B08-JA Sole Source FAR Part 13-Redacted-23MAY24.pdf

CUI

Justification Review Document

FAR Part 13.501 Justification and Approval for Sole Source (Including Brand Name) Acquisitions

Program/Equipment: Army’s Automated Installation (AIE-3) program – known as Hughes Identification Devices (HID) Global, National Law Enforcement Telecommunications Systems (NLETS) and National Counterterrorism Innovation, Technology, and Education Center (NCITE)® Visitor Management Systems Kiosks Subscription Renewals.

Authority:41 United States Code (USC) § 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) acquisitions under the authority of the simplified procedures for certain commercial products and commercial services.

Amount:

Prepared by:

Contracting Officer:

Technical Representative:

Requirements Representative:

Reviews

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

Legal Counsel

CUI

FAR Part 13.501 Justification and Approval for Sole Source (Including Brand Name) Acquisitions

1. Contracting Activity:

2. Description of Action: The Communications Electronics Command (CECOM) Software Engineering Center (SEC) Software License Acquisition Branch in support of Product Manager Force Protection Systems (PM - FPS)/Automated Installation Entry (AIE), requests approval for a new Firm Fixed Price (FFP) contract for the procurement of Commercial Off-the-Shelf (COTS) Hughes Identification Devices (HID) Global National Law Enforcement Telecommunications Systems (NLETS) and National Counterterrorism Innovation, Technology, and Education Center (NCITE)® Kiosk software subscription renewals that include support and maintenance for NLETS and NCITE kiosks. The Government projected award date is 28 June 2024. The applicable North American Industrial Classification Systems (NAICS) code for this requirement is 513210 - Computer Software Publishers. The business size standard is $47,000,000.00. This procurement will consist of multiple subscription periods, listed in the table in paragraph three (3) below. The total estimated price of this contract is Fiscal Year (FY) 2024 Operations and Maintenance Army (OMA) funds are available and will be used to fund all FY24 subscription renewals. This requirement will consist of multiple subscription periods as shown in the below chart.

3. Description of Supplies/Services: The requirement is for a software platform that offers screening and vetting capabilities and works on existing kiosks that register visitors. The Government’s first requirement is for a software platform that has the following minimum capabilities: vetting service and automated criminal background screening against federal and state/local law enforcement databases. The requirement is required for continuous Department of Defense (DoD) and Army Installation access control entrance, for automating identity authentication and verification of personnel entering Army Installations. In addition, the software license requirement will include upgrades, enhancements, and troubleshooting for connectivity issue in the field.

The Government’s second requirement is for a software platform that has the following minimum capabilities: works on existing kiosks, provides the Army visitor registration process which allows an applicant to enter their appropriate information and the system puts the applicant in a queue to be submitted for vetting. Vetting results, if valid, will print a paper pass for the registrar to hand to the applicant. If vetting is negative, results print a note informing the registrar that further screening is required. If individuals forget their Common Access Card (CAC), the kiosks can verify against the local database and verify if they are a valid DoD cardholder and then issue a one-day pass. The need for kiosks is a vital tool to the Army installations because it can verify

CUI

AIE 3/PureFleet

NLETS

Connectivity Service Fee

07/01/2024 - 06/30/2025 10

NCITE Kiosk

VMS

09/01/2024 – 08/31/2025 1

NCITE Kiosk

VMS

09/01/2024 – 08/31/2025 1

NCITE Kiosk

VMS

09/01/2024 – 08/31/2025 1

CUI

NCITE Kiosk

VMS

09/01/2024 – 08/31/2025 1

NCITE Kiosk

VMS

09/01/2024 – 08/31/2025 1

AIE 3/PureFleet

NLETS

Connectivity Service Fee

07/01/2024 – 06/30/2025 20

NCITE Kiosk

VMS

09/01/2024 – 08/31/2025 1

4. Authority Cited: 41 U.S.C. § 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) acquisitions for under the authority of the simplified procedures for certain commercial products and commercial services.

5. Reason for Authority Cited: The original software developer of this product is HID Global, . HID Global is the only source for their NLETS and NCITE® Kiosk subscription renewals. No other software solution provides the same capabilities required to maintain the ATO. A sole source letter was provided to CECOM SEC on 7 February 2024 verifying HID Global is the sole developer, distributor, seller, and proprietary owner of the NLETS and NCITE® Kiosk subscription renewals. HID Global is the only company that can provide upgrades, enhancements, and troubleshooting required to produce and manipulate their NLETS and NCITE® Kiosk subscription renewals.

The Army designated NLETS capability solution to meet DoD and Army Installation access control standards for automating identity authentication and verification of personnel entering Army Installations. HID Global is the original software developer of NLETS and NCITE® Kiosk subscriptions and is the only source that meets the Government’s requirement outlined in Section 3. The Government possesses only a commercial subscription description for the software. To purchase and develop the Technical Data Package (TDP) alone would not be sufficient to meet the

CUI

Government’s requirements. Any product replacement would result in developmental efforts to re-engineer, followed by production, and certification testing efforts.

Additionally, to provide the same level of software maintenance support as the manufacturer, hiring of new staff is required that have the capability to do this work and in a similar magnitude as the manufacturer, which is not feasible. This would result in a significant duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency’s requirements.

Changing the software baseline on NLETS and NCITE Kiosk to develop another product would cost approximately and take an estimated to re-engineer. The dollar value and timeframe developed by the Government is based on the software selection process and past system work experience. Adjustments are necessary to accommodate any changes to the selection, testing, certification, integration, and other procedures to obtain funding and complete the transition to an alternate software application. The required re-engineering effort, estimated cost, and timeframe identified in Table 1 below are necessary for a replacement software product to fulfill the current system requirements.

Table 1 Re-Engineering Efforts:

Engineering Configuration Management Engineering Verification & Validation Information Assurance Integration Independent Verification & Validation Information Assurance Vulnerability Assessment

(IAVA)

Dept. of the Army Military Intelligence-Government Estimate (DAMI-GE) Certification Fielding and Support

TOTAL ESTIMATED COST

OF REENGINNERING

EFFORT

AIE is in Post-Production Software Support (PPSS), or sustainment. SEC sustains the software baselines fielded by the Program Managers and maintains the ATO until the

CUI

systems are technically refreshed and new software baselines enter sustainment or until systems are decommissioned. SEC is not the system owner and is not funded to perform the non-recurring engineering (NRE) required to migrate to substitute products.

Therefore, there is no funding that would be provided for NRE labor and no competing products that can be substituted to meet SEC’s operating security requirements systems and applications.

Furthermore, HID Global is the only company who has the knowledge of the configuration management requirements and the security features that are required to maintain the ATO in accordance with US Army Cyber Security standards and policy.

HID Global is the only known source with the required engineering experience on NLETS program configuration management to include understanding the relationship of the software to the kernel and the core of the operating system. HID Global has the ATO certification requirements and has collected the historical data related to the original software applications integration decision along with having the last refreshment of the baseline.

HID Global is the only provider that has the capability to maintain, update, and secure new ATOs to determine the level of accreditation required for the new baseline. The ATO certification is required to ensure the network remains secure and is compliant with the current DoD Cybersecurity policy. The certification requires maintaining access to the latest software application patches, upgrades, and any required security related updates. The current software has already been tested and certified that it is compliant with the latest DoD Information Technology (IT) Cybersecurity policy.

Failure to renew maintenance support will not allow AIE to connect to the web-based middleware solution, the IoLS and various authoritative databases at DMDC. The security guards at DoD Installations will not be able to scan and detect identification of criminals, terrorists, and potential insider threats before they gain physical access to installations. Furthermore, without the renewal, automated criminal background screenings will stop and needed upgrades, enhancements, and troubleshooting for the PassControl software that powers the AIE 3 System Registration Stations will discontinue. There are currently no alternative options for NLETS and NCITE® Kiosk Subscription.

The software product is essential to the Government’s requirement. As the market research indicates, there is no other company that has the capabilities required to meet, or modified to meet, the agency’s needs. Not renewing this vetting service and automated criminal background screening against federal and state/local law enforcement databases would cause vulnerability to installations that cannot foresee a potential threat of the operational environment which is necessary to maintaining optimal levels of safety, readiness, and execution to protect DoD.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

Requests for Information (RFIs) were posted on 6 February 2024 on National Aeronautics and Space Administration's (NASA) Solutions for Enterprise-Wide

CUI

Procurement (SEWP) (RFI#298298), General Services Administration (GSA) (RFI#1677630), and Computer Hardware Enterprise Software Solutions (CHESS) Information Technology Enterprise Software (ITES) -SW2 (RFI#480766) websites. No responses were received. Based on the information outlined in Sections 5 (Reason for Authority Cited) and Section 8 (Market Research), this is a sole source requirement and effective competition is not feasible. This is a proprietary, COTS product line.

HID Global does not subcontract out any portion of the software maintenance as they are the sole software publisher, developer and perform all work in-house. As such, subcontracting opportunities are not expected to exist for this requirement.

7. Actions to Increase Competition: Commercial software manufacturers are encouraged to increase the number of resellers. Additionally, upon receipt of the requirement, an authorized list of distributors for this software is immediately requested from the original manufacturer. The Government encourages the software publishers to pursue distribution and support services of their COTS software product lines through Small Business, Service-Disabled Veteran Owned Small Business (SDVOSB), Woman Owned Small Business (WOSB), certified 8(a), and Historically Under-utilized Business Zone (HUBZone) small businesses. Market research will be conducted annually on the current baseline to determine if changes occurred in the marketplace that would enable greater competition in the future. Purchase of the source code, data rights, or TDP will be reconsidered in the future if factors change that allow internal Government support for the application and if it is feasible.

8. Market Research: Market research was performed by the SEC SLAB during the month of February 2024, with the intent to identify other companies that meet the capabilities required or can modify to meet the agency’s needs and to increase the number of authorized resellers by increasing participation by small businesses including Small Disadvantaged Small Business (SDSB), HUBZone, SDVOSB, and WOSB to acquire subscription. Market research was conducted by reviewing past awards and by posting Requests for Information (RFI). RFIs were posted on 6 February 2024 on National Aeronautics and Space Administration's (NASA) Solutions for Enterprise-Wide Procurement (SEWP) (RFI#298298), General Services Administration (GSA) (RFI#1677630), and Computer Hardware Enterprise Software Solutions (CHESS) Information Technology Enterprise Software (ITES) -SW2 (RFI#480766) websites to request current budgetary pricing information for the required software and technical information.

No responses were received as a result of RFIs that were posted. The Government’s request was for alternate COTS products to submit only pricing. No alternate COTS were identified in the market research. A sole source letter was provided by HID Global on 7 February 2024.

The following vendor submitted a market research response to the Government.

CUI

A sole source (including brand name) justification ( ) was prepared and approved for under the authority of FAR 13.501(a)(1)(ii). A summary of the contents of paragraph 7 of that justification is provided below:

“Commercial software manufacturers are encouraged to increase the number of resellers. Additionally, upon receipt of the requirement, an authorized list of distributors for this software is immediately requested from the original manufacturer.

The Government encourages the software publishers to pursue distribution and support services of their COTS software product lines through Small Business, Service-Disabled Veteran Owned Small Business (SDVOSB), Woman Owned Small Business (WOSB), certified 8(a), and Historically Under-utilized Business Zone (HUBZone) small businesses. Market research will be conducted annually on the current baseline to determine if changes occurred in the marketplace that would enable greater competition. The Manufacturer has not been approached for purchase of the source code, data rights, or TDP, but will be reconsidered in the future if any of the factors change to make internal Government support the application and it is feasible.”

There is still no other source outside of the sole developer of NLETS and NCITE Kiosk subscription renewals that meet the Government’s requirements. There are no significant changes since the previous procurement and the circumstances justifying the previous procurement are still applicable.

b. Other facts. There are no additional facts.

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.

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.

CUI

13. Fair and Reasonable Price Determination:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made using Price Analysis. As a part of this basis, IAW FAR 15.403-1(b)(3), certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Approval

Based on the foregoing justification, I hereby approve the procurement of NLETS and NCITE® Kiosks subscription renewals in the total estimated amount of on a sole source (including brand name) basis pursuant to the authority of 41 U.S.C.

1901 as implemented by FAR 13.501(a)(1)(ii), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: