J&A_Sole_Source.pdf

1. Identification of the agency and the contracting activity:

Defense Media Activity- Acquisition & Procurement

2. Nature and/or description of the action being approved:

This is a Firm- Fixed Price award for a base + 4 Year Blanket Production Music and Sound Effects License.

3.a A description of the supplies or services required to meet the agency’s needs:

Require a Blanket Production music license for DMA-branded music which is estimated to cost $ (base year + 4) and is required to be delivered by 25 November 2017. This Blanket License must allow producers across the DMA enterprise to play, perform, or edit all compositions covered under the license without a limit on use for one annual payment.

• Blanket production music and sound effects license for all current and ongoing recurrent production of flagship DMA-branded products in all aspects of television and radio production, internet, DVD and social media, see below.

• Usage license must cover all media areas described including television, radio, internet, DVD, and social media and must be available for use in perpetuity.

• In addition to the required DMA-branded cuts, see below, the music and sound effects libraries must include unlimited access to a minimum of 120,000 music tracks and 10,000 sound effects tracks with an additional 100 new cuts added each month.

• There should be unlimited downloads, approximately 100 accounts with full access to all libraries and expandable if necessary.

• Libraries should have a searchable online database emphasizing areas such as genre, keyword description, themes, and tempo.

• Cuts must be available in WAV, AIFF or mp3 formats and an audio quality of at least 320 kHz.

The license must also cover the specific music cuts used in all DMA-Branded multimedia products produced daily, weekly, monthly, and at other intervals. See Salient Characteristics for details.

3.b Estimated value: $

4. Identification of the authority being used (Check the appropriate box that applies):

☒ 41 U.S.C. 1901 – Simplified acquisition procedures.

☐ 41 U.S.C. 1903 – Special emergency procurement authority.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The specific requirements and salient characteristics of the DMA-Branded Music License that limit the availability to a sole source, Universal Music / Killer Tracks, who are the exclusive rights owner of the production music currently used by the DMA “family of brands,” (AFRTS, AFN, Airman Magazine, Soldiers, All Hands Update, The Corps Report, Defense TV, DOD News Update, etc...) and are essential for brand recognition, loyalty, credibility, authority and product identification for dozens of radio and television broadcast, web, and social media flagship products.

The Blanket License allows for use "In Perpetuity" so any productions completed during annual license term are covered for the life of that production even if we do not renew the license.

http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1901 http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1903

However there are two exceptions to this rule that require us to use Killer Tracks as a sole source. In cases where a music selection is used as the main theme to an ongoing program which is released in editions (daily, weekly, monthly, periodically) and thus becomes part of new productions aired or distributed, such continued usage would require either a renewed annual license. Additionally, if the body of a previously created production is modified in order to create another version or edition (something other than a "tag" or "intro" change), music usage in such a revision would also need to be under a current or new license.

Only this suggested source can furnish the requirements, to the exclusion of other sources, because all provided music tracks are 100 % produced or administered by Killer Tracks and only available from Killer Tracks. They completely warrant their music and protect subscribers from any frivolous 3rd-party copyright claims.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies:

FAR 5.202 (a)(11) as the proposed contract action is made under the terms of an existing contract that was previously synopsized.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will deem the price fair and reasonable in accordance with FAR Part 13 procedures prior to award.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Market research included a review of the related acquisition history and a visit to the National Association of Broadcasters Convention in April 2017. We also confirmed the exclusivity of rights with of Universal Music/Killer Tracks (9/28/2016). He and the lawyers from Universal Music have confirmed that the production music we use for DMA branded flagship products is 100% produced or administered by Killer Tracks and only available from Killer Tracks. We determined that in the commercial industry, multimedia producers have the option to purchase copyrighted production music on an ala carte basis or music in bulk using a blanket license. The Blanket License allows for use "In Perpetuity" so any productions completed during annual license term are covered for the life of that production even if we do not renew the license. However the research revealed that there are two exceptions to this rule that require us to use Killer Tracks as a sole source. In cases where a music selection is used as the main theme to an ongoing program which is released in editions (daily, weekly, monthly, periodically) and thus becomes part of new productions aired or distributed, such continued usage would require either a renewed annual license. Additionally, if the body of a previously created production is modified in order to create another version or edition (something other than a "tag" or "intro" change), music usage in such a revision would also need to be under a current or new license. Finally, while many vendors sell bulk licenses for production music libraries, only one vendor owns the rights to music already in use for DMA branded products across the enterprise. The sole vendor does not sell rights to third party vendors, therefore there are no resellers in the open market environment.

9. Any other facts supporting this justification:

A patent, copyright, proprietary data or licensing agreement limits competition. The proprietary data are described as follows:

https://www.acquisition.gov/?q=/browse/far/5 https://www.acquisition.gov/?q=/browse/far/5

The following is a listing of the DMA family of branded radio/TV, web, and social media products that are currently produced on a recurring basis with music tracks are 100 % produced or administered by Killer Tracks and only available from Killer Tracks. The continued production of these flagship products is contingent on retaining the rights or the wholesale rebranding of all DMA products which not only would result in a loss of brand loyalty and communication effectiveness but incur thousands of hours of searching, selecting, downloading and re-editing new music used for use in all of DMA’s flagship productions.

a. DefenseTV

i. The 4orce Theme -- Battle Stations -- VM_13_44 (30 sec)

ii. Through Their Eyes Theme -- Are You Ready For This ATMOS350-1 (30 sec)

iii. We Are DMA – Flood Blockade -- KT_324_4 (2min)

iv. All Hands 15 sec Promo – Sports League Logo 2 -- KT_269_84

b. DOD Production

i. 70 Years Ago Today SM – Springclean -- MAT234-5

ii. Troop Talk POTUS Live Open – Miracles Exist in You -- ATMOS331-6

iii. Five Evolving Challenges Facing DoD Budget – Ambient Time -- KT195-9

iv. Airborne Paratrooper Jump – Smackdown -- VM010-12

v. Office of SecDef Birthday – Home Fires -- KT178B-5

vi. Disability Awareness Month -- Once in a Life/Heart and Soul -- ATMOS354-

vii. Counter ISIL – Battle The Heavens -- KT278-80

viii. Blended Retirement Series – Sun Drops-- NYB102-4

ix. We are DMA – Flourish Clark -- NM332-7

c. Army Media

i. SITREP -- Warlord by Chronic Crew; KOK_2353_4

ii. SOLDIERS -- Fever Pitch - ATMOS341

d. Air Force Media

i. AFTV – Just Hold On – KT304-41

ii. For Your Information (FYI) – Come out and Play – KT290-62

iii. For Your Information (FYI) – Sensual Insanity - KOK2324-2

iv. Blue – Built Together (Main Track) – NYB114-8

v. ATAF -- Arpstep (Main Track) – SA17-6

e. American Forces Radio and Television Service (AFRTS) - AFN Pacific

i. Destinations – Ball Skills -- ATMOS_320_6 (60 Secs)

ii. PSA – Backtrack -- KT_311_13 (60 secs)

iii. PSA – Epic Warriors -- RCF_39_3 (60 secs)

f. American Forces Radio and Television Service (AFRTS) - AFN Daegu

i. Daily Radio Newscast intro loop – Prime Time Report -- KOK_2206_71

ii. Daily Radio Newscast outro loop –Tootie Roll -- CM_84_87

g. American Forces Radio and Television Service (AFRTS) - AFN Yongsan

i. Radio bed loop – Come Go With Me -- PKT_3_1

ii. Radio bed loop – Satellites -- KT_312_82

h. American Forces Radio and Television Service (AFRTS) - AFN Tokyo

i. PSA – American Spirit -- KT138A-1 (:60 secs)

i. American Forces Radio and Television Service (AFRTS) - AFN Sasebo

i. AFN Sasebo Weekly Report – Legendary – CM108-101 (2:40)

j. American Forces Radio and Television Service (AFRTS) - AFN Europe

i. AFN360 Promo – Backyard Adventures – PKT003

ii. AFN360 Promo – Performance: The Power – ATMOS338

iii. MyAFN Promo – Cold Response – ATMOS334

iv. MyAFN Promo –Keep On Running -- ZTS_28_34

v. Saber Strike – Cinematic Expressions – KT301

k. American Forces Radio and Television Service (AFRTS) - AFN Spangdahlem

i. Healthy Living SM – Sin Solder -- CM_105_14

ii. Travel -- Radiant Glow -- PKT_15_11

l. American Forces Radio and Television Service (AFRTS) - AFN Aviano

i. Live Radio Show Open – Big Money Scheme -- SLAM_61_5

ii. Radio News Bed – World Today Hope Poe -- NM273-1

iii. Live Local Radio Beds/Liners / Show Elements:

iv. Island of Paradise -- SLAM_88_37

v. World Today Hope -- NM_273_1

vi. Global Information -- MAT_157_6

vii. Sweet Thing -- MAT_210_25

viii. Trapicheos -- SA_23_1

ix. Funk City -- ATMOS_350_9

x. Fun -- KOK_2385_13

xi. Opening Tune -- SA_31_1

xii. Somebody Girl -- SLAM_23_15

xiii. Cabaret Revue -- KOK_2222_1

xiv. Welcome Back -- NM_93_7

xv. Welcome to Our Show -- SA_31_3

xvi. Comedy Sketch -- SA_31_7

xvii. Last One Standing -- SLAM_84_11

xviii. We’re Coming Up -- MAT_259_21

xix. It’s Time For Lunch -- NM_93_4

xx. The Bush -- SA_23_54

xxi. Silent Carmen -- KOK_2260_43

xxii. Air -- NM_247_9

m. DOD Production

i. 70 Years Ago Today SM – Springclean -- MAT234-5

ii. Troop Talk POTUS Live Open – Miracles Exist in You -- ATMOS331-6

iii. Five Evolving Challenges Facing DoD Budget – Ambient Time -- KT195-9

iv. Airborne Paratrooper Jump – Smackdown -- VM010-12

v. Office of SecDef Birthday – Home Fires -- KT178B-5

vi. Disability Awareness Month -- Once in a Life/Heart and Soul -- ATMOS354-

vii. Counter ISIL – Battle The Heavens -- KT278-80

viii. Blended Retirement Series – Sun Drops-- NYB102-4

ix. We are DMA – Flourish Clark -- NM332-7

n. Radio/Television Production Office (RTPO) / AFRTS Promo Radio and TV Series:

i. I’m In Love -- EDGE_116_22

ii. Pop Punch -- ATMOS_352_41

iii. Serotonin -- KT_300_42

iv. Hollow Body -- EDGE_116_67_808

v. American City Quizzes Radio & TV Series:

vi. Go Beyond -- KOK_2394_26

vii. Galactic Magnetic -- KOK_2405_26

viii. Trans-Atlantic -- KT_161_39

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

Universal Music / Killer Tracks 2110 Colorado Avenue Suite 110, Santa Monica, CA 90404 Company Point of Contact and Phone Number:

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

To overcome barriers to competition, DMA has several options. DMA could either purchase “indefinite rights” to maintain our brand identity or abandon the existing music cuts in use and choose to re-brand. This re-branding could entail either commissioning an artist or production house to create custom music or hire musicians to the DMA staff to create needed music in-house either of which would give us ownership of the copyright.

We will explore these option to see if we can get out of the sole source environment.

12. Certifications and Approvals:

12.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Date: 8 Nov 2017

Signature:

12.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a sole source (including brand name) basis. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a sole source (including brand name) basis under the authority of FAR subpart 13.5.

Name: Date: 11/08/2017

Signature https://www.acquisition.gov/?q=/browse/far/13 https://www.acquisition.gov/?q=/browse/far/13