Redacted_JA.pdf

Justification for an Exception to Fair Opportunity Items Peculiar to One Manufacturer (Brand Name)

FAR Part 16.5 Acquisition

HTC711-18-Q-D069

1. AGENCY AND CONTRACTING ACTIVITY:

Requiring Agency: USTRANSCOM J6 Contracting Agency: USTRANSCOM TCAQ

2. NATURE/DESCRIPTION OF ACTION(S): ): This justification explains why the Government must issue a brand name only task-order to maintain continuity of critical support for a limited number of applications that have migrated to the CLOUD that no longer have on premises support. Funding has been identified in the FY18 operating budget.

USTRANSCOM is receiving cloud services under Other Transactional Authority awarded by Army Contracting Command (ACC). On 31 May 2018 the GAO ruled against this award and recommended its termination. USTRANSCOM intends to comply with the GAO’s recommendation; however, there are already operational workloads in the commercial cloud environment. Awarding to a brand other than Amazon Web Services (AWS) would require more time to transition than is appropriate to implement the GAO’s recommendation.

Interruption of cloud services would cause a negative impact to the mission based on the applications that are operational in the cloud environment and waste of government investment to date in establishing a cloud environment and migrating the USTRANSCOM portfolio of applications. Specifically, interruption to the environment will cause the loss of operational applications that have no alternate environment for support.

The Government intends to award a contract for a base period (6 months) with two 3-month option periods with an estimated value of $ . The anticipated period of performance is as follows:

Base Period 30 July 2018 – 29 January 2019 Option Period 1 30 January 2019 – 29 April 2019 Option Period 2 30 April 2019 – 29 July 2019

The Government anticipates it will take between six to twelve months to have a full and open contract awarded.

FAR 52.237-3 Continuity of Services will be included. The services to be acquired are considered vital to the Government and must be continued without interruption and when, upon contract expiration, a successor, either the Government or another contractor, may continue them. The Government intends to solicit the follow-on contract full and open and anticipates difficulties during the transition from one contractor to another or to the Government depending on what Cloud Service Provider is utilized in the winning proposal.

FAR 52.217-8 Option to Extend Services will be included to allow the Government to extend the contract by no more than 6 months, if required.

3. DESCRIPTION OF SUPPLIES/SERVICES: USTRANSCOM has a requirement to support a limited number of applications that have migrated to the CLOUD that no longer have on premises support. Contractor shall provide 24x7 (twenty four hours a day, seven days a week) managed operations services (“Managed Operations”) for the Government’s production Cloud Service Provider (CSP) infrastructure (“Managed Operations”) and 8x5 (eight hours a day, Monday through Friday - excluding holidays) Development Operations (DevOps) services (“DevOps Maintenance Services”) for the Government’s CSP environment.

Additionally, USTRANSCOM has a requirement to not lose the progress associated with partial migration of the remainder of the portfolio. Migration of applications from an on premises DoD computing environment to a will not be provided under this contract. However, the contractor will provide managed services and support to applications already migrated/being migrated into the environment by the government or its designated agents.

4. IDENTIFICATION OF EXCEPTION TO FAIR OPPROTUNITY:

10 U.S.C. §2304c(b)(5), 10 USC §2304(c)(1), and FAR 16.505(b)(2)(A) & (B)

USTRANSCOM requires AWS Managed Services on a brand name basis. This Justification and Approval cites the authority under Federal Acquisition Regulation (FAR) Part 16.505(b)(2) for an Exception to Fair Opportunity. Only one source (Brand-Name) is capable for providing the supplies or services required at the level of quality required without the Government experiencing unacceptable delays and a break in service which would result in mission failure.

Amazon Web Services (AWS) and its Premier Partners are the only providers able to provide the required AWS Cloud Services and AWS Managed Services within the required time. Awarding to a brand other than AWS impact level 2/4/5 (IL 2/4/5/) CSO would require time to transition to a new CSP’s C SO which would result in unacceptable delays and a break in service.

USTRANSCOM has already migrated a number of applications into the AWS CSO.

Interruption of cloud services would cause an impact to mission based in those applications that are currently operating in the AWS cloud environment. Loss of the current AWS CSO environment would result in failure of USTRANSCOM carriers to schedule deliveries and would create a degradation of ability to track the shipment and receipt of materials, as well as result in an inability to coordinate systems with the Department of Transportation (DOT) necessary to transport hazardous cargo. Additionally, loss of the current AWS environment and the associated applications that have already migrated into it would result in the waste of government investment to date in establishing a cloud environment and migrating the USTRANSCOM portfolio of applications.

The use of a brand name description is essential to the Government’s requirements because only AWS can currently meet the Department’s requirements for a cloud-based managed services solution. Specifically:

USTRANSCOM is currently operating in a DISA approved IL 2/4/5 AWS GovCloud (US) environment. The timelines associated with the GAO recommendation to terminate the Production Other Transaction Authority (P-OTA) Agreement do not afford sufficient time to establish a new environment and migrate the operational workloads to a new brand environment without experiencing a break in service and loss of existing information resident in the current commercial cloud environment.

USTRANSCOM has invested significant resources in its progress to establish a commercial cloud environment. A break in service would constitute an economic waste of investments made to date.

Transition to a different CSO would require expenditure of additional licenses to establish the environment, as well as time and technical resources to configure the new environment for operational use. The time required to procure the additional licenses and establish the new environment are not consistent with the requirement to implement the GAO’s recommendations.

Given the short timeline associated with implementing the GAO’s recommendation, there is insufficient time to assess the total cost of ownership aspects associated with transitioning to a new CSP that could be completed under a full competitive award.

Loss of the current operational environment would cause negative impacts to USTRANSCOM and its components, specifically related to movement of materials via rail, motor and container. It also provides support to a larger IT enterprise that continues to be in transition from on-premises datacenters to the cloud.

Award to an AWS Premier Partner is necessary for the level of support available to the vendor directly from AWS. In its role as a DoD pathfinder for commercial cloud implementation, USTRANSCOM has encountered scenarios where direct engagement by AWS is required for integration into the larger DoD Information Network and for application integration into the AWS environment. We anticipate this level of support will continue to be required during the period of this contract.

5. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost/price to the Government for this contract action will be fair and reasonable.

This determination will be made using price analysis and the independent Government cost estimate. Certified cost or pricing data will not be required IAW FAR 15.403; the services being acquired are commercial. Additionally, there is reasonable expectation, based on market research that two or more responsible offerors, competing independently, will submit priced offers in response to the solicitation, therefore, prices that will be agreed upon will be based on adequate price competition.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

In B-416061, Protest of Oracle America, Inc. the GAO recommended that the Army terminate the P-OTA and review its procurement authority in accordance with the decision. It further recommended, to the extent that the Army has a requirement for cloud migration and/or commercial cloud services, that the agency either conduct a new procurement using competitive procedures, in accordance with the statutory and regulatory requirements, or prepare the appropriate justification required by the Competition in Contracting Act of 1984, 10 U.S.C. §

2304, to award a contract without competition. The Army is terminating the P-OTA in compliance with the GAO’s recommendation. Therefore, that instrument is no longer available to support USTRANSCOM’s applications residing in the AWS CSO. As indicated below, USTRANSCOM intends to pursue a long-term commercial cloud contract using competitive procedures. However, this short-term contract using an exception to fair opportunity is necessary to avoid loss of mission critical information while the necessary actions are taken for the long term solicitation.

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 an effort to overcome any barriers that led to this exception to fair opportunity, prior to any subsequent acquisition for the same services, the Government shall conduct market research into cloud-based services in accordance with the Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulations (DFARS). The Government intends to pursue an acquisition strategy that will be open to commercial cloud service offerors authorized to the information impact level required for specific Government systems and information.

To promote competition, the Government intends to clearly define its cloud requirements and conduct future cloud competition on a "best value" basis. As such, the costs of migration from AWS may be considered as an evaluation factor but not cited to justify a sole-source award or limit competition.

Additionally, the Government will to issue a "sources sought notice" for subsequent cloud service requirements to inform potential bidders of the Government’s requirements and to allow interested parties to submit a statement of capability for review and consideration by the Government.

Justification for an Exception to Fair Opportunity Items Peculiar to One Manufacturer (Brand Name)

FAR Part 16.5 Acquisition

HTC711-18-Q-D069

Signature Page

CO CERTIFICATION: I certify that this Justification is accurate and complete to the best of my knowledge and belief.

ANDREA C MOUSER DATE

Contracting Officer

USTRANSCOM AQ

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the Justification, are accurate and complete to the best of my knowledge and belief. I also certify that this requirement meets the organization’s minimum needs for this item, and/or schedule requirements, at this time.

IVAN M HERWICK, COL DATE

Functional Manager

USTRANSCOM J6

APPROVAL

COMPETITION ADVOCATE: The specific circumstance that justifies restriction for this acquisition is FAR 16.505(b)(2)(i)(A), the agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

As Per FAR 16.505(b)(2)(ii)(C)(2), I have reviewed this justification and find it to be accurate and complete to the best of my knowledge. Since this justification is between $700,000 and $13.5 million, this review serves as approval.

KERI A LINDSCO DATE

Acting Chief, Business Support and Policy Division

USTRANSCOM TCAQ

MOUSER.ANDR

EA.C.1258063500

Digitally signed by MOUSER.ANDREA.C.1258063500 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MOUSER.ANDREA.C.1258063500 Date: 2018.07.02 07:57:17 -05'00'

HERWICK.IVA

N.M.1159484145

Digitally signed by HERWICK.IVAN.M.1159484145 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=HERWICK.IVAN.M.1159484145 Date: 2018.07.03 16:26:55 -05'00'

LINDSCO.KERI.

ANN.1272263058

Digitally signed by

LINDSCO.KERI.ANN.1272263058

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=LINDSCO.KERI.ANN.1272263058 Date: 2018.07.03 16:11:01 -05'00'

03 July 2018

03 July 2018

02 July 2018