JA_Exception_to_Fair_Opportunity.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Logical Follow-On

Commercial Cloud Services

HTC711-18-F-D076

1. AGENCY AND CONTRACTING ACTIVITY:

Requiring Agency: United States Transportation Command (USTRANSCOM) Command, Control, Communications & Cyber Systems (TCJ6)

Contracting Agency: USTRANSCOM Directorate of Acquisition (TCAQ), 508 Scott Drive, Building 1900W, Scott AFB, IL 62225

2. NATURE AND/OR DESCRIPTION OF ACTION(S) BEING APPROVED:

USTRANSCOM requires a one-year extension of services currently provided under task order HTC711-18-F-D076, Commercial Cloud Services. These services include managed services and Cloud Service Offering (CSO) components. The Cloud Service Provider (CSP) for USTRANSCOM’s CSO is Amazon Web Services (AWS). An extension is necessary to maintain continuity of critical support of applications that have migrated to a CSO and no longer have on-premises support. The initial period of performance is anticipated to be 30 July 2019 – 29 July 2020. The current effort includes FAR Clause 52.217-8, Option to Extend Services;

however, the price associated with exercising this clause will be re-evaluated in consideration of the new performance period.

3. DESCRIPTION OF SUPPLIES/SERVICES TO MEET THE AGENCY’S NEEDS:

USTRANSCOM has a requirement for cloud services and continued managed services support for 20 to 36 (at any given point) applications that have migrated to a commercial CSO, or are in the process of migration, and no longer have on-premises support. Managed services enables programs, systems and applications to migrate to, and operate within, the cloud environment.

This includes, but is not limited to, accounts management and provisioning, cyber security compliance, operations and management of the development, non-production and production pipelines, and management of the internal and external Internet Protocol (IP) ranges.

The contractor shall provide 24x7 (twenty-four hours a day, seven days a week) managed operations services for the Government’s production CSO infrastructure and 8x5 (eight hours a day, Monday through Friday - excluding federal holidays) Development Operations (DevOps) services for the Government’s CSO environment. A Department of Defense (DoD) impact level of 2/4/5 (IL 2/4/5) is required.

The estimated total value of this extension is (including the FAR 52.217-8 option).

4. IDENTIFICATION OF EXCEPTION TO FAIR OPPORTUNITY AND SUPPORTING

RATIONALE:

The applicable statutory exception for fair opportunity is FAR 16.505(b)(2)(i)(C) as the order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract.

The current contract was awarded under the GSA Alliant Government-Wide Acquisition Contract (GWAC), and all awardees were given a fair opportunity to be considered. The acquisition included a brand-name requirement for AWS CSO. Subsequent to award of the current task order and after conducting market research, USTRANSCOM determined it should align itself with the DoD Joint Enterprise Defense Infrastructure (JEDI) cloud services Indefinite Delivery Contract (IDC). Due to pre-award protests, DoD’s JEDI contract award schedule has slipped beyond the originally anticipated award date preventing USTRANSCOM from placing an order for the needed services.

This requirement provides two key services: CSO and managed services. The managed services are CSO dependent. Through contract performance, a number of applications have already been migrated into the AWS CSO. Transition to a new managed services provider would create unacceptable risk of a new contractor providing a new CSP with a different CSO. A new CSO would require the construction of a new cloud environment and migration of programs from the existing CSO, resulting in delayed achievement of the command priority for cloud based services, degradation of services, increased risk, and increased costs. Based on current expenditures, the cost to migrate to a new CSO is estimated at .

The current effort involves significant interaction with the CSP, which requires accounts and access. A new managed services provider will require additional time to activate accounts and become familiar with processes and procedures. Therefore, transition to a new contractor would cause delays due to account creation and handover. Further, interruption of cloud services would degrade services by preventing USTRANSCOM transportation service providers, e.g., carriers, from scheduling deliveries and thereby limit or eliminate the ability to track shipments and receive materials. An interruption would also result in an inability to coordinate with the Department of Transportation’s systems, which is necessary to transport hazardous cargo.

In addition to service risks, there is an existing scheduling risk resulting from the Defense Information Systems Agency’s (DISA) planned shutdown of operations in mid Fiscal Year (FY) 20 at an alternate location that supports a number of USTRANSCOM programs. Consequently, the first tranche of programs slated to migrate to the cloud over the next six months are those whose alternate locations will close. This scheduling risk would be exacerbated if USTRANSCOM re-competed this effort, and the new awardee utilized a different CSP.

Program migrations would cease, and with the shuttering of the alternate location, operation of the programs would be at increased risk based on lack of a contingency location. In addition, for those programs in the midst of migration, a switch to a new managed services contractor would halt all contracted migration activities and cause further delays in migration to a cloud environment.

As stated above, these are vital services, and the minimum amount of disruption is necessary to prevent negative impacts to operations. Transition would cause negative impacts to the USTRANSCOM mission as the Joint Deployment and Distribution Coordinator; therefore, it is not in the best interest of the Government to transition to a new cloud environment at this time.

5. DETERMINATION BY THE CONTRACTING OFFICER THAT ANTICIPATED

COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The anticipated cost/price will be determined using price analysis and the independent Government cost estimate which will be based upon pricing from the current contract. The services being acquired are commercial. Funding has been identified in the FY19 operating budget.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

During USTRANSCOM’s strategy deliberations regarding transition to the JEDI contract, JEDI was expected to be awarded in April 2019. However, as a result of protests, that date has since slipped to October 2019. The delay in JEDI award has created ambiguities in the planning process for USTRANSCOM’s cloud and managed services acquisition strategy. By delaying the announcement of an awardee, USTRANSCOM’s ability to plan for long-term cloud migration and competitively re-compete its managed services contract to support the final cloud service environment is negatively impacted.

7. ACTIONS TO REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE

EXCEPTION TO FAIR OPPORTUNITY BEFORE ANY SUBSEQUENT ACQUISITION

FOR THE SUPPLIES OR SERVICES IS MADE:

In order to limit wasteful spending and disruption through repeated migrations, USTRANSCOM intends to maintain its current managed services contractor and its presence in the AWS-provided CSO until such time that it is able to migrate to the JEDI awardee’s CSO. When the JEDI IDC is available, USTRANSCOM will order its cloud services via that contract. Upon award, the CSO will be identified, and USTRANSCOM will pursue a competitive acquisition for a managed services provider capable and certified to work in the JEDI contractor’s CSP.

8. CONTRACTING OFFICER’S CERTIFICATION.

I certify that the justification is accurate and complete to the best of my knowledge and belief.

HELLMANN.MATT

Digitally signed by

HELLMANN.MATTHEW.J.

Date: 2019.04.16 10:30:56 -05'00'

MATTHEW J. HELLMANN

Contracting Officer

9. TECHNICAL CERTIFICATION: I certify that the supporting data which form a basis for this justification are complete and accurate.

HEW.J.

Contracting Officer’s Representative

TCJ6

10. WRITTEN DETERMINATION OF THE APPROVING OFFICIAL IDENTIFYING

THE CIRCUMSTANCE THAT APPLIES TO THE ORDER.

Based on the above cited justification, I hereby determine the circumstance in FAR 16.505(b)(2)(i)(C) applies to this exception to fair opportunity justification.

Digitally signed by

LINDSCO.KERI.ANN

NN.

Date: 2019.04.17 07:45:35 -05'00'

KERI A LINDSCO

Competition Advocate

LINDSCO.KERI.A