JA_AMD01_852571184_NRL_SSC_Cloud_Computing_Final_Redacted.pdf

Controlled By: DISA Controlled By: PS8511 CUI Category: PROCURE Distribution/Dissemination Control:

FEDCON

POC: disa.scott.ditco.mbx.ditco-jwcc@mail.mil

JUSTIFICATION & APPROVAL FOR FEDERAL ACQUISITION

REGULATION SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Contract

Orders under Fair Opportunity Federal Acquisition Regulation (FAR) 16.505, Defense Federal Acquisition Regulation Supplement (DFARS) 216.505(b), Procedures, Guidance, and Information 216.505(b)

Purchase Request Number: N0017325MP00013 Joint Warfighting Cloud Capability (JWCC) Contract Number: HC105023D0005 Task Order (TO) Number: HC105025F0032 Procurement Title: Naval Research Laboratory Stennis (NRL-SCC) Cloud Computing Estimated Value:

Statutory and Regulatory Authority: 10 United States Code (U.S.C.) 3204(a)(1) and FAR 16.505(b)(2)(i)(B)

EXCEPTION TO FAIR OPPORTUNITY

Number: Not Applicable (AMD 01

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve this exception to fair opportunity pursuant to the Statutory Authority of 10 U.S.C.3204(a)(1) and Regulatory Authority of FAR 16.505(b)(2)(i)(B).

1. REQUESTING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

U.S. Navy/Naval Research Laboratory 1005 Balch Blvd Stennis Space Center, MS 39529

Contracting Activity:

Defense Information Systems Agency/Defense Information Technology Contracting Organization/PS8511

2300 East Drive Scott Air Force Base, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

AMD 01: This amendment is to increase the value in the amount of The purpose of the increased amount of is due to the inclusion of Description of Work (DoW) sections 3.1, 3.2, and 3.3 that were not included in the original Independent Government Cost Estimate. The instances 3.1, 3.2, and 3.3 support the current

Naval Research Laboratory Stennis (NRL-SCC) Cloud Computing environment from prior and ongoing services and are necessary to support the requirements of the Government as stated in the DoW.

This action is to issue a firm-fixed-price TO against the JWCC Indefinite Delivery/Indefinite Quantity Contract for NRL-SCC. This TO will be issued directly to Amazon Web Services (AWS), Inc. The anticipated period of performance (PoP) is for a 1-year base period, plus two 1-year option periods. The total estimated value is which will be funded by Research, Development, Test & Evaluation funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Government has a requirement to move existing cloud computing services to JWCC. The cloud service provider must be able to seamlessly integrate with NRL-SSC’s existing infrastructure and data. NRL-SCC requires a pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This service provides access to essential web infrastructure such as servers, connections, storage space, without the need to buy or manage internet infrastructure. The Center for Geospatial Sciences has multiple projects which require development, testing, and prototyping capabilities in cloud computing environments, using both unclassified and secret data. The National Geospatial-Intelligence Agency (NGA) is the largest sponsor which has been directed to move toward hosting in cloud-based environments. NRL-SCC transitions multiple projects to NGA for operational use in these cloud-based environments and must be able to use them in the Research and Development (R&D) process. In addition, NRL-SCC also provides Navy customers with research prototyping capabilities on unclassified and secret networks so that R&D work can be tested and evaluated in realistic operational environments.

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity.

FAR 16.505(b)(2)(i)(B) - Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

(b) Description of the Justification.

The U.S. NRL Ocean Science Division (OSD) has been mandated to move the current NRL-SCC Impact level 5 (IL5), IL6, and Top Secret (TS) Cloud Services to JWCC.

JWCC is the only contract vehicle that allows continuous cloud service support for NRL and NRL Department of Defense (DoD) sponsors.

The NRL OSD has multiple projects which require development, testing, and prototyping capabilities in secure cloud computing environments, using unclassified and classified data. The NGA is one of the largest NRL OSD sponsors. As NGA and other federal sponsors are directed to move toward hosting operational geospatial services in more secure cloud-based environments, the NRL OSD research teams are required to transition multiple projects to these cloud-based environments and must be able to use them in the R&D process. The JWCC Cloud Service Providers (CSPs) were assessed for the ability to meet the NRL OSD requirements. AWS is the only cloud service provider that the required IL6, TS, and Cross Domain solution (CDS) services compatible with NRL OSD requirements.

(c) Justification.

(1) Minimum Government requirements.

The Government requires cloud computing services that provide Code 7340 and its developers a Cloud environment to conduct distributed development, test, and production at IL5, IL6 and TS. The Cloud Services must comply with DoD policies and directives.

Code 7340 utilizes and maintains several software applications on unclassified and classified networks. As such, it requires cloud computing services capable of processing workloads in accordance with the DoD Cloud Computing Security Requirements Guide (DoD CC SRG) for IL6 and TS. The DoD CC SRG IL6 architecture is compatible with the NGA operational architecture in the AWS environment on Secure Internet Protocol Router Network (SIPRNet) where Code 7340 R&D products will be implemented. This will ensure that all Code 7340 unclassified and classified applications can migrate to established and secure cloud service provider environments that comply with DoD policies and directives for CDS functionality, object storage and managed network file system (NFS) compatibility. The Government requires a cloud computing services that enable scaling of infrastructure, application resources, Information Technology (IT) capabilities, and services to meet evolving application and user demand. The Government requires managed Kubernetes, Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS) utilization, implementation, support, compute, and storage of current and future Code 7340 unclassified and classified workloads and applications. The cloud service offerings must continue at their current level in order to support NRL- SCC. These offerings include:

a. IAAS VMs of various size x86-64, ARM64 – IL5,6, TS

b. Managed Kubernetes – IL5,6

c. PaaS database services for PostgreSQL and MySQL – IL5,6

d. CDS functionality from IL5 to IL6, IL5 to TS (moving video .ts files, xml files, and Json files)

e. CDS functionality down from TS to IL5 and IL6 to IL5 (moving message notifications)

f. Object storage

g. Managed NFS compatible

(2) Proposed sole source contractor.

AWS

(3) Discussion regarding the cause of the sole source situation.

Market research indicated that AWS is the only source capable of seamlessly supporting the ongoing requirements for CDS covering all classification levels at this time. NRL cloud computing technology research projects are currently only compatible with Navy/DoD sponsored architecture which is in the AWS Cloud environment. Due to the NRL Cloud Computing projects being sponsored by Navy/DoD, AWS is the only source that can meet the Government requirement. The costs associated with NRL migrating and rebuilding the project from scratch creates a duplication of cost to the Government. There is a risk of compatibility since the connections must work seamlessly with the Navy/DoD sponsor architecture.

(4) Demonstration of unique source.

Based on the Additional research conducted, AWS is the only CSP that can meet the Government requirement for TS and CDS support with existing NRL workflows (i.e., IL5 to and from TS) that must integrate with sponsored agencies’ AWS-based architectures as such, the AWS cloud computing environment is the only acceptable development and testing environment for capabilities being transitioned to commercial cloud service. Other CSPs’ offerings do not provide acceptable development and testing environments for commercial cloud service because of the underlying incompatibilities between cloud architectures. The NRL Application Programming Interfaces (APIs) used to interact with the AWS cloud environments are unique to AWS and compatibility with these interfaces is essential to meeting the Government’s need. Therefore, development, implementation, and performance testing cannot be replicated on another CSP Cloud environment, and AWS is the only CSP capable of meeting the Government’s need.

(5) Procurement discussion.

The US Intelligence Community (IC) is migrating to the Intelligence Community Information Technology Environment. As part of this migration, web-based services are being migrated to the C2S cloud computing environment which operates on AWS infrastructure. The NGA is beginning the migration of their Web services to C2S. NRL- SCC has developed web service capabilities that have been transitioned to NGA over the past several years which are being targeted for migration to the C2S environment. In order to accomplish this modernization, NRL must have access to C2S compatible cloud resources at the Unclassified, Secret, and TS levels. The Pentagon memo dated 31JUL2023/02AUG2023, titled Memorandum for Senior Pentagon Leadership Commanders of the Combatant Commands Defense Agency and DOD Field Activity Directors, SUBJ: Department of Defense Joint Warfighting Cloud Capability and Next Steps to Rationalize Cloud Use Across the Department of Defense (paragraphs 2 and 3) mandated all Office of Secretary of Defense, Defense Agencies and Field Activities to switch to JWCC contract vehicle for IL5 and IL6 cloud services. The field agencies require NRL to transfer existing cloud support to JWCC because NRL supports research projects with these agencies/activities. Per this Pentagon DoD mandate the existing NRL AWS contract will not be allowed to provide required classified Cloud Services for NRL and NRL DoD sponsors.

(6) Impact.

If NRL Cloud services are not transitioned to JWCC’s AWS cloud services by the DoD mandated deadline of March 31, 2025, then the DoD, Navy sponsors, and deployed mission partners risk losing access to the existing Cloud Service capabilities that support operations. NRL is conducting extensive research projects for several Navy/DoD sponsors and is transitioning portions of these projects from research to operational status. If existing classified cloud services stop, then these research projects and the associated transition of Navy technology and data to operational Navy/DoD sponsors will also stop.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

A determination that the price is fair and reasonable will be based on a comparison of the contractor’s proposal to the independent government cost estimate and the JWCC Catalog pricing, including any discounts, which was previously found to be fair and reasonable and based on the contractor’s commercial pricing.

6. MARKET RESEARCH:

Market research for the basic JWCC Contracts was conducted and resulted in a signed market research report on 9 Nov 2021, that was revalidated and recertified on July 29, 2024. After a survey of the market, it was concluded that use of the JWCC Contract is in the Government’s best interest due to technical feasibility and cost to the Government.

Additional research was conducted in January of 2024 by reviewing the specific capabilities in the JWCC Contracts and it was determined that AWS, Inc is the only source capable of fulfilling the Government’s minimum needs in the manner and time frame required as it is the only CSP compatible with NLR-SSC’s existing infrastructure. As part of the additional research, the Government reviewed the specific capabilities in the JWCC Contracts and it was determined that AWS is the only source capable of fulfilling the Government’s minimum needs in the manner and timeframe required.

From January 2024 through May 2024, the capabilities of alternate CSPs were considered regarding meeting the NRL-SCC requirements. In July 2024, an additional research request was sent to AWS, Google, Microsoft, and Oracle. Neither Google nor Oracle can meet the NRL-SCC TS requirement. Microsoft was not able to meet TS, cross domain, and other TS requirement specifications. AWS provides the required cloud computing service to maintain a number of software applications on unclassified networks, SIPRNet and TS networks. Based on the results of the additional research request, AWS provides cloud services capable of processing workloads up to IL6 and TS. This will ensure unclassified and classified applications can migrate to an established commercial cloud service provider with secure environments that comply with DoD policies and directives.

7. ANY OTHER SUPPORTING FACTS:

None

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History:

Not Applicable

(b) To overcome future barriers to competition, future development and enhancement of IaaS components will include shifting to a containerized platform. This will enable multiple vendors to meet the requirements which will enable the flexibility to shift workload based on financial and mission requirements.

If another potential source emerges or new technology is developed which can advance future research, NRL will assess whether competition for future requirement is technically feasible and reasonably priced for the cloud storage service. Given the requirement for compatibility with the commercial cloud storage environment, the need to source from AWS may change if the underlying architecture of AWS Secret Region changes or if the other cloud service providers (CSP) offer additional options for secure data transfer compatible with sponsor requirements and multiple CSP architectures. NRL will test products and services periodically that are available in the marketplace and could potentially complement or replace existing architecture and workflows.

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME:

TITLE/AGENCY: Computer Scientist, U.S. Navy (NAVY)

PHONE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

TITLE/AGENCY: Computer Scientist, U.S. Navy (NAVY)

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

TITLE/AGENCY/ORGANIZATION: JWCC Contracting Officer, DISA/DITCO/PS8511

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO:

Emelie Vandeloo,