JA_HS0021-18-C-0003_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION> SAT

Sole Source

PSMO Continuous Evaluation Services

P0003 to HS0021-18-C-0003

Control Number: 19-006JA

REFERENCES: In accordance with FAR 6.303, for acquisitions of commercial items exceeding the simplified acquisition (SAT) 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 Services (DSS) Personnel Security Management Office (PSMO) 27130 Telegraph Road Quantico, VA 22134

Contracting Activity

DSS Office of Acquisitions (AQ) 27130 Telegraph Road Quantico, VA 22134

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

This Justification and Approval (J&A) authorizes the use of other than full and open competition procedures to fulfill a current requirement, absent competition in accordance with 10 U.S.C. 2304 (c)(l).

This statute is implemented by FAR 6.302-1, when competition is limited to only one responsible source and no other supplies or services will satisfy agency requirements.

The purpose of this action is to add additional option periods to the existing contract This extension will ensure DSS maintains services required to support essential Continuous Evaluation requirements to Personnel Security Management Office (PSMO) while the small business size protest is being resolved on HS0021-19-C-00O 1 at the Small Business Administration (SBA). On 10 Jan 2019 DSS notified the unsuccessful offerors of the apparent awardee . On 1 7 January 2019 a timely small business size protest was received IA W FAR 19.302. The protest was forwarded to the SBA as required on 17 January 2019. The SBA has 15 business days, or until 8 February 2019, to resolve this protest which extends beyond the current period of performance of 4 February 2019, and would create a break in critical services.

The procurement strategy is modify contract HS0021-18-C-0003 to add 5 one-month option periods from ( 5 Feb 2019-4 Jul 2019). The total estimated cost of the 5 one-month option periods is'll••••IThe first month will be exercised immediately and the additional months will only be exercised only if any additional protests arise after debriefs. The GAO protest period is 100 days. The additional options would allow for continued service through that period if necessary. This extension will ensure there are no unacceptable delays in fulfilling the Government's requirement until the new effort is released from the SBA size protest. Currently, there are no DoD civilian resources to provide CE analytic support services.

FOR OFFICIAL USE ONLY

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION > SAT

PSMO Continuous Evaluation Services

P0003 to HS0021-18-C-0003

Control Number: 19-006JA

(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 knowledge-based analytic support capabilities to validate alerts generated by the Department of Defense ("DoD" or "Department") Continuous Evaluation (CE) Program. The CE program uses supporting systems to receive and determine that the CE results meet established reporting criteria before forwarding adjudicative-relevant and actionable information to the DoD Consolidated Adjudication Facility (DoD CAF) and DoD Component security officials, as appropriate. This program is necessary to ensure adequate protection of National Security information.

These analytic support services from the contractor will enable PSMO to achieve its vital mission as defined by Office of the Under Secretary of Defense for Intelligence (OUSD(I)) CE Mission memo dated December 19, 2016 and Executive Order 13467 signed in June 2008. The Executive Order formally established CE as a means of reviewing the background of individuals who have been determined to be eligible to access classified information at any time during the period of eligibility. Background reviews of individuals are required to determine whether individuals continue to meet the requirements for eligibility to access classified information.

The PSMO's Continuous Evaluation mission implements the Department's investigative program to continuously vet all cleared DoD personnel as directed by the Secretary of Defense's February 21, 2014 memorandum and in accordance with the Office of Management and Budget "Report to the President, Suitability and Security Processes Review." The contractor shall provide critical analytic support services, to include relevant subject matter expertise to enable the PSMO to achieve its Continuous Evaluation mission.

The extension will include an initial one-month option with 4 additional one-month options possible. The estimated cost for the initial one-month option period istl···· The total cost of the extension is

All Option periods, including the initial one, are priced at9lllla month, which is the same as the current contract price. Option periods will only be exercised if an additional protest is received.

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

10 U.S. C. 23 04( c )(1) authorizes the Department of Defense (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)(B).

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

As detailed above in section 3, the PSMO CE has a critical need for CE analytic support services to process alerts containing derogatory information on the DoD cleared population, including alerts which may contain insider threat information representing an imminent threat to national security as they contain derogatory information for cleared subjects with access to classified information. The data agreements in place for automated records checks under CE of the cleared subjects are a combination of time-based and event-driven checks. The event-driven checks will continue to occur and trip alerts of potentially

PSMO Continuous Evaluation Services

P0003 to HS002 J-l 8-C-0003

Control Number: 19-006JA derogatory information upon the cleared population causing the number of alerts to increase without analytic support services to perform triage and administrative actions. Delays in this mission area are creating a grave risk to national security and impacting the DoD readiness posture. The DoD provides security oversight for 32 other federal agencies under the National Industrial Security Program (NISP), which includes the CE requirement. As of 30 Jan 2019, PSMO reports a current population of more than

CE subjects with approximately being added per quarter and the current expectation of 60,000 per month in the future. This is resulting in increased alerts being generated ( already in the first four months of FY 19, which is more that all of FY 18), which requires the CE analytic support services to review and triage the alerts appropriately to ensure any threats to national security are minimized, to decrease risk to the compromise of classified information and/or loss of DoD personnel or property. Without the CE analytic support services sought through this justification, these alerts will remain untouched until a competitive procurement process can be completed, which is currently delayed by a size protest under FAR 19 .302 with potential for additional protests through GAO or COFC that could last up to 100 days which would create a potentially grave risk to the Government.

While other entities may have the ability to perform the critical services obtained under this contract, the period of performance limits their ability to do so within the required timeframe. DSS has already completed a competitive action for the required services in January 2019. Once the size protest is resolved services will be obtained under competitively awarded contract HS002 l-19-C-000 I. It is highly unlikely that another contractor could step in for this short period of just one to four months to accomplish the required tasks. The current contractor is performing acceptably under the terms and conditions of the contract and has the necessary people and skills to complete the requirement.

These services were previously determined to be critical in DSS's Justification and Approval (J&A) Control Number: 18-006JA for HS0021-18-Q-PSMOCE which was posted to FedBizOps at www.fbo.gov (FBO) on 15 Feb 2018, citing an unusual and compelling need under FAR 6.302-2. The J&A was required due to the need to provide services during a Court of Federal Claim (COFC) protest decision.

On January 19, 2018, the COFC (Case #18-lC) entered a permanent injunction for the CE support added to HS0021-16-C-0006 ( d. b. under Contract Line Item Numbers 2005, 3005 and 4005 and associated task 5.12. COFC had determined the added work was out of scope of the contract and the added work was to cease immediately until the Competition in Contracting Act (CICA) was followed for contracting for the CE work. In accordance with FAR clause 52.242-15, a Stop-Work Order was issued by the Contracting Officer to on January 19, 2018. As a result of the Court of Federal Claim protest the Government awarded this contract (HS0021-18- C-0003) to ••••••••• as a sole source acquisition IAW FAR Subpart 6.302-2 to serve as a bridge contract. This bridge contract was written to fill the gap until a competitive acquisition was awarded. This sole source bridge contract will expire on 4 February 2019 and all options have been exhausted. The time provided under the previous J&A should have been enough time to complete re compete but now additional time is required due to the small business size protest.

s currently performing CE services and is the only responsible source that can continue to provide the necessary labor skill sets with uninterrupted services. Soliciting this effort under full and open competition would take approximately six months. This timeline is based on DSS Procurement Acquisition Lead Time (PAL T) guidelines and time lines of recently awarded acquisitions of similar size and scope. This process would result in unacceptable delays in fulfilling the agency's

PSMO Continuous Evaluation Services

P0003 to HS0021-18-C-0003

Control Number: 19-006JA requirements by negatively impacting the Government's access to critical CE Services. Therefore, it is necessary to modify the current sole-source bridge contract and continue with the current service provider until the protest is resolved and DSS is able to proceed with the competitively awarded contract. It is not realistic to expect another contractor to perform the required services for a one to four month period of performance at the same level of quality and at reasonable price.

The extension of this sole-source contract to the incumbent results in minimal logistical costs to the Government, as the incumbent's resources are already in place. Additionally, the incumbent's continued support will negate any learning curve costs, as no learning curve will exist. Failure to bridge this current contract could result in an unacceptable interruption of critical services.

(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.

An open market Request for Quote (RFQ) was issued through FBO in accordance with FAR Part 12 Acquisition of Commercial Items on 30 Nov 18, andaiuotes were received on 14 Dec 2018. Quotes were evaluated and an apparent awardee selected. However, a small business size protest was received by the CO before award was made and FAR Subpart 19.302 prohibits award until the protest is adjudicated by SBA (See #2 above). Also, a synopsis of the Government's intent to extend this contract was posted to FBO, per FAR Subpart 5.2, on 23 Jan 2019.

(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 the proposed price against the formal Independent Government Cost Estimate (IGCE). The detailed estimate provides a breakdown of what the Government believes are the potential labor categories, as well as estimated labor rates and the estimated fixed monthly price for providing the required services. The estimated monthly price will be compared to established pricing on other DSS contracts and other Government contracts.

(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 was not conducted for this action, as it was conducted within the previous six months for the competitive action HS0021-19-C-0001,which will be awarded immediately on the resolution the size protest, and any other protests timely received. Extensive market research was conducted for the competitive award to include posting a request for information on FBO. Based the level of competition received for the follow-on acquisition DSS understands there is ample competition for this requirement. A solicitation was issued on 30 Nov 2018, and four competitive proposals were received on 14 Dec 2018. The competition resulted in an apparent awardee to provide the services under this action. Any further market research would be duplicative and likely only add duplicative costs to the Government effort.

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

PSMO Continuous Evaluation Services

P0003 to HS002 J-18-C-0003

Control Number: 19-006JA

Awarding a new contract for this period of performance would still require an extension beyond 4 February 2019 to complete the procurement process. At this time, ••••••••••• the incumbent vendor, is the only source to possess the unique skills, the technical capabilities and the personnel already positioned to immediately perform the services required. Any attempts to secure another source would result in unacceptable delays and create high risks of failure due to DoD possessing CE reports containing potential derogatory information on the cleared population, the people entrusted with classified information and given access to persons and property, but unable to mitigate the risk associated with the potential derogatory information due to the lack of CE analytic support services. This represents a grave risk to the Government.

This is an unclassified requirement; however, the work being conducted is at the Top Secret classification level. All work will be conducted by the incumbent and the proposed subcontractors, all of whom currently hold the necessary facility clearances and the capability to provide cleared personnel. All personnel must possess a Secret clearance at a minimum, but certain labor categories may require a Top Secret clearance.

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

A synopsis of the requirement was posted at FBO on 23 January 2019 in accordance with FAR 5.201 (b )( ii). To date, no responses have been received. If any contractors express interest, that information will be posted here and addressed.

( 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.

The requirement has been recently competed and subsequent award of the new contract (HS002 l-l 9-C OOO 1) will be made to the competitive awardee upon conclusion of the current protest action.

CERTIFICATION

PSMO Continuous Evaluation Services

P0003 to HS002 I-I 8-C-0003

Control Number: 19-006JA

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.

Requiring Activity/Program Management Office Certification

Printed Name:

Title Chief Program Management Office, Vetting Risk Operation Center, Defense Security Service Org. Code DSS-DVD-VROC

Phone_llll •• ._ ____ Date_Jan31,2019 _ __

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 Nam

Organization Code DSS-AO hon�ate _ _ _ _

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

Printed Name

Date