EFO_-_JETS_SP4709-18-Q-0031_FedMall_Hosting_-_Redacted_Version.pdf

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using an exception to fair opportunity, pursuant to the authority cited herein.

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

Agencies Requiring Activity:

Defense Logistics Agency (DLA) Information Operations-J62 Attn: Tara-Shea Newsome FedMall Program Manager 8725 John J. Kingman Road Fort Belvoir, Virginia 22060-6221 Email: Tara-Shea.Newsome@dla.mil

Contracting Activity:

DLA Contracting Services Office Philadelphia (DCSO-P) 700 Robbins Avenue Philadelphia, PA 19111

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

Pursuant FAR 16.505(b)(2)(i)(B), the action being approved is an exception to fair opportunity. This justification authorizes the use of other than full and open competition to award a Firm-Fixed-Price task order to acquire FedMall Production and System Integration Testing (SIT) hosting services.

The acquisition will be a sole source task order award under the J6 Enterprise Technology Services (JETS) Indefinite-Delivery Indefinite-Quantity (IDIQ) contract vehicle. The sole source task order will be awarded to International Business Machines Corporation (IBM), which is the only source capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

This action is required to provide the continued procurement of Production and SIT) hosting to support the FedMall application.

3. A DESCRIPTION OF THE SUPPLIES AND/OR SERVICES REQUIRED TO

MEET THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The Defense Logistics Agency (DLA) has a requirement to maintain Production and SIT hosting for continued support for the FedMall application. Continued and uninterrupted mailto:Email:%20Tara-Shea.Newsome@dla.mil sustainment of FedMall is required in order to ensure the system is available to support the daily needs of thousands of active users. The legacy DoD EMALL generated more than $670 million in sales for the agency in its last year of operation. FedMall replaced the legacy DoD EMALL application on June 13, 2017, and is expected to support the same level of products and users to achieve a comparable number of sales.

This follow-on task order will continue the current Production and SIT hosting services being provided by IBM under Task Order SP4701-15-D-7000-0002 for the FedMall application.

The tasks within the PWS for this action are the same tasks being performed under Task Order SP4701-15-D-7000-0002. These services were originally awarded as Task Order 0004 on February 5, 2016, but later extended as consideration of a cure notice issued against Task Order 0002, mod 16, issued on December 22, 2016, and reiterated again in Task Order 0002, mod 18, issued on May 5, 2017. Under Task Order 0002, mod 18, hosting services were extended through December 2, 2017. The hosting services were further extended for an additional month through January 2, 2018 under Task Order 0002, mod 19, dated 2 December, 2017 as the program milestones and schedule were being finalized in the portfolio strategic plan for hosting applications. It is essential for IBM to continue performing the services without a break in coverage to avoid FedMall becoming unavailable to customers and for IBM to continue to deploy further releases to correct deficiencies identified when the application first came online.

The estimated dollar value for the FedMall Production and SIT hosting requirement is $6,190,386.86. The Period of Performance will be from January 3, 2018 through January 2, 2019.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY (SEE FAR

16.505(a)(4) and FAR 16.505(b)(2)) AND THE SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S

UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION

REQUIRES USE OF THE EXCEPTION CITED:

In accordance with FAR 16.505(b)(2)(i)(B), only one source is capable of providing the services required at the level of quality required because the services are unique and highly specialized. DLA Information Operations-J62 has a continuing need for the procurement of Production and SIT hosting services for the FedMall application. Due to the data associated with and contained within the FedMall application, FedMall is categorized as a Level 5 application, which means the data is for official use only (FOUO). Commerical hosting vendors are able to support hosting either in their offsite commercial facility or on a DoD site which they manage. Offsite facilities require the use of a cloud access point (CAP) to connect to the DoD network. Facilities on DoD sites utilize the existing DoD connection.

Per the DoD Chief Information Officer’s (CIO’s) cloud hosting approval process, only Level 5 approved sources are authorized to support FOUO hosting services within the DoD. IBM is the only source capable of providing the hosting services for the FedMall application at the level of quality required in the require timeframe because it is the only Level 5 certified vendor with the ability to support hosting services within DoD.

At the time of the initial award, IBM was the only Level 5 certified vendor for hosting services in the DoD. Since that time, two other vendors have received conditional approval for Level 5 certification. However, these vendors are unable to support hosting services at this time because their hosting services are connected to contractor-owned networks, which require a cloud access point (CAP) to the DoD network to be operable. At this time, DoD does not have the capacity to support additional CAP because of the number of systems already running on DoD networks have exhausted the available space on the networks.

The Defense Information Systems Agency (DISA) and the DoD are working to procure additional space for CAP to meet the demand and alleviate the backlog of applications waiting for their environments to be assessable on DoD networks. IBM’s hosting environment does not require the use of a cloud access point because it is hosted at a government facility at the Alleghany Ballistics Lab and is connected to the government network internally. Therefore, IBM remains the only approved source capable of providing the required hosting services for the FedMall application at this time.

5. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

Price will be analyzed in accordance with FAR 15.404-1 procedures. It is anticipated that the Government will use various price analysis techniques including, but not limited to: (1) Comparison with competitive price lists in accordance with FAR 15.404-1(b)(2)(iv); (2) Comparison of proposed price with the Independent Government Cost Estimate in accordance with FAR 15.404-1(b)(2)(v); and (3) Comparison of proposed prices obtained through market research for the same or similar items in order to obtain a fair and reasonable price in accordance with FAR 15.404-1(b)(2)(vi). The Contracting Officer will determine that the price is fair and reasonable prior to task order award.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

All supporting facts are provided herein.

7. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE

EXCEPTION TO FAIR OPPORUNITY BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES IS MADE:

In order the remove barriers or obstacles to increased competition, DLA continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both within industry and the Government, as a continuing effort within DLA. Furthermore, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure future full and open competition. DLA is also working with DISA and the DoD CIO to establish policy and framework to support the ability for DoD applications to be hosted seamlessly amongst vendors in the various certification levels which would not result in a break in service or increased vulnerability. DLA anticipates that future Production and SIT hosting requirements for the FedMall application will be competed amongst Level 5 approved vendors once additional CAP is available and process framework is in place.

8. CERTIFICATIONS

Requirements/Technical Certification:

I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Adarryl Roberts DATE J62 Portfolio Manager

Contracting Officer Certification:

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

Maureen Gushue DATE Contracting Officer DLA Contracting Services Office – Philadelphia

9. APPROVAL:

In accordance with FAR 16.505(b)(2)(ii)(C)(2), I have determined that FAR 16.505(b)(2)(i)(B) applies and I approve this justification.

RYAN P. SCHRANK DATE

Competition Advocate DLA Contracting Services Office