JA_Redacted.pdf
PDF 379 KB Posted
- Attached to
- Multi-Factor Authentication Support Services
- Solicitation number
- HQ003425E034
- Issued by
-
DOD Washington Headquarters Service
About this file
This document is a Sole Source Justification under Simplified Procedures for a federal contract issued by the Department of Defense Washington Headquarters Services. The contract is for Multi-Factor Authentication Support Services with Lastwall Corp, valued at an estimated amount through May 14, 2026. The Defense Innovation Unit (DIU) is seeking next-generation Internet Security Systems focused on innovative authentication methods, with specific requirements for customized applications and services to enhance cybersecurity infrastructure.
The sole source justification is based on Lastwall Corp's unique capabilities, including proprietary data and being the only vendor compatible with DIU's current IT infrastructure. Market research identified no alternative suppliers, and a Notice of Intent to sole source produced no competitive responses. Previous contracts with Lastwall include a 2018 prototype contract and a 2021 Blanket Purchase Agreement. The government estimates switching vendors would result in approximately $50 million in duplicative costs. The contract will be awarded using Fiscal Year 2025 Research, Development, Test & Evaluation funds, with a performance period from May 15, 2025 through May 14, 2026, under NAICS code 518210 for Computing Infrastructure Providers.
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Lastwall Corp owns the proprietary data, does not have authorized resellers and is the only company that provides the next generation internet security service and system that is compatible with DIU�s current IT infrastructure. Failure to award this contract to the incumbent, Lastwall Corp, would result in substantial duplicative costs to the Government, estimated in the amount of $50 million which is not expected to be recover through competition. The duplicative cost includes the cost of procuring and developing new customized tools and systems compatible with DIU unique IT infrastructure. The potential cost of $50 million to re-procure a new prototype for a secure IT authentication environment is not in the Government�s best interest. Further, if the Justification is not approved, the delay in projects will leave DIU infrastructure vulnerable to cybersecurity attacks.
6. EFFORTS TO OBTAIN COMPETITION: A Notice of Intent to sole source Lastwall Corp. was issued on SAM.gov March 21, 2025, for eight calendar days until April 2, 2025. The posting produced no responses showing interest in the requirement.
7. FAIR AND REASONABLE COST DETERMINATION: The Contracting Officer will determine whether the anticipated prices will be fair and reasonable by using the techniques identified at 13.106- 3(a)(2)(ii)(vi). The Government will conduct a comparison of the proposed prices to the independent cost estimates. Certified Cost and Pricing Data is not required.
8. MARKET RESEARCH: Market research was conducted by reviewing previous and current contracts awarded for Multifactor Authentication Support Services. In July of 2016, DIU conducted a largescale self-funded competitive acquisition process through its CSO process to prototype the best possible multifactor authentication system needed to enable DIU�s unique mission set. Lastwall was awarded the prototype contract utilizing an Other Transaction Agreement (OTA). After successful prototype development Lastwall was awarded the production contract. Through this partnership Lastwall has developed customized software and modules specific for DIU�s Security environment that provides MFA Support to DIU to integrate with DIU�s customized security environment.
DIU successful prototype led to Lastwall being awarded a production contract HQ0034-18-C-0094 on August 29, 2018, with a 12-month base period and two 12-month option periods, the contract that ended on August 28, 2021.
On August 31, 2021, Washington Headquarters Services Acquisition Director awarded a sole source Blanket Purchase Agreement (BPA) HQ0034-21-A-0012 under NAICS 518210 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (Size Standard: $35M) to Lastwall Corp (CAGE: 7KWJ4), a small business concern, with a five-year ordering period from August 31, 2021 through August 30, 2026 with maximum ceiling of all call orders issued from the BPA to not exceed $6,800,000.00. Five call orders have been issued from the BPA that totaled $6,593,750.00, leaving the remaining ceiling of $206,250.00 insufficient to fulfill the current requirement.
Current market research was conducted to identify potential suppliers of the Multifactor Authentication Support Services. The Government identified three potential Multifactor Authentication suppliers, Jumio Corporation, OneLogin, Inc., and Otka Inc. However, all were incompatible with DIU�s current IT authentication infrastructure. Further efforts to identify potential suppliers were made by posting a Notice of Intent to sole source to Lastwall Corp. on www.sam.gov on March 21, 2025, for eight days. The posting produced no responses showing interest or objecting to the sole source of the requirement.
9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: Pursuant to FAR 13.5 under the authority of 41 U.S.C. 1901, Simplified Acquisition Procedures, Lastwall Corp. developed the current DIU security platform; therefore, continued development utilizing any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.
10. INTERESTED SOURCES: To date, no other sources have expressed an interest in this requirement
11. ACTIONS TO INCREASE COMPETITION: For future requirements of similar products, the Government will evaluate alternative products if supported by market research and the agency determines that alternative products are 100% compatible with Diu�s mission and provide additional benefits to the Government such as cost savings and/or performance efficiencies.
Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis?
Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification were were not completed
No. The original acquisition was conducted on a competitive basis.
Not Applicable. This is a new requirement.
CERTIFICATION
I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.
APPROVAL
I, herby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.
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