JEDI_Single_Award_DF-USD(AS)__17July18.pdf

DETERMINATION AND FINDINGS

FOR

AUTHORITY TO AWARD A TASK ORDER CONTRACT TO A SINGLE SOURCE

In accordance with Title 10, United States Code, Section 2304a(d)(3), I hereby make the following findings and determination concerning the award of an Indefinite Delivery/Indefinite

Quantity (ID/IQ) contract to a single source to acquire a modern commercial enterprise cloud services solution for infrastructure as a service (IaaS) and platform as a service (PaaS) that can support all classification levels for the U.S. Department of Defense (DoD). This contracting action is known as the Joint Enterprise Defense Infrastructure (JEDI) Cloud acquisition.

FINDINGS

1. 10 U.S.C. § 2304a(d)(3)(B)(ii) prohibits DoD from awarding task or delivery order contracts exceeding $112 million (as adjusted for inflation under 41 U.S.C. § 1908), inclusive of all options, to a single source unless the head of the agency, as delegated to the senior procurement executive by 48 CFR 216.504 (c)(1)(ii)(D), determines in writing that the contract provides only for firm, fixed price (FFP) task orders or delivery orders for services for which prices are established in the contract for the specific tasks to be performed.

2. The Washington Headquarters Services (WHS), on behalf of the Cloud Computing Program

Office (CCPO) in the Office of the Chief Management Officer (CMO), intends to award an

ID/IQ contract for a modern commercial enterprise cloud services solution. To maintain our military advantage, the Deputy Secretary of Defense and Joint Staff established a requirement for an extensible and secure information environment that spans the homeland to the global tactical edge and can rapidly access computing and storage capacity to address warfighting challenges at the speed of relevance. DoD has recognized technologies such as artificial intelligence (AI) and machine learning (ML) are fundamentally changing the character of war. Leveraging AI and ML at scale and at a tempo relevant to warfighters requires significant computing and data storage in a common environment. Modern cloud computing capabilities can access, retrieve, manipulate, merge, analyze, and visualize data at machine speeds, providing substantial decision-making advantages on the battlefield. JEDI Cloud is an acquisition for foundational commercial cloud technologies that will enable warfighters to better execute a mission that is increasingly dependent on the exploitation of information.

3. The contract’s ordering period will consist of a two-year base ordering period, a three-year option ordering period, another three-year option ordering period, and a final two-year option ordering period. The contract’s maximum ordering period, if all options are exercised, will be 10 years with a maximum dollar value of $10 billion. The contract will be awarded pursuant to full and open competition.

4. The JEDI Cloud ID/IQ contract will provide for only FFP task orders for services for which prices are established in the contract for the specific tasks to be performed. Any discount methodologies proposed by the successful Offeror will be incorporated into the contract at award. For example, cloud vendors typically offer bulk discounts. Users will place FFP task orders based on the quantity and amount of cloud offerings (i.e., IaaS, PaaS, and/or Cloud

Support Package services) needed to meet the user’s requirements, and reflective of any applicable discounts.

The contract line items (CLIN) are as follows.

CLIN Unit Price x*001 Unclassified IaaS and PaaS By catalog x002 Classified IaaS and PaaS By catalog x003 Unclassified Cloud Support Package By catalog x004 Classified Cloud Support Package By catalog x005 Portability Plan As proposed x006 Portability Test As proposed x007 CCPO PM Support As proposed

* x001 represents the CLIN numbering system for each ordering period: 0001, 1001, 2001, 3001. This same numbering system is followed for all identified CLINs.

5. The CLINs for cloud offerings (i.e., IaaS, PaaS, and Cloud Support Package) will be priced by catalogs resulting from the full and open competition, thus enabling competitive forces to drive all aspects of the FFP pricing. All catalogs will be incorporated at contract award and cover the full potential 10 years. Each offering in the catalog is provided “as a service”, meaning that users will not be invoiced for labor-hours, time, or material; but rather a single, fixed unit price for delivery of that particular cloud service.

6. To allow the Department to take advantage of global marketplace competition on cloud pricing and new cloud services that emerge in the marketplace overtime, there are two pricing related contract Section H clauses that warrant mentioning. These two clauses allow the

Department to access these advantages while still resulting in fixed unit price for delivery of all cloud services under the contract. To reflect the consistent downward trends in public cloud