JA17-089_HC1028-08-D-2023-0056_JA_BRIDGE_(003)_Redacted.pdf

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION

REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule/Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – Federal Acquisition Regulation (FAR) 16.505, Department of Defense (DoD) FAR Supplement 216.505-70, Procedures, Guidance and

Information 216.505-70

Purchase Request Number: To be determined Contract Number: HC1028-08-D-2023 Task Order Number: 0056 Procurement Title: DoD Host-Based Security System (HBSS) Sustainment and Implementation Support Estimated Value:

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA17-089

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate, hereby approve this exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(C)

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Defense Information Systems Agency (DISA)/Development and Business Center (DBC)/End–Point Security Branch (ID51) 6910 Cooper Avenue Fort Meade, Maryland 20755

Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO) PL8313 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S): This bridge task order is to extend the current support for the HBSS Program (task order HC1028-08-D-2023-0056, Northrop Grumman Systems Corporation) until the recompete can be awarded. The period of performance (PoP) for the bridge is a two-month base period, with three 1-month options. The estimated cost of the firm fixed price requirement is . Fiscal Year (FY) 2017 Defense Working Capital Fund (DWCF) appropriations will be used to fund this action; if the second and third option months (OM) are exercised, FY 2018 DWCF appropriation will be utilized.

3. DESCRIPTION OF SUPPLIES/SERVICES: This action is for the procurement of HBSS technical support to maintain operations and sustainment support for the HBSS over the DoD Enterprise. HBSS is the DoD automated and standardized tool to provide host based security against both internal and external threats that are able to penetrate endpoint defenses through

HBSS Sustainment and Implementation Support, Bridge Action-JA17-089 system vulnerabilities. The host security tool facilitates centralized management of all host related security products, to include: intrusion prevention and detection, buffer overflow protection, rogue systems detection, host compliance checking, and system asset base-lining in support of DoD Information Operations Condition Policy. HBSS provides advanced mitigation efforts necessary to detect, defend, react and deter, in real time, against known cyber-threats.

The HBSS operations and sustainment support will ensure that the system is maintained across the DoD Enterprise. Services are currently provided by Northrop Grumman Systems Corporation under HC1028-08-D-2023-0056. This bridge will ensure continuity of HBSS operations and sustainment support until the Endpoint Security System (ESS) Integrator recompete contract is awarded. The PoP for the bridge is a two month base period July 1, 2017 through August 31, 2017, with three 1-month options. The total estimated cost for the bridge is for the two month base period, and (OM-1), (OM-2), and (OM-3).

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. FAR 16.505(b)(2)(i)(C). The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

b. Description of the Justification. This justification is to bridge services that were previously awarded on a competitive basis to Northrop Grumman. Efforts are currently ongoing to pursue a competitive task order which will provide continued support of HBSS operations and sustainment; however, unexpected delays in award have been encountered which have prevented award prior to expiration of the current task order. In the current DoD network environment, loss of HBSS support could cause critical failures in network security and DISA’s ability to address network vulnerabilities and intrusion prevention. Due to time constraints, it is not in the Government’s best interest to provide continued coverage under any other terms than the proposed sole source extension to the current contractor. It is unreasonable to assume any contractor awarded this effort would be able to immediately comprehend, adapt, manage and execute HBSS operations and sustainment support with any semblance of success in the short amount of time required. The scope of requirements to be provided under the bridge remain unchanged from the requirements provided under the current task order. Under the bridge extension, the contractor will be responsible for maintaining sustainment support of the current HBSS system to ensure that it remains operational and secure. Failure to maintain the contractor support provided by Northrop Grumman until the recompete procurement can be fully awarded and transitioned will result in a loss of continuity of services and will be significantly detrimental to DISA’s ability to support the HBSS program, ultimately resulting in serious security concerns.

Given the limited duration of this bridge effort, introducing a new vendor as an alternative solution would entail hiring personnel and training to ensure adequate support for HBSS. Such action would result in unacceptable program delays and costs. Northrop Grumman understands the requirements and currently possesses the requisite expertise and relevant experience to continue performance.

c. Justification.

(1) Minimum Government requirements. The contractor will provide HBSS operations and sustainment support at its current level in order to support the DoD. This includes maintaining current integrity, security, and interoperability of the current system until support can be transitioned to the awardee of the ESS Integrator recompete effort.

(2) Proposed sole source contractor. Northrop Grumman Systems Corporation, the current contractor, has been instrumental in supporting HBSS operation and sustainment requirements over the life cycle of the current task order. Northrop Grumman is the only capable source to continue to provide the same services starting July 1, 2017, without any degradation to the HBSS program. They already have skilled, trained staff in place that are required to perform support. Moreover, transition with the institutional knowledge from the incumbent is key to carrying the HBSS program concepts and processes going forward. Northrop Grumman is currently working with knowledge that leverages economies and efficiencies for the Agency. It is approximated that a six month required lead time would be required at minimum for requirements package development, solicitation, evaluation, and award of a competitive contract for temporary continued support. Further, any short-term successor would need at least one month for the awardee to understand the scope, scale, and complexity of the HBSS program. An unsupported baseline for any length of time would be devastating to the HBSS program as loss of HBSS support could cause critical failures in network security, and DISA’s ability to address network vulnerabilities and intrusion prevention. This exception has not been used previously, as this task order was competitively awarded in December 2011. Northrop Grumman was one of three proposals received for task order 0056.

(3) Discussion regarding cause of the sole source situation. This effort is currently being solicited on a competitive basis under the General Services Administration (GSA) Alliant Government Wide Acquisition Contract (GWAC); however, the award process has been delayed due to complexity and issues encountered during source selection. The recompete is moving forward with an anticipated award date of August 1, 2017. The six-month extension under FAR 52.217-8 has been exhausted; however, the support that Northrop Grumman provides for HBSS to the DoD is critical and a break in contract service could prove to be detrimental to the entire DoD. Therefore, a bridge extending services to the current Northrop Grumman contract is being requested.

(4) Demonstration of unique source. Northrop Grumman is uniquely postured to support the HBSS operations and sustainment support without loss of time and work stoppage starting July 1, 2017. Northrop Grumman understands the requirements and currently possesses the requisite expertise and relevant experience. Any other contractor would, at a minimum, have to first understand the scope, scale and complexity of the HBSS program and its application across the DoD Information Network (DoDIN). This is in addition to recruiting personnel with specialized qualifications, and completing the onboarding process necessary to support the effort before technical support services could continue (i.e., in-processing, establishment of user credentials and accounts). This would result in unacceptable delays to the continued support efforts of these systems.

(5) Procurement discussion. The nature, scope and criticality of HBSS operations and sustainment provided by Northrop Grumman remain constant. Any lapses or delays would result in the mission failure of HBSS; as necessary application upgrades are anticipated beyond June 30, 2017 and prior to award of the follow on contract in order to resolve information technology security vulnerabilities. These application upgrades would not be available to be implemented without a continuation in service. Northrop Grumman has successfully provided these services for the last 66 months. It is logical and in the Government’s best interest for Northrop Grumman to continue to provide these services until DISA/DITCO can execute a competitive follow-on contract or task order that aligns with the scope required and current policies and regulations, currently projected for August 1, 2017.

(6) Impact. Failure to maintain the contractor support continuity provided by Northrop

Grumman Systems Corporation until the recompete procurement can be fully awarded and transitioned will result in a loss of continuity of services and be significantly detrimental to DISA’s ability to support DISA’s HBSS program. As stated above, HBSS is the DoD automated and standardized tool to provide host based security against both internal and external threats that are able to penetrate boundary defenses or enter through backdoors. HBSS is a USCYBERCOM mandated endpoint security program, and provides advanced countermeasures necessary to detect, defend, react and deter, in real time, against cyber-threats. The failure to provide support for necessary software upgrades, configuration changes, and patches would result in the rapid decline of capability, leaving the DoDIN vulnerable to exploitation. In the current DoDIN environment, loss of HBSS support could cause critical failures in cyber security, and degrade DISA’s ability to address vulnerabilities and intrusion prevention.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: Determination of fair and reasonable price for this particular requirement will be based on fair market value, independent government cost estimate, and comparison to commercial price lists. The contracting officer will determine if the ultimate price is fair and reasonable by comparing past rates and labor categories on this task order for current work and requirements of the performance work statement being performed. The final price will be determined fair and reasonable upon completion of negotiations. Prior to award a certificate of current cost and pricing data will be obtained.

6. MARKET RESEARCH: Northrop Grumman is the only contractor at this time with the intimate knowledge and technical personnel capabilities to support the requirement in the timeframe necessary for uninterrupted support. Market research was conducted for the follow-on efforts. A sources sought notice was published on Federal Business Opportunities (FBO.gov) on July 24, 2015. Based on the results of the sources sought and historical knowledge of the current contract, it was determined the follow-on efforts could be competitively solicited allowing fair opportunity under the GSA Alliant GWAC vehicle. The 2015 research and vendor capabilities were also revisited in April 2017 to include cybersecurity tools for application containment and endpoint detection and response. The Government is currently recompeting the requirement based on the market research findings; however, as a result of the delay in the acquisition schedule and necessary transition, it is not currently feasible to award the subject task order to another contractor in sufficient time to avoid a bridge.

Based on the result of market research, the Government has determined that the current level of support can only be provided by the incumbent, who has been the sole technical support contractor. Northrop Grumman Systems Corporation is the only source that can continue providing the level of support required without risk of a substantial break in support for the

HBSS Program.

7. ANY OTHER SUPPORTING FACTS: None.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History. The HBSS task order was previously competed under fair opportunity competition under the ENCORE II suite of contracts. Northrop Grumman, a large business, was awarded the task order (HC1028-08-D-2023-0056) on December 9, 2011 with a PoP consisting of a 3-year base period and two, 1-year option periods. In December 2016, and in accordance with FAR 52.217-8, the task order was extended for a 6-month period. Final performance expires June 30, 2017.

(b) An exception to fair opportunity or full and open competition has not been accomplished for any prior procurement for this requirement. The requirements covered under the HBSS contract are currently being recompeted.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): The Head of the Contracting Activity has determined that for the efficiency of the Government, a written AP will not be prepared for this 5-month bridge; an AP would serve no useful purpose.

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Curtis A. Robinson SIGNATURE: See separate PDF

TITLE/ORGANIZATION: TCOR/ID51

PHONE: (301) 225-8785 DATE: 06/20/2017

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Seab R. Herron SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Branch Chief, ID51

PHONE: (301) 225-8698 DATE: 06/20/2017

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Tara Horstmann SIGNATURE:See separate PDF

TITLE/ORGANIZATION:

PHONE: DATE:

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: Gay Arnold SIGNATURE: See separate PDF

TITLE/ORGANIZATION:

PHONE: DATE:

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION REGULATION (FAR) SUBPART 16.5 ACQUISITIONS