JA_MOD 01_HC105024F0013_Redacted.pdf

Controlled By: DISA Controlled By: PS85(Provisional) 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 FAR Supplement 216.505-70, Procedures, Guidance, and Information 216.505-70

Military Interdepartmental Purchase Request Number: F2DCAC4023G002 Joint Warfighting Cloud Capability (JWCC) Contract Number: HC105023D0003 Task Order Number: To Be Determined Procurement Title: Combat Survivor Evader Locator (CSEL) Next Generation Survival Radio (NGSR) Production and Development Estimated Value: (MOD 01) = Statutory and Regulatory Authority: 10 United States Code (U.S.C.) 2304c(b) and FAR 16.505(b)(2)(i)(B)

EXCEPTION TO FAIR OPPORTUNITY

Number: Not Applicable

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. 2304c(b) and Regulatory Authority of FAR 16.505(b)(2)(i)(B).

1. REQUESTING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

U.S. Air Force (AF)/Air Force Life Cycle Management Center AFLCMC/Digital Directorate - Aerospace Dominance Enabler HBZBG 6049 Wardleigh Rd, Bldg 1205 Hill AFB, UT 84056

Contracting Activity:

Defense Information Systems Agency/Defense Information Technology Contracting Organization/PS85 - Provisional

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

2. NATURE/DESCRIPTION OF ACTION(S):

MOD 01: The initial independent government cost estimate (IGCE) was created without carefully considering the cost increases from historical consumption usage, including the use of 50% surge using the same historical costs ( ), and cloud support for UNCLASSIFIED (CLIN 0002), which was inadvertently not included in the original

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IGCE which resulted in an increase of , these additions raised the value from

This action is to issue a firm-fixed-price task order (TO) against the JWCC Indefinite Delivery/Indefinite Quantity Contract for CSEL NGSR Prod/Dev. This TO will be issued directly to Microsoft Corporation. The anticipated period of performance (PoP) is for a 1-year base period. The total estimated value is (MOD 01 updates the estimated value to

) of which the base period will use FY24 Procurement funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

Build a new cloud native Platform as a Service (PaaS) in an Impact Level 4 (IL4) and IL6 environment across dual geographically separated areas to support the NGSR.

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.

This program requires a cloud native IL6 Secured internet protocol router (SIPR) capable environment with dual geographically separated data centers as dictated by the program Operational Requirement(s) Document (ORD).

(c) Justification.

(1) Minimum Government requirements.

The cloud service offerings must continue at their current level in order to support mission critical rescue operations. System requirements include High Availability (HA) architecture with 99.99% up time, and separate Data Centers in different geographically separated regions with access to SIPR.

These offerings include two cloud native IL6 (SIPR) capable environments with dual geographically separated data centers.

(2) Proposed sole source contractor. Microsoft Corporation

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

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The only source capable of performing the CSEL NGSR Prod/Dev at the level and quality required is Microsoft, based on Geographically separated data centers supporting IL6 (SIPR) environment that is unique to Microsoft. This feature is essential to the Government’s requirements due to the HA and critical nature of the program to perform search and rescue in the field. Other CSPs do not meet, nor can be modified to meet, the Government’s requirements due to not having a second region with IL6 (SIPR) environment.

(4) Demonstration of unique source.

The only source capable of performing the CSEL NGSR Prod/Dev at the level and quality required is Microsoft, based on Geographically separated data centers supporting IL6 (SIPR) environment that is unique to Microsoft. This feature is essential to the Government’s requirements due to high availability and critical nature of the program to preform search and rescue. Microsoft possesses the knowledge, skills, capabilities, certification, clearance, and experience required to continue the program without a break or degradation in critical mission services. Given the critical search and rescue mission requirements, Microsoft is the only contractor that is capable of performing the necessary services for the DoD within the current required timeline. There are also schedule restrictions that require the use of Microsoft. The current environment used is legacy and the hardware is outdated in addition to network degradation and planned equipment becoming obsolete.

(5) Procurement discussion. None.

(6) Impact.

Without a geographically separated environment the 99.99% required High Availability (HA) would be at an unacceptable risk of not being able to support the warfighter as dictated in the program ORD and provide the critical search and rescue functions needed.

The Cloud is part of a search and rescue system to support the warfighter. By not having High Availability it puts the warfighter at risk and the entire search and rescue emergency system will not operate.

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 November 9, 2021. After a survey of the market, it was concluded that the

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JWCC Contract is in the Government’s best interest due to technical feasibility and cost to the Government.

Additional research was conducted in October 2023 by reviewing the specific capabilities in the JWCC Contracts and it was determined that Microsoft is the only source capable of fulfilling the Government’s minimum needs. Review of several contract vehicle options were done, and Microsoft JWCC was the only CSP that would reach all the CSEL NGSR ORD requirements based on the Data Center locations.

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: None

(b) To overcome future barriers to competition, future development and enhancement of

Infrastructure as a Service components will include shifting to a containerized platform in order to enable the flexibility to shift workload based on financial and mission requirements.