DIU Sole Source Justification Opaque Licenses_Final_Redacted.pdf

ACQUISITION DIRECTORATE

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301

Control Number: 2021-WHS-0215

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION (FAR) 13.5

1. AGENCY AND CONTRACTING ACTIVITY: The Contracting Activity is the Department of Defense (DoD), Washington Headquarters Services (WHS), Acquisition Directorate (AD), Enterprise Security Services

Directorate (ESSD). The Requiring Agency is the Defense Innovation Unit(DIU).

2. DESCRIPTION OF ACTION: This action requests approval to issue a sole source contract to acquire ten (10)

Opaque User licenses, (10) Isolated Collaboration Suites, (2) Opaque Premier licenses for protected research, and

(1) Time-To-Value service from Grey Market Labs., 6446 Overbrook St., Falls Church, Virginia, 22043-1944, (DUNS: 079834691, CAGE Code: 7F8R7). WHS/AD proposes to issue a Firm-Fixed-Priced (FFP) contract using

Operation and Maintenance (O&M) funding, in the amount of $27,788.00, with an anticipated 12-month period of performance (PoP).

3. DESCRIPTION OF SUPPLIES/SERVICES: Defense Innovation Unit (DIU) has a requirement for Opaque

User Licenses for protected research so DIU can have the ability to securely collaborate, communicate, and conduct sensitive-but-unclassified research and discussions with various internal and external U.S. Intelligence

Community partners and stakeholders. The software products support privacy-as-a-service, delivering proactive internet protection from the moment of access to countering exploitation of digital behavior and activity. To meet the mission, DIU requires an information platform for increased visibility into innovative technology companies and relevant market trends which seamlessly integrates into the DIU existing customer relationship management tools. The period of performance is for a base period of 12-months with no options. The base year pricing is

$27,788.00.

Performance Periods Performance Period Dates Amount

Base Period September 21, 2021 – September 20, 2022 $27,788.00

4. AUTHORITY CITED: This action is under the procedures of Federal Acquisition Regulation (FAR) 13.5 under the authority of:

☒41 U.S.C. 1901, Simplified Acquisition Procedures

5. REASON FOR AUTHORITY CITED: DIU requires Opaque user licenses for protected research so they can have the ability to securely collaborate, communicate, and conduct sensitive-but-unclassified research and discussions with various internal and external U.S. Intelligence Community partners and stakeholders. Failure to support this requirement would adversely affect daily operations for DIU, since DIU would lack visibility into innovation technology companies and relevant market trends, as well as their ability to understand and anticipate emerging trends will be hampered. DIU’s ability to prevent data from being compromised, establishes trust between users and protects virtual work activities. The Grey Market Labs Opaque Platform meets DIU’s need since it overcomes the limitations of browser isolation and remote access solutions, providing tailored virtual environments at scale to protect critical missions including:

1. Safeguarding online investigations/inquires

2. Enabling protected data science through remote work

3. Accelerating DevSecOps and Cloud Deployments

4. Providing secure collaboration and audit for the most sensitive business data and communications

6. EFFORTS TO OBTAIN COMPETITION: WHS reviewed possible sources listed on GSA Advantage, NASA SEWP and NITACC for potential vendors capable of performing similar/same services. No suitable matches were found to meet the customer’s requirement to overcome the limitations of browser isolation and remote access solutions.

7. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated price for this order will be fair and reasonable. The techniques identified at FAR 13.106-3(a), “Basis for Award,” will be used to ensure award will be at fair and reasonable prices. Upon receipt of proposal and this analysis complete, the

Contracting Officer will make the determination of fair and reasonable pricing prior to award.

8. MARKET RESERCH: On September 3, 2021, WHS/AD issued a “Notice of Intent to Sole Source” on Federal

Business Opportunity (FBO) for fifteen days to comply with FAR 5.203(a)- Publicizing and Response Time. On

September 9, 2021, the notice closed without the Government receiving any responses. Additional market research was conducted by surveying the commercial marketplace to locate vendors capable of providing the

Opaque User Licenses Support Services. After conducting discussions with Grey Market Labs, WHS/AD determined that Grey Market Labs only sells their products directly to customers. As a result, Grey Market Labs is the only vendor capable of providing the required services since they only sell their products direct and they own the proprietary rights to make updates and changes to the software application.

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: Not applicable.

10. INTERESTED SOURCES: To date, no other sources have expressed an interest in this requirement.

11. ACTIONS TO INCREASE COMPETITION: For future requirements, the Government will seek other potential vendors who provide similar/same services that are either compatible with Opaque Licenses, or provide additional benefits to the Government.

Is this acquisition for a non-competitive follow-in 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.

APPROVAL

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. Therefore, this justification is approved.

WALLACE.KEALO Digitally signed by

N.D.1504695006

WALLACE.KEALON.D

.1504695006

9/10/2021

Kealon Wallace Date

Contracting Officer, WHS/AD