DIBNet_J A_Dec_2014.docx

MODIFICATION TO JUSTIFICATION & APPROVALS (J&A) FOR FEDERAL ACQUISITION REGULATION (FAR) SUBPART 16.5

ACQUISITIONS EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule/ Multiple Award Contract Orders under MAC/ Fair Opportunity – FAR 16.505, Defense Federal Acquisition Regulation Supplement 216.505-70, Procedure, Guidance, and Information 216.505-70

Purchase Request Number: E200506.00 Contract Number: ENCORE II Contract HC1028-08-D-2015 Task Order Number: 0035, Modification 22 Procurement Title: Defense Industrial Base Network (DIBNet) Development and Sustainment Contracting Office: Defense Information Systems Agency (DISA/Defense Information Technology Contracting Organization (DITCO) /PL8313 Estimated Value/Net Increase this modification: $ 0.00 Previous Contract Value:

4-month base option period: $3,551,889 2-month option period $1,704,302 Total six-month extension: $5,256,190 Authority: FAR 16.505(b) (2) (i) (C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: not applicable

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve this exception to fair opportunity pursuant to the authority FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency: DISA NetOps Division/ MA2 6910 Cooper Avenue Fort Meade, Maryland, 20755-0549

Contracting Office: DISA/DITCO/PL8313 2300 East Drive Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION:

The purpose of this J&A action is to issue a cost plus fixed fee (CPFF) modification to task order (TO) HC1028-08-D-2015-0035 to extend the period of performance (POP) for an additional 1- month period. The POP extension for the additional month is in coordination with the previously approved J&A, awarded as a sole source task order to Booz Allen Hamilton (BAH). The

Page 1 of 5 Pages extension will allow critical DIBNet development and sustainment support services to continue uninterrupted.

This action will extend the current POP by one month, January 1, 2015 through January 31, 2015. There is currently sufficent ceiling remaining on TO 0035 that was not fully utilized due to reductions in scope i.e., there were requirements that were not developed during the POP of July 1, 2014 through December 31, 2014.

To date, a resulting follow-on contract has not been awarded, thus the need for an extension to the current POP, January 1, 2015 through January 31, 201.

The funding will be provided via fiscal year (FY) 15, operation and maintenance funds. The life cycle value of the task order will remain unchanged.

3. DESCRIPTION OF SERVICES:

The Department of Defense (DoD) Chief Information Office (CIO) oversees the DoD-Defense Industrial Base (DIB) Cyber Security/Information Assurance (CS/IA) program whereby classified and unclassified information is shared between the DoD and the DIB companies. The DIBNet is a multi-year, multi-phased project initiated in FY10 as part of DISA’s DoD Network Operations and Cyber Situational Awareness program. The project addresses critical DIB CS/IA program deficiencies like the inability to streamline and automate program activities and the communication of cyber threat information to and with cleared defense contractors (CDCs).

DIBNet is a web-based tool that enables CDCs to exchange classified and unclassified cyber threat information and collaborate with the DoD Cyber Crime Center (DC3) on an on-going basis. The DIB CS/IA Program is critical to assisting the DoD community in securing DoD program information on DIB unclassified networks that are under threat daily, mitigating attacks as they occur, and to protect against future attacks. This multi-phased project will facilitate the sharing, analysis, integration, and visualization of network attacks and is a critical milestone in opening the DIB CS/IA program to all qualified CDCs.

An initial protest was filed on October 1, 2014. The Government Accountability Office rendered a decision which sustained the protest on January 27, 2014. As a result, the Agency took corrective action. DISA/DITCO is currently evaluating offers received. Because the source selection has taken longer than anticipated and there were reductions to the scope, an additional 30-day extension will provide continuity of the DIBNet services until the follow-on task order is awarded.

The government estimates a monthly cost breakout for full service at $271,579.76 for FFP labor, $279,403.47 for CPFF base labor and $56,217 for optional CPFF labor.

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity.

Only one awardee is 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. (10 United States Code §2304c (b), FAR 16.505(b) (2) (i) (B)).

Providing a fair opportunity is not an acceptable course of action; the outcome of the re- evaluation of all offerors’ proposals will address the protest.

(b) Description of Justification:

As a result of the protest, and in order to provide continuity of DIBNet services, TO 0035 was extended under J&A (JA14-097) for 6 months, at a cost of $4,849,980. Task order 0035 was awarded on June 30, 2014 for a 6 month bridge extension in the amount of $5,265,190. The J&A extension POP was a 4-month base, plus a 2-month option period extension, July 1, 2014 through December 31, 2014.

The 6-month extension planned for the time required to cross-train and incorporate a new team with the same level of expertise across the diverse infrastructure that exists within the DIBNet systems while providing for a transition period of 60 sixty days.

Currently, the new proposals submitted under the corrective action are being evaluated. The evaluations for the follow-on task order are not complete at this time, so an additional one- month extension is needed. This J&A to extend the POP is needed to prevent a gap in service which will cover the time period while evaluations are conducted and to allow for a transition period for the new awardee.

(c) Justification:

(1) Minimum Government Requirements.

The estimated minimum government requirement is an additional month of labor hours for full service, from January 1, 2015 through January 31, 2015. By the end of this period, it is expected that an award for the follow-on task order will be completed.

(2) Proposed sole-source contractor.

The proposed sole-source contractor is BAH, 8283 Greensboro Drive, McLean, Virginia 22102 on TO 0035, original J&A awarded on September 21, 2012. BAH is established and currently delivering services timely while corrective action and evaluation are taking place.

(3) Discussion regarding cause of the sole source situation.

The aforementioned protest and re-evaluation is the cause for this J&A, as described above.

(4) Demonstration of unique source.

Disengaging from BAH at this time would effectively cause the DIBNet program to come to a complete halt. After the corrective action of the DIBNet follow-on contract is complete and an award is made to the new contractor, they will need to transition key personnel and processes and acclimate to the technical and operational business processes that need to be performed. A work stoppage would critically affect the program schedules of DoD CIO and DC3. BAH’s technical expertise and knowledge of the system engineering is vital. Halting of these services, even temporarily, will create unacceptable delays in requirements to the DoD CIO.

BAH has accumulated significant technical expertise and unique knowledge during the performance of this initial effort. Engineering processes of systems, as well as technical data accumulated during BAH’s support, is unlikely to be readily available at other organizations without sufficient transition time and training.

BAH has over 3 years of direct implementation experience with the requirements and programs and can continue to ensure they are properly supported as the DIBNet system evolves and transitions to the new awardee.

(5) Procurement discussion.

Please see section 4(b) above for details and dates on the protest history, the follow-on award, and history of the procurement.

(6) Impact.

Failure to maintain consistent contractor support, while undergoing the corrective action from the sustained protest, will result in a loss of services urgently needed to meet DoD CIO’s schedule and requirements of the DIB CS/IA program. Additionally, failure to provide contractor support will impede the follow-on task order until it can be fully transitioned. The services that BAH is currently providing are significantly instrumental to DISA’s ability to support the DIBNet CS/IA effort. Without the support, the ability for DIB partners to collaborate and share threat information with the DoD will be diminished. DoD and DIB partners must continue to maintain situational awareness regarding the extent and severity of cyber threats through the DIBNet system in order to protect DoD information from emerging, advanced, and persistent cyber threats.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The Contracting Officer has previously obtain certified cost or pricing data, in accordance with FAR 15.403-4 for the extension of service and has used this information to determine the negotiated rates as fair and reasonable. At the completion of negotiations for the original extension, a certificate of current cost or pricing data was obtained.

6. MARKET RESEARCH: Customer’s market research confirmed that no other contractors are capable of providing the required services within the time frame required.

7. ANY OTHER SUPPORTING FACTS: Not applicable.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

The current re-evaluation of the offerors proposals should eliminate the continued need of a sole source J&A.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): Not applicable.