E07 - Limited Source Justification_Redacted.pdf

Limited Source Justification ARC-Nlets Interface Development, Modernization and Enhancements (DM&E)

Contract HS002120F0022

1. Identification of the agency and contracting activity.

The United States Department of Defense (DoD), Defense Counterintelligence and Security Agency (DCSA), Acquisition and Contracting (AQ) Office proposes to execute a contract modification on a basis of other than full and open competition on behalf of the Background Investigation Enterprise System (BIES) Program Executive Office (PEO).

a. Contracting Activity: DCSA AQ, 27130 Telegraph Road, Quantico, VA 22134

b. Requesting Activity: BIES PEO, 27130 Telegraph Road, Quantico, VA 22134

2. The nature and/or description of the action being approved, i.e., sole source, limited competition, establishment of a new source, etc.

DCSA AQ intends to execute an in scope contract modification to contract HS002120F0022 with Datamaxx Applied Technologies, Inc. (herein referred to as Datamaxx) of 2001 Drayton Drive, Tallahassee, FL 32311 under their GSA Federal Supply Contract GS-35F- 304DA for under authority of FAR Part 8.405-6(a)(1)(i)(B), only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

3. A description of the supplies or services required to meet the agency’s needs.

The National Background Investigations Bureau (NBIB) environment was previously supported by Office of Personnel Management (OPM). Executive Order (EO) 13869 effectuated the transfer and transition of OPM background investigation resources to Defense Counterintelligence and Security Agency (DCSA). As a result of separating from the OPM computing environment, DCSA must now maintain the transferred licenses, software, and applications to be utilized in the Background Investigation Enterprise System (BIES) environment.

DCSA uses a suite of business applications that have different platforms and frameworks that allow for external federal employees and contractors, as well as DCSA staff and contractors, to manage the entire life cycle of investigative services. Currently, DCSA’s investigative system, ARC-Nlets, interfaces with the National Law Enforcement Telecommunications System (Nlets). DCSA’s use of the ARC-Nlets system, Omnixx (DataMaxx Applied Technologies, Inc. is the manufacturer), encompass online questionnaire entry, document imaging, case processing, tracking, and reporting;

investigator reporting; interfacing to financial systems, fingerprint transactions, clearance verification; secure portal access to a collaboration suite, and a management reporting dashboard.

When field investigators request an investigative item, it is automatically generated, and sent to record sources by electronic data exchange and updates from all Investigative Service Providers (ISP) and Adjudicative Facilities (AF). The system is currently linked with the following agencies to provide the following National Agency Check (NAC) Items:

1) Selective Service (SESE);

2) Bureau of Vital Statistics (BVS);

3) Credit check (CRED);

4) Financial Crimes Enforcement Network (FinCEN or FNCN);

5) Social Security Administration (SSA);

6) Defense Clearance and Investigation Index (DCII);

7) Federal Bureau of Investigations Records Management Division (FBI-C);

8) Federal Bureau of Investigation Criminal Justice Information Services (FBI-B);

9) International Police (Interpol);

10) National Law Enforcement Telecommunications System (Nlets); and

11) Defense Manpower Data Center (DMDC).

ARC-Nlets, which is the system (Omnixx) that interfaces with NLETS, is a high priority, high profile system which handles highly sensitive information and enables the federal community to manage the processing of background investigation information efficiently and effectively, while simultaneously ensuring correct results.

This contract is in place to allow DCSA to acquire the necessary support from Datamaxx to ensure that the ARC-Nlets system continues to meet emerging DCSA investigative functional requirements, interoperates with all of the support State’s Nlets formats, and supports all of the necessary DCSA platforms. The contractor shall provide management, analytical, and technical support for system development, modernization and enhancement (DM&E) in support of changing business needs and Background Investigation (BI) objectives.

As a result of the BI activities being transferred from a civilian agency, OPM, to a DoD agency, DCSA, BIES has requested several modifications to the contract to ensure the contract meets various DoD security standards, including, but not limited to, maintaining the Authority to Operate (ATO), which OPM required the ARC-Nlets system be maintained “in-house” versus Datamaxx’s cloud, incorporate Background Investigations and Security Clearances in accordance with the Department of Defense Manual (DoDM) 5200.02, “Procedures for the DoD Personnel Security Program (PSP)” and subsequent memo issued by the Director for Defense Intelligence Counterintelligence, Law Enforcement, & Security, issued June 27, 2019, further clarifying Clearance Requirements for Access to Investigative and Adjudicative Relevant Data, and upgrading the system to comply with Controlled Unclassified Information (DFARS 252.204-7012 - Safeguarding Covered Defense Information and Cyber Incident Reporting) markings and processes.

DCSA is incorporating a CLIN to allow Datamaxx payment to upgrade the ARC-Nlets system to incorporate the CUI requirements.

CLIN 0011 is hereby incorporated as follows: Controlled Unclassified Information (DFARS 252.204-7012 - Safeguarding Covered Defense Information and Cyber Incident Reporting). CUI markings are required to be incorporated into the ARC Nlets system to maintain compliance with this requirement. (See Section 4.6 of the revised PWS)

Datamaxx estimated a fixed price of for this requirement. Reference Section 4.6 of the PWS.

Concurrent with the above incorporations, the following requirements are being revised to allow DCSA BIES to utilize this contract more effectively within the BIES environment:

The original contract, executed by OPM, incorporated 6 month options, however, due to the growing need of these services by DoD BIES, the following option periods PoP is extended to 12 months as defined below:

Option Period III PoP is extended as follows:

From: November 22, 2021 - May 21, 2022 To: November 22, 2021- November 21, 2022

Option Period IV PoP is extended as follows:

From: May 22, 2022 - November 21, 2022 To: November 22, 2022-November 21, 2023

As part of the tasks required by Datamaxx under this contract, the contractor shall provide all management, supervision, labor, materials, supplies and equipment (except as otherwise specified); and shall plan, schedule, coordinate, and assure the efficient performance of any requested future modifications to the ARC-Nlets system. Modifications to this system are allowed under various complexity levels, priced at fixed amounts per complexity level (Low, Medium, and High). Reference section 4.2 of the PWS.

Modifications may include adding additional user/interface functionality, adjustments to code to accommodate changes in the format used by the States, adjustments to interfaces as required by the Government, and ensuring that the system is technically current and will operate on all DCSA supported MS Windows Operating systems in the future. The Government provides these requirements on an as needed basis, and the Contractor responds with a brief description of the work including the changes needed, on overview of how the change will be reflected in the system, a list of activities proposed, and an estimate of complexity for each new requirement.

The quantities of these complexity levels are being increased to accommodate the DoD DCSA BIES environment and security requirements. As such, future enhancements (via complexity levels), in addition to the existing enhancement scope, may fall into one of two categories, as follows:

1. Security Updates: These shall include audit-related findings to keep ARC-Nlets application secure and in compliance with DoD security standards. This includes, but is not limited to, software / OS upgrades that are needed to address open vulnerabilities identified with any of the underlying software used by ARC-Nlets application.

2. General Application Enhancements: These shall include updates necessary to support day to day operations of DCSA’s investigation needs, as identified and verified by DCSA.

Complexity Level

Number of enhancements -Base Year

Number of Enhancement-

Option Periods I and II.

Number of Enhancements- Option Periods

III and IV

Representative task (section)

Low 8 4 8 4.1.5

Medium 4 2 9 4.1.12

High 2 1 4 4.1.8

Complexity quantities are increased for Option Periods III and IV as follows:

The total contract value is also revised as follows, based on the above quantity revisions of each complexity level for Option Periods III and IV. The Government obligates the full amount of each quantity and, as used, the payment is drawn down from these CLINS.

Low

From: 4 (Fixed unit price of totaling ) To: 8 (Fixed unit price of totaling ) (Per OP III and OP IV)

Medium

From: 2 (Fixed unit price of totaling ) To: 9 (Fixed unit price of totaling ( (Per OP III and OP

IV)

High

From: 1 (Fixed unit price of totaling ) To: 4 (Fixed unit price of totaling ) (Per OP III and IV)

Lastly, Section 4.3 – Additional quantities of Individual States per OPIII and OPIV are being increased to accommodate the need within the BIES environment: The following increase of quantities is being incorporated:

From: 1 State per option period at a fixed unit price of

To: 7 per option period at a fixed unit price of per state, totaling a NTE value of (Per OP III and IV)

The total contract value is hereby increased as follows:

From: (DCSA Contract Only)

By:

To:

The total anticipated obligated amount, to exercise OP III and incorporation of price impact revisions identified above are: . Reference Attachment 1 “E04 Datamaxx Summary Costs” document for a specific breakdown.

All other terms remain unchanged.

Scope determination:

As discussed above, this contract is in place to allow DCSA to acquire the necessary support from Datamaxx to ensure that the ARC-Nlets system continues to meet emerging DCSA investigative functional requirements, interoperates with all of the support State’s NLETS formats, and supports all of the necessary DCSA BIES platforms. The contractor provides management, analytical, and technical support for system development, modernization and enhancement (DM&E) in support of changing business needs and Background Investigation (BI) objectives.

While the additions detailed above are specific to enhancing the system itself in support of the DoD BIES environment, the total value of the contract is increased significantly (over 25% of the contract value). The Contracting Officer determined the change in price is deemed out of scope, ultimately requiring a limited source justification.

4. The statutory authority permitting other than full and open competition.

The authority permitting limiting of sources is Federal Acquisition Regulation (FAR) Subpart FAR 8.405-6(a)(1)(i)(B) - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

Datamaxx Applied Technologies, Inc., is the sole qualified contractor to provide the necessary Omnixx, ARC-Nlets system support, due to the proprietary nature of the system rights and technology, for continued use within the BIES environment based upon the following:

The existing ARC-Nlets system in use by BIES is proprietary to Datamaxx, they are the only contractor capable of providing the required support services and enhancements to their system, specifically they are uniquely qualified for being the sole developer of their applications and systems and have the proprietary knowledge, technology, and understanding of their applications and systems and are the only contractor authorized to access their applications and systems to maintain and support the functional requirements.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable.

Per the market research report submitted by the technical point of contact, market research findings summarized below:

The program office identified only one source, Datamaxx, as the sole capable contractor capable of providing the existing Datamaxx Omnixx application upgrades and enhancements required for use by BIES. They are also the sole resellers of their products.

Datamaxx is the sole contractor fully capable of providing all applications support services.

In addition to the market research completed by the TPOC, the CS/KO conducted further research as follows:

DOD ESI Mandatory Source: Datamaxx is not identified as a BPA holder within ESI.

The existing contract was placed under the Datamaxx’s existing GSA Federal Supply Schedule Contract, GS-35F-304DA. All prices incorporated were comprised using various labor categories, rates, and product prices listed within their FSS.

NASASEWP: Datamaxx is not identified as an IDIQ holder within NASASEWP.

No other contractors were identified with the capabilities or authorization to execute the required support and enhancements of the existing Omnixx ARC-Nlets system.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Government shall conduct price analysis in accordance DFARS 208.404(a)(i) and FAR 15.404-1(b)(2)(ii), (iii)(iv) and (iii)(v) to determine pricing as fair and reasonable.

8. A description of the market research conducted and the results.

Reference Section 5 above.

9. Any other facts supporting the use of other than full and open competition.

N/A

10. A listing of any sources that expressed a written interest in the acquisition.

As a result of the market research identified and in accordance with FAR 8.405-6, a Request for a Firm Fixed Priced Quotation for the additional requirements will be solicited directly from Datamaxx. A synopses of the proposed contract action is required in accordance with FAR 5.201(b)(1)(i). A notice on intent will be posted to BETA SAM on or about October 25, 2021 for a period of 5 days, as allowed under FAR 5.203 (a)(1). IAW 8.405-6 (a)(2), within 14 days of award, the KO will also post the redacted limited source justification and award synopsis to BETA SAM for 30 days.

11. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated.

DCSA BIES PEO regularly conducts market research by contacting knowledgeable individuals in Government and industry including DCSA partners and other United States Government agencies to identify any additional products that may have the necessary capabilities to meet DCSA’s minimum requirements or if the current vendor has partnered with small businesses as authorized resellers/distributors. Additionally, DCSA continually reviews online catalogs and other generally available product literature published by manufacturers, distributors, and dealers. No other contractors have been identified which meet DCSA BIES PEO’s minimum requirements. DCSA BIES PEO will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions to be competed.

Attachments:

Attachment 1 “E04 Datamaxx Summary Costs”

Certification

Program Official:

I certify that the facts and representations under my cognizance, which are included in this justification and which form a basis for this justification, are complete and accurate.

Contracting Officer:

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

Approvals

Activity Advocate for Competition (if over $700,000):

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this JOFOC does not exceed $13.5M, this review serves as approval.