AI2C JA_Final.1.2_Pre Redaction_Redacted.pdf

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Contractor: Carnegie Mellon University Supply/Service: Service

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JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply/Service:

Authority: 10 U.S.C. 3204(a)(1)

Prepared by:

Contracting Officer:

Technical:

Requirements:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Legal Advisor:

Contractor: Carnegie Mellon University Supply/Service: Service

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Department of Army Justification and Approval for Other than

Full and Open Competition

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

2. Description of Action: Artificial Intelligence Integration Center (AI2C) requests a firm-fixed-price contract with Carnagie Mellon University (CMU). ACC-RI projects award before 29 May 2025 and will obligate fiscal year 2025 Operations and Maintenance, 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).

Contract W911NF-20-D-0002 expires on 28 May 2025. Efforts to conduct a competitive follow-on are underway with the U.S. Army Corps of Engineers (USACE), but for reasons described in paragraph 5, the new contract will not be in place prior to expiration of the current contract. This action is needed to ensure AI2C can continue its Artificial Intelligence (AI) research in collaboration with CMU while the Government continues its efforts to establish a new follow-on contract.

The Government did not compete the current requirement for which this J&A is being sought under the authority of Federal Acquisition Regulation (FAR) 6.302 or 13.501(a)(1)(ii).

3. Description of Supplies/Services: AI2C’s integral mission is to provide specialized accelerated Artificial Intelligence Integration through building a world class workforce and product innovation solutions to unique, complex, and high-risk missions for Army, Department of Defense (DoD), and Federal Agency partners. AI2C manages and executes over thirteen (13) programs and is uniquely chartered to provide specialized support to the Army world-wide. AI2C leads and integrates Army Artificial Intelligence (AI) strategy and implementation, synchronizes key development efforts, and sets the foundations for operationalizing AI within the Army. The center’s existence enables the Army to increase its familiarity with AI applications and better connect with AI innovators within America’s private sector. AI2C’s research also serves to inform DoD efforts to leverage AI in expanding and expediting the development of U.S. military capabilities.

AI2C’s goal is to reduce acquisition timelines so that the Army can streamline creative and effective AI solutions to Soldiers. AI2C is accomplishing this at the Bakery Square research facility in Pittsburgh.

The Bakery Square research facility, where AI2C’s personnel are currently working, is funded through a service contract with CMU for

CMU is integral in the Army’s collaborative effort and in accomplishing the Amry’s goals for AI Research and Development (R&D). As the leading

Contractor: Carnegie Mellon University Supply/Service: Service

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institute for AI research, CMU is uniquely capable to assist the Army through their R&D capabilities and unique knowledge base. To fully execute the Army’s mission goals, AI2C and CMU need to be located in the same facility to be able to collaborate on their continuous research projects and future Army needs.

The new proposed lease acquisition would only be for the administrative support personnel to have a desk at the Bakery Square office. The period of performance is 29 May 2025 through 28 May 2026. The proposed contract will not include an option provision. Artificial Intelligence Integration Center (AI2C) estimates a dollar value of

4. Authority Cited:

10 U.S.C. 3204(a)(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:

a. As described at FAR 6.302-1(a)(2)(iii)(B), for DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

AI2C is approaching the end of its current Contract W911NF-20-D-0002 with no option periods remaining. A lapse in service will prevent personnel from having an appropriate place to collaborate and accomplish mission.

b. AI2C is currently working with the US Army Corps of Engineers (USACE) to contract for an AI2C location, which is not expected to be in place until May 2026.

c. In order to prevent a lapse in performance, AI2C must contract with Walnut Capital Management for use of the Bakery Square facility. Based on current market research, Bakery Square has immediate capability to meet AI2C requirements and allows further collaboration with CMU.

d. No suitable Commercial or Government-owned/controlled space is available to satisfy the AI2C’s space requirements that also allows for regular collaboration with CMU.

There are also no military installations within 50 miles of downtown Pittsburgh, Pennsylvania.

Contractor: Carnegie Mellon University Supply/Service: Service

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Since AI2C cannot extend the current services agreement and the contract lapses, AI2C has no alternative workspace to collaborate with CMU and fails to comply with the Presidential Return-to-Work (RTW) Executive Order (EO) dated 20 January 2025. AI2C will not be able to achieve its mission as AI Developers for Army Futures Command.

AI2C needs to be near CMU to conduct research projects that further the development of Army Artificial Intelligence Research. The RTW EO specifies that all Federal Agencies, including the Department of Defense, should “require employees to return to work in person at their respective duty stations on a full-time basis” unless they have legitimate reasons for exemption under existing law.

6. Efforts to Obtain Competition: ACC-RI shall publish the notices required by FAR

5.201. In accordance with FAR 5.202(a), ACC-RI will not synopsize this action. Because this is a sole source action, effective competition is not applicable. AI2C is currently working with the US Army Corps of Engineers (USACE) to contract for an AI2C location, which is not expected to be in place until May 2026.

7. Actions to Increase Competition: AI2C is working with USACE for a long-term leased facilities requirement which will allow continued collaborative research projects with CMU.

8. Market Research: The Senior Contracting Official/Senior Executive Service approved a waiver to the requirement to post a sources sought as required by Defense Federal Acquisition Regulation Supplement (DFARS) 206.302-1(d) and DFARS Procedures, Guidance and Information 206.302-1(d). In the past year, market research was conducted.

9. Interested Sources: To date, no other sources have expressed a written interest in this requirement.

10. Other Facts:

a. Procurement History

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Award Date:

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Authority

Contractor: Carnegie Mellon University Supply/Service: Service

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11. 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: _________________

Strategy & Integration Officer

12. 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.

Resource Manager

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

Contracting Officer

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

Contractor: Carnegie Mellon University Supply/Service: Service

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Approval

Based on the foregoing justification, I hereby approve the procurement of AI2C’s collaboration of specialized accelerated Artificial Intelligence Integration on an other than full and open competition basis pursuant to the authority of 10 U.S.C.3204(a)(1) subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date: Signature:

Contracting Officer