A04-JA_Mil_Cloud_2_FY19__Palo_Alto-Redacted.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Mil Cloud 2 Palo Alto

NITYU19RV475

1. Identification of the Requiring and Contracting Activity:

(a) Requiring Activity:

DFAS-ZTDA

ATTN: Sean Murray 317-212-7457 8899 E. 56th Street Indianapolis, IN 46249-2801 DoDAAC: HQ0358

(b) Contracting Activity DFAS Columbus Contract Services Directorate Building 21, Room 2B218 3990 E. Broad St.

Columbus, OH 43213-1152

2. Nature or Description of the action being approved:

The purpose of this document is to obtain approval for an exception of the fair opportunity acquisition in accordance with FAR 16.505(b)(2)(ii)(B), competition is limited to the following brand name products:

Palo Alto.

The procurement strategy is to issue a request for quote (RFQ) on the NASA Solution for Enterprise-Wide Procurement (SEWP), and the fair opportunity procedures set up by the SEWP will be followed. According to those procedures, a RFQ will be posted and submitted to SEWP Contract Groups B, C, and D under

NAICS 541519.

3. Description of supplies/services required to meet the agency needs (including the estimated value – base and option years) This procurement is for the purchase of software, licenses and software support for the Palo Alto Perpetual Bundle (BND1) for VM-Series to integrate with the milCloud 2.0 virtualized infrastructure.

DFAS requires the purchase of virtual Palo Alto firewall devices and additional virtual appliances to support secondary enclaves, with the capability for 2 Option Years. This purchase is required in order to comply with the DoD Chief Information Officer mandate to migrate applications to milCloud by the end of the fourth quarter of Fiscal Year 2020. The requirement of this specific purchase will align with the DFAS planned architecture changes, which currently includes Palo Alto firewalls and is the best option of securing the DOD Information Network (DODIN). Purchasing the virtual Palo Alto firewalls will allow DFAS to comply with the mandate.

For a complete listing of the software and licenses see Attachment 1: Bill of Materials (BOM)

The following is a high-level Government cost estimated of this requirement is $561,020.19. This include a base year with two options years.

Base Yr. $347,701.32 Opt. Yr. 1 $106,365.96 Opt. Yr. 2 $106,952.91 Total: $561,020.19

4. Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. Justification and approval is required because this is a brand name requirement. Per FAR 16.505(a)(4):

This requirement is for the purchase of virtual firewall appliances to protect the DFAS milCloud architecture. The DFAS Cyber Security Service Provider (CSSP) is required to comply with DoD mandates on Security Technical Implementation Guidelines, orders and mandates ranging to increase inspection to decryption and Web Application Firewall (WAF) capabilities, which need to be in place for connectivity to the DODIN. Palo Alto is now the only “named” DISA Security Technical Implementation Guide (STIG) firewall product and allows the agency to ensure audit compliance as to specifics of the product and not potentially missing on generalities of a generic firewall STIG. This purchase ensures that DFAS aligns with the JRSS requirements and meets the DoD requirements that all agencies must comply with. This specific purchase allows DFAS to align the milCloud architecture seamlessly with the current and proposed ELAN infrastructure. This allows DFAS to receive the best value on its previous purchase of Palo Alto hardware. This purchase is a virtualized version of the previously purchased hardware.

Recent DFAS purchases will align seamlessly with the planned purchase of the virtual Palo Alto firewall devices to continue getting benefits of the product even after the integration into JRSS, which eliminates the need for additional training expenditures and the redesigning of the network.

DFAS CSSP as part of the project planning requirements, performed a product comparison amongst the firewalls to be able to choose and integrate with the existing network infrastructure. The milCloud architecture will be a direct extension of the DFAS ELAN. Currently, only Palo Alto has the capability to use Virtual Route Forwarding (VRF) to integrate into the DFAS network architecture plan already in place, without having to repurchase additional network hardware. DFAS CSSP will be able to seamlessly integrate the milCloud environment as a mirrored version of the DFAS planned infrastructure by importing security policies directly from current DFAS Palo Alto devices. By utilizing like device types, architecture designs can be duplicated via templates, which will reduce the amount of man hours and required personnel for ongoing security updates.

The Palo Alto is the only solution able to comply with the DFAS network requirements as well as approved by NSA for meeting Commercial Solutions for Classified (CSFC) requirements. The Palo Alto devices were the only devices that offered a secure solution for monitored power on their devices, as part of the DFAS data center requirements. The Palo Alto brand is the only firewall that fits the above, as well as specifications required for DFAS network architecture and completes the application defense requirements, while complying with the classified network for this project.

5. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer anticipates the cost for this requirement to be fair and reasonable based on the IGCE, the market research results and the expert knowledge of the requiring activity. This requirement is for commercial products which are available from multiple resellers. Market research conducted on NASA SEWP RFI #119666, resulted in four budgetary price quotes. This indicates adequate competition among the available vendors of the product sought on NASA SEWP. The Independent Government Cost Estimated (IGCE) of $561,020.19 is based on the average budgetary cost estimate from the NASA SEWP RFI. In determining a fair and reasonable price, the Contracting Officer will evaluate the Independent Government Cost Estimate (IGCE). Based on an RFQ issued against the SEWP IDIQ vehicle, it is anticipated the pricing will be fair and reasonable, as determined under the terms and conditions of the RFQ to be submitted to SEWP contract holders. Additionally, price comparisons will also be accomplished from as many other sources as possible, include, open market, and other Government-Wide Acquisition Contracts (GWAC) such as GSA Federal Supply Schedules.

These items are available from multiple Value Added Resellers on the NASA SEWP schedule. Based on market research, it is anticipated that SEWP pricing will be lower than open market pricing. The following table below shows sources who provided pricing and availability information for this requirement:

Vendor Base Opt Yr. 1 Opt Yr. 2 Total Force 3 $336,960.00 $101,520.00 $101,520.00 $540,000 Iron Bow $351,000.00 $108,000.00 $110,347.80 $569,347.80

WWT $344,983.32 $108,126.48 $108,126.48 $561,236.28

V3Gate $357,861.96 $107,817.36 $107,817.36 $573,496.68

Average

$347,701.32

$106.365.96

$106.952.91

$561,020.19

Leveraging DFAS’ current use of the manufacturer’s product and services, along with open market price comparison, the contracting officer is confident in obtaining the best value for DFAS.

6. Any other facts supporting the justification:

Nothing to add to this section that has not already been articulated within this justification document.

7. A statement of actions, if any, the agency may take or remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made:

Market research was conducted and no other manufacturers were found to be able to meet DFAS requirements in accordance with the STIGs requirements which is a standard for the Department of Defense (DoD). Although these manufacturers are the sole developers and providers of the software, there are multiple manufactures and vendors with the required hardware/software/maintenance and support available on the NASA SEWP Contracts. A Request for Information (RFI) was posted on NASA SEWP and the information obtained has indicated that these items are available from multiple authorized resellers on the NASA SEWP schedule. Market research was conducted for the purpose of seeking as many potential sources as possible. Although there are specific manufacturers for the existing equipment, there are multiple vendors that provided the hardware available on the NASA SEWP Contracts. An RFQ will be posted on NASA SEWP. Competition will be sought among all authorized resellers for the best possible pricing.

Competition will be sought amongst NASA SEWP Groups B, C, and D contract holders for the best possible pricing. Market research has shown that manufacturer products/services are available in a competitive environment under NASA SEWP.

8. Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

I certify that part numbers included in Attachment 1:Bill Of Materials (BOM) are not included in any DoD JELA contracts.

Printed Name: Stephanie Smith

Title: Contracting Officer Organization Code: ZECAB

Signature: __/ / ___ Date: __08/01/2019__________

9. Approvals (I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.):

Review for Legal Sufficiency:

Printed Name: _April Breck

Title: Attorney Organization Code: HGB

Signature: __/___________________________________/ Date : 08/01/2019

10. Activity Competition Advocate ($650,000 – 12,500,000)

Printed Name: ____________________________________

Title: _________________________________ Organization Code:__________

Signature: _________________________________ Date: _________

Attachment 1: Bill of Materials (BOM) Base Year

Part Number Description Devices CPU Memory Hard Drive

Palo Alto Firewall

PAN-VM-700-PERP-

BND1-PREMUSG-1YR

Palo Alto Networks Perpetual Bundle (BND1) for VM-Series that includes VM-700, Threat Prevention subscription, and US Government Premium Support 12 16 56 60gb

Option Year1 Part Number Description Devices

PAN-VM-700-PERP-

BND1-PREMUSG-1YR-R

Palo Alto Networks Perpetual Bundle (BND1) for VM-Series that includes Threat Prevention subscription, and US Government Premium Support, 1 year, Renewal 12

Option Year2 Part Number Description Devices

PAN-VM-700-PERP-

BND1-PREMUSG-1YR-R

Palo Alto Networks Perpetual Bundle (BND1) for VM-Series that includes Threat Prevention subscription, and US Government Premium Support, 1 year, Renewal 12