Redacted__sole_source_simplified_procedures_for_certain_commercial_items.pdf

FOR OFFICIAL USE ONLY

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY 25 May 2018 Page 1 of 4

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: >SAT and < $700K > $700K and < $13.5M

Contracting Activity: OL_H/PZIMC

Purchase Request / Local ID Number: TBD

Program / Project (and PE, if applicable): 520 SMXS Global Broadcast Service (GBS)

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): $ 551,923.00 Justification Type: Class Individual

COORDINATION (AFFARS 5306 . 304 ( a) ) ** The text in the signature blocks below is editable, including the title.

** To remove a row, click the "X" next to the signature block. CAUTION: Once removed, it can only be restored by downloading the BLANK FORM again.

X

X

APPROVAL (AFFARS 5306 . 304 ( a) )

Date Chief of the Contracting Office (COCO)

[ Official Signature Block ] Signature

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

Sign and Save Procedure

Date Project Lead / Program Mgr / Requiring Activity

Melissa Galioto for Alan LeCheminant

[ OO-ALC/OBC 801-775-2038 ]

Signature

Date

06 Sep 2018

Contracting Officer

Andrea Bean

OL_H/PZIMC 801-777-0166

Signature BEAN.ANDREA.1274429 Digitally signed by

BEAN.ANDREA.1274429425

425 Date: 2018.09.06 15:30:19 -06'00'

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY 25 May 2018 Page 2 of 4

I. Contracting Activity.

United States Air Force

OL_H/PZIMC

6038 Aspen Ave, Bldg 1289U Hill AFB, UT 84056

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

This will be a new contract for the renewal of the KenCast FAZZT software licenses. The licenses are for a commercial digital delivery system that securely delivers content over satellite and terrestrial networks directly to authorized computers at up to thousands of sites. This software is used for the Global Broadcast Satellite System (GBS). This is the annual update to support existing software licenses in a mature satellite broadcast system.

The United States Air Force will award a new, firm-fixed-price contract to renew the annual maintenance agreements for the KenCast FAZZT Digital Delivery System to:

KenCast, Inc.

535 Connecticut Ave, Ste. 304 Norwalk, CT 06854-1713

CAGE: 1CUB7

DUNS: 883086514

The estimated cost of this acquisition is $551,923.00.

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

CLN001

Qty: 4,611 FAZZT Enterprise Client Licenses #11066, PoP: 9/19/2018 to 9/18/2019

908071-908079, 908084-908094, 820001-821699, 821704-822033, 880001-880086, 880088-880177, 880179-880221, 880223-880350, 880352-880403, 880406-880436, 880438-880558, 880791, 887146-887147, 888171-888221, 888223-888244, 888246-888302, 888304-888554, 888557-888643, 888645-888704, 888706-888921, 888923-889003, 889005-889041, 889044-889108, 889113-889166, 889168-889175, 889177-889189, 889191-889237, 822036-822041, 822043-822053, 405397-405430, 405381-405388, 828001-828008, 828009-828014, 828015-828026, 221500-222053, 405389-405394, 258275-258276, 822056-822057, 168516-168593, 908097-908100, 405395-405396, 405431-405434, 405500-405719

CLN002

Qty: 32 FAZZT Enterprise Client licenses #11070, 660126-660157, PoP 12/6/2018 to 12/5/2019

CLN003

Qty: 20 FAZZT Enterprise Client licenses #10990-XII 405720-405739, PoP 10/1/2018 to 9/30/2019

CLN004

Qty: 20 FAZZT Enterprise Client licenses #10990-XIII 405740-405759, PoP 10/1/2018 to 9/30/2019

CLN005

Qty: 20 FAZZT Enterprise Client licenses #10990-XIV 405760-405779, PoP 12/6/2018 to 12/5/2019

CLN006

Qty: 20 FAZZT Enterprise Client licenses #10990-XV 405780-405799, PoP Date of award to 2/28/2019

CLN007

FAZZT ENTERPRISE SERVER (4-node version): 8 licenses License IDs #228801-228804, 228811-228814, 228815-228818, 228819-228822, 225303 (225332-225334), 228823-228826, 228827-228830, 225306 (225362-225364), 228811 - 228814 (newly requested via 4/19/2018 email) PoP: 9/19/2018 to 9/18/2019

CLN008

FAZZT ENTERPRISE SERVER (single-node version): 16 licenses License IDs #224811-224814, 224821-224824, 224831 (were originally four 4-node servers on Maintenance Contract #10228 that were traded in by Norfolk for nine single-node servers) and #224851, 224861, 224871, 224881, 224891, 224901, 224911

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY 25 May 2018 Page 3 of 4

CLN009

FAZZT POWER PUBLISHER: 7 licenses License IDs #871011-871012, 874201-874205

CLN010

FAZZT STANDARD SERVER (Host-Hub): 18 Licenses License IDs #668201-668218

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

AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

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

KenCast, Inc. is the only provider for maintenance agreements for their systems. These maintenance agreements are unique in their applicability to GBS software licenses. GBS has been directed by the Department of Defense to use KenCast FAZZT as part of its baseline programing. No other manufacturer has been found to be compatible with the existing satellite system software. This software has capabilities that are unique to GBS. Award to any other source would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition and would also result in unacceptable delays in fulfilling the Air Force's requirements. Development of comparable software for the GBS system would take the Government nine years at a cost of $50,000,000.00 (23 engineers full time for 9 years = 47,724 hours at $116.41 per hour). Therefore, this acquisition will be a sole-source contract to renew the KenCast FAZZT Enterprise software licenses.

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

KenCast, Inc. was contacted to request a list of distributors or secondary vendors of their software licenses, and none exist. KenCast, Inc. is the sole proprietary manufacturer of the software licenses. No other vendor or distributor can legally obtain access to the software, and no other vendor can make duplicate copies since it is protected by copyright and patent laws.

An attempt was made to utilize NETCENTS-2 as a way of fostering competition. However, KenCast, Inc. does not participate in NETCENTS-2. The Government obtained a signed letter from KenCast, Inc. stating that they do not participate in NETCENTS-2.

This requirement will be synopsized on FEDBIZOPPS as a notice of contract action in accordance with FAR 5.201.

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

IAW FAR 6.303 (2)(b)(7) A determination by the contracting officer will be made that the anticipated cost to the Government will be fair and reasonable.

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable. The contracting officer will comply with the procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing, to include technical evaluations and audits, as appropriate.

Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY 25 May 2018 Page 4 of 4

Guides, jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The final step is to include the Price Negotiation Memorandum (PNM). The detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

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

As stated in section VI, KenCast, Inc. was contacted to request a list of distributors or secondary vendors of their software licenses, and none exist. KenCast, Inc. is the sole proprietary manufacturer of the software licenses.

No other vendor or distributor can legally obtain access to the software and no other vendor can make duplicate copies since it is protected by copyright and patent laws.

An attempt was made to utilize NETCENTS-2 as a way of fostering competition. However, KenCast, Inc. does not participate in NETCENTS-2. The Government obtained a signed letter from KenCast, Inc. stating that they do not participate in NETCENTS-2.

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

Failure to renew this license in a timely manner will risk system shutdown and disruption to the warfighter across the globe.

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

None other than KenCast, Inc.

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.

It is anticipated that future purchases will still require a sole source award. However, the Government will continue to look at other viable product options for future procurements as well as engage Kencast, Inc. on the availability of resellers. At this time, there are no plans to change to another system for the same purpose.

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.

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