J A_DSoS_Development_Operations_and_Maintenance_(redacted)_Final_20160919.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Sole Source

DSoS Development, Operations and Maintenance

HS0021-16-Q-DITMACSOS

Control Number: 16-017JA

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE

REFERENCES:

In accordance with FAR 6.303, for acquisitions exceeding simplified acquisition threshold the contracting agency is required to prepare a sole source justification using the format at FAR 6.303-2, as provided below.

DOCUMENTATION:

(1) Identification of the agency and the contracting activity.

Requiring Activity:

Defense Security Service (DSS) Defense Insider Threat Management and Analysis Center (DITMAC) 1550 Crystal Drive, Suite 201 Arlington, VA 22202

Contracting Activity:

DSS Office of Acquisitions (AQ) 27130 Telegraph Road Quantico, VA 22314

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

The purpose of this document is to obtain necessary approvals for a sole source acquisition in accordance with FAR 6.302-1(a)(2)(iii)(A) and (B). Competition is limited to only one responsible source and no other supplies or services will satisfy agency requirements.

The procurement strategy is to issue an open market/unrestricted Request for Proposal in accordance with FAR Part 15 - Contracting by Negotiation.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The objective of this effort is to acquire essential specialized development, operations and maintenance support for the DITMAC System of Systems (DSoS) to enable the DITMAC to achieve its vital mission as defined by Office of the Under Secretary of Defense for Intelligence (OUSD(I)). This support will position the DITMAC to navigate from establishment through provisional initial operating capability (IOC) to IOC and finally full operating capability (FOC) without any disturbance to ongoing development efforts of the DSoS.

DITMAC will provide the Department of Defense's (DoD) first truly quantitative and qualitative analytic overview of insider threat related risk trends, which will significantly inform future decision-making. The DITMAC follows an analytics-driven approach to assessing risk and endeavors to employ a rigorous science-driven approach to addressing risk and risk mitigation as it pertains to Insider Threat in the Department. The Contractor shall provide critical technical development and sustainment on the DSoS, which serves as the critical capability enabling the DITMAC to achieve its mission in providing the capability to centrally manage and analyze potential insider threat risk indicators submitted by the 43 DoD Components and will provide a single repository for DoD Insider Threat related information.

The DSoS will award a hybrid contract for this requirement, some Contract Line Item Numbers (CLINS) will be cost plus fixed fee (CPFF) for the development and other CLINS will be firm fixed-price (FFP) for sustainment. The DSoS development portion has an estimated cost of . The DSoS sustainment portion will have a period of performance of a one-year base period and three one-year option periods. The estimated cost for the DSoS sustainment is a base period of and total, including all options, of . The

DSoS Development, Operations and Maintenance

HS0021-16-Q-DITMACSOS

Control Number: 16-017JA

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE

total estimated value of this requirement is for both the DSoS development and sustainment and all option periods.

(4) An identification of the statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) authorizes the DoD to contract without full and open competition under certain circumstances. For this acquisition, other than full and open competition is permitted per FAR 6.302-1(a)(2)(iii)(A) and (B).

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

Novetta, Inc. (Novetta) is the only source that can satisfy the DITMAC’s requirements without cost duplications or unacceptable delay based on the following:

Novetta has supported the establishment and incubation of the DITMAC since August 2014 under four contracts awarded by the United States Air Force. The first phase began on August 1, 2014 and was completed on May 31, 2015 in the amount of , provided by Research Development Test and Evaluation (RDT&E) funds. Per OUSD(I) direction, this was initiated prior to DSS’s assumption of the DITMAC incubation mission and supported via an Air Force contract ( ). This first phase focused on the initial establishment, with the utilization of working groups, to gather requirements and establishing an initial design for the prototype system, as well as identification and review of commercial and government off-the-shelf capabilities that could be leveraged in the design. The second phase of Novetta support to the DITMAC was continued on the Air Force contract ( ) and ran from October 1, 2014 to February 25, 2015 in the amount of in RDT&E funds. During this period of performance, work was focused on leveraging the developed design for the initial development of a DSoS prototype. The third phase began on February 26, 2015 and was completed on September 26, in the amount of in RDT&E funds. This effort was focused on the continued design, development, implementation and maintenance of the DSoS, to include developing an established software baseline and authorization to operate with a single instance version of DSoS for DITMAC use. The fourth phase began on September 20, 2015 and was completed on September 29, 2016, in the amount of in operations and maintenance (O&M) funding. This phase was focused on sustainment of the DSoS assessment, deployed to the DITMAC isolated virtual datacenter, to include maintaining all DSoS technical capabilities, back up and restoration, systems engineering and systems administration and maintenance.

Novetta has provided critical support to the DITMAC under the previous four (4) contracts through the Air Force. The Air Force made an unplanned decision to not continue support for the DITMAC’s requirement utilizing their contract vehicle. The DITMAC still has a requirement for the completion of the work already started and developed by Novetta and has requested the DSS AQ to provide a contract vehicle for the required DITMAC support.

Without a continuation of these efforts by Novetta, the DITMAC would realize an immediate and significantly detrimental impact on DITMAC operations and a significant work stoppage at a critical juncture. As DITMAC approaches IOC with the final approval of the System of Record Notice (SORN) and Exemption Rule, it is estimated it would take another vendor six to nine months to become fully operational based on the contracting office’s historical knowledge of transitioning from one vendor to another in order to complete the tasks identified in the PWS and provide the necessary deliverables. Based on the above information, any delay in acquiring the necessary services for the DITMAC would cause an unacceptable delay in fulfilling their requirements and mission that directly impacts national security.

Under the terms and conditions of the Air Force contracts, Novetta is only required to deliver to the Government the Data that was developed under their contract, in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 252.227-7013: Rights in Technical Data – Noncommercial Items and 252-227-

DSoS Development, Operations and Maintenance

HS0021-16-Q-DITMACSOS

Control Number: 16-017JA

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE

7014: Rights in Noncommercial Computer Software and Noncommercial Computer Software Documentation. Those DFARS sections define “developed” as “an item, component or process that exists and is workable or as a computer program that has been successfully operated to perform its intended purpose”. Until all technical data, computer software and computer software documentation is fully developed, the Government only obtains Government purpose rights. These rights will expire after the negotiated term of ten years, giving the Government unlimited rights to all of the technical data, computer software and computer software documentation completed by Novetta. At this time, the Government has not reached the negotiated ten year term and Novetta has not completed the development of the technical data, computer software and computer software documentation required in order to provide the Government full rights to the technical data.

Novetta is the only vendor positioned to complete the required tasks in the PWS in a timeframe that allows the DITMAC to maintain the required schedule to meet its mission. Novetta is the only vendor that has the background and historical information to complete the required tasks without a learning curve that has a potential to derail the DITMAC mission and ultimate goal of IOC and eventually FOC. The DITMAC is aggressively working toward IOC, and eventually FOC, aided by the technical development support services being provided by Novetta.

These development services have positioned the DITMAC to navigate from initial establishment through provisional IOC in an expeditious fashion. However, the work started by Novetta in the development of the DSoS is not complete and prematurely ending this support, specifically, at the same time the DITMAC is moving to IOC would significantly disrupt and have significant impact on the DITMAC operations, leaving many of the critical ongoing efforts incomplete that tie directly back to the DITMAC core mission areas.

The tasks identified in the PWS are a continuation of the tasks Novetta has already performed under the current Air Force task order. A new vendor would need to go back to the beginning to gain a full understanding of all of the items completed and rework each developmental piece of the DSoS in order to continue to provide the necessary development and sustainment support for the DITMAC. Based on the Government’s subject matter expert and the Contracting Officer’s (CO) historical knowledge, the requirement for a new vendor may move in a different direction to complete the required tasks is unacceptable as this would effectively invalidate the work already completed and delivered to the Government. This change in direction would cause unacceptable delays in fulfilling the core mission of the DITMAC.

All aspects of DITMAC development are intricately related, such that a change in one area of development will impact all efforts. Most importantly, the DSoS is the mechanism for the Components to report critical insider threat information to the DITMAC. Therefore, any delays to the development of this critical system would be detrimental to not only the DITMAC but to all 43 Components. Any delays resulting from contractual shifts would greatly increase the period of time between now and IOC, continuing to exacerbate the DoD’s known vulnerabilities to insider threats. Until DITMAC reaches operational capability, the DoD remains vulnerable to these same threats that the DITMAC is designed to identify and mitigate. Delays in reaching operational capability are unacceptable.

Based on the above, competing this requirement would result in untenable delays and an inability to complete on going, critical efforts resulting in the potential loss of the approximately already invested in these efforts. Consequently, the continued services being procured, sole source, to Novetta represents the most cost effective approach for the DSS, ensuring continuity of operations without interruption.

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

The Contracting Officer will follow the procedures in FAR 5.201 and FAR 6.305 in ensuring a Synopsis and the Justification required by 6.303-1 are properly completed. An open market Request for Proposal will be issued to Novetta in accordance with FAR Part 15 – Contracting by Negotiation.

DSoS Development, Operations and Maintenance

HS0021-16-Q-DITMACSOS

Control Number: 16-017JA

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE

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

In determining a fair and reasonable price, the Contracting Officer will evaluate a more detailed breakdown from the formal Independent Government Cost Estimate (IGCE). The detailed estimate in paragraph 3 above, provides a breakdown of what the Government believes is the potential labor categories, as well as estimated labor rates and the estimated fixed monthly price for providing the required services. The estimated labor will be compared to established pricing on other Government contracts, such as the General Services Administration’s (GSA) Federal Supply Schedule (FSS) for the same labor categories and/or similar labor categories. Additionally, price comparisons will also be accomplished from as many other sources as possible, including commercially as well as any Government-Wide Acquisition Contracts (GWAC).

These services are available from one vendor. Based on market research, it is anticipated that open market pricing will be fair and reasonable.

Leveraging DSS’ current use of the vendor services, along with open market price comparison, the contracting officer is confident in obtaining the best value for DSS.

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

Availability and pricing information was sought from Northrup Grumman and Novetta, Inc. Market research was conducted for the purpose of seeking as many potential sources as possible. Novetta, Inc. has been found to be the sole provider of the DSoS. There are not multiple providers with the required support available on the open market to meet the Government’s current requirement. A request for proposal will be provided to Novetta, Inc. in accordance with FAR Part 15 – Contracting by Negotiation.

(9) Any other facts supporting the use of other than full and open competition, such as:

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

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

Novetta, Inc.

(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.

Future requirements for the DITMAC for DSoS Development, Operations and Maintenance support will be processed using full and open competition based on available and completed market research and adequate time to complete the appropriate acquisition planning required to remove or overcome all barriers to competition.

DSoS Development, Operations and Maintenance

HS0021-16-Q-DITMACSOS

Control Number: 16-017JA

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE

CERTIFICATION

Requiring Activity/Program Management Office Certification:

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.

Printed Name:

Title: Assistant Director, Standards and Guidance Organization Code: DSS-DITMAC

Signature:

Contracting Officer Certification:

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Printed Name:

Title: Contracting Officer Organization Code: DSS-AQ

Signature

Activity Competition Advocate ($700,000 - $13,500,000):

Printed Name:

Title: Chief, Office of Acquisitions Organization Code: DSS-AQ

Signature: