A04 Justifications and Approval -Trusted Capital Bridge_Redacted.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

ATTACHMENT A

Control No. WHS-2021-0034

JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

UNDER FEDERAL ACQUISITION REGULATION FAR SUBPART 6.3

Trusted Capital Program

1. AGENCY AND CONTRACTING ACTIVITY: The Department of Defense, Washington Headquarters Services, Acquisition Directorate, Enterprise Acquisition and Sustainment Division (EASD) is the contracting activity. The Department of Defense, Under Secretary of Defense for Acquisitions and Sustainment, Chief Information Security Officer (OUSD(A&S) CISO) is the requiring activity.

2. DESCRIPTION OF ACTION: WHS/AD/EASD Research Logistics and Analysis Branch (RLAB), proposes to award a sole source contract to ByteCubed LLC (aka U.Group) for the Trusted Capital Program on behalf of OUSD(A&S) CISO. This action is for a short term, four (4) month bridge contract with two (2), one (1) month options to allow adequate time to re-compete a contract to provided follow-on services from contract number HQ0034-14-D-0026-0005 without a break in service to the Government.

3. DESCRIPTION OF SUPPLIES/SERVICES: This requirement requires the vendor to continue provide business due-diligence analytical, technical, and strategic communications support for the Chief Information Security Officer (CISO) in the Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)). The approval of this requirement will avoid disruptions to a mission critical program (Trusted Capital) currently underway at the (OUSD (A&S)) CISO, as described in further detail below. The Government has the following critical requirements that must be met by various ad-hoc deadlines, as described below:

Conduct, on a daily basis, national security and supply chain due diligence on DoD

Trusted Capital program applications submitted by capital and capability providers operating within the Defense Industrial Base;

Advise and assist DoD on elements regarding the impact of (OUSD (A&S)) derived legislative proposals on DOD Trusted Capital and other acquisition programs;

Provide GOVCLOUD IL4 Platform maintenance and execution of new technical iterations required for user growth on the (OUSD (A&S)) CISO’s DoD Trusted Capital Marketplace to include implementation of DoD compliance requirements;

and, Advise and assist DoD on elements regarding DoD Trusted Capital Innovation Tours with Venture Capital program requiring direct relationships across both industry and the DoD.

Proposed Period of Performance and Cost Estimate are as follows:

Period of Performance Performance Period Dates Amount Base Period 2/7/21 – 6/6/21 Option 1 6/7/21 – 7/6/21 Option 2 7/7/21 – 8/6/21 Base + All Options Total

4. AUTHORITY CITED: This action is authorized under provisions of 10 U.S.C.

2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. REASON FOR AUTHORITY CITED: Failure to award this follow-on bridge contract to ByteCubed LLC (aka U.Group) would result in substantial costs to the government, and would cause unacceptable delays. No other vendor is capable of providing the required services at this time. This turnover period would exceed the duration of the contract and as such would expose the Government to risk of unsuccessful program performance. U-Group has the unique knowledge and background working with the (OUSD (A&S)) Chief Information Security Officer (CISO), has the required cleared staff and the specific technical expertise. The depth of knowledge possessed by U-Group in the associated subject matter and relationships with key stakeholders cannot be replaced by another company and still allow (OUSD (A&S)) CISO to meet required deadlines.

The technical knowledge required to maintain the Trusted Capital Marketplace includes a working knowledge of the GOVCLOUD IL4 platform architecture that includes protection from unauthorized disclosure and other mission-critical data. This includes working knowledge of Kanban boards for managing and collaborating with team members on work projects and tasks for the Government, required security clearances and access to programs and data derived by the Controlled Unclassified Business Information collected by the Government.

The specific skillset of U-Group in both legislation and tax code are imperative to drafting significant DoD Legislative proposals necessary for the establishment of market-based incentives to protect our nation’s economic and national security. Furthermore, U- Group’s corporate knowledge of the DODI 1322.06 Tours with Industry Instruction and program management in (OUSD (A&S)) CISO’s Trusted Capital is required to continue the establishment of the TC Innovation Tours with Venture Capital program. This program requires daily monitoring and communication with industry and DOD partners.

There are no firms aside from U-Group prepared to adequately staff the requirement prior to contract expiration, leaving the Government at significant risk of mission failure. This bridge contract is planned to maintain continuity until a new contract is competed.

Finally, as describe in the OUSA A&S – Trusted Capital webpage (https://www.acq.osd.mil/tc/), the objective of the Trusted Capital program is to “connect companies critical to the defense industrial base with vetted trusted capital providers. Companies critical to the Department of Defense (DoD) require access to rapid funding from capital providers at key development stages.

The

Trusted Capital Marketplace is a forum to convene trusted sources of private capital with innovative domestic companies. The companies have been down-selected by the military services and operate in emerging technology sectors critical to the U.S. defense industrial base – strengthening domestic manufacturing through, and limiting foreign access to, critical technology.”

Therefore, continuity during this period is essential. Failure to bridge this contract will result in a significant reduction in the available resources (workforce) and risks DOD’s ability to monitor and advise compliance against new and existing adversarial capital, foreign ownership, control, and influence. Any failure to grant this bridge contract would seriously jeopardize DOD’s ability to monitor the defense industrial base and provide economic and national security as required by law.

6. EFFORTS TO OBTAIN COMPETITION: This current bridge action represents the best value to the Government at this time as the incumbent has exhibited outstanding performance in the execution of the effort on the expiring contract. Because adequate turnover is required, this bridge contract is required to fill a short term transition period before a competed contract may be awarded. Executing a short-term bridge contract with the incumbent represents the best value to the Government while providing the least risk to successful contract performance.

7. FAIR AND REASONABLE COST DETERMINATION: The Contracting Officer will ensure the anticipated price for this contract action will be fair and reasonable, based upon techniques identified at FAR 15.404-1(b)(2).

8. MARKET RESEARCH: The short duration of this contract would allow no vendor other than the incumbent to adequately and successfully perform the work required by the Government.

9. OTHER FACTS: None

10. INTERESTED SOURCES: This requirement is planned to be completed, and awarded on a follow-on contract with a sufficient time period for transition.

11. ACTIONS TO INCREASE COMPETITION: The short nature of this contract precludes a reasonable method to increase competition while providing adequate service to the Government. This action will be re-procured through an appropriate solicitation.

12. Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis?

☐Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification ☐ were ☐ were not completed.

☒No. The original acquisition was conducted on a competitive basis.

☐Not Applicable. This is a new requirement.

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

This justification is, approved.

, Competition Advocate Date