JA21-053 - Cisco JELA III_Redacted.pdf

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

Purchase Request Number: To be determined (TBD) Contract Number: TBD Procurement Title: Cisco Joint Enterprise License Agreement (JELA) III Estimated Value:

Statutory Authority: 10 U.S.C. §2304(c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

OTFAOC Number: JA21-053

Upon the basis of the following justification, I, as the Senior Procurement Executive, 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.§2304(c)(1) and FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

(a) Requiring Agency:

Defense Information Systems Agency (DISA)

6910 Cooper Avenue Fort Meade, Maryland 20755

(b) Contracting Office:

DISA/Defense Information Technology Contracting Organization (DITCO) – Scott

2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

(a) The nature of this action is to procure brand name Cisco Smart Net Total Care (SNTC) support and Software Support Services (SWSS) for users across the Department of Defense (DoD). The new contract will perpetuate existing coverage currently provided under Cisco JELA II, HC1084-19-D-0004. The defense agencies have come together to leverage their user base and achieve better buying power, in accordance with the initiative set forth by the Under Secretary of Defense for Acquisition and Sustainment. The recommendation is to execute a firm-fixed-price single award, indefinite delivery/indefinite quantity (IDIQ) contract to Cisco Systems, Inc. (Cisco) or one of its certified gold partners, using open market procedures.

(b) The period of performance for the contract will consist of a 1-year base period, estimated to begin on June 21, 2021 and includes two 1-year option periods, for a total contract life of three years. The total lifecycle value for this requirement is estimated at utilizing primarily Operations and Maintenance funding. The minimum guarantee for the IDIQ is $2,500

Cisco JELA III-JA21-053

Page 2 of 8 Pages and will be satisfied by the issuance of the first task order. All funding will be obligated by the issuance of task orders. The applicable North American Industry Classification System code is 511210, Software Publishers.

3. DESCRIPTION OF SUPPLIES/SERVICES:

(a) The Government requires an enterprise solution for SNTC and SWSS coverage for over $7B in Cisco assets and future assets for all of DoD. The scope of the proposed contract addresses SNTC and SWSS maintenance for the known baseline inventory of Cisco products and future Cisco assets, which are deemed necessary. SNTC and SWSS is needed in order to obtain necessary patches, updates, and fixes to prevent security vulnerabilities, hardware maintenance support, and hardware replacement for DoD’s inventory. Hardware replacement is required in the event a device fails.

(b) The scope of this requirement shall cover the entire DoD including the Office of the Secretary of Defense, DoD agencies, Military Departments (MILDEPs), and the Combatant Commands (COCOM). This also includes agencies that a MILDEP is the Executive Agency and/or is a COCOM Support Agent as defined by DoD Directive (DoDD) 5100.03 and identifies as part of their organization’s baseline install base value.

The maintenance and support coverage of this requirement applies to the Continental United States (CONUS) and Outside the Continental United States (OCONUS) sites via remote access. Physical site support on premises will be at the contractor’s discretion and in coordination with the local Government customer. On premises support will exclude locations deemed as high risk or declared a combat zone.

(c) The DoD has made a significant investment in the current installed Cisco infrastructure.

Cybersecurity requirements mandate that each device operating on the DoD network has the latest software updates to defend against potential security vulnerabilities. In addition, hardware replacement in the event a device fails is also required.

(d) In accordance with the National Defense Authorization Act for Fiscal Year 2017, all software agreements over must have an asset management tool to track all software and hardware inventory. Cisco or Cisco certified gold partners shall provide an asset management tool for capturing and displaying the total Cisco inventory for each enrollee.

(e) The minimum Government needs that Cisco JELA III must include in Cisco SNTC support and SWSS are: updates, revisions, error detection and correction, and rights to new releases and/or versions. The end objective of this acquisition is to ensure DoD’s secured network is not compromised. It is critical for Cisco devices to be kept current with the latest software updates and patches, which are only available through the Cisco SNTC and SWSS. Purchase of Cisco SNTC and SWSS is the only available option for meeting these requirements. In addition, software that is eligible for Cisco SNTC is entitled to major and minor upgrades. Cisco SNTC meets the DoD’s cybersecurity requirements to support the installed original equipment manufacturer (OEM) hardware and software equipment as described below:

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1) Technical Assistance Center: Provides engineering support which allows DoD customers to receive telephonic troubleshooting 24 hours a day, seven days per week, 365 days per year, with certified Cisco network experts in voice, video, and data communications networking technology.

2) Cisco.com website: Provides 24-hour access to the online product and technology information, interactive network management, and troubleshooting tools.

3) Internetwork Operating System (IOS) Software: Provides major and minor updates for licensed IOS feature sets. This allows the DoD to extend the useful life of its hardware investment by increasing current functionality and ensuring compliance with network security policies and regulations. These updates are proprietary in nature and will extend the equipment life cycle by remediating security vulnerabilities or expanding product capabilities through IOS upgrades.

4) Advanced Hardware Support: Provides 24 hours a day, seven days a week, next business day replacement of defective hardware, minimizing potential network downtime. This feature replaces existing hardware with OEM hardware delivered through a secure supply chain, preventing the possibility of counterfeit or grey market devices compromising the DoD’s network security posture.

5) Smart-Entitled Capabilities: Provides all support for customer’s smart-entitled capabilities, including access to the portal and the collector software. Smart capabilities are delivered through the Cisco Services Connection portal, providing actionable information and automation to support the Cisco products.

Customizable screens show up-to-date information about the service coverage, product lifecycles, and security and product alerts that apply to the network.

The DoD has an extensive footprint of Cisco brand name products that are installed throughout the DoD networks and infrastructure. SNTC support and SWSS is required in order to obtain the necessary patches, updates, and fixes to mitigate security vulnerabilities. Hardware maintenance and hardware replacement for DoD’s inventory is also required. In order to ensure the security of the DoD network is not compromised, it is critical for Cisco devices to be kept current with the latest IOS updates and patches, which are only available through the Cisco SNTC support.

Purchase of Cisco SNTC and SWSS support is the only available option for meeting these requirements. The DoD does not possess the expertise nor have access to the proprietary Cisco network to provide the required support internally. DoD is required to maintain the current level of services, eliminate duplication, and reduce the licenses/support costs of the existing inventories. The new Cisco JELA III will be an IDIQ contract with a ceiling of .

The contract will allow DoD Enrollees to obtain an agency-level delivery order for Cisco SNTC support and SWSS.

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4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source, and no other supplies or services, will satisfy agency requirements.

This acquisition is conducted under the statutory authority of 10 U.S.C§2304(c)(1) and the regulatory authority of FAR 6.302-1.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events:

Cisco’s hardware and software are fully implemented and integrated into DoD’s architecture and has been for more than 17 years. DoD’s Cybersecurity regulations require each device operating on the network to have the latest software updates to defend against potential security vulnerabilities, and functional areas require software and hardware replacement in the event that a device fails. The purchase of proprietary SNTC support and SWSS is required to meet DoD regulations

Software updates are proprietary in nature and will extend the equipment life cycle by remediating security vulnerabilities or expanding product capabilities. Cisco SNTC support and SWSS can help extend the useful life of its hardware and software capabilities.

(b) Justification:

1) Minimum Government requirements.

See paragraph 3(a)-(e) above.

2) Proposed sole source contractor.

Not Applicable, this requirement will be open to Cisco and all Cisco certified gold partners.

3) Discussion regarding cause of the sole source situation.

Not Applicable.

4) Impact.

Cisco is the OEM for Cisco SNTC support and SWSS. Cisco owns all proprietary rights to the source code for hardware and software. Only Cisco or its certified gold partners can provide Cisco SNTC and SWSS support. Accordingly, no other vendor or distributor can legally obtain access to the software; nor can they make duplicate copies, since it is protected by copyright and patent laws. Nearly all Cisco hardware is operated by an IOS which allows the user to configure the equipment, control the flow of information, and establish security protocols. The IOS updates are mandatory

Page 5 of 8 Pages for ensuring the DoD security posture. As with most IT equipment, the Cisco equipment, which is currently installed throughout DoD, requires frequent updates to patch security vulnerabilities. The devices cannot be legally patched without Cisco SNTC support and SWSS. All critical vulnerability assessments require immediate remediation; and lack of Cisco SNTC support and SWSS would prevent DoD from applying the necessary patches in a timely manner, creating significant security implications. Access to additional resources for problem troubleshooting will minimize network outages and ensure security of the data being transmitted. Failure to patch affected systems will violate policy DoDI 8531.01, dated September 15, 2020, as well as other related military department polices, and could result in service disruption and a breach in network security. Due to the criticality of the equipment, as security vulnerabilities are identified, updates to the IOS must be made. If the network failed due to hardware and software failure, day-to-day work functions, online collaboration, video teleconferencing capability, and command and control of forces in the field would be severely degraded.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A combined solicitation/synopsis for this requirement will be published on the Federal Business Opportunities website, as required by FAR 5.2.

7. DETERMINATION OF FAIR AND REASONABLE COST:

A determination will be made by the contracting officer that the contract represents the best value to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price and administrative costs) to meet the Government's needs. The contracting officer will also determine the pricing information valid for comparative purposes.

Certified cost and price data is not required for this commercial item acquisition, in accordance with FAR 15.403-1(b) (3). The contracting officer will determine whether the price is fair and reasonable, based on one or more of the following:

(a) Comparison of proposed prices received in response to the solicitation;

(b) Comparison of the proposed prices to historical and existing prices paid, whether by the Government or other than the Government, for the same or similar items;

(c) Comparison with competitive published price list, published market prices of the same commodities;

(d) Comparison of proposed prices with the independent Government cost estimates.

8. MARKET RESEARCH:

(a) Market research was conducted for this procurement from July 2020 through February 2021. Market research included gathering data from previous acquisitions, reviewing current contracts, internet searches, reviewing catalogs and other contractor literature, Page 6 of 8 Pages contacting the manufacturer and authorized resellers, conducting internal discussions, reviewing existing DISA-wide contract vehicles and other government-wide acquisition contracts, and determining potential sources.

(b) The first step taken in conducting market research in support of this requirement was to determine if there were any alternative solutions in support of maintenance for DISA’s installed Cisco hardware. A request for information was posted to beta.SAM.gov and five responses were received. Of the five responses, only three respondents provided an alternate solution using a managed service that would still require Cisco SNTC support.

The other two respondents did not address all the information provided in the RFI.

Furthermore, due to Cisco’s proprietary rights, no one can patch updates to the currently installed software. Therefore, it was determined that the alternate solutions were not capable of meeting the Government’s needs.

(c) Market research also revealed that software support/hardware maintenance for Cisco products is only available from Cisco or an authorized reseller through their commercial offering of SNTC support and SWSS. Given Cisco and its certified gold partners have specialization requirements, including advanced unified communication, advanced routing and switching, advanced security, and advanced wireless local area network equipment, this requirement will be solicited for Cisco or Cisco’s certified gold partners.

The SNTC support and SWSS are being provided 100 percent by Cisco, a large business.

Given that Cisco has over 169 certified gold partners, both large and small, and there are no subcontracting possibilities that exist, it is recommended that this requirement be procured via the open market and open to Cisco and its large and small certified gold partners.

(d) Based on recent market research, it has been determined that only Cisco branded SNTC support and SWSS can fully support the Government’s need. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions. For example, an alternative approach may be pursued if there are similar products and/or product support in the marketplace that provide the same functionality, the OEM releases ownership rights of product, or it is economically feasible to procure a new system.

9. ANY OTHER SUPPORTING FACTS:

None

10. LISTING OF INTERESTED SOURCES:

The following sources have expressed interest in writing (electronically):

(a) Cisco Systems, Inc.

170 West Tasman Drive San Jose, California 95134

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(b) Pomeroy Technologies, LLC 1020 Petersburg Road Hebron, Kentucky 41048-8222

(c) Tredent Data Systems Inc.

31312 Via Colinas, Suite 106 Westlake Village, California 91362-6842

(d) Grand Slam Universal 1321 Murfreesboro Road, Suite 521 Nashville, Tennessee 37217

(e) IBM Global Services 2300 Dulles Station Boulevard Herndon, Virginia 20171-6133

(f) Tribal Enterprises (TCN-FBF) 996 Avenue of Nations Rock Hill, South Carolina 29730

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History: The current Cisco JELA II single award IDIQ contract is HC1084-

19-D-0004. The IDIQ was awarded to Cisco Systems in June 2019 for a one year base and one 1-year option period with a ceiling of . Currently, there are 20 DoD agencies receiving support under the Cisco JELA II contract. The previous procurement history of the Cisco JELA is outlined below:

Contract Number: HC1028-14-D-0003 Contractor: Cisco Systems, a large business Contract Period: September 18, 2014 – June 17, 2019 Total Contract Value:

Competitive Status/Contract Structure: Brand name, open market

(b) DoD has Cisco software and hardware products within their existing architecture that require support. If Cisco elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward providing an open source solution for the product support being procured, then DoD will seek a competitive acquisition approach. Regardless, the Government will continue to search the marketplace to determine if alternative software solutions exist. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.