Redacted_J&A_for_Cloud_CITI_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 2 of 6

I. Contracting Activity.

Air Force Materiel Command (AFMC), Air Force Life Cycle Management Center, PEO Digital, Operational Command and Control Contracting Office (AFLCMC/HBBK), 11 Barksdale Street, Bldg. 1614, Hanscom AFB, MA 01731-2100.

II. Nature and/or description of the action being processed.

This Justification and Approval (J&A) authorizes the issuance of a sole-source contract modification to the Cloud Computing and Information Technology Integration (Cloud CITI) services contract (FA8730-18-P-0020). The prime contractor is F9 Teams Inc., henceforth referred to as F9. The contract modification will procure additional platform engineering support for Kessel Run to meet the increased requirements of KREL. This authorization does not change the overall period of performance of the contract, which will remain at 2.5 years if all options are exercised.

III. Description of supplies/services required to meet agency needs.

Project Kessel Run Experimentation Laboratory (KREL), leverages industry best practices and products to rapidly deliver capabilities while posturing for future and potentially disruptive information technology (IT). As a key tenet, Kessel Run embraces change through rapid feedback loops (e.g. build, measure, learn). Smaller is better as methodologies like Agile Development (e.g.

project management), The Lean Startup, and Continuous Integration and Continuous Delivery (e.g. CI/CD, DevOps) have the principle of size reduction at its core: reducing the size or scope of the problem, reducing work in progress, reducing the time it takes to complete a task, reducing the time it takes to get feedback, and reducing the size of the deployment unit. Underlying all of this, is a culture of innovation that balances speed and safety at scale. This culture enhances the regulatory compliance, cyber hygiene, user experience (UX), automation, and products while meeting the intent of Department of Defense 5000.02 acquisition regulations.

To support the CI/CD DevOps, KREL competitively awarded the Cloud Computing and Information Technology Integration (Cloud CITI) services contract (FA8730-18-P-0020); the prime contractor is F9 Teams Inc., henceforth referred to as F9. F9 provides platform engineering support that consist of macro-level architectural solutions of a multi-region cloud based infrastructure, cross-cutting application and integration architecture, data management and analytics architecture, established and accredited cloud based computing environment, and specialized training to the KREL team in developing and deploying modern software

The entire KREL will benefit from the additional platform engineering support. However, will be an immediate beneficiary of the increased platform engineering services support. Currently the team is unable to deploy prototype software, as there is no capacity to support those prototypes once deployed.

The contract action authorized by this J&A will result in additional platform engineering services support for the execution of work necessary to establish and accredit an cloud based computing environment for the Mad Hatter program.

To accomplish the tasks, F9 will increase its team of platform engineers, enterprise engineers, and platform subject matter expert (SME) engineers to provide the following required services to the Mad Hatter program: 1) Establish Mad Hatter's infrastructure foundation for developing, fielding, and maintaining software application capabilities; 2) Secure access to resources using lightweight protocols that support various encryption specifications and Identity and Management (IAM) needs; 3) Configure and provide support on Pivotal Cloud Foundry platform engineering matters

; 4) Open Identification Connection and protocol

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5) Local directory and DoD enterprise security service integration (e.g.OCSP/CRL, Attribute stores);

and 6) Platform performance, health, and scale of running applications.

The Mad Hatter work is the driving force for the increase, but the increased scope will benefit the entire KREL community and is not task/program specific. Therefore, the existing CLIN structure will be maintained. The resultant contract modification will increase the not to exceed value of Option CLIN 1001 from by an estimated to and Option CLIN 2001 from by an estimated to for an estimated total of . The Government's estimated cost of this modification is . The Period of Performance (PoP) of CLIN 1001 is 10 Feb 2019 to 10 Mar 2020. The PoP of Option CLIN 2001 is 12 months from the date of exercise (Feb 2020 to Feb 2021).

Option CLIN 1001 is funded with USAF RDT&E Fiscal Year 2019 funds.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)-- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements; as required by FAR 6.303-2(b)(4).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Subsection 1:

The original acquisition of these platform engineering services was acquired under a Small Business Set-Aside utilizing FAR Part 12, "Acquisition of Commercial Items" and FAR Subpart 13.5, "Simplified Procedures for Certain Commercial Items." The Government awarded the contract on 10 August 2018 to F9 Teams, Inc. with two base CLINs, 0001 (Cloud CITI Services) and 0002 (Data Not Separately Priced) with a period of performance of 6 months from award as well as four corresponding option CLINs 1001, 1002, 2001, and 2002. The first set of option CLINs (1001 and 1002) were exercised on 10 February 2019. Option CLINs 2001 and 2002 have a period of performance of 12 months after option exercise.

The intent of the Cloud CITI contract is to support macro-level architectural solutions of a multi-region cloud based infrastructure, a cross-cutting application and integration architecture, a data management and analytics architecture and to provide specialized training to the KREL team in developing and deploying modern software applications of the Air Operations Center (AOCs) worldwide for 27 product teams and 200 personnel.

F9 Teams, Inc. has been able to successfully manage and problem solve the technical complexities surrounding the growth and scaling of the KREL software platform architecture. As of the date of this document, the contractor has met the requirement of the contract. Given the complex nature of the requirement, F9 has been able to meet the continuous challenges in analyzing, developing, and maintaining the Kessel Run software development platform architecture.

Subsection 2:

In accordance with FAR 6.302-1(a)(iii) award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. KREL develops, delivers, and maintains software applications on a 24/7 basis he goal being to innovate and rapidly deliver useful capability to the Joint Strike Fighter Enterprise through ALIS on a much faster, and regularly repeated, cadence.

ecause the software platform architecture is the backbone of KREL, the inability to continue the support of increased demand for software applications to the AOCs, T&G, and Mad Hatter applications will hinder the United States and its allies from maintaining air superiority.

The scarce platform support resources are causing a delay to all KREL members. Certain software production fielding requirements and real world activity have set AOC and T&G platform support as a priority over the Mad Hatter's

March 2018 FOR OFFICIAL USE ONLY Page 4 of 6 prototyping efforts. However, that is not a sustainable model. The F-35 is vital to maintaining air superiority. However, according to the Office of the Director, Operational Test and Evaluation (DOT&E) FY2019 Annual report, the F-35 fleet availability has been flat over the past 3 years. Fleet-wide average availability is below the program target of 60% and well below the planned 80% needed to efficiently conduct IOT&E. Reliability and maintainability metrics, as defined in the Joint Strike Fighter (JSP) Program Office (JPO) Operational Requirements Document, are not meeting interim goals needed to reach requirements at maturity. Further delaying implementation of the increased platform engineering support creates an unacceptable delay to Mad Hatter's mandate to field technologies that increase the mobility and readiness of the F-35.

The need date for the increased support is past due. Mad Hatter developed a suite of applications that has been ready for deployment since 30 March 2019, and deployment is on hold until such time when more platform engineering support is available. The increased engineering support will enable KREL to employ the needed infrastructure for all deployed software without having to ration the platform engineering support services.

ad Hatter cannot sustain the current day for day delay in fielding this war winning capability. Accordingly, F9 is the only firm capable of providing the services described in Section III above, within the specified time, to support Kessel Run's expanded number of product teams without the U.S. Air Force experiencing an unacceptable delay in fulfilling its requirements.

The original acquisition for platform engineering services utilized the simplified acquisition procedures in accordance with FAR Subpart 13.5 with a total acquisition time line of 100 days from procurement started to award. Conducting a commercial competition for the subject requirement could reasonably be expected to equal or exceed the original time line further delaying the U.S. Air Force from fulfilling the requirement. Permitting other than full and competition, using Subpart 13.5 or otherwise will substantially reduced the acquisition time line. Based on the following factors, it's anticipated that a sole-source contract modification described in Section II, Paragraph 3 will take approximately 31 days or less from solicitation release to contract award: 1. Labor categories and hourly rates for the services required to meet the agency need will not deviate from the B-table T&M rates incorporated under the existing contract; and 2. In accordance with FAR 15.403-1(b)(3) certified cost or pricing data will not be required.

In summary, the U.S. Air Force requirement to provide KREL applications with sufficient platform engineering support to effectively execute its growing mission portfolio cannot experience a day for day schedule delay. Such a delay will have cascading effects on mission readiness across the AOCs and the F-35 Joint Program Office. Accordingly, F9 is the only firm capable of providing the supplies and services described in Section II above without the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A competitive acquisition strategy is being developed to support forecasted platform engineering services beyond CY21. Market research for the impending acquisition shows that there are other contractors in the industry that can fulfill the Government's need. Unfortunately, those contractors are unable to fulfill the immediate need. The action authorized by this J&A provides short term flexibility to quickly on-ramp additional forecasted support within CY19 and

CY20.

In accordance with FAR 5.201 and FAR 5.203(a)(1), a notice of proposed contract action was publicized from 8 April 2019 through 13 April 2019. A shortened time line was chosen by the Contracting Officer due to the commercial nature of the services and day for day schedule slip in fulfilling the current requirement. On 10 April 2019, a response was received by Socius Solutions including a capability statement. The respondent indicated they understood the time line constraints of the Government regarding the subject acquisition and requested additional information for future opportunities. The respondent was directed to a recent FBO posting for Kessel Run future opportunities (https:// www.fbo.gov/index.php?s=opportunity&mode=form&id= 8486fd9b922a7c3ead22fbfbfe14742 f&tab=core&ta bmo de = li st &=).

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VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided are procured at a fair and reasonable price. F9 Teams, Inc. will submit a formal proposal with sufficient information, including other than certified cost or pricing data, to support the accuracy and reliability of the proposed prices. The Contracting Officer will determined the cost to the Government fair and reasonable based on a comparison of prices being charged on the current contract, which was competitively awarded with adequate price competition. The program team will complete a proposal analysis in accordance with FAR 15.404 and the Contracting Officer will complete price negotiation in accordance with FAR 15.405 to ensure the contractor's proposal is fair and reasonable.

In addition, a Government cost estimation team developed a cost estimate which will be used to determine if F9's proposed cost for the services proposed for the work is fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

While market research is a continuous, ongoing effort IAW FAR 10.002, a Contracting Officer may use research conducted within the past 18 months if the information is still current, accurate, and relevant. The market research report dated 29 August 2018 is considered current, accurate, and relevant. While there may be small businesses identified in the market research report who would perform the work, for the reasons stated above in Section V, the Government cannot compete this requirement without experiencing unacceptable delays.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an interest in the acquisition.

Socius Solutions expressed that their company has capabilities in cloud deployment and integration. However, their response to the presolicitation notice indicated they understand the Government's current time constraints and requested information for future opportunities. The response did not indicate the respondent could completely fulfill the current requirement in the required amount of time. The Socius Solutions capability statement was forwarded to the acquisition team working the follow on platform engineering contract. The Government received no other responses to the Notice of Contract Action.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

KREL is conducting continuous market research to determine the most advantageous methods and sources to acquire agile software development services for the United States Air Force. Before considering another sole source acquisition for these services, the Kessel Run team will consider all possible sources for acquiring platform engineering services to support the KREL portfolio. KREL will explore all competitive opportunities following the completion of this contract when schedule permits competition among vendors without schedule delay and mission impact.

A competitive acquisition strategy is being developed to support forecasted platform engineering services beyond CY21. Market research for the impending acquisition shows that there are other contractors in the industry that can fulfill the Government's need. Unfortunately, those contractors are unable to fulfill the immediate need. The action authorized by this J&A provides short term flexibility to quickly on-ramp additional forecasted support within CY19 and

CY20.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best

March 2018 FOR OFFICIAL USE ONLY Page 6 of 6 of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.