiscal Year 2024 TRANSCOM Working Capital Funds and TRAC2ES operating and maintenance funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

USTRANSCOM requires processing workloads at Department of Defense (DoD) Cloud Computing Security Requirements Guide (CCSRG) Impact Level (IL)2, IL4, IL5, and IL6. The current USTRANSCOM cloud environment within AWS provides enabling technology supporting DoD Global Logistics, Global Bulk Fuel, Cargo and Freight capabilities, Inter- and Intra-theater Aeromedical Patient Movements and Evacuations, which support the warfighter and campaign sustainment. USTRANCOM has made significant investments to the current USTRANSCOM CSO environment. This environment was designed and tailored, using AWS specialized tools such as AWS CloudFormation versus Terraform, AWS Organizations Service, and converting third-party tools, to specifically address the unique global mission sets required to be executed 24/7 and 365 days of the year. The technical underpinnings established in this environment ensure USTRANSCOM’s Non-classified Internet Protocol Router Network (NIPRNET) and Secret Internet Protocol Router Network (SIPRNET) applications can operate and provide the needed resilience in a secure GovCloud environment in accordance with DoD policies and directives.

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.

FAR 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.

In April of 2023, USTRANSCOM senior leadership directed that the USTRANSCOM Government Cloud be aligned with the JWCC contract. Additionally, the Defense Chief Information Officer (DoD CIO), released a memorandum dated August 2,2023 stating “Office of the Secretary of Defense (OSD) Components, and Defense Agencies and Field Activities (DAFAs) will use the JWCC contract vehicle for all available offerings to procure future enterprise cloud computing capabilities and services. All cloud capabilities and services currently under contract in OSD Components and DAFAs will transition to the JWCC vehicle.” Aligning to JWCC meets key factors to rationalize cloud services, capabilities procurement and provisioning, to include USTRANSCOM’s mission effectiveness and best value to the government. USTRANSCOM is currently operating in a DISA approved IL 2/4/5/6 AWS CSO (US) environment. Transition to a different Cloud Service Provider (CSP) other than AWS is not feasible. It will require great

Page 4 of 8 Pages expenditure of additional funds and resources. Awarding to another CSP would cripple the continuity of critical support of applications which have migrated to the AWS CSO resulting in unacceptable delays to include, applications moved to a different CSP would become unsupported. Interruption of cloud services would cause a negative impact to USTRANSCOM’s mission supported by the 35 applications across 100 AWS accounts.

(c) Justification.

(1) Minimum Government requirements.

The minimum requirement is to process workloads at DoD CCSRG IL2, IL4, IL5, and IL6 consisting of 100 accounts and 35 applications and provision additional accounts, require CSP Dashboard Management access, Consolidated Billing, and Tier 3 Support.

(2) Proposed sole source contractor. AWS

(3) Discussion regarding the cause of the sole source situation.

The only source capable of performing the USTRANSCOM Government Cloud at the level of quality required is AWS. The enclave USTRANSCOM has built in AWS has met all security requirements per the Risk Management Framework (RMF) without any gaps and has a full certification to operate. In order for other CSPs to be fully certified and accredited on a network it will take at least 36 months to obtain and complete the RMF standards. Recertifying the infrastructure to transition to a new CSP would be extensive due to the systems and programs within being of varying sizes, and configurations and security controls being unique to each. In the current USTRANSCOM cloud environment, many security requirements required by the RMF are being met with AWS specialized tools that would be unavailable in other CSPs.

Utilizing a CSP other than AWS would require re-accomplishment of the enclave’s ATO, to include all the programs and systems individual ATOs. USTRANSCOM has 100 AWS accounts, which support the command’s Programs of Record. The refactoring of the current environment from the AWS environment to another CSP would result in additional costs and time. Additionally, due to the memorandum released by the DoD CIO on August 2, 2023, TRANSCOM has an urgent need to shift to the JWCC Contract per direction from the memorandum. Migration from one environment to a new environment would cost approximately and delay the project no less than 36 months. This is based upon the current cloud environment implementation, coding, cybersecurity configurations, and maturation of technical efficiencies gained thus far.

Additionally, the Government would be required to keep the current environment operating while refactoring to a new CSP environment, which would result in a duplication of costs and deficit in resources. In order to achieve an ATO in the new CSP all 35 programs and applications would have to be recoded and reconfigured to be effective in the new CSO.

Due to current contracted managed support services and government support, there is insufficient time to retrain and obtain certification in another platform and technology. As this is a mandated move to the JWCC contract, which involved early cancellation of the existing AWS Cloud contract, cross training prior to migration is feasible. The expected

Page 5 of 8 Pages timeframe to retrain all government and contractor personnel to the same level on a new CSP would be at least 18 months, due to level of effort for training and supporting the current USTRANSCOM cloud environment. Also, this would increase demands on resources needed for the 36-month migration timeline referenced above.

(4) Demonstration of unique source.

AWS possesses the knowledge, skills, capabilities, certifications, and experience required to continue without a break or degradation in USTRANSCOM’s critical mission services.

These critical mission services include USTRANSCOM’S DoD Global Logistics, Global Bulk Fuel, Cargo and Freight capabilities, Inter- and Intra-theater Aeromedical Patient Movements and Evacuations, which support the warfighter and campaign sustainment.

AWS’s unique capabilities are needed to support AWS specialized tools in the current environment such as AWS CloudFormation versus Terraform, using AWS Organizations Service, and converting third-party tools. The current USTRANSCOM cloud environment within AWS was designed and tailored, using AWS tools, to specifically address the unique global mission sets required to be executed 24/7 and 365 days of the year. The technical underpinnings, coding, and configurations established in this environment ensure that USTRANSCOM’s NIPRNET and SIPRNET applications can continue to operate in a secure GovCloud environment in accordance with DoD policies and directives. Specifically, interruption to the environment will cause the loss of operational applications, which have no alternate environment for support.

Additionally, AWS’s unique capabilities are currently supported using AWS tailored solutions for the current environment; moving to a new environment would require migration to the new CSPs specific tools. The current USTRANSCOM CSO required significant investments, using specialized AWS tools, to design and tailor the environment to specifically address the unique global mission sets. The technical underpinnings established in this environment ensure USTRANSCOM’s NIPRNET and SIPRNET applications can operate and provide the needed resilience in a secure GovCloud environment in accordance with DoD policies and directives.

(5) Procurement discussion.

Since there is already an existing environment, the CSP is immediately able to shift to supporting the resultant award associated with this contract action. It will greatly reduce associated transition costs to the Government. In addition, another contractor would not be positioned to leverage the investments in AWS specific capabilities made to date to meet the objectives of the task order for the anticipated PoP.

(6) Impact.

Changing the CSO environment would require expenditures for additional licenses for firewalls, DevOps tools, administrative fees, and monitoring appliances to establish the environment, as well as time and technical resources to configure an entirely new enclave for operational use. Building and migrating to a new environment would require USTRANSCOM to pay for two sets of licenses for any software or tools, acquire additional contract support to configure the new enclave, obtain additional resources

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CUI

tore-architect and re-engineer, procure new CSP training, test the new enclave cybersecurity and capabilities, and fund data egress fees.

Additionally, USTRANCOM represents a no fail mission and the impact on the mission would be detrimental to the warfighter and the ability to support air, land, sea, and rail movements in the DoD. Interruption of services would result in the prevention of USTRANSCOM carriers from scheduling rail, motor, and container deliveries; create the inability to track shipments and receive materials and create the inability to coordinate with the Department of Transportation to transport hazardous cargo.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

A determination that the price is fair and reasonable will be based on a comparison of the contractor’s proposal to the independent government cost estimate and the JWCC Catalog pricing, including any discounts, which was previously found to be fair and reasonable and based on the contractor’s commercial pricing.

6. MARKET RESEARCH:

Market research was conducted and resulted in a signed market research report on November 9, 2021 for the basic JWCC contracts. After a survey of the market, it was concluded that the JWCC Contract is in the Government’s best interest due to technical feasibility and cost to the Government.

Additional research was conducted on May 1, 2023, by reviewing the specific capabilities in the JWCC Ordering Instructions and Performance Work Statement. It was determined that AWS is the only source capable of fulfilling the Government’s minimum needs in the manner and time frame required as the current CSO environment was designed and tailored, using AWS tools, to specifically address the unique global mission sets required to be executed 24/7 and 365 days of the year; and the technical underpinnings established in this environment ensure that USTRANSCOM’s NIPRNET and SIPRNET applications can operate and provide the needed resilience in a secure GovCloud environment in accordance with DoD policies and directives.

7. ANY OTHER SUPPORTING FACTS: None.

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

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History:

Contract Number: 47QTCA19D0094 Task Order Number: HTC71123FD043 PoP: March 30, 2023 - September 30, 2027 Competitive Status: Full and open competition Business Size: Large business Contract Number: 47QTCK18D0007

Task Order Number: HTC71120FD076 PoP: July 30, 2020 - March 29, 2023

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CUI

Competitive Status: Full and open competition Contractor: Amazon Web Services Business Size: Large business

(b) For future acquisitions, the Government intends to continue to conduct market research and assessments for CSP’s emerging technologies possessing authorized ILs and security capabilities. In addition, the Agency recognizes the value in being prepared for competitive follow-on requirements in the future. Furthermore, USTRANSCOM is also considering procurement of a Portability Plan to assess potential vendor agnostic environment migration.