JA_Sig_page_2_R1_Redacted.pdf

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION

REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule (MAS)/ Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, Department of Defense FAR Supplement (DFARS) 216.505-70, Procedures, Guidance and Information (PGI) 216.505-70

Contract Number: HC1047-13-D-4003 Task/Delivery Order Number: 0004 Procurement Title: DISA CONUS IT Fit Out Contracting Office: Defense Information Technology Contracting Organization – National Capital Region / Procurement Services Directorate / Services & Services Development Contracting Branch (DITCO–NCR / PL6 / PL62) Estimated Value of Modification:

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA16-020

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate, hereby approve this exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Activity: Defense Information Systems Agency, Information Technology Service Division, Code: SE64, Attn: Nermeen Kava, P.O. Box 549, Ft. George Meade, MD 20755

Contracting Office: Defense Information Systems Agency, Defense Information Technology Contracting Organization, Code: PL62, Attn: Kane Leedy, P.O. Box 549, Ft. George Meade, MD 20755

2. NATURE/DESCRIPTION OF ACTION(S):

a. Type of Action: Firm Fixed-Price (FFP)

b. Nature of Action: Modification to increase the Other Direct Cost (CLIN 0005) for equipment needed to support the services rendered under the Task Order

c. Period of Performance (POP): September 30, 2015 – September 29, 2016

d. Estimated Value of Modification:

e. Type of Funding: DWCF Operating Funds

f. Year of Funding: Fiscal Year 2016 (FY16)

DISA CONUS IT Fit Out-JA16-020

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3. DESCRIPTION OF SUPPLIES/SERVICES:

The purpose for this action is to obtain approval to increase the ceiling for CLIN 0005 – Other Direct Costs by on the DISA CONUS IT Fit Out effort performed by Chameleon Integrated Services under contract HC1047-13-D-0004, Task Order 0004. The modification will increase the order value from . The required ceiling increase will allow the Government to obtain the hardware / software required to stand up all aspects of the network in the new DISA CONUS building located at Scott Air Force Base.

An equipment list was provided by the Government as part of the solicitation and was based on the Government’s estimate of the required equipment necessary to stand up the network. This equipment list was provided as part of the Request for Proposal (RFP) for the purposes of proposal and with the understanding that the final equipment list would be based upon a site survey to be performed after award. Chameleon Integrated Services was the only offeror that proposed to this effort and was ultimately awarded the Task Order. After the site survey was performed, the contractor submitted and worked with DISA engineers on a design for the classified and unclassified Local Area Network (DISANet) including voice over internet protocol (VOIP) services, Gigabit Passive Optical Network (GPON), and Yellow Local Area Network (YLAN). This resultant design generated an equipment list that exceeded the original estimates provided by the Government during the solicitation phase; however, the equipment list maintained the same design integrity the Government anticipated during the RFP process of this effort.

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)(C) - The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

(b) Description of the Justification. Under DISA IT Enterprise Support Services contract vehicle, a task order was awarded to Chameleon Integrated services to support the DISA CONUS IT Fit Out. The current task requires that the contractor provide the necessary hardware, materials, tools and technical services required for the successful accomplishment of the requirements and tasks set forth therein. The contractor is responsible for the purchase, design, installation, configuration, setup, and testing of identified command, control, communications, and computer (C4) systems, network and functional support to the new DISA CONUS facility located at Scott Air Force Base, IL.

This award occurred after an RFP was advertised to all prime contractors on DISA’s Information Technology Enterprise Support Services (DESS) multiple award indefinite delivery / indefinite quantity (ID/IQ) contract. Chameleon Integrated Services was the only offeror that proposed on this effort. Their proposal was evaluated based on Technical / Management Approach and Price/Cost Factors. Chameleon Integrated Services’ proposal

Page 3 of 8 Pages was determined to be technically acceptable, fair and reasonable and to provide the best value to the Government.

The Government provided a list of equipment, as part of the solicitation, which included the specific makes and models of equipment that would be needed to be procured, installed and configured by the contractor. Based solely on the equipment list provided by the Government, the contractor proposed an equipment list that DISA subsequently evaluated and accepted. However, after the task order was awarded, Chameleon Integrated Services conducted a site survey based upon the requirements specified in the Performance Work Statement (PWS) and had several technical discussions with the Government engineers. Based on the site survey and the design sessions, a new list of equipment was generated by the contractor and accepted by the Government. The list of equipment to be procured exceeded the original Government estimate for several reasons as delineated below.

1. When the Government developed its original equipment list and estimate, it included equipment makes and models that are already being used on the network. However, this equipment is now approaching end-of-life, and the original equipment manufacturers and their authorized resellers will not support the equipment in a year or two. Therefore, the equipment makes and models provided on the Government’s equipment list as posted with the RFP are considered obsolete. The requirement in the current contract is to have equipment that has at least 5 to 7 years of shelf life with original equipment manufacturers. Chameleon Integrated Services met this contractual requirement by suggesting the utilization of the next generation of the network infrastructure equipment that was listed on the Government’s original equipment list.

The newer models of equipment come at a significant cost increase.

2. During the site survey of the new facility, several needs were identified that were not part of the Government’s original equipment list including the need of additional cables, routers and switches. This additional equipment did not deviate from the original scope of work described in the PWS; however, it resulted in an increased cost of the equipment to be procured under the task order.

For the aforementioned reasons, the Government needs to increase the amount of ceiling and funding on the current Other Direct Costs (CLIN 0005) to allow the contractor to order all equipment required.

(c) Justification.

(1) Minimum Government Requirements.

The agency’s minimum requirements for equipment to support current tasks for DISA CONUS IT Fit Out are as follows:

Equipment must meet or exceed DISANet standards based on the equipment list provided to the contractor during the RFP process

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Equipment must accommodate growth and reach its expected end of life no earlier than 5 years after the first day of the purchase The equipment must support compliance with Federal Information Processing Standards (FIPS), IPV4/6 and SNMP v.3 Equipment must be easy to manage Mean Times Between Failures of equipment follow industry standards

(2) Proposed Sole Source Contractor.

Unitech Consulting, LLC DBA Chameleon Integrated Services 3207 Washington Ave St. Louis, MO 63103-1218

(3) Discussion Regarding Cause of the Sole Source Situation. The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order which was competed and awarded under the DESS ID/IQ contract, provided that all awardees were given a fair opportunity to be considered for the original order. The current contract with Chameleon Integrated Services was awarded on September 30, 2015. Fair opportunity was provided to all 4 prime contractors on the DESS ID/IQ contract for them to compete on this effort. An equipment list was provided by the Government as part of the solicitation and was based on the Government’s estimate of the required equipment necessary to stand up the network. This equipment list was provided as part of the RFP for the purposes of proposal and with the understanding that the final equipment list would be based on the site survey after award as stated in the PWS. Chameleon was the only offeror that proposed to this effort and were ultimately awarded the task order.

The Other Direct Costs (CLIN 0005) increase is based on the site survey that was conducted by Chameleon Integrated Services for this effort after award. Chameleon Integrated Services is already under contract to procure and install IT equipment for the new DISA CONUS facility at Scott Air Force Base, IL and procuring the equipment from other resellers will hinder the ability of Chameleon Integrated Services to meet their contractually obligated deadlines to completion of installation under this task order. Schedule delays have a direct correlation to costs incurred by the Government on a daily basis. If Chameleon Integrated Services fails to implement in accordance with the schedule parameters identified in the task order, the Government will not be able to move the users to the new building per schedule, which is estimated to cost the Government at least daily for each day the move is delayed. The new equipment list developed by Chameleon Integrated Services’ engineers and approved by the Government is based upon a detailed site survey and the equipment satisfies current industry standards and is fully compatible in the DISANet network infrastructure. Further, introduction of another contractor into this process would result in the need for another site survey and an additional network design which has already been procured from Chameleon Integrated Services.

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The additional costs associated with procuring the services and equipment from another contractor would not be recuperated through a competitive process and the schedule slippages that would occur would be untenable.

(4) Demonstration of Logical Follow-on. This is a logical follow-on to an order already issued under the DESS ID/IQ contract and must be issued sole source for the purposes of efficiency and economy. Failure to increase the Other Direct Costs (CLIN 0005) will result in Chameleon Integrated Services not being able to satisfy the current contract obligation of procuring, implementing and configuring all IT aspects in the new DISA CONUS facility. If DISA decides to repeat the solicitation process again, this will cause a significant delay in the current schedule of moving users to the new building. This delay will also have significant cost impacts and additional costs will be incurred as a second site survey would need to be conducted and the government would effectively be paying for the design twice.

(5) Procurement Discussion. The agency currently has an existing task order with Chameleon Integrated Services under the DESS ID/IQ contract vehicle which includes Other Direct Costs (CLIN 0005) for procuring all required equipment.

Chameleon Integrated Services is obligated to procure, design, configure and install all network aspects within the new DISA CONUS facility no later than June 1, 2016.

The Government is under a schedule constraint for outfitting the new DISA CONUS facility. The network infrastructure must be implemented, accredited and operational no later than June 1, 2016 to make the building fit for all the users scheduled to move on June 1, 2016. Any delay in the network implementation would result in a delay for the users move date. This will cost the Government significant amount of ramifications to include not being able to vacate current buildings in a timely manner to satisfy other MILCON contractors.

(6) Impact. Failure to increase the ceiling of the Other Direct Costs (CLIN 0005) of the current task order with Chameleon Integrated Services will adversely impact DISA’s schedule for fully implementing the network within the new DISA CONUS facility at Scott Air Force Base, IL. Failure to increase the current ceiling will jeopardize the ability to move users to the new DISA CONUS facility on or about June 1, 2016.

Without network infrastructure, DISA users at DISA CONUS will not be able to process their day-to-day functions or maintain operations. If a delay occurs in moving users, this will impact DISA negatively, because the current lease will be expiring shortly and DISA will have to pay fines for schedule delays in order to keep users in current buildings and not move them to the new DISA CONUS facility. The fines associated with a schedule delay are estimated to be per day.

In addition, failure to increase the ceiling of the Other Direct Costs CLIN will jeopardize the contractor’s ability to provide the Government the network, per the design, that was agreed to. This will impact accreditation of the network, current delivery schedule and several other tasks within the scope of this task order.

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Introduction of an alternative solution from another manufacturer would have an adverse impact on DISA’s ability to provide fully functional network services in a timely manner for all DISA CONUS users in the new DISA CONUS facility.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The contracting officer will make a determination that prices are fair and reasonable. The contracting officer will determine whether the proposed price of the equipment is fair and reasonable based upon comparison of proposed prices to the previously evaluated Independent Government Cost Estimate (IGCE), and available price lists for similar products.

6. MARKET RESEARCH:

Market research was conducted November 1, 2015 through December 21, 2015 by a government technical representative in DISA CONUS along with representatives from DISA’s Services Directorate (SE). The market research was conducted out of a need to obtain equipment for the network infrastructure and all IT aspects in the new DISA CONUS facility. As a result of the market research, no other companies will be able to provide the equipment required in a timely manner without severely impacting schedule of moving users to the new facility and imposing significant increase in cost to the Government. Chameleon Integrated Services is the only contractor capable of implementing the approved design of the network and purchasing the equipment that was agreed upon with the Government within the established time constraints.

The Government conducted a site survey with Chameleon Integrated Services and their partners and the equipment included in the results of that site survey fall in-line with current industry standards for similar architectures. This solution is future-proof for 5-7 years and will allow for any future growth of the supported mission.

7. ANY OTHER SUPPORTING FACTS:

Not applicable.

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

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History.

(1) Contract Number: HC1047-13-D-4003, Task Order Number: 0004, awarded September 29, 2015

(2) Current contract Base + Options =

Task 1: Task Management Task 2: Implement Unclassified and Classified DISANet Task 3: Implement Unclassified Voice Over Internet Protocol (VOIP)

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Task4: Implement Gigabit Passive Optic Network (GPON) for Unclassified DISANet, Classified DISANet and YLAN

CLIN 0002 (Labor – Optional Task 5) - Option (not exercised/funded) Task 5 Implement YLAN

CLIN 0003; Labor – Optional Task 6- Option (not exercised/funded Task 6 Operational / Move Support

CLIN 0004; Labor – Optional Task 7-; Option (not exercised/funded Task 7: Implement Wireless Local Area Network (WLAN)

CLIN 0005 (Equipment) - ) Purchasing equipment for all tasks mentioned above

CLIN 0006 (Travel) - )

(3) Modification Estimate: The Government estimates that Other Direct Costs (CLIN 0005) will increase from as a result of this modification.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): This effort does not meet the threshold requirement for an approved Acquisition Plan in accordance with DARS

7.103 (S-91)(h).