JA_redacted_DJCMZ70003_SMARTneXt.pdf

SMART.neXt and Spooler Software Support Renewal

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, FAR Subpart 13.5, and FAR Part 15

Purchase Request Number: DJCMZ70003 Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: SMART.neXt and Spooler Software Support Renewal Estimated Value: $424,875.00 Statutory Authority: 10 U.S.C.§2304 (c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Upon the basis of the following justification, I, as Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the statutory authority of 10 U.S.C.§2304 (c)(1). The regulatory authority that applies to the requirement is FAR Part 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Activity:

Defense Information Systems Agency (DISA) Joint Staff Support Center (JSSC) Site R Code: JCA, Post Office Box 549 Fort Meade, Maryland 20755-0549

Contracting Activity:

DISA Defense Information Technology Contracting Organization (DITCO) Software Section (PL8321) 2300 East Drive Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to renew the brand-name, proprietary SMART.neXt, Spooler systems software and technical support for DISA JSSC, providing critical information technology support for the Command, Control, and Communications (C3) and analytical requirements of the President, the Secretary of Defense, the Joint Staff (JS), the Combatant Commanders, the Military Services and the other elements within the Department of Defense.

SMART.neXt and Spooler maintenance support includes new software releases, Cat 1 bug fixes, and any new required configuration changes including message format changes or additions.

This requirement will allow for the continuation of SMART.neXt and Spooler software licenses support or maintenance currently provided under HC1047-11-P-4137, which expires after September 30, 2016. This requirement will be awarded as a firm-fixed-price contract to the

Page 2 of 6 Pages original software manufacturer and sole source provider, Northrop Grumman, using open market procedures.

b. The period of performance will be from October 1, 2016 through September 30, 2017, plus four one-year options. The total estimated value of this acquisition is $435,497.52. The applicable North American Industry Classification System code is 541519, Other Computer- Related Services, with a sales size standard of $27.5 million. Fiscal year 2017 operation and maintenance funds will be provided under military interdepartmental purchase request

DJCMZ70003.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The objective of this procurement is to renew front-end message processor support of the SMART.neXt system, which provides software upgrades and disk management, configuration management to meet National Military Command Center or NMCC Site R requirements. It also provides for special exercise support, and Nuclear Planning and Execution System (NPES) configuration control to provide specific communication source inputs. Critical troubleshooting and resolution of issues that arise related to the SMART.neXt system and coordination with information needs of the Joint Worldwide Intelligence Communications System (JWICS), NOVA Corporation, Military Strategic/Tactical and Relay Satellite (MILSTAR), and National Defense Strategy (NDS) circuits will be provided. Spooler technical management will be provided as part of the maintenance support. Northrop Grumman provides Crescent Systems hardware support for the interface cards on the Spooler platform and technology refresh on the associated hardware. The renewal support also provides critical coordination and implementation of required communication source inputs.

b. The following is a description and estimated value of the required support:

Base year: October 1, 2016 through September 30, 2017 estimated cost of $84,975.00 Option year 1 - October 1, 2017 – September 30, 2018 estimated cost of $84,975.00 Option year 2 - October 1, 2018 – September 30, 2019 estimated cost of $84,975.00 Option year 3 - October 1, 2019 – September 30, 2020 estimated cost of $84,975.00 Option year 4 - October 1, 2020 – September 30, 2021 estimated cost of $84,975.00

Total Life Cycle Cost estimate ____$424,875.00

c. The SMART.neXt and Spooler license/support renewals support items required for the applicable base and option-year periods are outlined below.

SMART.neXt System Ids Control Number 8423698b SRO-PRIM 841000e1 SRO-ALT Spooler (Active and Standby) Renewal

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c)(1). (FAR 6.302-1/DFARS 206.302-1).

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5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events. The SMART.neXt system is a proprietary product of Northrop Grumman. There are no authorized resellers. The product is critical to the DISA JSSC mission. This cross-domain messaging solution bridges the gap between incompatible domains, and operates in the enterprise intelligence organization architectures of various organizations and locations supporting DISA JSSC. It is a secure messaging solution and is certified at the required protection level 4 or PL4 for top secret and below interoperability. It is also approved on the Department of Defense Intelligence Information System or DoDIIS Unified Cross-Domain Management Office’s approval list of cross-domain mechanisms. The product has been in use for several years as a sole source contract to Northrup Grumman, the only authorized provider.

(b) Justification.

(1) Minimum Government requirements. The minimum requirements are outlined in paragraph 3.

(2) Proposed sole source contractor. Northrop Grumman is the owner of the proprietary product and the only known source capable of satisfying the Government’s requirement.

(3) Discussion regarding cause of the sole source situation. The sole source situation exists due to there being no other provider with the ability to provide the required software and hardware support to meet the government’s needs. Only Northrup Grumman was capable of satisfying this requirement, as the software product is proprietary to Northrup Grumman. No other entity may legally modify or change the software, nor would they have legal access to the source code. No other contractor can make duplicate copies because copyright and patent laws protect this SMART.neXt system product.

(4) Demonstration of unique source. Northrop Grumman is the only known source. The company provided a sole source letter, which confirms that SMART.neXt products are proprietary products of the company and there are no authorized resellers.

Additionally, Northrop Grumman confirmed that the SMART.neXt Spooler is a proprietary product and is only available through Northrop Grumman, which works together with their subcontractor, Crescent Systems to deliver the required support.

(5) Procurement discussion. The requirement items have been previously acquired through sole source purchase with Northrop Grumman. DISA JSSC continues to require the SMART.neXt and Smart Spooler software support renewal items. These are the only products to meet the government’s needs at this time. These items are only available through Northrop Grumman. This sole source requirement solicitation to Northrop Grumman will be posted to the FedBizOpps website.

(6) Impact. A disruption in the support would be critical to DISA JSSC’s support to the warfighters. The most significant impact would be the loss in functionality to the Nuclear Planning and Execution System (NPES), which directly supports the President, Secretary of Defense, Joint Staff, and Combatant Commanders. It would jeopardize the ability to make time sensitive and strategic decisions, including nuclear decisions.

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6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

As required by FAR 12.603, a synopsis/solicitation for this requirement will be published on the FedBizOpps website as required by FAR 5.102(a)(1) using Subpart 12.6 -- Streamlined Procedures for Evaluation and Solicitation for Commercial Items. The synopsis/solicitation will completely identify the government's minimum mandatory requirements. A copy of the redacted J&A will be posted with the synopsis. All responsible sources may submit a capability statement, proposal, or quotation, which shall be considered by the agency in meeting the government requirements as set forth. A sources sought announcment was published on the FedBizOpps website as required by FAR 5.203(a)(1), and no responses were received.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The government will perform an evaluation of the offeror’s proposal and proposed costs to ensure the costs are fair and reasonable, based on published price list or published market prices for the same or similar items, the independent government cost estimate pricing and historical pricing for the required support renewal. The Contracting Officer will also determine the pricing information valid for comparative purposes. Certified cost or pricing data is not required for this acquisition, in accordance with FAR 15.403-1(b)(3).

8. MARKET RESEARCH:

a. The government conducted market research in late March through the middle of July 2016.

The team surveyed the market through internet research, internal and external discussions, and phone and email contacts.

b. The first step taken in conducting market research was to determine if there was any other brand that could provide the same or similar software support to meet government needs.

Analysis determined that continuing to utilize the SMART.neXt software products is the most advantageous method in fulfilling the agency requirements. No other products on the market are currently capable of meeting all the required needs of the government at this time.

c. The second step in conducting market research was to determine a method of procurement.

Market research revealed that the required software support is not available through existing government contract vehicles. Northrop Grumman confirmed they only provide the software renewal support for the perpetual software infrastructure through an open market contract, and they do not authorize resellers to provide their products. Therefore, it is recommended that this open market procurement be awarded to the only known vendor, Northrop Grumman, a large business. A synopsis/solicitation will be posted to FedBizOpps and issued to Northrop Grumman, soliciting an open market quote for the continued SMART.neXt and Spooler software support.

9. ANY OTHER SUPPORTING FACTS:

None.

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10. LISTING OF INTERESTED SOURCES:

Northrop Grumman is the only known source capable of meeting this requirement. However, any responses to the FedBizOpps announcement will be considered prior to proceeding with an award.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

Contract Number: HC1027-11-P-4137 Contractor: Northrop Grumman Contract Period: October 1, 2011 through September 30, 2012, and four one-year exercised options.

Total Estimated Contract Value: The life cycle cost estimate was $412,500.00 Objective: Renewal of SMART.neXt and Spooler software support Competitive Status: Sole Source.

(b) While current circumstances do not permit full and open competition for this acquisition, the government will continually look for ways to use products and services that are available from multiple vendors. It is deemed that only Northrop Grumman would be able to provide the government required software support. If Northrop Grumman elects to surrender their legal ownership control over the product or authorize resellers to provide their products, then DISA will seek further competition. Regardless, the government will continue to search the marketplace, and alternative software solutions will be researched to determine if they will function as the currently used software products and support. If the government determines the SMART.neXt software products are no longer required or other software meets the government’s needs, then the government will seek full and open competition for the required functionality. If similar requirements arise, every effort will be made to compete to the maximum extent practicable.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

This requirement does not meet the dollar threshold requiring a written AP.

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O'NEILL.LAUR

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: Frank C. Fasano SIGNATURE: See PDF

TITLE/ORGANIZATION: Chief, DISA JSSC Mission Support Branch Site R

PHONE: 301-878-2722 DATE: June 7, 2016

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: Joseph E. Moritz SIGNATURE: See PDF

TITLE/ORGANIZATION: Colonel, USAF

PHONE: 703-695-2222 DATE: June 7, 2016

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief. Since this effort exceeds $150K but does not exceed $700K, this certification serves as APPROVAL.

Digitally signed by

O'NEILL.LAUREN.J.1167253535

DN: c=US, o=U.S. Government, EN.J.1167253 ou=DoD, ou=PKI, ou =DISA, Date: 2016.08.04 13:39:09 -05'00'

TITLE/ORGANIZATION: Contract Specialist/DITCO PL8321

PHONE: 618-229-9403 DATE: August 4, 2016

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contracting Officer Lauren O’Neill at 618-229-8403 and Lauren.j.oneill.civ@mail.mil.

mailto:Lauren.j.oneill.civ@mail.mil