A04 - FAR 13.5 Sole Source Memo WHS_Coursera Final_Redacted.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

Control No. 2021-WHS-0025

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION (FAR) 13.5

1. AGENCY AND CONTRACTING ACTIVITY:

Agency: Defense Acquisition University (DAU) Information Technology Services 9820 Belvoir Road Fort Belvoir, VA 22060

Contracting Activity: Washington Headquarters Services (WHS) Acquisition Directorate (AD) Enterprise Acquisition & Sustainment Division (EASD) 4800 Mark Center Drive, Suite 09F09 Alexandria, VA 22350-2900

2. DESCRIPTION OF ACTION:

This justification and approval supports issuing a new contract to Coursera Inc. for Coursera Enterprise Licenses. It is anticipated that the contract will be issued as Firm Fixed Price with the base period of 24 months that is fully funded with FY20 DAWDF funds upon award.

3. DESCRIPTION OF SUPPLIES/SERVICES:

In accordance with the Section 891 of the FY 2018 NDAA, Defense Acquisition University (DAU) must develop a course on Agile software development for the training of certified acquisition professionals supporting programs or projects using agile or iterative development techniques. Section 891 requires DAU to use “instructors and content from non-governmental entities, as appropriate, to highlight commercial best practices in using an agile or iterative development method.” The licenses to be procured under the authority of this sole source approval will provide the required training. The anticipated contract structure is detailed below:

CLIN Structure QTY Performance Period Dates Pricing CLIN 0001 (Base Period, 24 months)

01 Jan 2021 – 31 Dec 2022

CLIN 1001 (Option Period, 24 months)

01 Jan 2023 – 31 Dec 2024

Total

Control No. 2021-WHS-0025

4. AUTHORITY CITED: This action is under the procedures of Federal Acquisition Regulation (FAR) 13.5 under the authority of:

41 U.S.C. 1901, Simplified Acquisition Procedures 41 U.S.C. 1903, Special Emergency Procurement Authority

This acquisition is conducted under the procedures of FAR subpart 13.5, used in accordance with the authority of 41 U.S.C § 1901. FAR 13.5 authorizes the use of Part 13 simplified procedures for certain commercial items.

Acquisitions conducted under simplified acquisition procedures are exempt from the competition requirements listed in FAR Part 6. FAR 13.501(a)(1). Instead, Contracting Officers are required to promote competition to the maximum extent practicable. FAR

13.104. FAR Part 13 requires the agency to justify in writing sole source acquisitions.

FAR 13.501(a)(1)(i). The agency may solicit from only one source if the circumstances of the contract action deem only one source reasonably available. FAR 13.106-1(b)(1)(i).

5. REASON FOR AUTHORITY CITED:

In accordance with the FY18 NDAA, as mentioned above, DAU has conducted extensive research to find a vendor that meets all of the necessary attributes of providing the statutorily required agile software development training. An “Intent to Sole Source” was published through FBO/beta.sam.gov on 08 November 2018 for FY19 and on 06 February 2020 for FY 20. To date, the Government has only received a response from in FY19. DAU determined ’s product could not meet the Government’s requirement and no other responses have been received. The market research for FY2021, conducted on 21 October 2020, utilized the following attributes as technical evaluation factors to analyze the capabilities of five companies’ products:

1. Depth of content coverage with large catalog of courses

2. Instructional effectiveness and interactions with faculty

3. Online availability – Massive Open Online Course (MOOC) Format

4. Incorporating the latest industry best practices

5. Availability to meet 180-day delivery requirement

6. Well-rounded course administration

The five potential vendors offering agile software development training courses that DAU demoed are provided below:

The research yielded the following information. Of the five vendors contacted, only Coursera is capable of meeting the all of DAU’s six specified attributes.

Vendor Capability Provides subject matter expertise for training, but no online classroom capability. Training is not available “off the shelf” or in online format.

Provides subject matter expertise for training, but no online classroom capability. Training is not available “off the shelf” or in online format.

Provides online course content and syllabus, but no interaction with faculty members and thin catalog of courses

Provides full range of courses in online MOOC format.

Captures industry best practices

Provides MOOCs but has limited catalog of offerings

In addition to the market research conducted above, Coursera has offered DAU a significantly discounted unit price in exchange for a longer contractual commitment, i.e.

a 24-month base period of performance. Given that the license is considered a nonseverable service and we are funding with two-year money (DAWDF), the contract is structured with a 24-month base period and one 24-month option period. The table below provides a comparison in unit prices between the current DAU Coursera contract and the discounted price offered:

Current Contract Coursera Discounted U/P

The Coursera discount will save the Government over the life of the new contract when compared to the current one. Coursera is only offering this pricing to DAU and is not offering discounts to authorized resellers. The Government however, cannot assume resellers will not offer the product at a loss in order to “buy in” and compete against the manufacturer. In this case, market research revealed that

. Therefore, the Government cannot compete the requirement among Coursera and yielding Coursera as the only source reasonably available to meet this requirement.

6. EFFORTS TO OBTAIN COMPETITION:

As stated in the section above, the Government conducted in-depth market research that indicated a sole source contract to Coursera best met the requirement. Additionally, this requirement was publicized in FY 2019 and FY 2020, with the Government only receiving one offer as explained in Paragraph 5.

An “Intent to Sole Source” was publicized on Beta.Sam.gov in accordance with FAR 13.501(a) on 16 December 2020.

7. FAIR AND REASONABLE COST DETERMINATION:

The Contracting Officer determines that the anticipated prices will be fair and reasonable by using the techniques identified at FAR 15.404-1(b)(2)(ii) and FAR 15.404-1(b)(2)(iv) to ensure award will be at fair and reasonable prices. Certified Cost and Pricing Data will not be obtained.

8. MARKET RESEARCH:

As noted in the sections above, DAU conducted in-depth market research on 21 October 2020 that indicated a sole source contract to Coursera would provide the best value to the Government. Given that the requirement was publicized on 06 February 2020 and the market research was conducted on 21 October 2020, a sources sought was not required nor was it considered a valuable use of resources.

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE:

Not applicable.

10. INTERESTED SOURCES:

Other than in FY19, no other sources have expressed an interest in writing. Per FAR 5.201, a notice of intent to award sole source was published to Beta.Sam.gov on 16 December 2020 and any responses received will be considered.

11. ACTIONS TO INCREASE COMPETITION:

The Government will continue to survey the marketplace for other alternatives that meet DAU’s Agile software development training course requirement. If the Government determines that Coursera is no longer required or that other courses meet the Government’s requirements, the Government will seek full and open competition. The Government will make every effort to compete similar requirements to the maximum extent practicable.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Contracting Officer Representative/Program Office Date

Contracting Officer Date

APPROVAL

Based on the foregoing, this justification is, hereby, approved.

David H. Kao, Competition Advocate

Date

VANCE.IRENE.BIBI

ANA.1016694963

Digitally signed by

VANCE.IRENE.BIBIANA.1016694963

Date: 2020.12.14 12:50:38 -05'00'

BECKER.JONATHA

N.L.1258504093

Digitally signed by

BECKER.JONATHAN.L.1258504093

Date: 2020.12.22 15:20:54 -05'00'

KAO.DAVID.HOBERT.11121

72870

Digitally signed by

KAO.DAVID.HOBERT.1112172870

Date: 2020.12.22 16:39:36 -05'00'