JA - HC104722D0002 - REDACTED.pdf

HC1047-22-D-0002 Defense Enclave Services

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, and FAR Part 15

Contract Number: HC1047-22-D-0002 Procurement Title: Defense Enclave Services (DES) Estimated Value: $0.00 Statutory and Regulatory Authority: 10 U.S.C. 3204(a)(1) and FAR 6.302-1 / DFARS 206.302-1

Justification for OTFAOC Number: Not Applicable

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 3204(a)(1) (FAR 6.302-1/DFARS 206.302-1).

1. REQUIRING AGENCY AND CONTRACTING ACTIVITY:

Requiring Agency:

Defense Information Systems Agency (DISA) Endpoint and Customer Services Directorate Fourth Estate Network Optimization (4ENO) Program Office 6910 Cooper Avenue Fort Meade, MD 20755

Contracting Activity:

DISA/Defense Information Technology Contracting Organization – National Capital Region (DITCO-NCR) / PL64 6910 Cooper Avenue Fort Meade, MD 20755

2. NATURE/DESCRIPTION OF ACTION(S): This J&A is in support of the modification of the DES, contract number HC1047-22-D-0002, a single-award indefinite delivery/indefinite quantity (ID/IQ), in order to provide support to the common use information technology (IT) enterprise of the National Defense University (NDU).

The DISA Fourth Estate Network Optimization (4ENO) Program Office has identified the DES ID/IQ as the most viable contracting solution to support NDU’s requirements as identified in paragraph 3 below. Significant benefits are afforded to the Government by leveraging the expertise, cost efficiencies, and IT service delivery standardization of the DES contract to provide solutions to NDU’s environment when compared to alternative contracting methods. The DES contract is structured to provide IT support for common use environments, i.e., IT capabilities, applications, infrastructure, services, and business processes that are commonly threaded throughout all DoD organizations and are not uniquely tailored to the organization’s mission. Common use IT closely resembles enterprise commercial IT and leverages

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Commercial-off-the-Shelf solutions, industry-standard service delivery models, and highly matured governance with measurable results.

The DES ID/IQ identified 22 Defense Agencies and Field Activities (DAFA) within the Department’s Fourth Estate as being within the scope of the contract. The DAFAs are a collection of entities that are not organizationally aligned to either the Military Departments or the Combatant Commands. These 22 DAFAs can leverage the performance requirements of the DES contract for common use IT support on Non-classified Internet Protocol Router Network and Secure Internet Protocol Router Network domains on legacy networks, as well as consume DISA-managed IT services through DoDNet, DISA’s common use IT enterprise. NDU, while not explicitly identified as a standalone entity within the DES contract, is organizationally aligned to the DoD Joint Staff (JS), a Fourth Estate entity, and harbors a significant common use IT environment in its NDU Enterprise Information System (NEIS). The JS is identified as an entity within the scope of the DES ID/IQ contract.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. Requiring Activity. The NEIS encompasses all computing and connectivity for faculty, staff, and students. It is comprised of a cloud-based architecture in addition to an on-premises network at Fort Lesley J. McNair in Washington, D.C. (“North Campus”) and Naval Support Activity Hampton Roads (“South Campus”). NEIS supports approximately 2000 concurrent users, including approximately 1000 staff and 1200 concurrent students. This number fluctuates as students matriculate through multi-week, quarterly, and 10-month academic programs. In support of these users, NDU provides in-person and remote Service Desk Support and the NDU Support Center, which includes self-help training and IT instructional materials.

b. Background. During NDU’s last accreditation assessment in 2013, the NDU IT Enterprise was flagged as inadequate.

Since 2013, there have been significant improvements in the infrastructure and many inadequate areas identified in the accreditation assessment; however, NEIS requires highly specialized services to continue to evolve their IT Operating Model to meet the mission of NDU to “…Educate joint warfighters and other national security leaders in critical thinking and the creative application of military power to inform national strategy and globally integrated operations, under conditions of disruptive change, to prevail in war, peace, and competition.”

c. Required Services. To remedy inadequacies identified in the 2013 accreditation assessment, NDU transitioned to Cloud Services, updated its entire IT backbone, and removed antiquated end-user devices; however, challenges endure in several areas, Page 3 of 7 Pages including . In order to address these remaining issues, NDU has requested that the DISA 4ENO Program Office provide an assessment of the NDU IT ecosystem to ensure it is postured to adapt to NDU's operational needs, now and in the future.

Additionally, NDU has requested that the DISA 4ENO Program Office conduct a complete engineering review of the NEIS, which includes the services provided, the business processes the technology supports, the skillsets, and the organizational structure required to adapt or implement technology at the pace of emerging technology while demonstrating flexibility to anticipate future academic requirements across all the NDU’s campuses. This comprehensive assessment will be based upon a data-driven evaluation of NDU’s technology, operating environment, and IT resources aligned to its strategic organizational and business plans. The assessment will provide measurable insights on how well IT resources work for NDU and a roadmap for systematic improvement to align the technology to NDU’s strategic vision.

d. Estimated Value of Action. The estimated lifecycle cost of the NDU’s requirements is not anticipated to exceed $75 million, inclusive of NDU’s initial, one-time IT assessment, as well as any required follow-up IT support task orders. However, the addition of NDU’s requirements to the scope of the DES ID/IQ contract will not increase the ceiling value of the contract; the DES ID/IQ contract ceiling remains $11,504,145,490.57.

4. IDENTIFICATION OF STATUTORY AUTHORITY: Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C. 3204(a)(1) (FAR 6.302-

1/DFARS 206.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS: The single-award DES ID/IQ contract was competitively awarded to Leidos Corporation on 28 February 2022. DES is the result of an unprecedented effort to analyze and exploit the benefits of consolidating the DAFA networks and associated common use IT services into a Department-wide strategic vision. Inconsistencies and duplicities across the Department’s Fourth Estate in cybersecurity management, reliability and resiliency, service level agreements, and asset management, all of which result in increasing IT operations costs, drove the requirement for a Single Service Provider (SSP). DES was solicited with the intent of bringing best of breed IT capabilities and services under a single umbrella, with special focus on service improvement, standardization, operational automation, and most importantly cost efficiencies. Leidos Corporation is uniquely positioned to support the NDU requirement as they are the only contractor that has performed assessment, integration, and operations and sustainment work on the common use IT DES environment. For this reason, Leidos Corporation possesses an unmatched level of experience and expertise in this field, allowing them to readily support NDU’s critical IT enhancements without the need for additional due diligence, transition, and/or knowledge transfer that would otherwise delay and hinder another contractor. While other contractors may be able to perform the work required, only Leidos Corporation, through the DES contract, is positioned to support the time-critical needs of NDU today.

Leidos Corporation is inimitably positioned to support NDU’s requirement to evolve their IT enterprise through leveraging shared improvements for IT service delivery that are implemented

Page 4 of 7 Pages throughout the Fourth Estate. By leveraging the DES contract, NDU will reap a return on investment by reducing unique systems and architectures, improving automation, eliminating human decision points, and utilizing the most efficient IT solutions available in the sector.

Leidos Corporation is the only contractor capable of performing these requirements in an economically viable manner without introducing schedule delays that would impact NDU’s mission. Further, NDU’s requirements match the exact intended performance requirements of the existing DAFAs.

(a) Description of Events.

No previous contracting history for this requirement exists. NDU’s requirement is new based on operational need and not been previously competed in any form. In Fiscal Year 2022, NDU leadership directed the NEIS staff to align all applicable IT assets and services with the rest of the Fourth Estate and leverage the best possible solutions and providers for this convergence. In doing so, the NEIS team identified the 4ENO effort and the DES contract as the only ongoing effort to enhance, operate, and sustain the Fourth Estate IT environment.

(b) Justification.

(1) Minimum Government Requirements. The Government requires contractor support to perform expert analysis, make recommendations for improvement, and execute/implement said improvements to NDU’s IT enterprise to support NDU’s educational mission. The work consists of technical support across the span of IT assessment cycles from concept, planning, coordination, and execution through data collection, adjudication of findings, analysis, and reporting. Technical support will also be required to architect solutions, provide implementation plans, execute solution deployments, and operate/sustain IT capabilities ranging from enterprise infrastructure, cloud application access, audio/visual technologies, end user devices, and IT support services and processes.

(2) Proposed Sole Source Contractor.

Leidos Corporation 1750 Presidents Street Reston, VA 20190

(3) Discussion Regarding Cause of the Sole Source Situation.

Though this requirement has never been previously acquired, the timeliness of the DES acquisition and NDU’s identification of their requirement’s urgency to their mission success necessitates a sole source situation and Leidos Corporation as the only viable contracting solution. NDU’s enterprise IT environment closely resembles the rest of the DAFAs identified in scope of the DES contract as awarded, in that common use IT services, technologies, and delineations between commoditized and unique IT capabilities exist. No other contract exists with a viable scope to meet

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NDU’s requirements like the DES contract; no changes to performance objectives in DES are necessary for NDU to meet their requirement.

Additionally, by leveraging the DES contract, NDU’s common use IT network will be aligned to the DoD’s Fourth Estate in terms of quality of service while also achieving cost avoidance through shared IT services with the rest of the Fourth Estate.

(4) Impact. Based on NDU’s urgency to perform an assessment of their IT enterprise and develop a roadmap to evolve their network and services, a competitive acquisition is not a viable solution; the FY23 NEIS accreditation is at risk of not achieving Authority to Operate if network and service enhancements are not rapidly identified and deployed. Furthermore, any delays in supporting the NDU IT enterprise will cause compounding degradation of IT services for NDU’s students and educational partners, including service outages, increased costs to support legacy or end-of-life technologies, and inaccessibility of modern educational tools.

Additionally, delays to provide contracted services will inflict a ‘technical debt’ on the Government because of unresolved inadequacies in NDU’s existing IT services. A protracted schedule to award a competitive contract presents an unreasonable level of risk to NDU’s network.

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES: No previous announcement has been publicized for this modification action. In accordance with FAR 6.305, this J&A will be posted to the Government Point of Entry, SAM.gov, within 14 days of award.

7. DETERMINATION OF FAIR AND REASONABLE COST: Not applicable. This contract action will not impact the existing DES ID/IQ ceiling value, nor the established labor rate pricing, which was previously evaluated and determined to be fair and reasonable based on adequate price competition. Task orders issued in support of NDU requirements will be individually negotiated in accordance with the terms and conditions of the DES ID/IQ contract.

8. MARKET RESEARCH: Market research for this requirement was conducted in November 2022 and indicates there are no new sources that can execute the required services, as described in Section 6 of this document. Market research included the following activities: (1) review of previous market research and acquisition history for similar requirements; and (2) review of changes to industry application of commoditized IT services.

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In summation of the current market research, no new sources are capable of supporting this requirement and only Leidos Corporation can fully meet the Government’s need within the required time frame. A competitive award for this requirement presents undue cost, schedule, and performance risk to NDU as prescribed in Section 5(b)(4) of this document and therefore not an economically feasible alternative.

In accordance with DFARS PGI 206.302-1(d), the DISA Head of the Contracting Activity approved a waiver to the requirement to post a sources sought announcement or request for information to SAM.gov prior to executing this J&A.

9. ANY OTHER SUPPORTING FACTS: None .

10. LISTING OF INTERESTED SOURCES: None.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History. N/A.

(b) The 4ENO Program Office is charged with managing the common use IT SSP environment, which oversees the standardization of the Fourth Estate IT through the services acquired by the DES contract. The Program Office has determined that the DES contract is the only current contract vehicle capable of meeting NDU’s requirements while achieving IT standardization and driving cost efficiencies.