DIU Sole Source Justification Opaque Licenses_Redacted.pdf

ACQUISITION DIRECTORATE

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301

Control Number: 2022-WHS-628

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

Fiscal Year (FY) 2022 Operation and Maintenance (O&M) funding, in the amount of $27,788.00, with an anticipated 12-month period of performance (PoP) plus 2 additional option years for a total estimated value of

$83,364.00. This would be the successor contract to HQ034-21-P-0138 for Grey Market Labs’ OPAQUE platform licenses that expires on 20 Sep 2022.

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 two options.

Performance Periods Performance Period Dates Amount

Base Period September 21, 2022 – September 20, 2023 $27,788.00

Option 1 September 21, 2023 – September 20, 2024 $27,788.00

Option 2 September 21, 2024 – September 20, 2025 $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 and FAR 13.106-1(b), Soliciting from a

Single Source.

5. REASON FOR AUTHORITY CITED: DIU requires Grey Market Labs’ Opaque software bundle which provides capabilities to DIU that no other vendor can provide. DIU Business Intelligence (BI) Analyst requires access to research on foreign country websites and platforms to gain details in determining potential threats involving foreign investors, foreign supply chains, geopolitical, interpersonal, and corporate foreign relationships involved in each. These foreign websites and platforms have tracking mechanisms built in to determine and identify internet protocol addresses, end-user/researcher information, and other similar virtual identity information of visitors to those websites. Grey Market Labs’ Opaque platform solves that problem by offering extensive levels of obfuscated research ability.

DIU BI Analyst also requires the ability to collaborate with various U.S. Intelligence Community (IC) partners located nationally and abroad. DIU BI program and the various U.S. IC partners are at risk of compromise when conducting research and collaboration without anonymizing research capabilities and collaboration tools. Authentic8 (DIU license ending in November 2020) was the historic solution for obfuscated research, but it does not offer a secure collaboration capability, hence the requirement to purchase the Grey Market Lab Opaque solution which bundles anonymized research and collaboration capabilities.

Failure to approve this justification and employ another vendor’s product to assist with this requirement, could result in unnecessary delays, increased costs, and could severely impact DIU’s daily operations since DIU would lack visibility into innovation technology companies and relevant market trends, as well as their ability to understand and anticipate emerging trends.

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 of Award,” more specifically FAR 13.106-3(a)(2)(vi) “Comparison to an Independent Government Estimate,” will be used to ensure award will be at fair and reasonable prices. Certified Cost and Pricing Data is not required for this action.

Upon receipt of proposal and the completion of the analysis, the Contracting Officer will make the determination of fair and reasonable pricing prior to award.

8. MARKET RESERCH: On July 28, 2022, WHS/AD issued a “Notice of Intent to Sole Source” Grey Market

Opaque products on Sam.gov’s website for three (3) days to comply with FAR 5.203(a) Publicizing and

Response Time. On August 1, 2022, the notice closed without the Government receiving any responses.

Additionally, market research was conducted by surveying the commercial market place to locate vendors capable of providing the required software. Based on information obtained from DIU’s program officials and

BI analyst personal, as well as Grey Market Labs, WHS/AD was able to confirm that Grey Market Labs only sell 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: Not applicable.

11. ACTIONS TO INCREASE COMPETITION: For future requirements of similar products, the Government will consider alternative products if market research supports the fact that alternative products are 100% compatible with DIU’s mission, and the alternative products provide additional benefits to the Government such as cost savings and/or performance efficiencies

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

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.KEALON.

D

.1504695006

Digitally signed by

WALLACE.KEALON.D.1504695

Kealon Wallace Date Contracting Officer, WHS/AD