CMT18DSF0005_JA_redacted_Kinetic.pdf

J&A: Kinetic Data Software Upgrade

Page 1 of 9 Pages

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: CMT18DSF0005 Contract Number: To be determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Kinetic Data Software Upgrade Estimated Value: $1,737,440.00 Statutory Authority: FAR 6.302-1

J&A FOR OTFAOC

J&A Number:

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate (PACA), hereby approve the use of other than full and open competition of the proposed contractual action, pursuant to the authority of FAR 6.302-1 (Defense FAR Supplement (DFARS) 206.302-1), only one responsible source and no other supplies or services will satisfy agency requirements. The limited number of responsible sources who can satisfy this brand-name requirement include the original equipment manufacturer (OEM) and authorized reseller(s).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

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

b. Contracting Office:

DISA, Defense Information Technology Contracting Organization (DITCO), PL8321 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S): The Government’s need is to expand DISA storefront (DSF) capabilities via software upgrade, enabling a single point of entry for telecommunications and other services supporting enterprise-level DSF development. Kinetic Data, Inc. software, incorporated in the DSF infrastructure since system development, is an integral DSF component. This procurement involves commercial, brand-name Kinetic Request Core Edition (KRCE) software upgrade to the enterprise-level, which provides response to unlimited support requests or transactions and incorporates Kinetic response capabilities. The Government must incorporate the KRCE upgrade before the expansion of the DSF effort can take place. The KRCE upgrade supports the Secret Internet Protocol Router Network (SIPRNet)

Page 2 of 9 Pages development as well as enhanced use for the Non-classified Internet Protocol Router Network (NIPRNet). This requirement will be awarded as a firm fixed price (FFP) purchase order, using open market procedures to Kinetic Data, Inc., the OEM, or to an authorized small business reseller. The requirement will be publicized on the Federal Business Opportunities (FBO) website. Fiscal year 2018 Defense Working Capital Funds are provided for this requirement by Air Force Form 9 funding document CMT18DSF0005. The applicable North American Industry Classification System code is 511210, Software Publishers, with sale size standard of $38.5 million.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The objective of this contracting effort is to purchase Kinetic Data, Inc.’s KRCE software upgrade. The software provides a broad solution for mission partner service portals, workflow automation, customer experience, gathering service and customer data, collaboration, and sharing and providing access to data that allows mission partners to order and DISA to automate provisioning of those services across the agency. KRCE includes software for end-user portal design, workflow design, work and process automation, service integration, work order fulfillment, and high performance architecture design. The DSF program purchased the KRCE software at the inception of DSF development and requires the upgrade to develop and implement the SIPRNet capabilities and enhance NIPRNet capabilities. KRCE is a web portal application to simplify order and fulfillment processes in a manner that integrates with existing and future systems of DISA and its mission partners. The KRCE software upgrade is critical to the DISA SD21 and the DSF development requirements for ordering, routing, integrating, and fulfilling services to meet the agency’s customer and their requirements. The KRCE software upgrade entails the following items for the base year and each option year:

b. The continued investment in Kinetic Data, Inc.’s software products and the KRCE software upgrade must be procured to achieve the following:

(1) The KRCE upgrade is needed to continue DSF solution development, which is working toward the goal of the DSF being a DISA enterprise-wide tool, supporting both the SIPRNet and NIPRNet. Advancement efforts entail automating, standardizing, consolidating, and managing Agency customer service ordering relationships and capabilities in one system. Starting in March 2018, a new enterprise storefront portal will be deployed, which is designed to be the single point of entry for all DISA services. As the single point of entry, DSF will host the DISA service catalog and will begin to support new ordering capabilities and functions for other DISA services. Examples of new functions scheduled for the March 2018 release include the DISA/IE implementations requests and a new communication service authorizations (CSA) management module. The CSA management module will

Product Support / Upgrade Description Quantity KRCE - yearly support for unlimited production requests on the production network domain of the NIPRNet

KRCE - yearly support for unlimited production requests on the production network domain of the SIPRNet

Page 3 of 9 Pages provide mission partners with the ability to initiate actions to proactively manage their expiring telecommunications orders.

(2) The software must be interoperable with the DSF program and integrate with the various systems of DSF and DSF’s customers. The KRCE software allows continued integration efforts without major reengineering efforts.

(3) The software solution must support the DISA Joint Interoperability Test Command cloud service offering which is currently under development, using KRCE software.

(4) The software solution must support the upgrade of DSF capabilities to align with the business enterprise architecture (BEA), to comply with Defense procurement acquisition policy (DPAP) enterprise business rules, and to establish a classified DSF version on classified domain drives, resulting in the need to increase the KRCE support to an enterprise unlimited basis. The BEA alignment and DPAP compliance effort alone are estimated to increase annual support transactions by 600,000.

c. The period of performance (POP) will be for one year, estimated to be from March 1, 2018 through February 28, 2019, followed by two 1-year options. This procurement will upgrade the software support under existing contract number HC102817P0124 to address unlimited enterprise support requests and support for the SIPRNet and NIPRNet. The current contract, which expires May 22, 2018, limits support requests or transactions to a maximum of 500,000 per year and supports only non-classified systems and devices. The total estimated life-cycle value of this acquisition, including options, is $1,737,440.00, as outlined below.

4. IDENTIFICATION OF STATUTORY AUTHORITY: Only one responsible source and no other supplies or services will satisfy agency requirements, U.S.C. §2304(c)(1) and FAR 6.302-

1/DFARS 206.302-1.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. The KRCE software has been used by DISA engineers and contractor support integrators since 2012, from the infancy of developing the DSF program.

Kinetic Data, Inc. software was chosen to satisfy functional, technical, and security requirements for DISA’s 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 for the critical single-point-of-entry path so that warfighters will receive critical capabilities. The order-fulfillment automated management ensures compliance with processes and procedures. Based on current market research, there is no other software solution, other than the KRCE software upgrade, that can support the DSF order-fulfillment automated

Period

POP (estimated)

Estimated Price

Base Year March 1, 2018 - February 28, 2019 $ 537,440.00 Option Year 1 March 1, 2019 - February 29, 2020 $ 600,000.00 Option Year 2 March 1, 2020 - February 28, 2021 $ 600,000.00

Total life-cycle: March 1, 2018 - February 28, 2021 $1,737,440.00

Page 4 of 9 Pages management processes at an enterprise level. DSF is implementing new integration requirements to align with the business enterprise architecture and achieve compliancy with DPAP enterprise business rules, which will increase annual transactions between the financial and contracting systems by 600,000 transactions per year from the current maximum transactions of 500,000.

b. Justification.

(1) Minimum Government requirements. The KRCE software upgrade support is identified in paragraph 3.

(2) 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.

(3) Discussion regarding cause of the sole source situation. 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 investment in testing, developing, implementing, and training for DSF stability and functionality.

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, Software Defined Networking, Mobility, and other products. DISA currently maintains several custom-developed software systems that will be replaced with the continued development of the DSF enterprise program. The development of the DSF system is also expected to replace and automate manual processes. 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 340,000 active service orders and drastic service order increases planned over the coming months, there is a need to expand the service order capability. DSF is implementing new integration requirements to align with the business enterprise architecture and achieve compliancy with DPAP, which will increase annual transactions between the financial and contracting systems by 600,000 transactions per year alone. KRCE meets DISA’s need for an enterprise software platform that can support the increase in system load and performance demands. KRCE software will allow the Government to reduce custom code within our systems, bolster system reliability, and streamline service requests and delivery

Page 5 of 9 Pages processes. The use of Kinetic Data Inc. software allows DISA to deliver a positive customer service delivery experience. Reducing DISA’s reliance on custom code and leveraging Kinetic Data, Inc.’s software platform reduces costs and the risk of not meeting ordering performance experience expectations.

(4) Demonstration of unique source. Kinetic Request was selected due to cost savings associated with process automation in many lines of business within the agency.

Extensive effort over several years by internal DISA and external study groups have provided lessons learned, which support the continued development of DSF and the upgrade to Kinetic Request products for the DSF infrastructure. As program capabilities supported by custom applications are transferred to Kinetic Data software supporting the DSF program, customer 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.

(5) Procurement discussion. The required KRCE software is proprietary and manufactured by Kinetic Data, Inc. The upgrade software products are only available from Kinetic Data, Inc., as they do not authorize any third party software modification or patches to their software. Kinetic Data, Inc. owns the copyrighted source software with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the software, nor would they have access to the source code to do so. The software upgrade is available from Kinetic Data, Inc. and their authorized reseller(s). At least two potential participants were identified for this procurement, including two small businesses. However, additional authorized small business providers will be encouraged to respond to this commercial requirement to be advertised on the FBO website. The open-market contracting opportunity will request the participation of small businesses that are authorized to sell Kinetic Data, Inc.’s software products. Other Government contract vehicles were found to not be applicable to this requirement.

(6) Impact. If the Kinetic Data, Inc. KRCE software upgrade is not procured, a potential work stoppage and/or work delay will result, as DISA requires the software capabilities to continue development of the DSF on an enterprise level, supporting unclassified and classified requirements. This procurement will provide continued support services to the existing network infrastructure on which the DSF system relies. Without the Kinetic Data application of the DSF, the manual order processes will not be phased-out on schedule; and outdated, underperforming customer code will continue to be used until a replacement infrastructure is identified and implemented. Additionally, there are unacceptable risks that jeopardize system availability that is critical to the needs of the Nation’s warfighters. The lack of or delay in this software upgrade would also jeopardize DPAP compliance remediation efforts.

Page 6 of 9 Pages

6. FBO ANNOUNCEMENT/POTENTIAL SOURCES: A combined synopsis/solicitation for this requirement will be published on the FBO website, as required by FAR 5.2. A redacted copy of this J&A will also be posted to FBO.

7. DETERMINATION OF FAIR AND REASONABLE COST: A determination will be made by the contracting officer that the contract represents the best value to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price, special features, and administrative costs) to meet the Government’s needs. The contracting officer will also determine the pricing information valid for comparative purposes. Certified cost and price data is not required for this commercial item acquisition, in accordance with 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 contracting officer will determine whether the price is fair and reasonable, based on comparison of the proposed prices to historical prices paid, commercial price list information, and the independent Government cost estimate.

8. MARKET RESEARCH:

a. Market research was conducted in December through mid-February 2018. Market research included gathering data from previous acquisitions, reviewing current contracts, internet searches, reviewing catalogs and other contractor literature, contacting the manufacturer, conducting internal discussions, reviewing existing DISA-wide contract vehicles, and other Government-wide acquisition contracts.

b. The first step in conducting market research in support of this requirement was to determine if other brands of products could meet the Government’s need. The capability of the KRCE software for the DSF was based on product availability to fulfill the mission-critical requirements to support the DISA systems and customers. Market research revealed that no other product currently on the market, other than the KRCE software upgrade, met all of the Government’s requirements, as listed in paragraph 3.

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

Market research revealed that Kinetic Data, Inc. can provide the required brand-name software upgrade through open market procedures only. Market research concluded the KRCE software upgrade is not available through existing Government contract vehicles, to include Enterprise Software Initiative, General Services Administration Federal Supply Schedule, or the National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement V Government-wide acquisition contract. Since, it was found that the required subscription renewal is only available through the open market, from Kinetic Data, Inc. and their authorized reseller(s), this requirement will be published on FBO. Since two small business sources were identified, including Kinetic Data, Inc. and their reseller, Distributed Computing Systems Solutions Provider, Inc., this requirement will be set aside to small business participants, which will include the OEM and their authorized reseller(s).

Page 7 of 9 Pages

9. ANY OTHER SUPPORTING FACTS: None.

10. LISTING OF INTERESTED SOURCES:

a. In accordance with FAR 5.2, a combined synopsis/solicitation will be published.

b. Based on the results of the market research, the following potential small business sources were identified to meet the needs of the Government:

Contractor Name Business

Vehicle Kinetic Data, Inc. Small Open Market Distributed Computing Systems Solutions Provider, Inc. Small Open Market

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 Inc. software was incorporated in the DSF infrastructure. In 2012, the Government initially procured Kinetic Data, Inc. software and support as other direct costs under prime contract HC102812D0021, delivery order 0002 and other orders. The aforementioned order was awarded to a large business, Lockheed Martin Corporation. A small business set-aside was not applicable to this procurement. A software upgrade allowed for support transactions to a maximum level of 500,000 on non-classified systems and devices via the following order:

Contract Number: HC102817P0124 Contractor: Distributed Computing System Solution Provider, Inc.

Contract Period: May 24, 2017 through May 23, 2018 Total Estimated Contract Value: $234,405.00 Contract type: FFP Objective of Contract: Kinetic software upgrade for DSF Competitive Status: Competed among large and small businesses resellers and the OEM

b. Kinetic Data, Inc. is the only provider of the required KRCE software upgrade support. If Kinetic Data, Inc. elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward a complete open source selection, then the DISA SD21 will further analyze other alternative approaches. Regardless, the Government will continue to search the marketplace yearly to determine if alternative solutions exist that can meet the required needs. The software product will be continually monitored, updated, and re-assessed as the Government moves forward to remove barriers to competition. Additionally, the Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions; i.e., there are similar products in the marketplace that provide the same functionality, or Kinetic Data, Inc. releases ownership rights of product. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.

Page 8 of 9 Pages

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): In accordance with DISA Acquisition Regulation Supplement 7.103(S-91)(1)(vii), this requirement does not meet the dollar threshold requiring a written AP.

Page 9 of 9 Pages

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

TITLE/ORGANIZATION: Program Manager/DISA SD21

PHONE: 301-225-8483 DATE: February 15, 2018

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: Harold Herrick SIGNATURE: See PDF

TITLE/ORGANIZATION: Program Manager/DISA SD21

PHONE: 301-225-8483 DATE: February 15, 2018

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

NAME: Joyce B. King SIGNATURE: See PDF

TITLE/ORGANIZATION: DISA/DITCO/PL8321

PHONE: 618-229-9646 DATE: February 22, 2018

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 PDF

TITLE/ORGANIZATION: PACA/DISA

PHONE: 618-229-9517 DATE: February 27, 2018

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Contract Specialist Lauren O’Neill, Lauren.j.oneill.civ@mail.mil, 618-229-9403.