IDS-MC Inc 2 FRP JA-3 Final_Redacted_061120_Redacted_beckerRedact_Redacted.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER ST

QUANTICO, VA 22134-6050

IN REPLY REFER TO:

Code: CT-2.2

J&A Number: 20,087

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Marine Corps Systems Command (MCSC)

Portfolio Manager, Command Element Systems (CES)

Program Manager, Intelligence Systems, PMM-160

2200 Lester Street

Quantico, Virginia 22134-6050

2. Description of the Action Being Approved

The use of other than full and open competition is sought to award an Indefinite Delivery, Indefinite Quantity (IDIQ) type contract on a sole-source basis to InCadence Strategic Solutions

(InCadence), a Woman Owned Small Business located at 10432 Balls Ford Road #120, Manassas, VA 20109. The contract is to procure Identity Dominance System-Marine Corps

Increment 2 (IDS-MC Inc 2) full rate production and technical services. The proposed contract will be a five (5) year ordering period with Firm Fixed Price (FFP) hardware and Cost Plus Fixed

Fee (CPFF) Contract Line Item Numbers (CLINS).

3. Description of Supplies/Services

The IDS-MC 2 system replaces the first iteration of IDS-MC and contains a modernized commercial operating system and increased capabilities. PMIS has developed an Android operating system-based Mobile Collection Device (MCD) together with a Windows operating system-based Transaction Manager Application (TMA) that performs biometric collection, data standardization, local matching, storage, and lateral sharing functions.

As set forth in the IDS-MC Acquisition Program Baseline, this procurement is based on the favorable

Milestone C/Full Rate Production Decision from the Program Decision Authority (PDA) during

4th Quarter Fiscal Year 2019 (4QFY19).

IDS-MC Inc 2 provides deployed Marines fast, effective, and accurate collection of biometric, fingerprint, iris, and other forensic data. The IDS-MC Inc 2 system is designed to be agile in meeting anticipated changing user/stakeholder requirements. The IDS-MC Inc 2 system reduces the overall development and sustainment costs by ensuring there is a modular system and open architecture approach applied to system design and sustainment.

Code: CT 2.2

This IDIQ contract will allow for procurement of full rate production IDS-MC Inc 2 systems

Additionally, this IDIQ contract will allow for procurement of certain incidental support efforts associated with Full Rate Production (FRP) and software maintenance such as ancillary software development services, basic software maintenance services, and sparing to keep pace with technical advances and cybersecurity vulnerability abatement.

The system is comprised of FRP TMA kits and MCD kits, packaged in a rugged carrying case to protect components when not in use. The overall contract will allow for the procurement of the following items:

DESCRIPTION QTY UNIT

Assembly, TMA Sub-System EA

Laptop, Dell 7540 EA

Adapter, Dell Power EA

Router, TP Link Archer C5400 V2 EA

Drive, Blu-ray Disk EA

Drive, Solid State External EA

Printer, Badge EA

Cord, Printer Power EA

Supply, Printer Power EA

Ribbon, YMCKO Printer EA

USB Cable EA

Protector, Surge, Tessan 3 Outlet Surge

Protector travel Power Strip with 4 USB

Ports(20W) Charging Station 5 Ft Cord +

Asia& Europen Travel Plug Adapter Set EA

Case, Transit EA

Foam, Transit Case Custom EA

Assembly, MCD Sub-System EA

Pigtail cable EA

Assembly MCD EA

Phone, Galaxy S10 EA

Cord, Power, Galaxy S10 EA

Plug, Power, Galaxy S10 EA

Case, Juggernaut Smart Device Tactical EA

Kit, International Plug Adapter EA

Port 2, Anker Elite Power EA

Case, Transit EA

Foam, Transit Case Custom EA

The ordering period for the contract will be from May 2020 – May 2025. The estimated ceiling dollar value, if fully executed, for the contract is $16,053,315. A full breakdown of the total estimated dollar value of this procurement by fiscal year and appropriation is provided in the table below.

FY20 FY21 FY22 FY23 FY24 Total

RDTE

PMC

O&M $

Total $16,053,315

4. Statutory Authority Permitting Other Than Full and Open Competition

The statutory authority permitting use of other than full and open competition is 10 USC §

2304(c)(1), as implemented by the Federal Acquisition Regulation (FAR) 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

InCadence is the only source that posesses the technology, supply chain, specifically developed software, proven prototypes, and integration capabilities to produce the IDS-MC Inc 2 system to

Marine Corps specifications.

On 09 April 2019, the prototype system successfully passed acceptance testing conducted by the Government. IDS-MC Inc 2 received

Milestone C decision approval during 4QFY19. It has been evaluated, assessed, and found capable for use as a deployed system to collect, match, store, and share biometric data.

MCD Spares - Samsung Licenses EA

MCD Spares - Iritech Licnese (Iris) EA

MCD Spares - Innovatrics

Licnese(Fingerprint) EA

Assembly, MCD Sub-System minus phone EA

TMA Maint Fee Yr per system EA

MCD Maint Fee yr per system EA

Engineering Services HR

Travel - ODCs LO

Engineering Change Proposals (ECP) LO

Low Rate Initial Production (LRIP) contract M67854-19-C-2066 was awarded on 30 September

2019 to InCadence on a sole source basis for the delivery of 40 MCD kits and 14 TMA kits with software licenses by 30 April 2020. The contract was a follow-on to a Rapid Innovation Fund

(RIF) effort and was awarded for LRIP only to support the program in receiving a successful

Milestone C/Full Rate Production Decision on 27 September 2019. Currently, InCadence is on track to meet the required LRIP delivery schedule.

InCadence is the only source that provides Ares Gateway software that is used in IDS-MC Inc 2.

This software is a commercial product that is modified to meet specific Government requirements and the Government requires a license agreement to utilize the software. The

Program Office obtained restricted commercial rights as contained in the InCadence End User

Commercial License Agreement to the specially modified/developed commercial product under the LRIP contract. Since InCadence is a small business that specializes in software development, they have claimed restricted data rights to their software under previous contracts as well.

InCadence’s IDS-MC Inc 2 system was deemed technically and tactically suitable to meet the requirements necessary for fielding of the next increment of the IDS-MC. The InCadence system was evaluated through a series of user assessments, regression testing, and a Technical

Biometrics Evaluation (TBE) conducted by the Program Office using active duty

The Program Execution Plan stated that the Program Office’s transition goal was to commit to a full transition by conducting formal system engineering technical reviews to satisfy the acquisition process in order to proceed to the

Milestone C/Full Rate Production decision. Part of that plan included InCadence producing 680

MCD kits, 90 TMA kits, and their associated software to begin fielding by September of 2020.

The systems will be fielded to remaining units identified on the IDS-MC Inc 2 Approved

Acquisition Objective (AAO) for operational employment, training, Standard Operating

Procedure development, and

InCadence is the only source that can perform the Full Rate Production Contract requirements.

InCadence has an active IDS-MC Increment 2 production line which allows them to supply the required equipment without any start-up or verification cost. Award to any other source would require the establishment of a new baseline with additional development costs and verification processes.

It is not in the Government’s best interest as it would not support the customers’ delivery schedule and because the additional cost, estimated at

$5,000,000, is not expected to be recovered through competition. This estimated cost is based on the rework necessary to develop another solution with no guarantee that it will meet the

Government’s requirement.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

The Program Office conducted significant market research during FY17, and determined the IDS-

MC Inc 2 system could be purchased as a Commercial Off-The-Shelf (COTS) system after software modification and customization to meet unique Marine Corps needs.

In accordance with FAR 5.201, on 13 June 2017, the Government released a sources sought

M67854-17-I-2629 to industry, in accordance with Federal; Acquisition Regulation (FAR) Part 10, to determined industry’s capability to gather information in efforts to find out if industry could meet the unique requirements of the IDS-MC Program with current technology solutions, and, if not, what level of customization would be required. The Market Research team received seventeen (17) responses from sixteen (16) different respondents for the RFI. During the RFI process, the Market

Research team engaged with vendors for further clarification and also hosted an Industry day on 12

July 2017. As a result of the RFI and Industry Day, five vendors (Cross Match, Tascent, Booz Allen

Hamilton, InCadence, and Northrop Grumman) were contacted to participate in further engagements and provide demonstrations of their current capabilities.

It was determined that development was necessary and all vendors would have to customize their

COTS solutions. Based on the RFI responses and additional market research findings, the

Program Office pursued Department of Defense Rapid Innovation Fund (RIF) Broad Agency

Announcement (BAA) #FY17-DoN-RIF-MCSC-01 for IDS-MC Inc 2 prototyping, to provide a complete prototype identity operations system. This RIF BAA used a competitive process to select an awardee to build a prototype system that could achieve a fully integrated biometric collection and management capability. The competition resulted in the selection of InCadence as the RIF BAA awardee under contract M67854-18-C-6702 awarded 20 June 2018.

In addition, the Program Office pursued an Other Transactional Authority (OTA) initiative as another competitive process establishing a Project Request (similar to a Statement of Objectives) with Air Force Research Laboratory (AFRL). The Project Request for a modified COTS biometrics system was released to System of Systems Security Consortium (SOSSEC) with a

Request for White Papers. The OTA used a competitive process that involved evaluation of six white papers. Upon completion of the evaluation, AFRL awarded the contract to Northrup

Grumman. The Project was evaluated through a series of user assessments, regression testing, and a Technical Biometrics Evaluation (TBE) conducted by the Program Office with active duty

Marine units from 1st, 2nd, and 3rd Law Enforcement Battalions as the users.

The results of Government testing conducted April 2019 of both systems revealed that the

InCadence system met the Government need, because it met all of the test plan criteria, where the SOSSEC device did not. The InCadence system provided a much more usable form, due to its smaller, more convenient footprint, superior user-friendly interface, easier setup, and easier operation in the military environment. Overall, the InCadence product was a more complete prototype system for fielding as compared to the SOSSEC system.

Additionally, within the past year, the program office has taken necessary actions to continue informing the team on requirements engineering, integration into other United States Marine

Corps (USMC) programs, and defining a system architecture. The program office continues to participate in United States Special Operations Command (USSOCOM) events as well as clearly explain with the vendors the additional requirements the IDS-MC Increment 2 program has compared to SOCOM and continues to talk to other USMC programs to try and identify reliable communications architecture.

Based on market research, InCadence’s proven performance under the RIF BAA contract, and being a WOSB meeting all criteria listed in FAR 19.1506(b), the LRIP contract was awarded to

InCadence on a sole source basis on 30 Sep 2019. The redacted J&A was posted to FedBizOpps after contract award.

No other sources have expressed interest to date. The Contracting Officer shall publish the notices required by FAR 5.201 and any proposals received shall be considered.

7. Determination of Fair and Reasonable Cost

In accordance with FAR 15.404, the Contracting Officer shall ensure that pricing on all supplies and services procured under this contract are fair and reasonable through cost/price analysis with assistance from Defense Contract Management Agency, Defense Contract Administration

Agency, comparison of proposed prices with historical pricing and the Independent Government

Estimate.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, MCSC has no plans at this time to compete future contracts for these supplies and services. The Program Office will conduct market research regularly to assess the availability of other products and sources that meet Marine Corps requirements for IdOps Biometrics systems. If additional sources, capabilities, or designs emerge, MCSC will actively assess the new market data in consideration for possible competitive sourcing.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION:

I certify the facts and representation under my cognizance, which are included in this

Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

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Marine Corps Systems Command

REQUIREMENTS COGNIZANCE:

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Marine Corps Systems Command

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

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Marine Corps Systems Command

CONTRACTING OFFICER CERTIFICATION:

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 10 USC § 2304(c)(1).

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Marine Corps Systems Command

COMPETITION ADVOCATE CONCURRENCE:

PHONE DATE

MARINE CORPS SYSTEMS COMMAND APPROVAL:

Upon the basis of the above justification, I hereby approve, as Executive Director, MARCORSYSCOM, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1.

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