JA_redacted_CMT17DSF0004_Kinetic.pdf

J&A Kinetic Software Support Upgrade

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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: CMT17DSF0004 Contract Number: To Be Determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Kinetic Software Support Upgrade Estimated Value: $586,500.00 Statutory Authority: 10 U.S.C.2304(c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: Not Applicable (NA)

Upon the basis of the following justification, I, as the 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 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Defense Information Systems Agency (DISA) Services Development Directorate, Business Systems Division (SD21) 6910 Cooper Avenue Fort Meade, MD 20755-7090

Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO) PL8321 2300 East Drive Scott AFB, IL 62225

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to extend the DISA Storefront (DSF) capabilities, enabling a single point of entry for telecommunications and other services, which will support enterprise-level Storefront development. DSF uses commercial-off-the-shelf (COTS) Kinetic Data, Inc.

software as an integral capabilities component. Upgrade of brand-name, Kinetic Data, Inc.’s Kinetic Request to the latest software version compliant with the Purchase Request Data Standard is needed to improve DSF system agility and capabilities. This requirement will be awarded as a firm-fixed-price order using open market procedures to the proprietary software owner, Kinetic Data, Inc. or a Kinetic Data, Inc. authorized reseller. The upgrade of the original DISA Global Information Grid Services Management – Operations and Maintenance (GSM-O) infrastructure is critical to the operations of the DSF.

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b. The estimated period of performance (POP) will involve a one-year period from May 23, 2017 through May 22, 2018, followed by a one-year option (OY1). The total estimated life cycle cost (LCC) is $586,500.00. This LCC includes an estimated $236,500.00 for the base year, and $350,000.00 for OY1. Included in the OY1 estimate is the $100,000.00 for expanding the domain from development on the Non-secure Internet Protocol Routed Network or NIPRNet to add a domain, the Secure Internet Protocol Routed Network or SIPRNet. Fiscal Year 2017 Defense Working Capital funds of Military Interdepartmental Purchase Request CMT17DSF0004 will provide funds for the first year. The applicable North American Industry Classification System code is 511210, Software Publishers, with a sales size standard of $38.5 million.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. Kinetic Request Core Edition (KRCE) is needed to simplify and streamline the process from solution request to fulfillment. Upgrading Kinetic Request to the Core Edtion software permits the continued development of the DSF, which is working toward the goal of the DSF being a DISA enterprise-wide tool. Advancement efforts entail automating, standardizing, consolidating, and managing Agency customer service ordering relationships and capabilities in one system. Integrating the DISA service catalog with the service ordering program of the DSF will create a single point of entry for DISA services.

b. KRCE is needed to develop the service delivery strategy of the DSF. The software provides needed enterprise web-ordering, front-end portal, workflow-routing, integration, and automation.

The system is being developed to meet Government requirements to data share and deliver services to DOD, federal and coalition partners, using service portals, workflow automation, customer data sharing, collaboration, and capabilities management. The software upgrade is needed for the continued end-user portal, workflow, process automation, service integration, order fulfillment, and performance architecture design. Outlined below are the requirement items and price estimates.

Description (Part) $ Price Estimate Quantity 1 for the Base Year KRCE - Up to 500,000 requests per year, includes fulfillment, automated workflow and unlimited integrations;

Kinetic Task for Kinetic Request; unlimited non-production use and use on one production network domain (KAP-KRT-CORE-

CONVERSION – MAINT)

236,500.00

Quantity of 1 for OY1 - KRCE - Up to 500,000 requests per year, includes fulfillment, automated workflow and unlimited integrations;

Kinetic Task for Kinetic Request; unlimited non-production use and use on one production network domain (KAP-KRT-CORE-

CONVERSION – MAINT)

250,000.00

Quantity of 1 for OY1 – (Kinetic Request/Task for additional network production domain - unlimited production requests and unlimited non-production use - yearly fee (KAP-KRT-CORE-CONVERSION-

DOMAIN-MAINT)

100,000.00

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Total LCC (includes all options) 586,500.00

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).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. Kinetic Data, Inc. software was chosen to satisfy functional, technical and security requirements for DISA’s GSM-O and the DSF service ordering storefront and catalog infrastructure. Kinetic Request software is owned by DISA. Kinetic Data, Inc.’s software products are key components of the DSF architecture. This requirement allows for the expanded right to use the Kinetic software for needed DSF services. Upgrading the Kinetic Request software to Core Edition allows for the critical single point of entry path for the DSF project so that warfighters will receive critical capabilities faster, while order-fulfillment automated management saves the Government money. Additional justification information is outlined below.

b. Minimum Government requirements. The upgrade of the Kinetic Data, Inc. software support is associated with the manufacturer’s customer account DISA GSM-O. The Government’s requirement items are outlined in paragraph 3.

c. Proposed sole source contractor. The required brand-name Kinetic Data, Inc. software products are available to the Government through the proprietary-owner and their authorized reseller(s). Although Kinetic Data, Inc. authorizes reseller(s) to sell their products to the Government, third party software modifications or patches to the proprietary software are not authorized. The software is protected by copyright laws, and no other source may legally modify or change the software, nor would they have access to the source code to do so.

d. Discussion regarding cause of the sole source situation. KRCE provides the ability to consolidate the service catalog and order entry tool into one application within the DISA Business Enterprise Architecture for the DSF services single point of entry or “front door” for acquiring services and information. With a DSF user base of 13,000 and current order count of over 300,000 active service orders, there is a need to expand the service order capability to support all DISA services. KRCE supports DISA’s enterprise software platform and expanded system load goals and performance demands. DISA’s current use of KRCE pathfinder project development seamlessly integrates with current systems in place. Government and contractor integrators have experience with the solution. The use of Kinetic Data Inc. software allows DISA to reduce custom code costs and deliver a positive customer service delivery experience.

Reducing DISA’s reliance on custom code and leveraging Kinetic Data, Inc.’s COTS software platform reduces Agency’s costs and the risk of not meeting ordering performance experience expectations. The proprietary software products are available from Kinetic Data, Inc. and their reseller(s). DSF developers and integrators, including Government personnel, Leidos, B and C Consulting, and others, are familiar with the software products and interoperability with the DSF infrastructure. DISA has made a substantial KRCE infrastructure investments in testing, Page 4 of 7 Pages developing, implementing, and training to achieve current DSF stability and functionality. For example, the DISA Joint Operability Test Command is currently testing KRCE for cloud service offerings. The Government has determined that the software upgrade of this requirement is the most cost effective means of meeting DSF development goals and seamlessly integrating with existing infrastructure, including Kinetic Data Request, Service Delivery, Remedy, Active Directory, SDN, Mobility, and other products.

e. Demonstration of unique source. Kinetic Request was selected due to cost savings associated with process automation in many lines of business within the Agency. The large business, Leidos, was the systems integrator, coordinating the development of the DSF.

Extensive effort over several years by internal DISA and external study groups have provided lessons learned and support the continued development of DSF and the upgrade Kinetic Request products for the DSF infrastructure. As program capabilities supported by custom applications are transferred to Kinetic Data software supporting the DSF program, custom applications and their sustainment costs will be saved. With the continued use of the KRCE software platform, the DSF capability consolidation in one platform will replace manual ordering processes through automation. This reduces costs associated with sustaining multiple applications and man hours supporting them.

f. Procurement discussion. The large business, Leidos, was the systems integrator, coordinating the development of the DSF. Kinetic Data software was incorporated in the DSF infrastructure as part of this development effort in 2012, the software and support were purchased as other direct costs under HC102812D0021-0002 and other orders. The $7,505,579.30 HC102812D00210002 order was awarded to the large business, Lockheed Martin Corporation (CAGE 3VTD1). The software upgrade is available from Kinetic Data, Inc. and authorized resellers. At least two potential participants were identified for this procurement, including a small and large business. However, additional authorized providers will be encouraged to respond to this commercial requirement to be advertised on the Federal Business Opportunities website. The open-market contracting opportunity will request the participation of large and small businesses that are authorized to sell Kinetic Data, Inc.’s software products.

Other government contract vehicles were found to be not applicable to this requirement.

g. Impact. This procurement will provide continued support services to the existing network infrastructure that the DSF system relies on. Without the Kinetic Data application of the DSF, the manual order processes will not be phased out on schedule and outdated, underperforming custom code will continue to be used until a replacement infrastructure is identified and implemented. The schedule delays and infrastructure replacement costs are unacceptable to the Government. Additionally, there are unacceptable risks that jeopardize system availability that is critical to the needs of the nation’s warfighters. Without the upgraded software products the substantial system risks will not be appropriately addressed.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A combined synopsis solicitation for this requirement will be published on the Federal Business Opportunities website as required by FAR 5.203(a)(2) for the commercial items acquisition.

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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. The Government will perform an evaluation of the offeror’s proposed costs to ensure the costs are fair and reasonable based on commercial price lists for the same or similar items, the independent Government cost estimate pricing, quote prices received, and available historical prices for the required products. The contracting officer will also determine the information valid for comparative purposes. Certified cost or pricing data is not required for this acquisition, in accordance with FAR 15.403-1(b)(1) and FAR 15.403- 1(b)(3). Award will be made on the basis of the lowest evaluated price that meets or exceeds the acceptability standards for non-price factors. The total price quote will be used to determine the lowest priced offer, and evaluation will continue to higher priced offerings only until the lowest priced technically acceptable and otherwise properly awardable offering is identified.

8. MARKET RESEARCH:

a. Government market research for this procurement was completed in the last five months of 2016 and the first five months of 2017. The team surveyed the market through internet research, contacting software owners and resellers, conducting internal discussions, holding vendor meetings, and reviewing Government-wide acquisition contracts.

b. The first step taken in conducting market research in support of this requirement was to determine if other than brand-name software products were a solution the Government could consider. At this time, there are no other viable products in the marketplace that can fully meet Agency requirements. No current products can provide a family of ‘like’ products to support the DSF infrastructure. Introducing an alternative product into the current infrastructure would result in additional, unnecessary, and substantial duplication of time and costs, which are not expected to be recouped through competition. Kinetic Data, Inc.’s products are proprietary and only available from the proprietary owner or their authorized resellers. Compatibility with other deployed software products is necessary to maintain and move forward the development of the DSF system.

c. Market research revealed that Kinetic Data, Inc.’s products are not available through a DoD Enterprise Software Initiative Blanket Purchase Agreement. The requirement can also not be fulfilled through a General Services Administration or NASA Solutions for Enterprise-Wide Procurement order. Government market research indicates that the commercial software products are only available through an open-market order. The Government identified potential sources, including software owner and reseller sources. Kinetic Data, Inc. is a small business, while an identified reseller for this procurement is a large business, SC3 LLC. No reseller was found to be able to provide at least 50 percent of the cost of labor for the requirement. The software support is one-hundred percent provided by the proprietary software owner. The requirement cannot be a small business set-aside due to the limitations on subcontracting, in accordance with FAR 52.218-

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14. It is recommended that this requirement be competed among large and small open-market businesses, including the proprietary owner and authorized reseller sources.

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES: None. A combined synopsis solicitation will be published prior to issuance of contract 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. Kinetic Data software was incorporated in the DSF infrastructure. In 2012, the Government on the recommendation of various systems integrators procured the software and support as other direct costs under HC102812D0021-0002 and other orders. The $7,505,579.30 HC102812D00210002 order was awarded to the large business, Lockheed Martin Corporation (CAGE 3VTD1). A small business set-aside was not applicable to this procurement.

b. At this time, full and open competition for software functionality is not feasible due to the Government’s substantial investment in the DSF infrastructure. Currently, Kinetic Request is a critical tool that provides the flexibility at scale, and with the least cost to develop the DSF.

Government and industry systems integrators have the necessary experience to effectively utilize the Kinetic Data software to support the system capabilities, including sharing data across Agencies. If the proprietary software owner surrenders their legal ownership, copyright, and/or intellectual property software rights and moves to a complete open-source solution, then the Government will seek full and open competition for Kinetic Data Inc.’s software products. The Government will also continue to search the marketplace to determine if alternative solutions exist. If the Government’s required functionality changes, then the Government will seek full and open competition.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): A written AP is not required as the estimated cost of this requirement is below the dollar cost threshold in which such a written AP is required.

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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: Harold Herrick SIGNATURE: See PDF Document

TITLE/ORGANIZATION: Telecommunications Specialist / DISA SD

PHONE: 301-524-2078 DATE: April 26, 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: Martha Jasper SIGNATURE: See PDF Document

TITLE/ORGANIZATION: Chief Business Systems Division / DISA SD

PHONE: 301-225-8577 DATE: April 26, 2017

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.

NAME: Lauren O’Neill SIGNATURE:

TITLE/ORGANIZATION: Contract Specialist / DITCO PL8321

PHONE: 618-229-9403 DATE: May 12, 2017

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contracting Officer/Specialist Lauren O’Neill at Lauren.j.oneill.civ@mail.mil & 618-229-9403.