JA25-029 852571275 MDA Redacted.pdf

JA25-029 Missile Defense Agency IL5 and IL6 cloud

Page 2 of 6 Pages

CUI

3. DESCRIPTION OF SUPPLIES/SERVICES:

MDA has multiple IL5 and IL6 workloads which includes model-based systems engineering, Product Lifecycle Management, requirements management, Developer Security Operations (DevSecOps), modeling and simulation, flight and ground test planning, artificial intelligence (AI) / machine learning (ML), supporting services, Identity and Access Management (IDAM), as well as Computer Network Defense (CND) security measures.

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.

MDA has spent the last 3 years provisioning cloud services in Microsoft’s IL5 and IL6 environments which meet the security standards defined by the U.S. Department of Defense (DoD) to regulate the handling of sensitive Government data. During this time, MDA also extended existing local area and Demilitarized Zone networks to the Microsoft platform using their Azure Express Route Service. The Government’s current need requires a cloud platform compatible with MDA’s existing data. Migrating these services to another Cloud Service Provider (CSP) would impact the MDA Program Executive Office’s ability to deliver congressionally mandated Missile Defense capabilities to the warfighter. Additionally, migration to another CSP would take 24 to 36 months and an estimated cost of Microsoft is the only CSP capable of performing MDA’s existing workload with no impact to services.

(c) Justification.

(1) Minimum Government requirements.

MDA requires multiple IL5 and IL6 cloud service offerings to continue at their current level in order to support uninterrupted delivery of services such as DevSecOps, Model Based Systems Engineering, Product Lifecycle Management, requirements management, data management, AI/ML, IDAM, and CND. These cloud services must be able to seamlessly integrate with the MDA’s existing systems and data.

These offerings include Azure Virtual Machines, Azure Kubernetes Service, Azure Express Route, Azure Virtual Desktops, Azure Blob Storage, Azure Managed SQL Instance, Azure Container Registry, Azure Virtual Private Network Gateway, and Azure

Page 3 of 6 Pages

CUI

Backup.

(2) Proposed sole source contractor. Microsoft Corporation.

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

The only CSP capable of performing MDA’s highly specialized IL5 and IL6 cloud services at the required level of quality is the incumbent contractor, Microsoft.

Transitioning from Microsoft to another CSP would cost an estimated and delay the MDA Program Executive the ability to deliver congressionally mandated Missile Defense capabilities to the warfighter. Due to compatibility requirements, MDA would have to re-architect, re-engineer, and refactor critical cloud offerings. In addition to the and 24-36 months required to complete these actions, there would also be duplication of costs associated with running parallel solutions on two platforms. This is not beneficial to the Government.

MDA has very stringent security requirements which requires a significant amount of time and effort to build a compliant cloud environment. Once built, MDA's Computer Emergency Response Team (CERT) must monitor the environment 24/7, 365 days a year. Adding additional environments will impact the CERT’s ability to effectively complete that work, increasing the risk of adversaries gaining access to critical MDA data. Therefore, adding an additional platform to monitor would require the expansion of the security team along with additional costs.

(4) Demonstration of unique source.

Microsoft possesses the knowledge, skills, capabilities, certification, clearance, and experience required to continue the existing requirement without a break or degradation in critical mission services. Given these critical mission requirements, Microsoft is the only contractor that is capable of performing the necessary services for the DoD within the current required timeline.

Microsoft Government Secret offers IL5 and IL6 compliant services, including:

+ Compute: Virtual Machines, Virtual Machine Scale Sets (with additional security features)

+ Storage: Blob Storage, File Storage, Queue Storage (with additional security features) + Networking: Virtual Networks, Load Balancer, Application Gateway (with additional security features)

+ Security: Azure Security Center, Azure Sentinel (with additional security features)

(5) Procurement discussion.

Based on outreach to the four CSPs in February 2024, the only CSP that is currently capable of meeting the minimum needs of the Government is Microsoft. Using MDA IL5 and IL6 cloud services to deliver congressionally mandated Missile Defense capabilities to the warfighter is critical to the mission.

Page 4 of 6 Pages

CUI

(6) Impact.

Migration to another CSP from Microsoft is not feasible based on the inability of any other CSP to seamlessly integrate with the existing architecture. The impact of not procuring through Microsoft would result in MDA facing a critical break in service and would delay the MDA Program Executive’s ability to deliver congressionally mandated Missile Defense capabilities to the warfighter, which would result in mission failure.

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 were previously found to be fair and reasonable and based on the contractor’s commercial pricing.

6. MARKET RESEARCH:

Market research for the basic JWCC Contracts was conducted and resulted in a signed market research report on November 9, 2021, that was revalidated and recertified on July 29, 2024.

After a survey of the market, it was concluded that the use of the JWCC Contract is in the Government’s best interest due to technical feasibility and cost to the Government.

Additional research was conducted on February 2, 2024, by reviewing the specific capabilities in the JWCC Contracts and it was determined that Microsoft Corporation is the only source capable of fulfilling the Government’s minimum needs in the manner and time frame required. In February 2024, MDA issued the Additional Research to Support Fair Opportunity to the four CSPs. MDA received responses from Microsoft, Oracle, and Amazon Web Services (AWS).

Google Public Sector notified the Government that they would not be responding due to their inability to meet the requirement.

After reviewing the information gathered from the Market Research, it was determined that while AWS and Oracle offer comparable services, there would be significant costs associated with re-architecting, re-engineering, and refactoring solutions, as well as costs associated with maintaining two solutions on separate platforms. Such substantial duplication of costs is not expected to be recovered through competition.

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:

Incumbent Contractor: Microsoft via Amentum prime contract Contract Number: HQ079617D0001

Page 5 of 6 Pages

CUI

Task Order Number: HQ085722F8003 and HQ085722F8700 PoP: May 1, 2018 - May 1, 2026 Competitive Status: Full and open competition Business Size: Large business

(b) To overcome future barriers to competition, future development and enhancement of IaaS components will include shifting to a containerized platform. This will enable multiple CSPs to meet the requirements which will enable the flexibility to shift workload based on financial and mission requirements.

Page 6 of 6 Pages

CUI

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: SIGNATURE:

TITLE/AGENCY: Cloud COTR, Missile Defense Agency (MDA)

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.

TITLE/AGENCY: Cloud COTR, Missile Defense Agency

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

TITLE/AGENCY/ORGANIZATION: JWCC Contracting Officer, DISA/DITCO/PS8511

HCA 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 $100M, this review serves as approval.

TITLE/AGENCY/ORGANIZATION: HCA, DISA/DITCO

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO