DARPA CSO HR001121SC001.pdf

June 4, 2021 – HR0011-21-S-C001

COMMERCIAL SOLUTIONS OPENING

Defense Advanced Research Projects Agency (DARPA)

Innovations to the Government Procurement and Financial Management Process

1. General Information

1.1 Background & Scope

The Defense Advanced Research Projects Agency (DARPA) Contracts Management Office (CMO) and Comptroller Office (COMP) requests solutions for innovative applications of services and technologies (or new applications thereof) within the government procurement and financial management processes. The goal is to increase internal operational efficiency by targeting and addressing aspects of DARPA’s business processes in both offices which would lead to reductions in timelines (e.g., reduced procurement acquisition lead times, quicker processing of procurement requests, better or automated interoperability between systems and users).

This Commercial Solutions Opening (CSO) will accept solution briefs through 1 June 2022. At times, DARPA may modify this CSO and add specific Areas of Interest (AOI) to include specific solution brief deadlines. This CSO encourages solutions briefs/proposals from all responsible sources capable of satisfying the Government’s needs, including large and small businesses, nontraditional defense contractors as defined in 10 U.S.C. 2302, and research institutions as defined in 15 U.S.C. 632.

1.2 CSO Definition & Authority

The CSO authority is Section 879 of the National Defense Authorization Act for FY2017 (Public Law 114-328) and DoD Class Deviation – Defense Commercial Solutions Opening Pilot Program, DARS Tracking No. 2018-O0016, https://www.acq.osd.mil/dpap/policy/policyvault/USA001228-18-DPAP.pdf. In this context, “innovative” means any technology, process, or method, including research and development that is new as of the date of submission of a proposal, or any application that is new as of the date of submission of a proposed use of technology, process, or method existing as of such date.

This CSO may result in the award of prototype projects, which can include not only commercially-available technologies fueled by commercial or strategic investment, but also concept demonstrations, pilots, and agile development activities that can incrementally improve commercial technologies, existing government-owned capabilities, and/or concepts for broad defense and/or public application(s). The Government reserves the right to award a Federal Acquisition Regulation (FAR) Part 12 contract or an Other Transaction (OT) for Prototypes under 10 USC 2371b, or make no award at all. In all cases, the Government contracting officer / agreements officer shall have sole discretion to select the award instrument type, regardless of instrument type proposed, and to negotiate all instrument terms and conditions with selected offerors.

http://www.acq.osd.mil/dpap/policy/policyvault/USA001228-18-DPAP.pdf http://www.acq.osd.mil/dpap/policy/policyvault/USA001228-18-DPAP.pdf http://www.acq.osd.mil/dpap/policy/policyvault/USA001228-18-DPAP.pdf http://www.acq.osd.mil/dpap/policy/policyvault/USA001228-18-DPAP.pdf

1.3 CSO Procedure

CSOs will follow three phases:

Phase 1 Solution Briefs: Briefs shall be submitted as specified in Section(s) 1.6.2-1.6.3 of this CSO. The Government will evaluate Solution Briefs against the criteria stated in this CSO. The Government will not pay offerors responding to this CSO for the costs associated with Solution Brief submissions or follow-on Phase proposal activity.

*Phase 2 Process Analysis and Oral Presentation / Capability Demonstration: Offerors responding to this CSO may be invited to analyze DARPA CMO’s and COMP’s procurement and financial management processes and operating environment. In addition, offerors may be invited to provide additional information to either demonstrate their proposed capabilities or further elaborate via an oral presentation their proposed concept/technology/solution. In the event that the Government requires a virtual demonstration or oral presentation, additional instructions will be provided within the official invitation to participate in Phase 2.

Phase 3 Request for Commercial Solution Proposal (CSP): Those offerors whose Solution Brief, demonstration, and/or oral presentation are evaluated and determined to hold technical merit, will be invited to submit a full written proposal following the instructions provided in Section(s) 1.6.6 - 1.6.9 of this CSO.

*NOTE: The Government reserves the right to forgo Phase 2 and go directly to Phase 3.

Award. Upon favorable review of the CSP in accordance with the evaluation process outlined below, and subject to the availability of funds, the Government may award a fixed-price procurement contract using FAR Part 12 Acquisition of Commercial Items or an Other Transaction (OT) for Prototypes under 10 USC 2371b with fixed milestones.

1.4 GUIDELINES FOR SOLUTION BRIEFS, PRESENTATIONS, AND PROPOSALS

1.4.1 General Guidelines

a. Do not include elaborate brochures; only include a concise proposal.

b. Use of a diagram(s) or figure(s) to depict the essence of the proposed solution is strongly encouraged.

c. Offerors may submit multiple Solution Briefs in response to this CSO if each submission represents a separate and distinct concept.

d. The period of performance for any Solution Brief or proposal submitted under this CSO should be 1- 12 months. Iterative solutions following Agile or DevSecOps methodologies are welcome.

e. All Solution Briefs and Proposals shall be unclassified.

f. Proposers are responsible for clearly identifying proprietary information. Submissions containing proprietary information must have the cover page and each page containing such information clearly marked with a label such as “Proprietary” or “Company Proprietary.” NOTE: “Confidential” is a classification marking used to control the dissemination of U.S. Government National Security Information as dictated in Executive Order 13526 and should not be used to identify proprietary business information.

g. Send questions to CSOHR001121SC001@darpa.mil.

h. Send solutions briefs/proposal to CSOHR001121SC001@darpa.mil.

i. Submissions sent through other mediums, channels, or after the prescribed CSO open period will not be considered, nor reviewed, nor evaluated.

j. Offerors providing Solution Briefs that are not invited to a Phase 2 Oral Presentation or

Phase 3 Request for CSP will be notified in writing as soon as practicable. Further verbal feedback may be provided, upon request, at the Contracting/Agreements Officer’s discretion.

Phase 1 - Solution Brief Content

a. Solution Briefs should not exceed five (5) single-sided written pages using 12-point font or, alternatively, Solution Briefs may take the form of briefing slides which should not exceed fifteen (15) slides.

b. Solution Briefs must include the following:

1. Offeror Name, Title, Date, Point of Contact Name, E-Mail Address, Phone, and

Address on the Title Page. (The Title Page does not count against page limits)

2. Executive Summary: Provide an executive summary of the technology. (This is included in the 5 written pages limit)

3. Technology Concept: Show and/or describe how your proposed solution or potential new capabilities fulfill requirements, close capability gaps, or provide potential technological advancements in the government procurement process. Describe the unique aspects of your technology and the proposed work as it relates to this CSO.

Identify whether the effort includes the pilot or demonstration of existing commercial technology (identified as commercially ready and viable technology), or the further development of commercial technology for potential defense application. If development or adaptation is proposed, identify a suggested path to mature the technology. Identify aspects of your proposal, to include data and software, which may be considered proprietary.

4. Offeror Responsibility & Solution Viability: Provide a brief overview of the offeror.

Provide a summary of current experience, qualifications, and resources or ability to obtain them such as a summary of the top line (gross sales/revenues) and balance sheet. Provide a summary of product development, manufacturing (if relevant), and logistics strategy to the best extent possible.

5. Estimated Price and Delivery Schedule.

6. Estimated Costs for any testing, validation or scaling requirements.

7. Identify any Intellectual Property (IP) in the technology, all relevant owners and licensors, and associated restrictions on Government use.

8. Identify any additional knowledge that would be needed for a complete CSP (e.g., aspects of DARPA IT environment, list of contracting e-business tools, review of CMO processes / templates).

1.4.2 Phase 1 Solution Brief - Basis of Evaluation

Solution Brief evaluation criteria are listed in order of importance from top to bottom. Individual

Solution Briefs will be evaluated against the evaluation criteria described below:

a. The Technical Merit of the proposed solution and demonstrated feasibility;

b. An acceptable evaluation of the offeror’s responsibility (ability to perform) and experience and qualifications of the company and any key personnel; and

c. The approach or technology is innovative (within CSO definition) when considered against current government application.

Solution Briefs will be evaluated by DARPA using the evaluation criteria listed above, and not against other Solution Briefs submitted in response to this CSO. The Government may elect to use external market information in the evaluation of an offeror’s viability. The Government will endeavor to complete the Phase 1 evaluation of Solution Briefs within 2-3 business days of the closing of the submittal period. The Government will attempt to notify the offeror of the results of the evaluation as soon as practicable.

Upon review of a Solution Brief, the Government may elect to invite all, some, or none of the proposed solutions into Phase 2, (Optional) Oral Presentation / capability demonstration.

1.4.3 Phase 2 Process Analysis and (Optional) Oral Presentation / Capability Demonstration

Content

In Phase 2, the offeror may be invited to review and analyze DARPA CMO’s and/or COMP’s current processes and operating environment. In addition, as applicable, offerors shall provide a virtual oral presentation or capability demonstration to provide further details on, or prove, the technical and business viability of their proposed solution. In addition to the Oral Presentation/Capability Demonstration, the Government, at its discretion, may request an additional written submission to supplement/or clarify the information provided in the Phase 1 Solution Brief.

During the Phase 2 Oral Presentation / Capability Demonstration, the offeror must detail/address the following:

a. Expanded details and/or demonstrate capability as provided in the Phase 1 Solution Brief

b. Estimated Price and Delivery Schedule

c. Should the solution require assistance with testing, validation and/or capacity for scaling, provide and discuss a rough order of magnitude (ROM/ estimate) and estimated schedule for how this concept could be tested, validated or scaled.

NOTE: The Government reserves the right to hold Phase 2 using virtual conferencing and record presentations.

In addition to these required areas, the Government may request the offeror provide additional information/detail with respect to the Technology/Concept being presented from its Phase 1 Solution Brief.

1.4.4 Phase 2 Oral Presentation Basis of Evaluation

Individual Oral Presentations / Capability Demonstrations will be evaluated against the evaluation criteria below. After completing the evaluation, DARPA will notify the offeror that:

1) they may submit a CSP for evaluation in Phase 3;

2) their proposed concept/technology/solution is not of continued interest to the Government and they will not be required to submit a CSP Phase 3 evaluation; or

3) their proposed concept/technology/solution is of interest to the Government, but is not currently eligible for an invitation for Phase 3 CSP submission due to the current lack of government resources and/or funding.

Oral Presentation / Capability Demonstration evaluation criteria are listed in order of importance from top to bottom. Phase 2 shall be evaluated on the following factors:

a. The technical merit and schedule of the proposed solution

b. Return on investment (ROI) and measurability of the ROI;

c. Risk related to technical maturity, schedule, and IP rights

1.4.5 Phase 3 Proposal Content

The third and final phase of the CSO process is the CSP. Based upon the results of Phase 1 or optional Phase 2 evaluation above, the Government may issue a Request for CSP. If that occurs, an offeror, or offerors will be invited to develop and submit a written proposal as well as negotiate appropriate terms and conditions, as applicable, governing the proposed solution. At this stage, the selected offerors may discuss proposal development details during the proposal writing process with their assigned Government subject matter expert(s) or Government teaming partner(s). Each proposal submitted shall consist of two sections: Section 1 shall provide the technical proposal; Section 2 shall address the price/cost/schedule portions of the proposal.

Additionally, offerors are invited to provide their own internal terms and conditions that may be consolidated with those of the Government. This includes Service License Agreements (SLA) and/or User License Agreements (ULA).

Offerors should note that there are certain terms and conditions the Government may be unable to accept. However, projects awarded through the CSO may provide flexibility to adopt customary industry standards where it is otherwise legal and meets the Government’s general public responsibility.

1.4.6 Section 1 - Technical Volume (Limited to 10 pages)

The Technical volume must include the following:

a. Title Page: Offeror Name, Title, Point of Contact Name, Date, E-Mail Address, Phone, and Address and any subcontractors or team members. Include an abstract which provides a concise description of the proposal.

b. Propose a Technical Approach: Describe the background and objectives of the proposed work, the approach, deliverables, and the resources needed to execute and/or deliver the proposed solution and/or prototype. Include the nature and extent of the anticipated results. Include ancillary and operational issues such as certifications, algorithms, and any engineering/software development methodologies to be used. This proposal must include a Statement of Proposed Work (SOPW) identifying the work to be performed, anticipated work-breakdown structure and expected deliverables.

Provide a project schedule that outlines the major milestones and deliverables within the proposed period of performance.

c. Government Support or Equipment Required: Identify the type of support or equipment, if any, the offeror requests of the Government in general terms such as access to facilities, equipment, data, materials and/or information.

Note: Title Page (Not included in page count)

1.4.7 Section 2, Price Volume

The Offeror shall propose a total fixed price. In doing so, the proposer shall provide, for all members of the proposing team, at any tier, a “Summary Cost Breakdown”. The Government reserves the right to request any other price data or supporting cost information the Government deems necessary to determine the total overall price is fair and reasonable. This can include but is not limited to commercial price catalog(s), previous commercial sales receipts, and/or other proprietary information to help the government determine reasonableness and future budgetary cost estimates. The breakdown/s shall include, at a minimum, the following major cost items along with associated backup documentation:

A. Direct Labor A breakout clearly identifying the individual labor categories with associated labor hours and direct labor rates, as well as a detailed Basis-of-Estimate (BOE) narrative description of the methods used to estimate labor costs;

B. Indirect Costs Including Fringe Benefits, Overhead, General and Administrative Expense, Cost of Money, Fee, etc. (must show base amount and rate);

C. Travel Provide the purpose of the trip, number of trips, number of days per trip, departure and arrival destinations, number of people, etc.;

D. Other Direct Costs Itemized with costs; back-up documentation is to be submitted to support proposed costs;

E. Material/Equipment

(i) An itemization of any information technology (IT) purchase, as defined by FAR 2.101 – Documentation supporting the reasonableness of the proposed equipment costs(vendor quotes, past purchase orders/purchase history, detailed engineering estimates, etc.) shall be provided, including a letter stating why the proposer cannot provide the requested resources from its own funding for the performing team.

(ii) A priced Bill-of-Material (BOM) clearly identifying, for each item proposed, the quantity, unit price, the source of the unit price (i.e., vendor quote, engineering estimate, etc.), the type of property (i.e., material, equipment, special test equipment, information technology, etc.), and a cross-reference to the Statement of Work (SOW) task/s that require the item/s. At time of proposal submission, any item that exceeds $2,000 must be supported with basis-of-estimate (BOE) documentation such as a copy of catalog price lists, vendor quotes or a written engineering estimate (additional documentation may be required during negotiations, if selected).

F. Other Transactions All proposers requesting an Other Transaction (OT) must include a detailed list of payment milestones (Milestone Plan). Each milestone must include the following:

• Milestone description

• Completion/Exit criteria (to include identifying all associated data deliverables excluding those specifically providing project status)

• Due date

• Payment/funding schedule (to include, if cost share is proposed, awardee and Government share amounts)

It is noted that, at a minimum, milestones should relate directly to accomplishment of program technical metrics as defined in offeror’s proposal. Do not include proprietary data in milestone descriptions or exit criteria.

*The cost of preparing proposals in response to this CSO is not considered a direct charge to any resulting award or any other contract. Proposal preparation costs are not recoverable.

1.4.8 Phase 3 CSP Basis of Evaluation

The evaluation criteria are listed in order of importance from top to bottom. The Government panel of subject matter experts will first review the proposal for adequacy, eligibility, and determine if the following requirements are met:

a. The technical merit and schedule of the proposed solution;

b. Return on investment (ROI) and measurability of the ROI;

c. Risk related to technical maturity, schedule, and IP rights;

d. Proposed price is fair and reasonable.

If the Contracting Officer decides to pursue an OT, then evaluation team will also review the proposal to determine if the following factors are met:

1. Fits the definition of a prototype: does/does not fit the CSO definition of a prototype?;

2. Meets mission effectiveness standard: Is/is not directly relevant to enhancing DoD mission effectiveness?;

3. Meets 10 U.S.C. 2371b non-traditional participation/cost share requirement:

a. There is at least one nontraditional defense contractor or nonprofit research institution participating to a significant extent in the prototype project; or ;

b. All significant participants in the transaction other than the Federal Government are small businesses (including small businesses participating in a program described under section 9 of the Small Business Act (15 U.S.C. 638)) or nontraditional defense contractors; or

c. At least one third of the total cost of the prototype project is to be paid out of funds provided by sources other than the Federal Government; or

d. The senior procurement executive for the agency determines in writing that exceptional circumstances justify the use of a transaction that provides for innovative business arrangements or structures that would not be feasible or appropriate under a contract, or would provide an opportunity to expand the defense supply base in a manner that would not be practical or feasible under a contract.

4. The price is considered reasonable for the effort and outcome proposed.

If the Contracting Officer decides to pursue a prototype contract (Non-OT), requirements 1-6 above will NOT be used.

In all cases, proprietary information shall be protected from unauthorized access to competitors and non- government personnel.

1.5 AWARDS - General Guidelines

1.5.1 Upon favorable review of the CSP and subject to the availability of funds, the Government may choose to make a fixed price award either using FAR Part 12 Acquisition of Commercial Items or OT for Prototypes.

The Contracting/Agreements Officer reserves the right to negotiate directly with the offeror on the terms and conditions prior to execution of the resulting contract or OT, including payment terms, and will execute the contract/agreement on behalf of the Government. Be advised, only a government Contracting or Agreements Officer has the authority to enter into, or modify, a binding contract or agreement on behalf of the United States Government.

In order to receive a fixed price FAR Part 12 Acquisition of Commercial Items or OT for prototypes award:

a. Offerors must have a Dunn and Bradstreet (DUNS) number and must register in the System for Award Management (SAM) prior to receiving an award or agreement.

Offerors are advised to commence SAM registration upon receipt of a Request for

CSP.

b. Offerors must also register in the prescribed government invoicing system (Wide Area Work Flow: https://wawf.eb.mil/xhtml/unauth/registration/notice.xhtml). DARPA CMO personnel will provide assistance to those offerors from whom a CSP is requested.

c. Offerors must represent their small business size and status if necessary.

d. Offerors must be determined to be responsible by the Contracting/Agreements Officer and must not be suspended or debarred from award by the Federal Government nor be prohibited by Presidential Executive Order and/or law from receiving an award.

e. Receipt of a Request for CSP does not guarantee that an offeror will receive an award and the Government reserves the right not to make an award.

1.5.2 Controlled Unclassified Information (CUI) and Controlled Technical Information (CTI) on Non-DoD Information Systems Further information on Controlled Unclassified Information identification, marking, protecting and control, to include processing on Non-DoD Information Systems, is incorporated herein and can be found at www.darpa.mil/work-with-us/additional-baa. A program-specific CUI Guide has been established to help proposers determine CUI thresholds for information relevant to, and technologies developed under the program.

1.5.3 Representations and Certifications

In accordance with FAR 4.1102 and 4.1201, proposers requesting a procurement contract must complete electronic annual representations and certifications at https://www.sam.gov/.

In addition, all proposers are required to submit for all award instrument types (i.e., procurement contract, cooperative agreement, grant, and Other Transaction for Prototype) supplementary DARPA-specific representations and certifications at the time of proposal submission. See http://www.darpa.mil/work-with-us/reps-certs for further information on required representation and certification depending on your requested award instrument.

1.5.4 Source Selection Sensitive Information

DARPA policy is to treat all submissions as source selection information (see FAR 2.101 and 3.104), and to disclose their contents only for the purpose of evaluation. Restrictive notices notwithstanding, during the evaluation process, submissions may be handled by support contractors for administrative purposes and/or to assist with technical evaluation. All DARPA support contractors performing this role are expressly prohibited from performing DARPA sponsored technical research and are bound by appropriate nondisclosure agreements. Subject to the restrictions set forth in FAR 37.203(d), input on technical aspects of the proposals may be solicited by DARPA from non-Government consultants/experts who are strictly bound by the appropriate non-disclosure requirements.

1.5.5 CSO Provision-Subject to Availability of Funds

Funds are not presently available for this CSO. The Government’s obligation under this CSO is contingent upon the availability of appropriated funds from which payment for CSO purposes can be made. No legal liability on the part of the Government for any payment may arise until funds are made available to the Contracting Officer for subsequent AOIs until the Contractor receives notice of such availability, to be confirmed in writing by the Contracting Officer.

1.5.6. Procurement Integrity Act (PIA)

All awards under this CSO shall be treated as Federal Agency procurements for purpose of 41 U.S.C. Chapter 21. Accordingly, the CSO competitive solicitation process and awards made thereof must adhere to the ethical standards required by the PIA

1.5.7 Commercial Terms and Conditions under FAR Part 12

a. Consistent with FAR Part 12, offerors may propose commercial terms and conditions if seeking a procurement contract.

b. This contract is subject to FAR 52.212-4, Contract Terms and Conditions – Commercial Items (Oct 2018).

c. Advance payments for commercial items shall be available on FAR Part 12 contracts pursuant FAR Part 32.

1.5.8 Small business subcontracting plans and small business participation: FAR-based contracts awarded pursuant to this CSO (including 10 U.S.C. 2371b follow-on production contracts) shall include FAR 52.219-8, Utilization of Small Business Concerns (Oct. 2018). FAR-based contracts awarded pursuant to this CSO which meet FAR Subpart 19.7 criteria for small business subcontracting plans shall include FAR 52.219-9 Small Business Subcontracting Plan (March 2020). Offerors shall address plans to comply with these requirements as part of Phase 3, Commercial Solutions Proposals if seeking FAR Part 12 contracts.

1.5.9 Protests

For information concerning agency level protests see http://www.darpa.mil/work-withus/additional-baa#NPRPAC.

CSO_Ombudsman: Scott Ulrey

CSO_Administrative Contracting/Agreements Officer: Dan Swart

CSO DEFINITIONS

“Commercial Solutions Opening” (CSO) is a competitive procedure contracting officers may use to acquire innovative commercial items, technologies, or services, as provided in Section 879 of the National Defense Authorization Act for FY2017, Public Law 114-328, and Class Deviation – Defense Commercial Solutions Opening Pilot Program, DARS Tracking No. 2018- O0016.

"Other Transaction” refers to the type of Other Transaction (OT) that may be awarded as a result of this CSO and associated AoIs. This type of OT is authorized by 10 U.S.C. § 2371b for prototype projects directly relevant to enhancing the mission effectiveness of military personnel and the supporting platforms, systems, components, or materials proposed to be acquired or developed by the DoD, or for the improvement of platforms, systems, components, or materials in use by the armed forces.

“Prototype Project” is described in the DoD Other Transactions Guide (Version 1, Nov. 2018) issued by the Office of the Under Secretary of Defense for Acquisition and Sustainment:

https://www.dau.edu/guidebooks/Shared%20Documents/Other%20Transactions%20(OT)%20G uide.pdf.

“Nontraditional Defense Contractor” is defined in 10 U.S.C. § 2302(9) as an entity that is not currently performing and has not performed, for at least the one-year period preceding the solicitation of sources by the DoD for the procurement or transaction, any contract or subcontract for the DoD that is subject to full coverage under the cost accounting standards prescribed pursuant to 41 U.S.C. § 1502 and the regulations implementing such section. This includes all small business concerns under the criteria and size standards in 15 U.S.C. 632 and 13 C.F.R. Part 121.

“Small Business Concerns” is defined in the Small Business Act (15 U.S.C. 632).

“Innovative” is defined, consistent with Section 879 of the National Defense Authorization Act for FY2017, Public Law 114-328, and Class Deviation – Defense Commercial Solutions Opening Pilot Program, DARS Tracking No. 2018-O0016—

• any new technology, process, or method, including research and development that is new as of the date of submission of a proposal; or

• any new application that is new as of the date of submission of a proposal of a technology, process, or method existing as of such date.

https://www.dau.edu/guidebooks/Shared%20Documents/Other%252 http://www.dau.edu/guidebooks/Shared%20Documents/Other%20Transactions%20(OT)%20Guide.pdf http://www.dau.edu/guidebooks/Shared%20Documents/Other%20Transactions%20(OT)%20Guide.pdf