JUSTIFICATION_FOR_AN_EXCEPTION_TO_FAIR_OPPORTUNITY.doc

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA14-030

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)(B).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Activity: DISA Mission Assurance Executive (MAE)/M2

6914 Cooper Avenue

Ft. Meade, MD 20755

Contracting Activity: DISA/DITCO/PL8313

2300 East Drive, Bldg 3600

Scott AFB, IL 62225

2. NATURE/DESCRIPTION OF ACTION:

The nature of this action is to procure a 6-month extension to contract HC1028-08-D-2015, task order (TO) 0035 with Booz Allen Hamilton (BAH) during the protest period. The 6-month period of performance will be January 1, 2014 through June 30, 2014, a 3-month base with three 1-month option periods to be exercised as needed. The extension is necessary due to a protest received post award on the re-compete of the DIBNet effort. The current period of performance ends on December 31, 2013.DIBNet Development and Sustainment Re-compete Protest –JA14-030 Page 2 of 7 Pages

A modification to HC1028-08-D-2015, TO 0035 is estimated at $4,690,110.99. The modification will contain firm-fixed-price (FFP) and cost reimbursable (CR) contract line item numbers. Fiscal year (FY) 14 operations and maintenance funding will be used.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Department of Defense (DoD) Chief Information Office (CIO) oversees the DoD-Defense Industrial Base (DIB) Cyber Security/Information Assurance (CS/IA) program whereby classified and unclassified information is shared between the DoD and DIB companies. DIBNet is a multi-year, multi-phased project initiated in FY10 as part of DISA’s DoD Network Operations and Cyber Situational Awareness program. The project addresses critical DIB CS/IA program deficiencies like the inability to streamline and automate program activities and communication of cyber threat information to and with cleared defense contractors (CDCs).

DIBNet is a web-based tool that allows CDCs to exchange classified and unclassified cyber threat information and collaborate with the DoD Cyber Crime Center (DC3) on an on-going basis. The DIB CS/IA Program is critical to assisting the DoD community in securing DoD program information on DIB unclassified networks that are under threat daily, mitigating attacks as they occur, and to protect against future attacks. This multi-phased project will facilitate the sharing, analysis, integration, and visualization of network attacks, and, is a critical milestone in opening the DIB CS/IA program to all CDCs.

The extension will provide continuity of these services until the follow-on DIBNet task order post award protest (B-409079.1) is resolved. The Government Accountability Office (GAO) decision on the protest is scheduled to be issued on January 27, 2014. The extension modification will be issued for a 3-month base plus three 1-month option periods, for a total of 6-months.

The need to exercise the optional months will be dependent upon the GAO decision. If denied, the stop work order may be lifted from the new requirement, but there would be a minimum 90-day transition period required to get the awardee up to speed on all of the DIBNet programs and processes. If sustained, the Government will continue full service with BAH on a month-to-month basis while the follow on work is re-awarded. The maximum total estimated cost of full support for BAH for 6-months is $4,690,110.99; whereas the estimated cost of support for transition level service will be less than $4,690,110.99. The monthly cost breakout at full service is $304,889.70 for FFP labor and $436,795.47 for cost plus fixed fee (CPFF) labor. The Government estimates $239,999.99 in other direct costs to be administered as CR over the six month period.DIBNet Development and Sustainment Re-compete Protest –JA14-030 Page 3 of 7 Pages

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.

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. (10 United States Code §2304c (b), FAR 16.505(b)(2)(i)(B)).

Providing a fair opportunity is not an acceptable course of action because MAE and DITCO are awaiting resolution of a follow-on contract that is currently under protest and a stop work order has been issued.

(b) Description of the Justification.

The current contract, HC1028-08-D-2015 TO 0035, was issued as a sole source award to BAH, a large business, with an initial period of performance of September 25, 2012 through September 30, 2013. BAH’s TO 0035 was extended to December 31, 2013 under FAR 52.217-8, Option to Extend Services at an estimated cost of $2,008,706.19. The Option to Extend Services clause was used to give additional time while the follow-on task order was being awarded.

A competitive follow-on task order HC1028-08-D-2006-0013, tracking number E200549.00 was awarded to Data Systems Analysts, Inc. (DSA) on September 24, 2013. Solers, a small business and interested party, protested the award and a stop work order was issued to DSA on the new TO, HC1028-08-D-2006-0013, on October 7, 2013.

(c) Justification:

(1) Minimum Government Requirements.

The current estimated minimum government requirement is 31,740 labor hours for full service for 6-months or less for a transition level of effort. The actual minimum Government requirement will be known after the GAO decision is issued on January 27, 2013.

The time required to cross-train and transition a new team is, at a minimum, 90 days. The transition time will help assist the new contractor in completing the necessary training and adhering to the same level of expertise the DIBNet program demands and the infrastructure that exists within the DIBNet systems.

(2) Proposed sole source contractor.

BAH is the current proposed sole source contractor. The original award, TO 0035, was a sole source to BAH in August 6, 2012.DIBNet Development and Sustainment Re-compete Protest –JA14-030 Page 4 of 7 Pages

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

The aforementioned protest is the cause for this J&A as described in section 2, nature/description of action.

(4) Demonstration of unique source.

Disengaging from BAH at this time would effectively cause the DIBNet program to come to a complete halt. After the GAO decision the new contractor will need to transition key personnel and processes, and acclimate to the technical and operational business processes that need to be performed. The work stoppage would critically affect the program schedules of DoD CIO and DC3. The DIBNet effort require BAH’s service without disruption. BAH’s technical expertise and knowledge of the system engineering is vital; as such halting of these services, even temporarily, will create unacceptable delays in requirements to DoD CIO.

BAH has accumulated significant technical expertise and unique knowledge during the performance of this initial effort. Engineering processes of systems as well as technical data accumulated during this support is unlikely to readily available at organizations without sufficient transition time and training.

In addition to BAH’s technical and operational knowledge of the system, BAH has developed an extensive knowledge of the unique security and IA requirements of the DIB CS/IA program. BAH’s specific knowledge includes security hardening for the commercial-off-the-shelf tools used for securing DIBNet at the baseline and maintaining it against the DoD 8500 controls. The DoD 8500 controls are in place in order to maintain an Interim Authority to Operate /Authority to Operate (ATO), integration of DIBNet with DoD-approved external Public Key Infrastructures , development of the unique roles and permissions scheme to on-board DIB users in stages, the development of a secure company registration process that allows company administrators to manage their own company’s users, and an approach to secure the SECRET, but-not-Secret Internet Protocol Router Network enclave, while making it accessible via commercial networks. These security requirements are unique and specialized to the program, and, are a critical requirement for the success of DIBNet. BAH has over 3 years of direct implementation experience with these requirements and can continue to ensure they are properly supported as the DIBNet system evolves.

BAH has also developed an extensive understanding of the operational business processes used by DoD CIO and DISA/MA2 in the delivery of DIBNet. BAH has developed technical materials and supported the IA efforts necessary for DIBNet to receive an ATO, and fully supports MA2’s 12-step agile delivery methodology, which BAH has used to successfully implement 13 separate deliveries of DIBNet-Unclassified and DIBNet-Secret level within 11 spirals since March 2010. BAH understands DISA/MA2’s unique lifecycle processes and does not require any transition or ramp-up time that are necessary in order for DISA to meet DoD CIO’s delivery schedule and milestones.DIBNet Development and Sustainment Re-compete Protest –JA14-030 Page 5 of 7 Pages

5) Procurement discussion.

Please see section 4. (b) above for details on the protest, the follow-on award, and history of the procurement.

(6) Impact.

Failure to maintain consistent contractor support, while under protest, will result in a loss of services urgently needed to meet DoD CIO’s schedule and IA requirements of the DIB CS/IA program. Additionally, failure to provide contractor support will impede the follow-on task order until it can be fully transitioned. The services BAH is currently providing are significantly instrumental to DISA’s ability to support the DIB CS/IA effort. Without support, the ability for DIB partners to collaborate and share threat information with the DoD will be regrettably diminished. DoD and DIB partners must continue to maintain situational awareness regarding the extent and severity of cyber threats through the DIBNet system, in order to protect DoD information from emerging, advanced, and persistent cyber threats.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The costs to the Government have been determined to be fair and reasonable prior to award to DSA on TO 0013 as have rates under BAH’s TO 0035. The intended action is an existing task order based on ENCORE II basic contract rates. Rates have been established under the ENCORE II contract for all contract years. All rates set forth in the contract, and used on individual orders, were based on full and open competition among the ENCORE II contractors and a price analysis was accomplished.

The total estimated value for this action is estimated at $4,690,110.99. The proposal will be reviewed to consider the level of effort and the labor mix proposed to determine whether the total price is reasonable. Additionally, the Government will be requesting BAH provide certified cost and pricing data along with the proposal