sole_source_justification JAIC Udacity redac_Redacted.pdf

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

FOR OFFICIAL USE ONLY

18 Jun 2019 FOR OFFICIAL USE ONLY Page 2 of 7

I. Contracting Activity.

AFLCMC/HIK

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

Purchase of 120 licenses from Udacity in support of the customer requirements of the Joint Artificial Intelligence (AI) Center (JAIC) to run the Lead AI, Drive AI, and Create AI pilot programs in June & July 2021 via Digital University 490 East Moore Dr.

Montgomery Al, 36114

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

Item: Udacity user licenses, in support of Joint Artificial Intelligence (AI) Center (JAIC) AI accelerator pilot programs to run via Digital University Quantity: 120

Period of Performance: 7 Jun 2021 - 6 Jun 2022 Allows participants in the JAIC Lead AI, Drive AI, Create AI Pilots to access required courseware from vendor Udacity via Digital University

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

This acquisition is completed IAW FAR 13 simplified acquisition procedures and this requirement is a sole source requirement. IAW FAR 13.501(a)(ii) sole source justifications must be prepared using the format at FAR 6.303-2. FAR 6.303 specifies that the justification for other than full and open competition come from FAR 6.302. Therefore, this acquisition's authority for permitting other than full and open competition is 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).

Digital University (DU) was launched in the summer of 2020 with the intent to revitalize the way that the Air and Space Forces recruit, train and retain cyber talent. The DU team performed significant market research and collaboration with career field functional managers, training managers, educational platforms, and industry experts from companies such as Google and Lyft to identify the ways that our Airmen and Guardians were deficient when compared to industry or our peer-adversaries. From this research, the BESPIN software factory built a prototype of an online learning platform that would provide access to world-class online cyber training from companies such as Udemy, Udacity, and Pluralsight. The DU prototype was launched, and the 338th SCONS (AFWERX 'RapidX') was appointed to rapidly award 8x contracts to the above vendors.

Udacity offers industry-leading courses in intermediate to advanced cyber skills required by Digital University. In the areas of Artificial Intelligence (AI) and Machine Learning (ML), Udacity provides capability not available from other vendors. Specifically, content is created with leading tech companies like Google and Amazon, and students are provided in-browser visualization, giving them access to all the tools, data, and computing power necessary to complete their coursework without having to purchase hardware or software (which would represent significant cost to an individual or organization). As an anecdote, one of the courses' capstone events for completion of its 'nanodegree' requires students to design an algorithm for a self-driving car. Individuals completing this exercise successfully have gone onto careers with industry leaders such as Tesla, indicating the quality of the training provided.

Collaboration between BESPIN/DigitaU/the Joint Artificial Intelligence (AI) Center (JAIC) combined with the market research performed by the JAIC, and consequent curriculum development performed by the JAIC have determined

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

18 Jun 2019 FOR OFFICIAL USE ONLY Page 3 of 7 that the courseware offered by Udacity is specifically required for the most successful outcome of the JAIC's Lead AI, Drive AI, and Create AI pilot programs to run in the June and July timeframe, as it represent the true state-of-the-art/ industry leading MOOC provider for AI and ML topics.

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

Since the inception of the DU program, the government has had continuing conversation with a plethora of "massively open online course" (MOOC) providers and training platforms to evaluate which might best serve the needs of the Air Force via Digital University. In the summer of 2020 the Air Force made contract awards to 3 vendors that satisfied separate parts of the overall Air Force/DU need. Udacity was contracted to provide intermediate to advanced courseware supporting advanced skill and career paths that were built inside DU as they truly represented the pinnacle of AI & ML training.

The government has and will continually evaluate its needs and perform continuous market research with as many training platforms as practical to ensure DU always provides world-class, industry-leading training curricula at the best possible value to the government. Indeed, DigitalU is already in discussions with several other MOOC providers whose unique capabilities might represent new skills or pathways that can be incorporated into DU.

The JAIC, as a customer of DU and the specific consumer of these licenses, has been a partner with Digital University, virtually from the beginning of the DU program. The JAIC is aware of DU's capabilities and have been stakeholders in some of the career and skill pathways, and have collaborated on what DU should provide its users. Its AI pilots are heavily leveraging the known, robust capabilities of Digital University while also developing JAIC-specific features into DU, and also leveraging other industry leading AI subject matter experts such as MIT. Thus, while Udacity through DigitalU is a specific requirement of the JAIC's upcoming AI pilots, they have also been performing continuous market research to determine what state-of-the-art MOOC providers can provide their necessary AI and ML courseware at the best overall value.

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

The anticipated cost to the Government will be fair and reasonable as the estimated cost is largely identical to previous pricing granted to the government for the same capabilities. The price of this contract will be determined to be fair and reasonable based on FAR 13.106-3(a)(2)(ii).

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

Market research has demonstrated that there are many massively open online courses (MOOC)-style online training platforms that provide courseware that is arguably consistent with content contained within the training pathways offered by Digital University. However, Udacity provides required intermediate to advanced courseware topics including but not limited to Artificial Intelligence (AI) and Machine Learning (ML) that are critical to a number of ongoing DoD efforts such as the Joint AI Center (JAIC) Lead AI, Drive AI, and Create AI pilot programs.

This research demonstrated that Udacity was the clear leader in advanced topics such as AI and advanced software development as evidenced by their partnerships with Amazon and nVidia for their AI courseware, and Google and AWS for advanced software development. No other MOOC vendor can claim they are as integrated with these unquestioned industry leaders.

Additionally, incorporating other vendors to satisfy the requirements currently met by Udacity - assuming an acceptable replacement could be found - does not represent the best value to the JAIC or the government, as the time required to implement a different vendor would cause unacceptable schedule delays to the Lead AI, Drive AI, and Create AI pilot programs.

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

This contract action supports the Joint Artificial Intelligence (AI) Center (JAIC), who has elected to use Digital University and

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

18 Jun 2019 FOR OFFICIAL USE ONLY Page 4 of 7 its intermediate to advanced skills and career pathways as critical portions of their Lead AI, Drive AI, and Create AI pilot programs. Assuming an acceptable replacement could be found - tremendously unlikely as demonstrated by previous discussion - replacing these courses would require significant re-work of existing curricula, and for the portions of the AI pilots that use Digital University, the JAIC would be required to initiate a separate contract action that would fund the DU development team to make the changes. There is neither schedule or budget to support this required work.

Lastly, the AI and ML disciplines generally require specialized tools, software, and hardware. Udacity was singularly unique in that it provided virtualized access to world class hardware, software, and tools for their advanced courses, which would otherwise require purchase (at significant cost) by an individual or organization. In this way, even the most junior of troops would have the opportunity to receive a truly world-class training opportunity. As one of the core principles of DU is to 'democratize technology training' (i.e. make it available to all) this unique capability of Udacity is particularly significant.

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 Digital University team is continually evaluating other offerings from companies similar to Udacity and continually making determinations as to whether the capabilities of those companies will further expand the capabilities of DU, or provide value over existing companies. Additionally, as DU has expanded, additional career fields (i.e. HAF/A9, Data Scientists/Analysts) have approached the DU team about building in new pathways which would open up opportunities to onboard other MOOC-style content providers that had capabilities in these new subject areas. As funding becomes available, it would be the government's intent to continue to expand DigitalU in this way.

The JAIC has also performed its own market research, and is pursuing separate means of ensuring that all its course content represents the state-of-the art. This contract is for the Udacity portion of the DU specific JAIC needs, while other JAIC needs are met by other means. In conclusion, competition is already 'baked in' to the JAIC executing these AI pilot programs.

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.

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

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Contracting without providing for full and open competition shall not be justified on the basis of lack of advance planning by the requiring activity or concerns related to the amount of funds available (e.g., funds will expire) (10 U.S.C. 2304(f)(4)).

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

(FAR 6.303-2(b)(6))

Describe all efforts taken (or to be to be taken) to ensure that offers are solicited from as many potential sources as practicable under the circumstances. Although Market Research is covered in Section VIII, the information in Section VI should correlate with the Market Research described in Section VI. The following issues should be addressed in this paragraph:

Sources Sought Synopsis (used as part of market research). If a sources sought synopsis was issued, state the date the synopsis was issued and a brief description of its content. If any responses were received, describe in detail the results of the screening process and the rationale for determining the unacceptability of any synopsis respondents. Reference FAR 13.105, Synopsis and Posting Requirements.

Other Actions. In this paragraph, discuss any other actions taken or planned to facilitate competition for this acquisition. The discussion should include actions tried or considered even if the actions were unsuccessful. If the efforts were unsuccessful, so state and describe why.

Qualifying Country Sources. If qualifying country sources have expressed interest, but are to be excluded, provide supporting rationale.

VII. Determination by the Contracting Officer that the anticipated cost to the government will be fair and reasonable. (FAR 6.303-2(b)(7))

Include a statement by the contracting officer that the anticipated cost will be considered fair and reasonable and provide the basis for this determination. The steps that will be taken to ensure the final contract price will be fair and reasonable are also described here. Describe the extent of cost or price analysis anticipated including the requirements for certified cost or pricing data, technical evaluations, and audits.

VIII. Description of the market research conducted and the results, or explain why market research was not conducted. (FAR 6.303-2(b)(8))

Generally, some form of market research should be conducted. Discuss any market research conducted pursuant to FAR Part 10 and describe results of that research. Market research is any effort undertaken to determine if sources capable of satisfying the agency's requirements exist and to determine if commercial items or non-developmental items are either available or can be modified so that they will satisfy the agency's needs. Market research should be focused not only on identifying alternate sources, but also on alternate equipment or substitutes that might fulfill the Government needs with only minor modification.

Regardless of the approach used, the results should provide a high level of confidence that no other qualified sources exist.

When other exceptions from the requirement to obtain full and open competition are relied upon, the market research might be limited to an examination of the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items.

If no market research was conducted, so state and provide the rationale.

IX. Any other facts supporting the use of Other Than Full and Open Competition. (FAR 6.303-2(b)(9)(i))

Provide any other facts supporting the use of other than full and open competition, including an explanation of why technical data packages, specifications, engineering descriptions, statements of work, statements of objectives, or purchase descriptions suitable for full and open competition have not been developed, are not being developed, are not being used, or are not available.

X. List of sources, if any, that expressed interest in the acquisition. (FAR 6.303-2(b)(10))

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

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If a sources sought synopsis was done and all interested sources are included in Section VI, it is acceptable to state, “See Section VI above.”

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. (FAR 6.303-2(b)(11))

Describe any actions taken or to be taken to foster competition for future acquisitions of the supplies or services being acquired.

Describe potential actions that could be taken to remove the barriers to competition that have been identified in the justification and include a milestone schedule, where available, for accomplishing these actions. For example, if a follow-on competitive acquisition is planned, so state and provide the planned award date, or state that the Government will attempt to acquire rights in technical data and computer software sufficient to compete follow-on acquisitions as a priced option in the contract action that is the subject of this Justification, or (if applicable) state how the Government intends to challenge nonconforming markings on technical data and computer software delivered to it under previous contracts so those markings can be removed in order that the technical data and computer software may be used in support of a follow-on competitive acquisition, or describe plans to qualify additional sources.

Address efforts to ensure competition for future spare parts and maintenance in support of systems or equipment covered by the justification, even when these acquisitions will be accomplished by other organizations. Include a discussion on available breakout data.

If no actions are planned, so state and provide reasons. If approval is sought for more than one year, explain why a sole source effort is required for the planned time duration.

For a non-competitive follow-on acquisition to a previous award for the same supply or service supported by a Justification citing the same authority, include a discussion of the actions planned to overcome barriers to competition established in the previous justification, the status of those actions, and the results of those actions. The approval authority shall determine whether the planned actions were completed. If the planned actions were not completed, the justification for the follow-on acquisition shall be approved by the approval authority one-level above the approval authority for the previous justification (see FAR 13.501(a)(2)). If the previous justification was approved by the Senior Procurement Executive (SPE), the approval remains at the SPE level.

[DFARS 213.501(a) and DFARS PGI 206.304(a)(S-70)(ii)]

XII. Certification by the Contracting Officer. (FAR 6.303-2(b)(12))

As evidenced by his/her signature, the contracting officer has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

XIII. Certification by the technical/requirements personnel. (FAR 6.303-2(c))

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.