e-Justification_and_Approval_Redacted_(Capital_Factory)_(1)_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

Security Marking (select from the drop-down list)

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NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition:

Contracting Activity: 338th SCONs

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): AFWERX Capital Factory

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

19 Sep 2019

Project Lead

Signature

Date

19 Sep 2019

Contracting Officer

338th SCONs /

Date Chief of the Contracting Office (COCO)

338 SCONs

APPROVAL (AFFARS 5306.304(a) )

Date Competition Advocate

AFICA/KT

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(See "Specific Guidance for Completing this Template" below.)

I. Contracting Activity.

AFICC/KT, 338 SCONS will be contracting infrastructure and operations support for AETC/ATID & AFWERX-Austin operating location.

II. Nature and/or description of the action being processed.

The subject contract action will be awarded as a new Firm-Fixed Price (FFP) contract action under FAR 13.5 Simplified Acquisitions to The Capital Factory in Austin, TX.

The contract action being processed is a follow-on to current collaborative workspace memberships and related commercial support services required for effective AETC/ATID and AFWERX-Austin emergent industry outreach operations. The nature of this procurement must provide the USAF with immediate, commercially available, public facing collaborative work environment(s) to support the combined needs of AFWERX (HAF/A8I) and AETC/ ATID. This requirement shall enable the discovery or leading edge technology and/or partnerships for assisting with the IMSC Tyndall AFB rebuild, AETC Learning NEXT initiatives, AFSPC innovation initiatives, ACC Multi-Domain Operations, and/or other MAJCOMs strategic challenges as necessary. Public facing access must be in a nationally recognized prime business location (Austin) taking advantage of events and partnerships common within the Data Sciences, IoT, AI, VR, and Robotics emergent technology startups, small businesses and technology centric innovation incubators and accelerators.

III. Description of supplies/services required to meet agency needs.

The incumbent small business, The Capital Factory, shall provide collaborative space memberships and event coordination required for relevant technology scouting and outreach operations required for FY19/20.

-Commercially available access to public facing collaborative work environment -Operations support for industry/government & govt/govt collaboration and/or outreach events -Access must allow collaborations with entrepreneurs, investors, other DoD and USG employees, etc.

-Access to book conference rooms complete with VTC equipment, whiteboards, etc.

-Access to operations support for fully managed/turn-key public facing events taking advantage of full social media and public facing forums to enable maximum participation.

-Access to and active participation in nationally and/or regionally recognized tech & business industry outreach events.

-Access to network of startups, entrepreneurs, mentors, academic institutions and investors -Access to workshops and events focused on teaching entrepreneurial skills -Privileged access to emergent business accelerator programs, to gain insight into the cutting edge of tech that reaches across national strategic objectives

Item: CLIN: Qty: Unit Collaborative Membership Access:

Capital Factory Membership (type A membership) 0001 Capital Factory Membership (type B membership) 0002 Capital Factory Membership (type C membership) 0003

Events (basic fixed price):

Minor meetup/special event support 0004 Meetup/special event SXSW specific support 0005 Workshop/Learning Event support 0006

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Epic Office Hours! Event support 0007 Large event space scheduling (block) 0008 Dedicated Outreach Support (block) 0009 Dedicated Outreach Materials - Quarterly lump sum (NTE) 0010 SXSW Panel Programming Event support (per panel) 0011

(Options) Operations Support / Events (Firm-Fixed Price):

Pitch Competition Programming support (per event 4x max) 0012 Hackathon Programming support (per event 4x max) 0013 SXSW Brand Activation Support 0014 SXSW Activation (full day buyout) 0015 Large Event space scheduling (Block) 0016 Challenge/Prize - Intermediary Support Qtrly (NTE) 0017

IV. Statutory authority permitting other than full and open competition.

FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Small business, Capital Factory - Austin, TX, had been identified as the responsible source capable of satisfying the agency's need for direct collaboration space within the emergent industry intellectual and entrepreneurial center for the supporting the SecAF S&T strategy. The Capital Factory is uniquely established/staffed for leveraging both commercial and academic startup incubator and technology accelerator support.

The Capital Factory is the only incubator/accelerator firm providing the USAF with access to no less than 50,000 sq.ft of collaborative work space and access to over 5000 registered entrepreneurs/startups and capable of hosting/supporting more than 250 public facing/collaborative tech scouting/investments events per year.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Market Research has been conducted via the internet search engines and face-to-face market intelligence meetings to identify other local firms able to provide similar emergent small business outreach support and collaborative space. No firm currently within Austin can immediately provide the space or reach to the relevant emergent business sector required. An Intent to Sole Source notice was posted on FedBizOps.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has reviewed pricing for similar collaborative work spaces and turn-key support services within the local vicinity of The Capital Factory. Prices range from /member, per month. Various levels of memberships afford various levels of turn-key access and support to facilities and events. Market Research for local unfurnished office space within the vicinity averages about $37.50/sq.ft; per year. Access to 50,000 sqft of office space in downtown Austin's entrepreneurial technology center would cost approximately $ M.year. Adding support staff, janitorial services, communications and branded furnishings could easily surpass $ M/year. Independent Govt Estimates and CO research show that the collaborative workspace membership provides USAF with floating work locations, communications access, direct access & outreach to emergent business sectors and other govt/industry opportunities for approx /year. The offset of $ M per year in infrastructure and operations expense support that this sole source contract will provide fair and reasonable pricing.

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VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Previous research from AFRL SPDE, HAF/A8 and Army Futures had previously selected Austin and The Capital Factory as the responsible location for meeting immediate strategic S&T scouting and investment operations for the DoD and

USAF.

Capital Factory's private investment in incubator/accelerator services and deep reach into startup community and venture capital investment opportunities is one that could not be replicated by the USG without significant investment in time, human capital and fiscal appropriations.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

US Army Futures Command and DIU both posted Intent to Sole Source to The Capital Factory on FedBizOps and did not receive notice from interested parties ready to provide immediate access to the collaborative space and support desired.

X. List of any sources that expressed, in writing, an interest in the acquisition.

N/A

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The Contracting Officer is actively engaging with other like firms representing smaller, more focused collaborative spaces. The similar firms specialize in woman and minority owned startups and Woman Owned Small Business and Minority Owned Small Business. Through FY19 AFICC/KT and 338 SCONS will engage and perhaps partner with these firms at a smaller more focused scale. This effort will assist in creating local competition and opening avenues for government to help increase access to various under-represented startup/entreprenuerial communities.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.