A02 23-062 LSJ IBAT Support Services Final redacted_Redacted.pdf

Control No: 23-062 Contractor: Decision Sciences Inc.

Supply/Service: Industrial Base Assessment Tool

JUSTIFICATION REVIEW DOCUMENT

FOR LIMITED SOURCE JUSTIFICATION

Supply/Service: Business Process Change (BPC) Support for the Army’s Ammunition Industrial Base Assessment Tool (IBAT) System

Authority: Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(B)

Prepared by:

Contracting Officer:

Technical:

Requirements:

Reviews: I have reviewed this justification and find it adequate to support limiting competition.

Program Manager:

Legal Advisor:

Department of the Army Limited Source Justification Order under

General Services Administration Multiple Award Schedules

1. Contracting Activity: U.S. Army Contracting Command – Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: Headquarters (HQ) Joint Munitions Command (JMC) Facilities Readiness Industrial Base Analysis Division requests a firm-fixed-price delivery order to procure services needed to support the BPC transformation of the IBAT System with Decision Sciences Incorporated (DSI). ACC-RI is conducting this acquisition under the authority of the Multiple Award Schedules Program. The order will be executed against General Services Administration (GSA) Federal Supply Services Information Technology (IT) Schedule 70, Contract 47QTCA-18-D-00HR. ACC-RI projects award for September 2023 and will use fiscal year 2023, Research, Development, Test, and Evaluation (RDT&E), Army funds. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The JMC operates and maintains the IBAT System. The web-based IT program provides decision support tools designed to support the assessment of ammunition supply chain risks, quality impacts, industrial capabilities simulation modeling, and support the development of risk mitigations in support of the ammunition industrial base. Per Army Regulations (AR) 700-90, Army Industrial Base Process, Section 6 and Appendix F-9, IBAT is the system of record for performing ammunition industrial base planning and supply chain risk management.

The IBAT System is used by a broad spectrum of the Department of Defense (DoD) organizations, to include Deputy Assistant Secretary of Defense for Industrial Policy;

Assistant Secretary of the Army (Acquisition, Logistics and Technology); Joint Program Executive Office Armaments & Ammunition; Combat Capabilities Development Command; Army Materiel Command; JMC; U.S. Services and other Federal entities throughout the DoD ammunition industrial base enterprise. The IBAT system enables near real-time capability base planning/industrial preparedness planning and empowers DoD entities and JMC to perform critical data analytics mission in support of risk management in order to sustain readiness within the evolving DoD Ammunition Enterprise.

This transformation and evolutionary effort, IBAT – BPC, will support the development of system services and capabilities to incorporate unique ammunition technical data and supply chain data for conventional munitions and missile commodity Industrial Preparedness Planning (IPP) into the IBAT system. There are six primary focus areas:

1) the ability to incorporate missile system technical data and associated energetics, 2) improved management of conventional ammunition data, 3) the ability to run real-time capacity and supply chain simulations, 4) improved and intuitive user interface capable of enabling users across the ammunition enterprise to view the ammunition supply chain across all services, 5) the ability to design custom data reports and visuals at the user level, and 6) the ability to allow the U.S. Services to directly input and update Service/Agency-unique ammunition data sets. Additionally, this effort will execute BPCs to the IBAT system enabling the incorporation of an Executive Portal design to display data sets in a graphic chart or PowerPoint visual for planning. Examples include ammunition surge, Minimum Sustainment Rate (MSR), Single Point Failures, and ammunition supplier data cards. The system must be effective and efficient, having an operational rate of greater than 99%, and the ability to adapt to the evolving requirements using custom data inputs and assessments, which are directly associated with the ammunition readiness mission at HQ, JMC.

DSI has provided JMC support for IBAT since 2003. Under its current contract, W519TC-23-F-0157, DSI performs regular IBAT testing and debugging to ensure seamless system functionality and works closely with JMC team members to ensure modifications to the system are executed in line with mission needs and the system performs as needed. DSI also reviews and updates all cybersecurity documentation and requirements to ensure system compliance. For the immediate effort, DSI will incorporate U.S. Services’ ammunition and missile system IPP data into the IBAT system and improve user interface and analysis visibility and capabilities. DSI will also perform the development and testing of all associated software and technologies for use in executing the desired BPCs to the IBAT system, which will address the following areas: Functionality, Outputs, Graphics/User Interface, and Simulation/Modeling. DSI will also be responsible for all required security documentation and compliance to ensure seamless use of and availability of the IBAT system.

The proposed timeline for the development and testing effort is as follows:

Milestone Estimated Date Action to be Completed

Award

PMR#1

(90-day)

First Project Management Update from vendor on plan of execution – Schedule, Technical, Design, spend plan, and milestones provided. Basic road map with content.

PMR#2

(120-day)

Presentation of proposed design and methodology to implement BPC objectives, such as standardized and custom reports, graphic user interface, data relationships, data import and export capabilities.

PMR#3

(180-day)

Proposed system layout models, communications, data sharing plan, and User interface improvements. Data sharing mechanism for engagements with Air Force, Navy, Army Missiles and Space.

PMR#4

(240-day)

Demonstration of proposed user interface followed by user testing at JMC, JPEO A&A, and DEVCOM Armaments Center.

PMR#5

(330-day)

JMC Testing results (Note – JMC Testing will be conducted as elements of the system are developed.), continuing with BPCs, such as data incorporation.

PMR#6

(365-day)

Technical Review: Individual BPC elements level review plus require PMR elements in addition to any Updates or risks that are impacting the project.

This PMR will determine any adjustments required by the Government (JMC) to ensure product quality and operability.

PMR#7

(450-day)

System testing and integration with United States Services tools and ability to push information for a “One Picture” Ammunition Operating Picture.

PMR#8

(545-day)

External customer tools such as GUI, Executive Dashboard, Demand to Production reporting, and testing.

PMR#9 (Final) (730-day)

Final PMR Project Management: Update from vendor on accomplishments, deltas, and plan of execution to achieve inability to meet requirements – Schedule, Technical, Design, spend plan, and milestones provided. Basic road map with content.

In total, the period of performance (PoP) is 15 September 2023 to 14 September 2025, composed of a 12-month base, plus one option year. The estimated value is based on the Independent Government Estimate, and broken out by the PoP as follows:

Base Year – 15 September 2023 to 14 September 2024:

Option Year – 15 September 2024 to 14 September 2025:

4. Authority Cited: Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(B). Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

5. Reason for Authority Cited:

a. As stated in AR 700-90, the U.S. Army has a documented requirement to maintain an information system capable of supporting IPP and Supply Chain Risk Management (SCRM). Approximately 20 years ago, based on this identified requirement, JMC initiated the procurement action which led to the development of the IBAT model to achieve regulatory guidance and improve ammunition readiness.

The initial acquisition, W52P1J-05-F-3007, was awarded to DSI to support IPP and SCRM based on the performance, capabilities, analytical model, and Intellectual Property (IP), which DSI had previously developed for several organizations including the U.S. Air Force, academia, and industry. This initial procurement resulted in the DSI-developed IBAT framework, which has experienced several evolutionary changes and process changes over the last 20 years to meet changing requirements. The evolution and upgrades to the IBAT System have been executed by DSI, resulting in the contractor gaining unparalleled knowledge of not only the information system framework, but also knowledge of the ammunition commodity.

The enduring JMC mission of ammunition readiness has evolved, and continues to;

therefore, it is necessary that the IBAT system is modified, updated, and supported in order to allow for seamless use and functionality in executing the industrial preparedness planning and supply chain risk management mission. It is imperative that the IBAT system not only functions for its intended use, but that the support contractor is able to incorporate and execute all requirements associated with supporting the evolving JMC mission. DSI is uniquely capable of executing the continual operations and maintenance of the IBAT system, while concurrently implementing BPCs and incorporating service unique ammunition data, which are inherently inseparable. Introducing a new vendor would result in an extensive learning curve (and would require DSI’s intellectual “know how” to minimize impact), but also, significant downtime for not only the system, but in learning, understanding, and executing the IPP mission to incorporate other service ammunition IPP data.

b. While the IBAT system is not proprietary to DSI, only DSI possesses the historical knowledge and IP of the information framework and the associated industrial base modeling to support the system processes and procedures necessary to perform supply chain analysis. Therefore, it would be extremely difficult for another contractor to replace DSI and provide immediate support to ammunition supply chain management and decision support assessments to make effective BPCs. The Limited Source Justification (LSJ) 23-031, approved by the Competition Advocate in March 2023 for the Operations and Maintenance (O&M) of the IBAT system, determined that DSI has intellectual property regarding the knowledge of and functionality of the IBAT system, the Government could not provide “how to” insight and information to any other vendor because the Government does not own these essential processes and procedures. The Government is not capable of providing another contractor the instructions necessary to support the IBAT system. To consider any other vendor at this time would require DSI to abandon its rights and provide training and intellectual knowledge to a competing vendor, which is unrealistic. Given adequate time, another contractor could develop its own software and tools to support IBAT; however, attempting to bring in another contractor would result in the potential complete loss of the IBAT system and all associated capability/functionality, as well as a period of downtime that is unacceptable.

According to the subject matter experts within the JMC G6, based on their knowledge and experience, the approximate downtime to have another contractor learn the IBAT system and develop their own processes and procedures would take no less than 24 months.

c. Moreover, the BPCs and incorporation of other service ammunition IPP data was a known requirement when selecting a vendor to conduct the O&M of the IBAT system. Due to the nature of the BPCs and the relationship to the existing system and required changes, it is necessary that the vendor performing the O&M be able to perform all BPCs and IPP data incorporation. Furthermore, DSI is currently on contract with the U.S. Navy to construct a mirror system and incorporate Navy specific IPP ammunition data. It is anticipated that DSI’s effort with the Navy will eventually be combined with this effort as the IBAT system continues to mature and evolve in support of the ammunition readiness mission. DSI is the only vendor conducting this type of work and is postured and positioned to successfully perform all facets of these BPCs and incorporation of other service ammunition data to ensure seamless IBAT functionality and capability. This effort combined with the ongoing Navy effort will enable the JMC IBAT system to create a common operating picture of the DoD enterprise ammunition supply chain in support of Deputy Assistant Secretary of Defense Industrial Policy and Office of the Under Secretary of Defense Acquisition and Sustainment. This in turn will allow DoD, and HQ, JMC to successfully support the evolving ammunition readiness mission, for not only the

Single Manager for Conventional Ammunition, but for the DoD ammunition enterprise.

d. As noted below, market research has indicated that no other vendor is able to perform all aspects of the IBAT requirements and provide the BPC services to make process improvement recommendations to the system, as well as put them into effect, due to the uniqueness of the services required. Not only did DSI collaborate with JMC to develop the system in 2003-2004, but they also performed a technical data refresh in 2018-2019 that significantly changed the system to ensure continued support and to adapt to the evolving mission of munitions readiness. DSI is the only contractor that has demonstrated the capability, knowledge management, and experience required to sustain and improve the IBAT system as well as conduct the BPCs and incorporate service unique ammunition data into the IBAT system.

e. As the IBAT system is critical to the overall DoD mission, not having the ability to execute and implement BPCs as well as incorporate service unique ammunition data, as requested by OSD, would guarantee significant and devastating repercussions to JMC’s enduring ability to support the supply chain risk management and ammunition readiness readily and speedily. Given the significant risk, DSI is the only contractor that can be leveraged for BPC services. Several examples of catastrophic repercussions include the failure and inability to support the following efforts:

i. Ukrainian Tranche Ammunition Capacity Assessment. IBAT is currently supporting the Joint Program Executive Office Armaments & Ammunition by incorporating known and projected requirements associated with Ammunition Tranche funding. This assessment is determining the risks and impacts to the industrial base ammunition supply chain and the ability to meet projected requirements. The BPCs and incorporation of service unique ammunition data will allow JMC and IBAT to support this evolving analysis.

ii. War Planning, Total Munition Requirement, and Surge Analysis. The IBAT System conducts an annual assessment of the U.S. Services’ war planning submissions that support the development of the Total Munition Requirements. This ammunition war planning assessment illuminates both the health of the industrial base and the surge capabilities using IBAT modeling functions. The result of this analysis is used to support DoD industrial base strategic efforts, such as the development of Project Objective Memorandum. The BPCs and incorporation of service unique ammunition data will enable JMC and DoD users to better understand, visualize, and assess enterprise ammunition requirements and supply chain risk impacts.

6. Market Research: Market Research conducted for the IBAT system was initiated in May 2022 and analysis concluded in July 2023. ACC-RI issued a sources sought/request for information (SS/RFI) using SAM.GOV from 31 May 2022 through 27 June 2022, generating four responses: DK Shin Laboratories, National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC), Telesto

Group LLC, and DSI. JMC completed an assessment of each entity’s submitted capability statement using standardized criteria. Of the four respondents, only two, DSI and Telesto Group LLC, provided a response that provided detailed information about their company and demonstrated their general knowledge of information systems. Both DK Shin Laboratories and NITAAC were determined not capable because they did not provide any specific detail regarding their knowledge of information systems or any detail regarding elements of the SS/RFI.

Of the elements included in the SS/RFI, the requirements deemed critical included 1) DoD Risk Management Framework requirements and DoD IT system compliance; 2) Ammunition production base knowledge with the ability to integrate ratings and pacing/critical component determination; 3) Expert level of knowledge and experience of ammunition production line concurrency; 4) Detailed knowledge of financial viability/MSR in ammunition production manufacturing and associated 2nd and 3rd effects due to complexity. The reason these requirements are deemed critical is that without this experience and knowledge, the support required to achieve project objectives cannot be accomplished and introduces significant risk to the continued support, availability, and functionality of the enduring industrial preparedness planning and capability-based planning mission.

The Telesto Group LLC provided examples of information systems that they have supported, but provided no indication of their experience, knowledge, nor expertise regarding key and critical elements of the SS/RFI, which include the following.

In-depth understanding and knowledge of the ammunition production industrial base.

Understanding and experience with production base ratings and pacing components is a critical element to the modeling and simulation functionality within IBAT.

Familiarity and understanding of production line concurrency – critical element to IBAT functionality.

Knowledge and expertise of financial viability/MSR associated with the ammunition production industrial base.

Ability to readily execute any potential business process changes to the IBAT system per PM directive. This would require elements of intellectual property residing with DSI and could not be acquired within a reasonable time even with Government assistance.

Ability to integrate other service industrial base data and supply chain information into the IBAT system.

Based on Telesto Group’s lack of experience with IBAT and its inability to take over support without a substantial break in service, JMC determined Telesto was not capable of supporting IBAT. The findings resulted in a sole source award to DSI for the O&M of the IBAT system.

Additional market research was conducted in July 2023 and included JMC directly contacting the four respondents of the original RFI to see if their capabilities have increased. The results of the original and updated market research show there have been no changes to suggest another entity could successfully execute the objectives of this effort. The results clearly indicated that DSI, the current contractor providing O&M support, is the only entity capable of supporting the BPC evolutionary development process.

7. Actions to Increase Competition: The Government is continually evaluating sources of supply that could potentially provide IBAT system support. However, based on DSI’s performance and capabilities, JMC has not identified a candidate capable of replacing the vendor and achieving requirements. At this time, the Government does not foresee being able to compete these requirements, nor is it intending to take any specific action to increase competition as it will require consideration of obtaining DSI intellectual knowledge of the IBAT system framework. If a time comes where DSI is no longer viable option or elects not to continue to support the IBAT system, the Government will have full and unrestricted rights to the IBAT system and would be required to assume the risk to compete these services.

8. Other Facts:

Procurement History:

Contract: W52P1J-23-F-0157 Contractor: DSI Award Date: 17 March 2023 Competitive Status: Sole Source, LSJ 23-031 Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W52P1J-22-F-0137 Contractor: DSI Award Date: 16 March 2022 Competitive Status: Sole Source, LSJ 22-032 Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W52P1J-16-A-0010 Contractor: DSI Award Date: 18 May 2016 Competitive Status: Sole Source, LSJ 16-045 Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W52P1J-11-A-0010 Contractor: DSI Award Date: 21 March 2011 Competitive Status: Sole Source Authority: Records Unavailable

Contract: W52P1J-08-F-3019 Contractor: DSI Award Date: 20 March 2008 Competitive Status: Sole Source Authority: Records Unavailable

Contract: W52P1J-05-F-3007 Contractor: DSI Award Date: 15 March 2005 Competitive Status: Sole Source Authority: Records Unavailable

9. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Date: _________________

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

11. Best Value Determination: I hereby determine that the order represents the best value to the Government IAW FAR 8.405-6(c)(2)(v).

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

9/5/23

9/5/23

9/6/23

9/6/23

Approval

Based on the foregoing justification, I hereby approve the procurement of IBAT BPC Support Services under GSA Multiple Award Schedules on a limited source basis pursuant to the authority of FAR 8.405-6(a)(1)(i)(B) subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date:

9/8/23