REDACTED_JA.pdf

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 and FAR Part 15

Purchase Request Number: To be determined (TBD) Contract Number: TBD Procurement Title: Cisco Smart Net Total Care Joint Enterprise License Agreement (JELA) II Estimated Value: $REDACTED Statutory Authority: 10 U.S.C.§2304(c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

OTFAOC Number: JA19-085

Upon the basis of the following justification, I, as the Senior Procurement Executive, hereby approve the use of other than full and open competition of the proposed contractual action, pursuant to the authority of 10 U.S.C.§2304(c)(1) and FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

(a) Requiring Agency:

Defense Information Systems Agency (DISA)

6910 Cooper Avenue Fort Meade, Maryland 20755

(b) Contracting Office:

DISA/Defense Information Technology Contracting Organization (DITCO) – Scott

2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

(a) The nature of this action is to procure brand name, commercial off-the-shelf Cisco Smart Net Total Care (Smart Net) support and optional software support services (SWSS) for users across the Department of Defense (DoD). The new contract will perpetuate existing coverage currently provided under the JELA, HC1028-14-D-0003. The defense agencies have come together to leverage their user base and achieve better buying power, in accordance with the initiative set forth by the Under Secretary of Defense for Acquisition, Logistics, and Technology.

The recommendation is to execute a firm-fixed-price single award, indefinite delivery/indefinite quantity (IDIQ) contract to Cisco Systems, Inc. (Cisco) or one of its certified gold partners, using open market procedures.

Cisco Smart Net JELA II-JA19-085

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(b) The period of performance (PoP) for the contract will consist of a 1-year base period, estimated to begin on June 18, 2019, and include a 1-year option period, for a total contract life of two years. The total lifecycle value for this requirement is estimated at $REDACTED. The minimum guarantee for the IDIQ is $2,500 and will be satisfied by the issuance of the first task order. All funding will be obligated by the issuance of task orders. The applicable North American Industry Classification System code is 511210, Software Publishers.

3. DESCRIPTION OF SUPPLIES/SERVICES:

(a) The Government requires 100 percent enterprise Smart Net coverage for over 5 billion Cisco assets, future Cisco assets, and optional SWSS for existing perpetual software licenses and hardware for all of DoD. The scope of the proposed contract addresses Smart Net support for the known baseline inventory of Cisco products. The contract will provide DoD the ability to reduce the support of expired licenses, reduce the software product, as well as provide the ability to remove hardware products. DoD may increase and decrease products as the enrollee requirement dictates, not to exceed the contract ceiling amount of $REDACTED. An installed base value will allow DoD to fluctuate upward or downward, depending on the inventory validation that occurs annually. Purchase of new Cisco product support may increase the licensing and support price, whereas end-of-life Cisco equipment may reduce the licensing and support price. The enterprise Smart Net support and SWSS are broken down as follows:

CLIN Description

0001 CON-NCFT-2600MIB

0002 CON-NCFT-1300MIB

0003 CON-NCFT-1000MIB

0004 CON-NCFT-175MIB

0005 CON-NCFT-50MIB

0006 CON-NCFT-1MIB

0007 CON-NCFT-50MIB-P

0008 CON-NCFT-1MIP-P

(b) The required Smart Net and optional SWSS support is needed in order to obtain necessary patches, updates, fixes to prevent security vulnerabilities from occurring, hardware maintenance, and hardware replacement for DoD’s inventory. The optional SWSS will be included and it is inclusive of updates and upgrades for all software products. Support for SWSS includes, but will not be limited to software application support, software application support plus upgrades, essential operating service, essential operating services for telepresence, and Cisco services for intrusion prevention system. SWSS shall include patches, updates, upgrades, and version releases, including (but not limited to) diagnostics and installation, fixes, and patches. This acquisition will provide brand name Smart Net Total Care and SWSS support through Cisco or a Cisco certified gold partner. Cisco or Cisco certified gold partners meet the requirement of 24 hours a day, seven days a week (24x7) support for Internetwork Operating System (IOS) updates, which is a minimum requirement for DoD. Cisco or Cisco certified gold partners have specialization requirements, meeting the complexity and ensuring DoD’s

Page 3 of 8 Pages infrastructure remains operational. They include: advance unified communication, advanced routing and switching, advanced security, and advanced wireless local area network. Given the size and complexity of the network, these certifications ensure the authorized partners have the skills necessary to maintain the DoD’s infrastructure. Cisco or Cisco certified gold partners will include an information technology (IT) asset management tool for capturing and displaying the total Cisco inventory for each enrollee. The DoD has made a significant investment in the currently installed Cisco infrastructure to ensure the network’s security posture.

(c) Cisco Smart Net and SWSS consists of software support, updates, revisions, error detection and correction, and rights to new releases and/or versions. In order to ensure that DoD’s secured network is not comprised, it is critical for Cisco devices to be kept current with the latest software updates and patches, which are available through only the Cisco Smart Net support. Purchase of Cisco Smart Net support is the only available option for meeting these requirements. In addition, software that is eligible for Cisco Smart Net and SWSS is entitled to major and minor upgrades. Cisco Smart Net meets the DoD’s needs to support the installed original equipment manufacturer (OEM) hardware and software equipment, as described below:

1) Technical Assistance Center: Provides engineering support which allows

DoD customers to receive telephonic troubleshooting 24x7x365 with certified Cisco network experts in voice, video, and data communications networking technology.

2) Cisco.com website: Provides 24-hour access to the online product and technology information, interactive network management, and troubleshooting tools.

3) IOS: Provides major and minor updates for licensed IOS feature sets. Allows the DoD to extend the useful life of its hardware investment by increasing current functionality and ensuring compliance with network security policies and regulations. These updates are proprietary in nature and will extend the equipment lifecycle by remediating security vulnerabilities or expanding product capabilities through software upgrades.

4) Advanced Hardware Support: Provides 8-hour a day, 5-day a week or next business day replacement of defective hardware, minimizing potential network downtime. This feature replaces existing hardware with OEM hardware delivered through a secure supply chain, preventing the possibility of counterfeit or grey market devices compromising the DoD’s network security posture.

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5) Smart-Entitled Capabilities: Provides all support customers smart-entitled capabilities, including access to the portal and the collector software. Smart capabilities are delivered through the Cisco Services Connection Portal, providing actionable information and automation to support the Cisco products. Customizable screens show up-to-date information about the service coverage, product lifecycles, and security and product alerts that apply to the network.

(d) The PoP and estimated lifecycle value for this action is as follows:

PoP Estimated Cost Base Year June 18, 2019 through June 17, 2020 $REDACTED Option Year 1 June 18, 2020 through June 17, 2021 $REDACTED Lifecycle June 18, 2019 through June 17, 2021 $REDACTED

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source, and no other supplies or services, will satisfy agency requirements.

This acquisition is conducted under the statutory authority of 10 U.S.C§2304(c)(1) and the regulatory authority of FAR 6.302-1.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events:

Cisco is fully implemented and integrated into DoD’s architecture and has been for more than 15 years. DoD’s Information Assurance regulations require each device operating on the network to have the latest software updates to defend against potential security threats, and functional areas require software and hardware replacement in the event that a device fails. The purchase of proprietary Smart Net support is required to meet DoD regulations. Information Assurance requires each device operating on the DoD’s network to have the latest software updates to defend against potential security threats, and functional areas require hardware replacement in the event a device fails.

(b) Justification:

(1) Minimum Government requirements.

See paragraph 3(a) above.

(2) Proposed sole source contractor.

Not Applicable.

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

Not Applicable.

(4) Impact.

Cisco is the OEM for Cisco Smart Net and SWSS. Cisco owns all proprietary rights to the source code. Only Cisco or its certified gold partners can provide Smart Net and SWSS support. Accordingly, no other vendor or distributor can legally obtain access to the software; nor can they make duplicate copies, since it is protected by copyright and patent laws. Nearly all Cisco hardware and software is operated by an IOS which allows the user to configure the equipment, control the flow of information, and establish security protocols. The IOS updates are mandatory for ensuring the DoD security posture. As with most IT equipment, the Cisco equipment, which is currently installed, requires frequent updates to patch security vulnerabilities. The devices cannot be legally patched without Smart Net support.

All critical information assurance vulnerability assessments (IAVA) require immediate remediation; and lack of Smart Net support would prevent DoD from applying the necessary patches in a timely manner, creating significant security implications. Access to additional resources for problem troubleshooting will minimize network outages and ensure security of the data being transmitted. IAVA policy requires DoD components to register with the IAVA database and report compliance to IAVA notifications. Failure to patch affected systems will violate DoD policy, as well as other related military department polices, and could result in service disruption and a breach in network security. Due to the criticality of the equipment, as security threats are identified, updates to the IOS must be made. If the network failed due to hardware and software failure, day-to-day work functions, online collaboration, video teleconferencing capability, and command and control of forces in the field would be severely degraded.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A combined solicitation/synopsis for this requirement will be published on the Federal Business Opportunities website, as required by FAR 5.2.

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 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). The contracting officer will determine whether the price is fair and reasonable, based on one or more of the following:

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(a) Comparison of proposed prices received in response to the solicitation.

(b) Comparison of the proposed prices to historical and existing prices paid, whether by the Government or other than the Government, for the same or similar items;

(c) Comparison with competitive published price list, published market prices of the same commodities;

(d) Comparison of proposed prices with the independent Government cost estimates;

8. MARKET RESEARCH:

(a) Market research was conducted for this procurement from November 2017 through April 2019. Market research included gathering data from previous acquisitions, reviewing current contracts, reviewing existing DISA-wide contract vehicles and other Government-wide acquisition contracts, attending technical seminars, engaging internal and external research teams, and meeting with external research firms.

(b) Market research revealed that software support/hardware maintenance for Cisco products is only available from Cisco or an authorized reseller through their commercial offering of Smart Net. Only Cisco or an authorized reseller can provide Smart Net support and SWSS for Cisco software licenses and Cisco hardware. Given, Cisco and its certified gold partners have specialization requirements, including advanced unified communication, advanced routing and switching, advanced security, and advanced wireless local area network, this requirement will be solicited for Cisco or Cisco’s certified gold partners. Within the Cisco certified gold partner category, there is a diverse list of at least 154 potential awardees. In October 2018, a request for information was posted to National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V on a serialized approached for Cisco Smart Net and as listed in paragraph 10 below, there are at least five partners interested in offering a Cisco Smart Net solution. The Enterprise Cisco Smart Net support or SWSS offering is not available through a DoD Enterprise Software Initiative Blanket Purchase Agreement. Market research revealed that the brand name Enterprise Smart Net enterprise offering is not available on General Services Administration Federal Supply Schedule 70 or NASA SEWP V, only a serialized approach which does not meet the government’s needs. Given that Cisco has over 154 certified gold partners, both large and small, it is recommended that this requirement be procured via the open market and open to Cisco and its large and small certified gold partners. This requirement cannot be set aside to a small business or any other socio-economic group, because the Small Business Administration made a determination that the ostensible subcontractor rule 13 C.F.R.

121.103(h)(4) would apply. The Smart Net support and SWSS are being provided 100 percent by Cisco, a large business.

(c) Based on recent market research, it has been determined that only Cisco branded Smart Net support and SWSS can fully support the Government’s need. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions. For example, an alternative approach may be pursued if there are similar products and/or product support in the marketplace that provide the same

Page 7 of 8 Pages functionality, the OEM releases ownership rights of product, or it is economically feasible to procure a new system.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

The following sources have expressed, in writing (electronically):

REDACTED

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History: The current CISCO JELA single award IDIQ contract is HC1028- 14-D-0003. The IDIQ was awarded to Cisco Systems in September 2014 for a nine month base period plus four 1-year option periods, totaling five years, valued at $1.875 billion. Currently, there are 18 DoD agencies receiving Smart Net support under the Cisco JELA contract.

(b) DoD has Cisco software and hardware products within their existing architecture that require support. If Cisco elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward providing an open source solution for the product support being procured, then DoD will seek a competitive acquisition approach. Regardless, the Government will continue to search the marketplace to determine if alternative software solutions exist. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.

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

A written AP is required and is being routed concurrently for approval.

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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: Yahtzee Moody SIGNATURE: REDACTED

TITLE/ORGANIZATION: Program Analyst/DISA

PHONE: 301-258-5393 DATE: April 8, 2019

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: Bridgit Nelson SIGNATURE: REDACTED

TITLE/ORGANIZATION: Program Manager/DISA

PHONE: 301-225-5755 DATE: April 8, 2019

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

NAME: Lisa O. Cravens SIGNATURE: REDACTED

TITLE/ORGANIZATION: Contracting Officer/DISA/DITCO

PHONE: 618-418-6295 DATE: April 22, 2019

SENIOR PROCUREMENT EXECUTIVE 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 for OTFAOC exceeds $93M, this review serves as approval.

NAME: Anthony S. Montemarano SIGNATURE: REDACTED

TITLE/ORGANIZATION: Senior Procurement Executive/DISA

PHONE: 301-225-6080 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO:

Lisa Cravens, Contracting Officer, lisa.o.cravens.civ@mail.mil, 618-418-6295