JA25-058 Encl10a_ja_part65_ITSDMM4.18PACA FINAL_Redacted.pdf

J6 C4 – ITS DMM-JA25-058

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4. IDENTIFICATION OF STATUTORY AUTHORITY: Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C. 3204(a)(1) (FAR 6.302-

1/DFARS 206.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events. The proposed FFP contract is a follow-on to expiring contract HC1028-20-C0002, which provides maintenance and support services for the ITS/DMM system currently in place throughout the Pentagon reservation. This contract was a sole source award to Bear River Associates, Inc., on January 11, 2020 for a one-year base period and four one-year option periods through January 10, 2025. The ITS/DMM source code is owned by the DoD WHS and was developed by the contractor Bear River Associates, Inc. (Fiscal Year (FY) 2003 to FY2005). The source code is the most permanent form of the program that is specifically designed to facilitate the work and its functions of the program. Bear River Associates, Inc. has been the sole contract provider for maintenance, service, and support of the ITS and its components since 2003. The contract (contract # DASW01-03-F-1184) for those services was solicited competitively under a multiple award blanket purchase agreement and awarded to Bear River Associates, Inc.

Integration of the legacy system, ITS, with other DoD WHS systems was successfully accomplished by Bear River Associates, Inc. The WHS DMM program awarded in 2010 is a component of the ITS developed by Bear River Associates, Inc. as an Executive Services Directorate funded project built on top of ITS/Star Receiver (now BearTracks).

The four-year development and integration process of the WHS/ITS Modernization and the WHS DMM program included the expansion and integrations within the two systems as well as other DoD component systems. Therefore, as an integrated system, the continued support of the ITS/DMM system cannot be accomplished without the involvement of Bear River Associates, Inc. due to the material tracking software being proprietary to Bear River Associates, Inc.

(b) Justification.

(1) Minimum Government requirements. The Government requires support services to maintain the ITS/DMM system currently in place at the Pentagon reservation. The system is needed to support delivery, enhance mail security, and reduce unwanted junk mail. DMM is required to enable digital routing and management of inbound mail and integrate with ITS. No other commercial or non-commercial solutions are available to meet this need. The ITS/DMM system, along with the commercial-off-the-shelf software products, BearTracks and WebDOX, currently manages the digital images of the packages, mail, and other associated software, hardware, and equipment. The ITS system is required to track vehicles, people, and material coming into the Pentagon reservation. The material tracking aspect of ITS is currently handled by Bear River Associates, Inc. proprietary software. The vehicle and people tracking aspect of ITS is unique to FSD and PFPA. DMM is required to provide mail support

Page 4 of 8 Pages to the SecDef and DepSecDef along with other top-level executives and the entire Pentagon, Mark Center, and satellite facilities population.

(2) Proposed sole source contractor. Bear River Associates, Inc., a small business, is the proposed sole source contractor as they are the developer and owner of the proprietary software, Bear Tracks, and they hold the sole rights to license the use of the Bear Tracks software.

(3) Discussion regarding cause of the sole source situation. The ITS/DMM source code is owned by the DoD, WHS, and was developed by the contractor Bear River Associates, Inc. The source code is the most permanent form of the program that is specifically designed to facilitate the work and its functions of the program. The code for the ITS system is unique and requires prior system knowledge. As an integrated system, the continued support of the ITS/DMM system cannot be accomplished without the involvement of Bear River Associates, Inc. due to the specialized nature of the work and as no other services will satisfy agency requirements. Awarding to an alternate contractor would require an agreement between the new contractor and Bear River Associates, Inc. to complete system/software enhancement work creating an undetermined additional cost to the Government. This follow-on contract will provide J6 C4 with critical continued support and maintenance of the ITS/DMM system.

Continued support for J6 C4 requires immediate knowledge and specialized capability to execute because of the unique source code and operating environment. Bear River Associates, Inc. has an existing workforce and specialized knowledge of the source code and can ensure continued performance without any delay or substantial duplication of cost to the Government. This is a maintenance support contract that not only includes maintenance and support services for ITS/DMM, but also includes software components such as the annual Enterprise Software License for BearTracks under ITS and annual WebDOX Enterprise Software License under DMM, which are both procured and managed by Bear River Associates, Inc.

(4) Impact. Awarding to a new contractor will negatively impact several DoD supporting agencies and U.S. military services located in the National Capital Region who are ITS/DMM System Users and/or customers including the Army, Air Force, Navy, SecDef, DepSecDef, PFPA, WHS, and Leased Facilities (Mark Center). There is currently an associated risk that would add additional cost and hardship to the Government if the contract were awarded to an alternate support contractor with no specific ITS/DMM system experience. The Government’s daily operations supported by the ITS/DMM would experience the following risk and additional cost factors:

1) Learning Curve and Additional Cost: An alternate contractor would experience a learning curve that would require new technical personnel to achieve the Subject Matter Expert (SME) level of expertise and knowledge for the ITS/DMM source code (estimated at one million or more lines of code).

This SME learning curve would require additional time to accomplish tasks.

During that extended time period, the Government would be without an ITS/DMM SME to perform systems maintenance, troubleshoot, and provide

Page 5 of 8 Pages viable solutions for any issues that may arise. An alternate contractor may also cost the Government an estimated to modify existing software or to develop new software, which is estimated to require an additional 300 + days to accomplish an SME level of expertise and knowledge on the current infrastructure.

2) Duplication of Cost and Effort: ITS/DMM software, Bear Tracks Material

Tracking System, is proprietary to the contractor Bear River Associates, Inc.

The cost and level of effort to replace the existing software, and test and configure a new system, would be a duplication of cost and effort to the Government estimated at with an estimated period of effort of at least 24-months. The Government currently owns the source code. If replaced, the Government would pay an additional license fee. This duplication of cost is not expected to be recovered through competition. The Government would also incur undetermined additional cost and level of effort for Government human capital and resources necessary to support the software replacement effort and to train a new contractor support team and Government personnel.

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES: A Sole Source Notice of Intent was posted on SAM.gov on April 18, 2024, and four responses were received. Due to the unique requirements for this scope of work, it was determined that only one qualified source could meet this requirement.

7. DETERMINATION OF FAIR AND REASONABLE COST: Determination of fair and reasonable price for this requirement, in accordance with FAR 8.404(d) and FAR 2.101, will be based on comparison of the incumbent contractor’s proposed price to the independent government cost estimate based on DISA ENCORE III rates and historical cost actuals. The Contracting Officer will determine if the ultimate price is fair and reasonable by comparing past rates and labor categories on the task order for current work and requirements of the performance work statement currently being performed. The final price will be determined fair and reasonable upon completion of negotiations.

8. MARKET RESEARCH: Market research was conducted from March 2023 through June 2024 and included an initial review of Governmentwide Acquisition Contracts and Federal Supply Schedules to determine potentially appropriate vehicles to solicit the requirement. In addition, small business set-aside opportunities were considered via a Small Business Administration database search. Each contract vehicle was examined to identify and determine the contract scope, number of vendors, contract awardees with collaboration service expertise, period of performance, contract ceiling, and contract access fees.

Based on the market research, it has been determined that only BearTracks under ITS, annual WebDOX Enterprise Software License under DMM, and product support from Bear River Associates, Inc. can fully support the Government’s need. This requirement is for proprietary products and/or product support and no competitor functional replacement products exist in the market at this time to meet 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

Page 6 of 8 Pages competitive actions, i.e. there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of product, or it is economically feasible to procure a new system.

9. ANY OTHER SUPPORTING FACTS: Not Applicable

10. LISTING OF INTERESTED SOURCES: Four vendors expressed interest by responding to the Sole Source Notice of Intent posted on SAM.gov; Bear River Associates, Inc, Denamita, BHPE LLC, and AWDT Solutions. Bear River Associates, Inc., is the developer of the proprietary software and owns the software licenses. Therefore, there are no other sources available to perform this service as no competitor functional replacement products exist in the market at this time to meet the Government's need.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History. This requirement for ITS/DMM Support Services is a follow-on contract to the DISA/DITCO contract HC1028-20-C-0002 which was awarded January 11, 2020 and was a follow-on contract to the DISA/DITCO contract HC1028-17-C-0014. The requirements under HC1028-17-C-0014 were awarded to Bear River Associates Inc. via a small business sole-source procurement in 2016 under the WHS/Acquisition Directorate contract HQ0034-16- C-0044. Upon exercising the first option period for July 11, 2017 – July 10, 2018, the contract was transferred to DITCO under contract HC1028-17-C-0014. The second option period was exercised in 2018, for a period of performance of July 11, 2018 – July 10, 2019. Under the authority of FAR 52.217-8, Option to Extend Services, the contract was extended on April 21, 2017, for a PoP of July 11, 2019 – January 10, 2020.

Contract Number: HQ003416C0044 PoP: July 11, 2016 – July 10, 2017 Lifecycle Value: $3,706,591.81 Contractor Name: Bear River Associates Inc Contractor Business Size: Small Business Method of Acquisition: Sole Source Vehicle: Open Market

Contract Number: HC102817C0014* PoP: July 11, 2017 – January 10, 2020 Lifecycle Value: $4,392,446.26 Contractor Name: Bear River Associates Inc Contractor Business Size: Small Business Method of Acquisition: Sole Source Vehicle: Open Market

*Contract HC102817C0014 was transferred to DITCO at Option Period 1 from WHS contract

HQ003416C0044.

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(b) Proposed Actions to Remove Barriers to Need for Sole-Source: Continued maintenance and support of this effort by the contractor Bear River Associates, Inc. will facilitate increased stability in the performance of the system over time. This will enable other contractors to maintain the system more easily in the future. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions as well as determine if a suitable replacement suite is available in the marketplace that provides the same functionality, and is economically feasible to procure/install, or if the original equipment manufacturer releases ownership rights of the product.

(1) Reviewing officials and the approval authority have reviewed the previous J&A, which was routed with this J&A, and determined any planned actions to remove barriers to competition listed on the previous justification were considered. Market research was performed, including a sources sought notice of intent, that yielded no adequate alternatives. Continued maintenance, support and upgrades by Bear River Associates, Inc. will facilitate increased stability in the performance of the system over time. This will enable other contractors to more easily maintain the system in the future. After review of the actions taken, it is determined that a sole source environment still exists.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $15M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO:

Kenric L Phillips, 667-890-9352, kenric.l.phillips.civ@mail.mil and Brittany Williams, (667) 890-2165, brittany.l.williams93.civ@mail.mil.