JEFO_IACS - Exceeding the SAT (signed)v3.pdf

Justification for Exception to Fair Opportunity Exceeding the SAT pursuant to FAR 16.505(b)(2)(ii)(B)

JEFO No. FY20-00130

JEFO No: FY20-00130

Date: April 22, 2020 PR Number: RUIO-19-S00020

1. Agency and Contracting Activity.

The Department of Homeland Security, Office of Procurement Operations, prepared this justification for an exception to fair opportunity (JEFO).

2. Nature and/or description of the action being approved.

DHS/OPO intends to award a sole source task order without considering other awardees under the EAGLE II IDIQ Contract # HSHQDC-14-D-E2027 pursuant to FAR 16.505(b)(2)(ii)(B).

3. A description of the supplies or services required to meet the agency’s need.

In September 2012, DHS purchased the Xacta IA Manager (XIAM) and the Continuous Monitoring tool, named Continuum. Within DHS, these tools have been branded as the Information Assurance Compliance System (IACS) and Continuum. These tools are mandated for all DHS Components by 4300A Policy and provide DHS the ability to manage and support all DHS and Federal Information Security Management Act (FISMA) requirements. The tool also provides a means for tracking the effectiveness of security programs across the Agency.

Telos Corporation is the developer of the XIAM and Continuum software and has proprietary rights to this software. This procurement supports the need for annual maintenance of the XIAM and Continuum tools, on-site help desk support, and subject matter experts to assist with process engineering, new regulation deployments, template development, and integration between XIAM and Continuum.

The period of performance will be five months from April 28, 2020 to September 27, 2020. The estimated value of the order is $936,352.80.

4. Identify the exception to fair opportunity and supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited.

_________FAR 16.505(b)(2)(i)(A). The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

_____X____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.

_________FAR 16.505(b)(2)(i)(C). The order must be issue 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

_________FAR 16.505(b)(2)(i)(D). It is necessary to place an order to satisfy a minimum guarantee.

_________FAR 16.505(b)(2)(i)(E). For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

Rationale:

Telos is the developer and manufacturer of XIAM, an enterprise risk management suite of applications that fully automates security authorization, and is the sole provider of the product suite and its maintenance; no other companies are authorized to provide annual maintenance for these products. Telos is the only vendor that can provide software technology upgrades and maintenance and support for these tools.

The Telos XIAM tool is developed and maintained solely by the Telos Corporation; Telos does not utilize any other vendors to provide this support. Each member of the Telos team is specially trained on the XIAM software suite and has a direct reach back capability to the XIAM Subject Matter Experts and development team. As the manufacturer of the tool, Telos staff is competent in the custom development of advanced Security Authorization (SA) artifacts such as the System Security Plans, POA&M Reports, and Security Assessment Reports using the XIAM Extensible Publishing to reflect DHS specific formats. Telos, as the manufacturer of XIAM, is the sole developer of workflow templates for customers using Xacta and has built a team of experienced staff that can efficiently develop and deliver workflow and regulatory changes such as NIST 800-53 Rev 4 and FEDRAMP updates. Further, Telos has experienced Database Administrators, the only administrators that have access to the code and schema of the XIAM product. The administrators are proficient in designing interfaces and integrations with existing databases, for advanced reporting purposes, while no other vendor has these capabilities. These capabilities are all essential during critical software upgrades, workflow updates, and the development of software enhancements to meet evolving DHS and component’s needs. Telos personnel also have working relationships with the teams supporting XIAM implementations at several other customer sites to leverage lessons learned and best practices.

In addition, the Telos team is able to quickly provide surge support when necessary during transitional periods (i.e. transition of all FISMA systems from NIST 800-53 Rev 3 to Rev 4).

This was demonstrated when Telos provided a member of the development team full time for a period of 6 months to assist with the IACS migration from Trusted Agent FISMA to XIAM. The Telos team designed and deployed a custom migration utility to automate the transition, and the IACS migration was successfully completed within the required timeframe. In addition, Telos has a regulation content team fully dedicated to maintaining the NIST 800-53 control set within

XIAM and could subsequently align this to the DHS 4300A and 4300B and assist with regulation upgrades when necessary.

5. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Telos’ EAGLE II Functional Category 1 pricing was determined to be fair and reasonable at the time of award of Contract HSHQDC-14-D-E2027. In addition, the price will be evaluated for reasonableness for the level of effort to be provided by evaluating the quoted labor categories against the technical solution. Further discounts from that pricing will be requested in the solicitation.

6. Any other facts supporting the justification.

None.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

XIAM was chosen as the tool of choice 8 years ago, it took more than a year to get the DHS components and DHS HQ trained and comfortable with the tool sets. This is an immediate temporary need for continuation of the Telos services. The government is currently researching alternate sources and methods to accomplish the services within this action. The government expects to provide competition for the follow-on services based upon current market research that indicates there are alternate sources and methods available.

8. DHS intends to post this requirement on beta.SAM pursuant to FAR 16.505(b)(2)(ii)(D).

9. Technical/Requirements Personnel Certification.

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the justification, are accurate and complete.

Technical Representative/COR Date

10. Contracting Officer Certification.

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

11. Approval.

I hereby determine that the circumstance in FAR 16.505(b)(2)(i)(B) applies.

Component Competition Advocate Date