JA24-065 - TRANSCOM Anywhere FINAL_Redacted.pdf

Controlled By: DISA Controlled By: PSD/PS8511 CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: Lara Chiaurro, JWCC Mailbox: 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

Purchase Request Number: F3ST954061GC01 Joint Warfighting Cloud Capability (JWCC) Contract Number: HC105023D0003 Task Order (TO) Number: To be Determined.

Procurement Title: Transportation Command (TRANSCOM) Anywhere (TCA) Estimated Value:

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: JA24-065

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate (PACA), 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:

United States Transportation Command (USTR)/USTRANSCOM J6-TE Bldg 1961 Scott AFB, IL 62225 United States of America

Contracting Activity:

Defense Information Systems Agency/Defense Information Technology Contracting Organization/PS8511

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

2. NATURE/DESCRIPTION OF ACTION(S):

This action is to issue a firm-fixed-price TO against the JWCC Indefinite Delivery/Indefinite Quantity Contract for TRANSCOM Anywhere (TCA). 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 of which will be funded by Working Capital funds.

JA24-065 Transportation Command Anywhere

Page 2 of 5 Pages

3. DESCRIPTION OF SUPPLIES/SERVICES:

USTRANSCOM requires the modernization and transition of the USTRANSCOM office information systems to a Microsoft environment with Software as a Service (SaaS) offerings available and reduced tooling required to test and maintain available enterprise services. And, to also provide a set of tools to assist with the Department of Defense (DoD) mandated Zero Trust implementation by leveraging a homogeneous solution.

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.

The USTRANSCOM operational network suite is built primarily upon Microsoft suite of products and services. Current cloud migration hinges on SaaS offerings only available through Microsoft. Microsoft as a cloud service provider (CSP) offers "Microsoft Blue Badge Cardholder-support" services, which is defined as a Designated Service Engineer (DSE). The Blue Badge DSE has resources with direct access rights to developers of Microsoft proprietary products to support USTRANSCOM Microsoft technology-based infrastructure, Azure Cloud Services, Microsoft Windows operating system, and Microsoft Software Suite.

(c) Justification.

(1) Minimum Government requirements.

The minimum government requirement is to achieve DoD Zero Trust mandated goals of which several hinge on Microsoft SaaS product, Entra Identity (ID). A core component to user level security and auditing mandated in Zero Trust environment.

(2) Proposed sole source contractor.

Microsoft Corporation

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

The only source capable of providing the TRANSCOM Anywhere (TCA) capability at the level and quality required is Microsoft based on Microsoft Entra Identity that is peculiar to Microsoft. USTRANSCOM’s mandated Zero Trust Framework

Page 3 of 5 Pages implementation is dependent upon Microsoft Entra ID, which is the foundation for integrated suite of user protection and granular user identity controls. This Microsoft Azure cloud only product is essential to the Government’s requirements because it is the only CSP product that offers the established network critical service of Identity Control and Access Management (ICAM). Other similar products do not meet, nor can be modified to meet, the Government’s requirements due to Microsoft Entra Identity being Microsoft exclusive.

(4) Demonstration of unique source.

Microsoft possesses the knowledge, skills, capabilities, certification, clearance, and experience required to continue the program without a break or degradation in critical network services. Additionally, Microsoft is the only CSP with "Microsoft Blue Badge Cardholder support" services from resources with direct access rights to developers of Microsoft proprietary products. Given these critical ICAM network requirements, Microsoft is the only contractor that is capable of performing the necessary services to support USTRANSCOM’s alignment to the DoD mandated Zero Trust target levels and meet the fiscal year 2025, time frame.

(5) Procurement discussion.

Congressionally mandated use of the Defense Enterprise Office Solution (DEOS) contract vehicle provides centralized user account licensing. The security of Microsoft user account licenses is uniquely dependent on Microsoft Entra Identity security offerings, which is proprietary to Microsoft.

(6) Impact.

Awarding to any brand other than Microsoft would cripple USTRANSCOM's compliance with the DoD mandated Zero Trust efforts resulting in unacceptable delays and stoppage of network critical ICAM services. Delays in not complying with the DoD mandated Zero Trust target levels opens USTRANSCOM to exploiting cybersecurity vulnerabilities and could result in break in enterprise services.

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

Page 4 of 5 Pages

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

Further research was conducted from March 22, 2023, through May 25, 2023, and revalidated on April 2, 2024, by reviewing the JWCC contractor's catalogs to determine if other similar offerings (to include: Entra ID) meet or can be modified to satisfy the Government’s requirements. It was determined the Entra ID is essential to the Government’s requirements and Microsoft is the only source capable of fulfilling the Government’s minimum needs in the manner and time frame required.

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: Not Applicable

(b) To overcome future barriers to competition the Government intends to continue conduct market research and assessments for CSPs’ emerging technologies possessing authorized impact levels and security capabilities required for specific Government systems and information. Additionally, the Government is working towards future development and enhancement of Infrastructure as a Service components, which will include shifting to a containerized platform. This will enable multiple CSPs to meet the requirements enabling the flexibility to shift workloads based on financial and mission requirements.