DC1 70RTAC21D00000002 Justification and Approval - Redacted.pdf

U.S. Department of Homeland Security Office of the Chief Procurement Officer

Justification for Other Than Full and Open Competition Version 3.1

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

41 U.S.C. 3304(a)(7)

Justification No: FY21-00137

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Office of Procurement Operations (OPO), Information Technology Acquisition Center (ITAC), proposes to award a contract on behalf of the Office of the Chief Information Officer (OCIO) on the basis of other than full and open competition.

2. Nature and/or Description of the Action being Approved.

(a) OCIO/OPO/ITAC propose to establish a strategically sourced Indefinite Delivery/Indefinite Quantity (IDIQ) Contract on a sole source basis. This Justification and Approval covers the anticipated IDIQ contract award and all Task Orders executed against the base IDIQ contract.

(b) The most recent Data Center 1 (DC1) IDIQ contract, HSHQDC-16-D-00001, was awarded to CSRA LLC, now General Dynamics Information Technology (GDIT), 3170 Fairview Park Drive, Falls Church VA 22042.

(c) The DC1 Support Services (DC1SS) contract will be a hybrid contract type, which will utilize a mix of Firm Fixed Price (FFP), Labor Hour (LH), and Time and Materials (T&M) contract line item numbers (CLINs)/Orders.

(d) The estimated total value broken out by ordering periods is below:

Base Ordering Period (12 months) $redact Optional Ordering Period 1 (6 months) $redact Total $395,497,826

(e) The IDIQ contract will be available for use by all DHS Components. The type of funding used for each Task Order will be determined by the DHS ordering Component. It is expected, however, that most funding will be Operations and Support (O&S).

(f) The DC1SS contract will have a base ordering period of 12 months, with a 6-month option. Depending on when individual task orders are placed, the year of their funding will vary. It is expected that O&S funding will be limited to fiscal years, 2021 and 2022. Task orders may continue for up to twelve months after the end of the IDIQ contract.

Justification for Other Than Full and Open Competition

(g) The solicitation number: 70RTAC21Q00000055

(h) The Data Center and Cloud Optimization (DCCO) requirement is the competitive replacement procurement for DC1 support. The DCCO solicitation, which has been posted on beta.SAM.gov, encompasses the support services of DC1. The upcoming DCCO contract, once awarded, will replace the existing DC1 computing and data storage requirements enterprise wide. There are 40 active Task Orders issued under the expired DC1 IDIQ contract in support of 14 DHS components. The aforementioned DC1 contract expired on June 30, 2020; however, the performance periods of the 40 active task orders end on June 30, 2021. Proposal submission and evaluation is in progress for the competitive DCCO contract. The DCCO procurement is projected for award in the fourth quarter of fiscal year 2021 (July 2021). The DCCO solicitation allows a 120-day transition period for the DCCO awardee to assume operational control of DC1. The interim sole source DC1SS contract is critical and will enable adequate time for award of the new DCCO contract, support the transition to the DCCO awardee, and mitigate risks of a delayed award.

Given the anticipated DCCO award date, the 120-day transition period will not be accomplished prior to the expiration of the current active DC1 TOs. An interim contract is required to continue DC1 operations after June 30, 2021, until the new DCCO contractor can complete transition and assume full operational responsibility. The 40 task orders currently being supported in DC1 require continuing operations after June 30, 2021, to provide for the operation of 109 Federal Information Security Management Act (FISMA) systems hosted in DC1 that are critical to DHS missions. These task orders will be awarded on the proposed interim DC1SS sole source contract to prevent a lapse of critical services.

If the award of DCCO does not occur prior to June 30, 2021, and if no other contracting action is taken, on July 1, 2021, DHS will have no contracting vehicle in place providing DC1 operations services. If the DCCO award does occur prior to June 30, 2021, the new DCCO contractor will be engaged in transition-in activity but will not be fully prepared to take over DC1 operations. To mitigate the risks associated with an interruption in DC1 support or of a DCCO contractor operating with an inadequate period of time to accomplish a complete transition, DHS needs to take alternative contracting action. The proposed DC1SS interim contract will ensure continuing, uninterrupted operational support services for DC1 effective July 1, 2021, and extending until the DCCO contractor completes its transition and assumes full responsibility for DC1 operations.

In summary, the ordering period for the interim contract is necessary to account for transition and any delays during the acquisition process for the upcoming DCCO Support Services contract award. In addition, given the visibility and value of the DCCO contract, a challenge to the award is possible. The DCCO solicitation is currently in the evaluation phase and award is targeted for July 2021. The base period of one one-year with one 6-month option is reasonable under the circumstances for the interim DC1SS contract award.

The option period accounts for any delay in the award of DCCO and the required 120-day transition period. The option period will not be exercised if there are no delays to the DCCO award timeline and the anticipated transition period.

Justification for Other Than Full and Open Competition

3 Description of Supplies/Services.

The interim DC1SS IDIQ enterprise contract will provide managed hosting and professional services for DHS DC1 which consists of a government-owned contractor-operated Enterprise Data Center, Infrastructure-as-a-Service (IaaS) environments, and co-location facilities. The provider will identify and manage personnel, processes, tools, and reporting to facilitate transparency and decision-making, as well as to support the transition of operations to the Data Center and Cloud Optimization (DCCO) contract awardee. The scope includes the provision of services in the following areas: Operate, Maintain, and Optimize Data Center Services, Professional Services, and Transition Services. In addition, the following services will also be acquired through this acquisition:

Hosting/Computing Services Application Services Performance and Capacity Monitoring Network and Security Service Data Storage Services Operation/Monitoring and Maintenance services Data Archiving Disaster Recovery/Continuity Services/Reconstitution Technical Guidance Classified Computing Services Network and Security Infrastructure Program and Project Management IaaS and Colocation Services Virtualized and Physical Compute Services Professional Services supporting hybrid operating environments (operational Dashboard)

Transitions Among Environments (e.g., Application Rationalization, Migration, etc.)

4. Identification of Statutory Authority Permitting Other Than Full and Open The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(l) pursuant to FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Identification of Exception to the Buy American Statute

Not Applicable.

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires the use of the authority cited.

This IDIQ contract action requires the use of other than full and open competition to award continued comprehensive data storage and management services. The rationale, relevant details and circumstances, including mission impacts of not approving the Justification and Approval are provided in the subsections below.

DHS OCIO is responsible for providing enterprise-level information technology (IT) services to support DHS missions through a variety of solutions. These services must meet the full range of DHS Component availability requirements and provide requisite security controls for the full range of mission data. DHS Headquarters operates two enterprise data centers known as DC1 and DC2.

DHS is currently in the process of exiting from DC2.

The predecessor DC1 IDIQ contract expired on June 30, 2020. Current task orders issued under that contract expire on or before June 30, 2021. Those task orders provide operations and maintenance support to 109 mission-critical information systems located in DC1. The continuous operation of those systems is essential to the DHS mission and to national security.

The expired DC1 IDIQ contract was awarded to CSRA, LLC, now GDIT. Under that contract, the contractor operated DC1 and supported DHS systems residing in the facility. The contractor also provided and owned communications and management infrastructure equipment and software systems essential to DC1 operations. GDIT is the owner of essential data center infrastructure, the

Justification for Other Than Full and Open Competition current supplier of operations and maintenance services for 40 Task Orders operating on DHS systems residing within DC1, and GDIT is the only available vendor with the immediate capability of providing continuing operations for mission critical services (including support for the following: DHS Office of Biometric Identity Management (OBIM’s) biometric identity systems helping to secure the Nation’s borders, U.S. Customs and Border Protection (CBP) Servers providing information to Transportation Security Administration (TSA) Secure Flight applications securing flights in and out of the US, and the Cybersecurity and Infrastructure Security Agency (CISA) EINSTEIN system that detects and blocks cyberattacks and provides CISA with situational awareness to use detected threat information sharing to help to protect Government and private industry) commencing on July 1, 2021.

The competitive DCCO acquisition supports long-term operational services for DHS computing resources including DC1. The DCCO award is projected for the fourth quarter of fiscal year 2021.

Due to requirement changes and challenges during the acquisition process (pre-solicitation) delayed the DCCO award. As a result, the interim DC1SS contract is necessary to provide services for the period beginning July 1, 2021, and allow for continuity, and transition support for the DCCO awardee to assume responsibility for DC1 operations. The ordering period of the interim DC1 contract also accounts for any future unforeseen delays in the award of the DCCO.

Even with an immediate DCCO award, there is insufficient time remaining before July 1, 2021, to effectively transition operations and maintenance of DHS computing resources and services afforded under the previous IDIQ Contract. If DCCO is awarded prior to July 1st, the selected contractor would be required to take over DC1 operations with minimal, if any, time for preparation and hand-off from the incumbent exposing DHS to the risk of disruption to system operations during the transition.

The only contractor in a position to provide the necessary limited term services beginning July 1, 2021, without the risk of DC1 service disruption is the incumbent contractor, GDIT. Another vendor would require significant preparatory and transition support to assume DC1 service operations beginning July 1, 2021. An interim sole source contract award to GDIT for continuing DC1 services beginning July 1, 2021 and extending until the DCCO contractor is in place is the only feasible approach for immediate DC1 service support until the competitive DCCO contract is awarded. The interim sole source contract to GDIT to provide the required DC1 services until the award of the DCCO procurement is the only viable company due to the limited time period. As a result, no other alternatives were considered.

7. Description of Efforts to Ensure that Offers are Solicitated from as Many Potential Sources as

Practicable.

A Preliminary Notice of Intent was posted on beta.SAM.gov April 29, 2021, for the DC1SS interim sole source contract. No questions or objections were received.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be

Fair and Reasonable.

The Contracting Officer has determined that the anticipated prices will be fair and reasonable. The prices under this acquisition are anticipated to be similar to the prices under the predecessor DC1 contract. The historical knowledge of prices paid, and comparison with competitive published price lists will allow for a determination of price reasonableness. Contractor representatives and the DHS negotiation team will meet to negotiate the final documents and final pricing collectively. The negotiations will ensure that the contractor and the government are in agreement on the technical and management approaches to be used and that the pricing is consistent with the independent government cost estimate to enable a determination of price fair and reasonableness.

Justification for Other Than Full and Open Competition

9. Description of Market Research.

No new market research was conducted specifically for this contract. Extensive market research was conducted during 2019 and 2020 for the DCCO acquisition, which includes DC1 operational support. In Spring 2019, the Department of Homeland Security (DHS) Cloud Steering Group (CSG) posted and collected responses to a Request for Information (RFI), “Department of Homeland Security (DHS) Information Technology (IT) Compute and Storage Modernization, Cloud Migration, and Data Center Optimization,” that received 105 responses.

As a follow-on to the original RFI, OPO, in collaboration with OCIO held an Industry Day event virtually via Adobe Connect on March 10, 2020. Additionally, OPO and OCIO hosted another virtual Industry Day event on August 27, 2020, that attracted 317 registrants representing 138 vendors. Follow-up one on one interviews were held with 29 vendors.

These events identified a substantial interest in DHS data center operations in the context of the DCCO acquisition and provided evidence of a robust marketplace with numerous suppliers qualified to provide DC1 support services. This sole source acquisition benefited from the DCCO market research, which identified a number of potential suppliers. However, there is insufficient time prior to the date on which services would have to begin to permit these potential suppliers to respond to a competitive solicitation.

10. Any Other Facts supporting the Use of Other Than Full and Open Competition.

None

11. A Listing of the Sources if Any Than Expressed, in Writing, an Interest in the Acquisition.

A preliminary public notice of intent to industry of the Department’s plan to issue an interim sole source contract using the only one responsible source authority on April 29, 2021, on beta.SAM.gov. The closing date for responses from industry was May 14, 2021. No questions or objections were received.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

The competitive DCCO acquisition referenced earlier in this document represents the competitive replacement contract for the services required under the interim DC1 contract. DCCO is currently in the evaluation phase. The evaluation is anticipated to be completed in June 2021. The DCCO acquisition is projected for award in the fourth quarter of fiscal year 2021 (July 2021).

13. Technical/Requirements Personnel Certification. I certify this requirement meets the

Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Date Technical Representative Office of the Chief Information Officer Department of Homeland Security

Justification for Other Than Full and Open Competition

DAVID A RITTER

14. Contracting Officer’s Certification. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Contracting Officer Office of Procurement Operations

APPROVAL:

Procuring Activity Advocate for Competition

Head of Contracting Activity

Chief Procurement Officer