91003126Q0015_JOFOC_092826_FE.pdf

CONTROLLED UNCLASSIFIED INFORMATION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN

COMPETITION FOR AN ORDER EXCEEDING

THE SIMPLIFIED ACQUISITION THRESHOLD

(AUTHORITY: RFO 6.103-3)

Request for Task Order Proposal: No.

91003126Q0015

1. Agency and contracting activity.

Department of Education, Federal Student Aid (FSA).

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

FSA anticipates awarding a cost plus fixed-fee task order on a sole-source basis by utilizing the U.S. Department of the Treasury (USDT) and Internal Revenue Service’s (IRS) Center for Enterprise Modernization (CEM) Federally Funded Research and Development Center (FFRDC) indefinite-delivery, indefinite-quantity (IDIQ) with MITRE Corp. (MITRE) (contract number TIRNO-99-D-00005).

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

To ensure the successful execution of FSA’s Technology Modernization Initiative (FTMI), it is essential to partner with an organization that offers independent, mission‑focused expertise that can provide conflict‑free guidance on the foundational architectures and data modernization that will shape future FSA modernization initiatives. The Architecture and Data Modernization Support (ADMS) work directly informs the strategy, requirements, and technical direction for major upcoming acquisitions under the FTMI, making it critical that the supporting partner bring not only deep technical capability but also a governance structure that guarantees neutrality, is able to perform closely associated with inherently governmental work, and prioritizes the best interests of the government. These unique qualifications can only be found through non-commercial services.

FSA currently does not have the in-house technical expertise to execute and requires technical management and research and development support to advance the FTMI planning and acquisition. FSA requires technical expertise and operational support in architecture, data modeling and data integration to advance the FTMI planning and acquisition, including, but not limited to the modernization of

Digital Customer Care (DCC), Title IV Origination and Disbursement (TIVOD) and Unified Borrower Portal (UBP).

The base award period of performance is twelve (12) months for an estimated $3.8M. Furthermore, this justification covers a potential six-month extension under FAR 52.217-8 (Option to Extend Services), if approved by IRS. The total estimated maximum value of this sole-source acquisition, inclusive of the base period and all options, is $4.8M.

4. Market research conducted.

On July 21, 2025, FSA published a request for information (RFI) for FTMI. The goal was to gain a better understanding of—and potentially leverage—current and emerging industry capabilities to modernize FSA’s technology while enabling the successful implementation of the One Big Beautiful Bill Act. Amongst its six strategic goals FTMI RFI included “Streamline and integrate data infrastructure”.

Additionally, an industry day was held on August 22, 2025. In total, more than 88 small and large businesses responded to the FTMI RFI, many of which are contractors confirmed to be on government-wide acquisition contracts (GWAC) and best-in-class (BIC) vehicles. Although it was not an RFI directly for the ADMS requirement, FSA was able to identify multiple contractors with expertise in enterprise modernization and with a focus on architecture and data integration modernization, which are the technical expertise required for ADMS. These commercial partners were also identified on the various BIC General Services Administration (GSA) vehicles, such as GSA Multiple Award Schedule (MAS), 8(a), OASIS, and Polaris. Additionally, it was confirmed that data research scientists and related data science services are available under the GSA MAS for IT Professional Services (SIN 54151S).

However, market research also determined that while certain aspects of this requirement resemble work performed by commercial vendors, the inherent capabilities needed to successfully meet the objectives -independence, freedom from conflict of interest (COI), and the trusted status to perform tasks closely associated with inherently governmental functions- cannot be provided by a commercial vendor without introducing significant mission risk.

Because these qualities are the unique, defining characteristics of FFRDCs, they were evaluated during market research. The FFRDC charter dictates that their support is appropriate when one or more of the following special relationship qualities are needed:

1. Objectivity and independence – operate in the public interest with the ability to accomplish tasks that are integral to the mission and operation of the sponsoring or non-sponsoring agency free from commercial pressures.

2. Freedom from conflicts of interest – FFRDCs do not compete in response to a Federal agency’s Request for Proposals for other than the operation of an FFRDC or perform quantity production or manufacturing and are operated by not-for-profits or nonprofits.

3. Special access to sensitive or proprietary information – access, beyond that which is common to the normal contractual relationship, to data, staff, and facilities.

4. Special long-term research or development needs – familiarity with the needs of the sponsors based on a continuing relationship (institutional memory) and cannot be met as effectively by existing in-house or contractor resources.

5. Quick response capability – ability to offer short-term assistance to meet urgent and high-priority requirements.

6. Comprehensive knowledge – currency of expertise in functional areas.

7. Closely associated with inherently governmental work.

Market research concluded that as a dedicated government-wide non-commercial vehicle designed specifically to take on non-commercial work for government agencies, the FFRDC is the only contract mechanism immediately available to FSA that ensures the independence, conflict-free guidance, and mission-focused expertise required for ADMS. The FFRDC vehicle only permits non-commercial contracts. Because the ADMS requirement relies entirely on these uniquely non-commercial attributes and aligns directly with the specialized advisory work FFRDCs are chartered to provide, the requirement intrinsically meets the definition of, and is classified as, non-commercial.

Furthermore, among the 42 FFRDCs, the Center for Enterprise Modernization (CEM) FFRDC was found to be the only one specializing in civil government modernization, systems engineering and integration, data architecture and modeling, R&D capability in emerging technologies (AI, data integration, code modernization), and technology modernization strategy. CEM FFRDC was, therefore, determined to be the FFRDC best aligned to the ADMS’ modernization objectives.

5. Statutory Authority Permitting Other Than Full and Open Competition.

Based on the unique COI requirements, the use of a non-commercial source is required. The authority to proceed with a non-commercial source is FAR 6.103-3.

FAR 6.103-3 Industrial mobilization; engineering, developmental, or research capability; or expert services. (b) To establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center.

6. Demonstration of Contractor’s Unique Qualifications / Rationale Supporting

Use of the Authority.

As demonstrated by the market research assessment, FSA has determined that non-commercial FFRDCs are uniquely positioned to execute the ADMS requirement. Based on their special relationship qualities, FFRDCs are the most appropriate resource to deliver the requisite independent analysis and guarantee freedom from OCI. Furthermore, beyond the baseline capabilities and structural restrictions common to all FFRDCs, the CEM FFRDC operated by MITRE Corp.

(MITRE), a not-for-profit corporation, possesses specialized expertise in Government-focused information technology modernization research and development. As described below, this specific technical alignment makes the CEM FFRDC and MITRE exceptionally qualified to support the ADMS requirement.

a. Independent, Vendor‑Neutral Expertise

FSA’s ADMS requirement demands unbiased technical judgment, particularly because the resulting architecture and data models will directly shape future FTMI, TIVOD, and DCC acquisitions. A commercial vendor cannot objectively develop FSA’s foundational enterprise architecture if they intend to compete for future implementation contracts. Conversely, MITRE, operating as an FFRDC, is obligated by charter to remain vendor-neutral and is strictly prohibited from competing for commercial work. Structured to avoid all OCI risks, MITRE is uniquely positioned to provide objective recommendations that do not favor any specific vendor, platform, or product, guaranteeing the conflict-free foundation FSA requires.

b. Specialized Government‑Focused Modernization Capabilities

While the FFRDC vehicle provides the requisite structural independence for this requirement, Center for Enterprise Modernization (CEM) was specifically selected from among available FFRDCs due to its unique charter and technical specialization.

CEM is the only Systems Engineering and Integration (SE&I) FFRDC dedicated specifically to civilian agencies. While other FFRDCs are chartered for defense, nuclear, or basic scientific research, MITRE is uniquely equipped to provide:

• Systems Engineering & Integration: Deep, enterprise-scale systems engineering expertise tailored specifically to civilian government IT frameworks.

• Enterprise Data & Architecture: Advanced capabilities in data architecture, modeling, and enterprise-wide data integration strategies.

• Emerging Technologies & AI: Mission-oriented R&D and advisory capabilities focused on AI-enabled transformation, code modernization, and future-state technology strategies.

• Civilian Modernization Experience: In-depth knowledge of, and proven experience with, complex IT transformation and enterprise modernization efforts across other civil government agencies.

None of the other 42 FFRDCs align as well to FSA’s enterprise data and modernization needs. With over 25 years of specialized experience in developing enterprise architectures, cloud migration strategies, data integration, cybersecurity, and AI-enabled transformation, MITRE’s CEM is uniquely positioned and technically qualified to execute the large-scale IT systems engineering required for

ADMS.

c. Protection Against Vendor Lock and Ensuring Government Ownership

For FSA to build a unified and vendor‑agnostic data modernization, the foundational architecture and data models must be developed by:

• a non‑commercial, conflict‑free entity

• an organization whose recommendations are technology‑neutral

• a partner that ensures FSA maintains ownership and control

MITRE’s FFRDC is specifically chartered to help agencies avoid vendor lock, develop government‑owned architectures, and ensure that future implementation contractors adhere to open and interoperable designs.

d. Mission‑Driven R&D and Emerging Technology Support

The core of the ADMS requirement is fundamentally rooted in research and development (R&D). It consists of highly specialized, open-ended tasks that lack the predictable performance metrics of standard commercial services such as feasibility studies, alternatives analyses, acquisition planning, and advisory systems engineering. Because for-profit commercial entities face structural OCI, they cannot objectively perform these long-term advisory tasks. FFRDCs were established specifically to mitigate these exact procurement risks and execute this type of open-ended R&D.

A critical component of this R&D effort involves leveraging artificial intelligence (AI) to drive IT modernization. MITRE’s advanced expertise in this domain is essential for developing FSA's future-state modernization frameworks. Specifically, MITRE brings proprietary AI tools for legacy code extraction and code generation, alongside cutting-edge R&D in agentic AI for data migration, quality assurance, and system interoperability.

The R&D-centric nature of this requirement is reflected in the Statement of Objectives (SOO), where five (5) of the seven (7) task categories focus heavily on complex assessments and feasibility studies. Brief descriptions of the research required for these specific tasks are outlined below:

• Task 1 - System, Data Architecture, and Integration: All work under this task remains advisory in nature, focused on research, analysis, recommendations, and documentation—not system development. The work performed shall support FSA’s goal of designing a consistent and scalable solution that supports borrowers’ needs, ensures compliance with federal regulations, and integrates seamlessly with necessary systems and enterprise standards, such as the FSA common data model and a real-time, two-way data connection between FSA and servicers.

• Task 2 - Master Data Management (MDM) and Data Quality: MITRE shall provide research and assessment of technologies and processes, which may include modeling and simulation, analysis of Government data, business process or concept development, alternatives analysis, feasibility analysis, prototype and proof of concept development to support FSA’s master data management and data quality needs. MITRE will conduct research, alternatives analysis, and feasibility assessments of technologies, tools, and processes that enhance FSA’s MDM and data quality capabilities across the full data lifecycle.

• Task 3 - Leveraging Modern Data Technologies: MITRE shall conduct research, assessments, and feasibility studies to identify the advantages, constraints, and trade‑offs associated with various modern data technologies and architectures. This includes analyzing how different approaches, such as event‑driven architectures would enhance FSA’s ability to support high‑volume data flows, real‑time updates, operational analytics, and cross‑system consistency. As part of this work, MITRE will evaluate how these technologies align with FSA’s strategic objectives, cloud modernization efforts, and system‑wide performance requirements.

• Task 5 - Agentic AI Integration Research: MITRE shall develop recommendations and conduct pilot activities to assess how Agentic AI solutions can interface with FSA’s systems and data environments, with particular emphasis on supporting data migration, real‑time data movement, metadata generation, and remediation of data quality issues. MITRE shall also provide recommendations on governance, safeguards, operational guardrails, and integration patterns needed to responsibly incorporate Agentic AI into FSA’s technology environment.

Task 6 - Piloting MITRE’s AI Tools to Assist with IT Modernization: FSA is interested in piloting MITRE’s AI tools to research leveraging AI in the modernization of FSA’s legacy systems. This will include researching the ability of Large Language Models (LLMs) to extract and apply business logic from government legacy code to improve the quality, consistency, and efficiency of AI-assisted code translation and modernization.

The two (2) non-research-oriented tasks of the ADMS SOO are Task 4 - Support Common Data Model Development, and Task 7 - Project Management.

e. Special Access to Sensitive & Proprietary Information

The ADMS requirement provides FSA with technical expertise, guidance, and recommendations to unify data architecture and integrate student aid systems. To deliver effective technical guidance, the contractor must thoroughly understand the current environment. This will require deep system access, as well as special access to sensitive data, proprietary information, staff, and facilities that go beyond a standard contractual relationship. Given this elevated level of access, the contractor must operate completely free from OCI, a critical requirement that the FFRDC model is uniquely chartered to fulfill.

f. Closely Associated with Inherently Governmental Work

ADMS requires technical expertise and operational support in in architecture, data modeling and data integration to advance the FTMI planning and acquisition. The areas of support include policy and regulatory development support (e.g., feasibility studies, strategy options, policy document drafting) and acquisition support (e.g., acquisition planning, serving as technical advisor to a source selection board). This support is closely associated with the performance of inherently governmental functions, necessitating a conflict-free and vendor neutral partner with comprehensive government focused modernization expertise like MITRE to promptly and effectively provide these services.

g. Data Rights

FFRDCs prioritize government ownership or broad licensing of technical data and software developed under federal funding. Generally, this relationship gives the government "unlimited rights" to deliverables, allowing free use, modification, and disclosure both within the government and with outside parties at the government’s discretion. When working with commercial partners the data rights can be more limited, and the level of ownership and free usage the government will retain from the deliverables produced must be negotiated due to factors such as trade secrets and proprietary or confidential information. The expected broader level of rights from working with a FFRDC will also reduce the negotiation timeframe. Without sufficient data rights the government will encounter challenges in disseminating the results of this contract to other contractors, which is crucial for the effective deployment and implementation of the data architecture across FSA.

h. If the requirement is not solicited from the CEM FFRDC, risks include:

Performance risk: Increases the likelihood that the work will be performed by entities lacking the same mission‑proven and government modernization insights, and technical objectivity. This can manifest in non-optimal or biased approach for FSA’s architecture and modernization blueprint, in addition to missed opportunities to leverage AI and modern technology to the maximum extent possible that would support modernization efforts in a cost-effective manner.

Schedule risk: Even though the FFRDC scope is uniquely distinguished from other contracts, it is tightly coupled and needs to be coordinated with other modernization activities and initiatives, especially with the unified borrower portal (UBP). A delay in FFRDC deliverables due to performance issues can result in the need for additional efforts to revalidate and harmonize architectural and data design performed through UBP initiative and may lead to rework. In addition, any delay in the development of an optimal architecture will delay future FTMI efforts.

o Substantial procurement administrative lead time (development of solicitation, evaluation, negotiations, and award);

o Mandatory COI mitigation and legal review due to vendor entanglements with regulated industry or prior agency work;

o Additional controls for data access, disclosure limitations, and proprietary model restrictions; and o Increased schedule risk due to the additional administrative burden of resolving these issues prior to critical project activities commencing.

7. Efforts to Obtain Competition.

See Market Research information regarding the FTMI RFI.

Exception under RFO 5.101 Presolicitation notice. (1)(iv) – A presolicitation notice is not required for an order issued under a task order contract.

Exception under 5.301(b) - An award notice is not required if an exemption at 5.101(b)(1) to the presolicitation notice requirements applied to the contract action.

8. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable.

MITRE will use private industry resources to fulfill the requirements. Cost analysis will be performed to compare any labor rates received from MITRE with commercial market rates and the government’s independent cost estimate to ensure costs are determined to be fair and reasonable. Cost realism analysis will be performed to ensure proposed costs are realistic for the technical approach, consistent with cost elements, and reflect a clear understanding of requirements.

9. Any other facts supporting using other than full and open competition, such as:

RFO 7.102 (b)(4): Acquisition plans must promote and provide for “Use of existing contracts, if appropriate, including interagency and intra-agency contracts, to fulfill the requirement, before awarding new contracts (see section 8).” RFO 17.5 Interagency Acquisitions references the usage of FFRDCs under 17.503(e).

Although the RFO is unclear if FFRDC usage is directly classified as an interagency agreement (IAA), it is an existing contract, accessible via the same Economy Act order contractual mechanism as an IAA. Usage of IAAs and FFRDCs is open to all governmental agencies, and is in alignment with the intent of other

GWACs, RFO 7.102, and executive order (EO) 14240 to promote the use of GWACs to eliminate duplication, redundancy, and inefficiency in federal contracting.

Furthermore, EO 14402 was issued to encourage the use of fixed-price contracts in order to improve efficiency, accountability, and performance within federal contracting.

However, the requesting non-sponsor agency (FSA) must use a cost plus fixed fee (CPFF) contract to utilize the CEM FFRDC IDIQ, as specified in its ordering guide.

The CEM FFRDC IDIQ was created as a non-commercial vehicle for information technology research and development contracts, including projects like ADMS.

Therefore, utilizing the CEM FFRDC and issuing CPFF contracts for under this non-commercial vehicle is not constrained by EO 14402 or similar mandates.

10. Sources That Expressed Interest in Writing.

N/A

11. Actions to Remove Barriers to Future Competition.

As the ADMS contract nears completion, FSA will evaluate the ongoing necessity of the requirement. At that time, FSA will also assess opportunities to align any future iterations of this requirement more closely with commercial capabilities.

12. Contracting Officer’s Determination.

As authorized under RFO 6.103‑3, the Contracting Officer has determined that MITRE’s CEM FFRDC, due to its uniquely non‑commercial characteristics, fully meets the government’s need for specialized engineering, research, and development support for the ADMS effort. Accordingly, because the CEM FFRDC vehicle is limited to non‑commercial contracting, awarding this non‑commercial task order on a sole‑source basis through the USDT CEM FFRDC IDIQ to MITRE Corp., the operator of CEM, is determined to be in the government’s best interest.

The Contracting Officer certifies that the justification is accurate and complete to the best of the Contracting Officer's knowledge and belief.

Young Choi Date Contracting Officer

13. Approval for Justifications.

Head of the Contracting Activity’s Approval:

Pat Gwaltney Date Head of the Contracting Activity