M95494-24F-0021_LSJ_Redacted.pdf

CUI//SP-PROCURE//DL ONLY

V 1.4 (29 Nov 2023)

MEMORANDUM TO THE FILE J&A No. JA-24-002

Subj: FAR SUBPART 8.4 LIMITED SOURCES JUSTIFICATION

I. BACKGROUND:

A. FAR 8.405-6 states that orders placed, or BPAs established under Federal Supply Schedules are exempt from the requirements in FAR Part 6. However, an ordering activity must justify its action when restricting consideration. This memorandum documents the justification for limiting sources, in accordance with FAR 8.405-6(c).

B. This acquisition is conducted under the authority of the Multiple-Award Schedule Program (see

FAR 8.401).

C. For a proposed order exceeding the simplified acquisition threshold (SAT), the requiring activity shall assist the ordering activity contracting officer in preparation of the justification, in accordance with FAR 8.405-6(c)(1).

II. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY:

This acquisition is being conducted by the Department of the Navy, under the Headquarters Marine Corps, Installation and Logistics (HQMC, I&L) Head of the Contracting Activity (HCA). The executing contracting office is Marine Corps Installations Command (MCICOM), Headquarters (HQ) Contracting, in Arlington, VA.

III. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This acquisition is conducted under the authority of the Multiple Award Schedule Program, Title 41 U.S.C. 152 (3), Competitive Procedures, and Title 40 U.S.C. 501, Services for Executive Agencies. The action being approved is the award of a sole source contract to E-9 Corporation (E-9), under its sole as further explained below in Section V, to continue providing records management to the Marine Corps Fire & Emergency Services (F&ES) organizations worldwide in support of the Marine Corps Fire and Emergency Services

"First Due". This acquisition will utilize E-9's General Service Administration (GSA) Multiple Award Schedule (MAS) 54151S Information Technology Professional Services contract number GS-10F- 0311W.

Controlled by: DON, USMC, I&L HCA Controlled by: MCICOM G-3 CUI Category(ies): PROCURE Limited Dissemination Control: DL ONLY POC: Barry Shughart

FAR Subpart 8.4 Limited Sources Justification

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V 1.4 (29 Nov 2023)

IV. DESCRIPTION OF THE

NEEDS (INCLUDING THE ESTIMATED VALUE):

The Fire and Emergency Services (F&ES) -3 Operations, holds the responsibility for overseeing, managing, resourcing, and executing the Marine Corps Fire & Emergency Services (MCFES) program. MCFES provides high-quality, professional fire and emergency services support to the Commander MCICOM, the four regional Commanding Generals, and the 27 Marine Corps installations across the globe. The MCFES program objective is to provide an automated, web-enabled records management and reporting application. The application must have the ability to standardize emergency incident records and a reporting capability to ensure compliance with Department of Defense (DoD) and United States Marine Corps (USMC) policies. In accordance with DoD Instruction (DoDI) the National Fire Incident Reporting System modules for the reporting of all F&ES incidents.

Furthermore, the application must support USMC compliance with the National Emergency Medical System Information System (NEMSIS) version 3. The application will support Marine Corps fire stations located in both the United States and Japan. To support MCICOM F&ES objectives, the purpose of this requirement is to provide continued F&ES support with a single commercial-off-the-shelf (COTS) cloud-based Marine Corps Enterprise-Wide Information Technology (IT) software application, and program management support services that fulfill the required data management, accessibility, and reporting objectives and capabilities.

The Government requires licensing, hosting support, and privileged application administrative support.

Specifically, the program requires a Software as a Service (SaaS) IT application that interfaces with 911 communications, F&ES, and Emergency Medical Services (EMS) defined capabilities while maintaining permission-based separation of data based on operational needs. The application(s) must operate following DoD, Marine Corps, and National consensus standards, comply with the Health Insurance Portability and Accountability Act (HIPAA) compliance requirements, and be capable of securely storing controlled unclassified information (CUI). In addition, the application must meet the following cybersecurity requirements: comply with Marine Corps Cyber Security, Privacy Act, and System of Record Policies, adheres to DoD/USMC cybersecurity testing requirements including Security Technical Implementation Guides and DoD information assurance testing, achieve and maintain Federal Risk and Authorization Management Program (FedRAMP) High, DISA IL5 DoD Cloud Authorization Services

(DCAS).

Operation and Maintenance Marine Corps (O&MMC) funding will be used for this effort. The proposed contract length is an eight-month base period, estimated to begin 26 August 2024 and run through 25 April 2025, and four one-year option periods. If all options are exercised, the period of performance will run through 25 April 2029 or through 25 October 2029 if the 6-Month Extension is exercised.

V. THE DETERMINATION TO LIMIT SOURCES IS BASED ON THE FOLLOWING AUTHORITY

AND SUPPORTING RATIONALE (select all that apply):

A. ___ AN URGENT AND COMPELLING NEED EXISTS, AND FOLLOWING THE

PROCEDURES IN FAR 8.405-2 OR 8.405-3 WOULD RESULT IN UNACCEPTABLE DELAYS

(FAR 8.405-6(a)(1)(i)(A)):

B. _X__ ONLY ONE SOURCE IS CAPABLE OF PROVIDING THE SUPPLIES OR SERVICES

REQUIRED AT THE LEVEL OF QUALITY REQUIRED BECAUSE THE SUPPLIES OR

SERVICES ARE UNIQUE OR HIGHLY SPECIALIZED (FAR 8.405-6(a)(1)(i)(B)):

Background:

The MCFIRS requirement was initially fulfilled as a small business set aside by Reporting Systems, Inc.

(RSI) (DBA: Emergency Reporting, Inc.) under contract M00264-09-P-0425, with a period of performance from 28 August 2009 through 27 August 2014. The follow-on requirement was competed and awarded to RSI under its GSA Schedule 70 contract vehicle, number GS-35F-0345S, as task order number M00264-14-F-1168 with a period of performance from 26 September 2014 through 25 August 2019. In 2017, RSI entered into a sole strategic partnering agreement with E-9 Corporation, and its GSA Schedule 70 was terminated on 27 July 2017. As a result, the requirement was awarded on a sole source basis to E-9 Corporation under its GSA Schedule 70 contract number GS-35F-0377S as task order number M95494-19-F-0013, with a period of performance from 26 August 2019 through 25 August 2024.

Limited Source Justification (MCICOM-JA-19-006) was issued in accordance with FAR 8.405-services required at the level of quality required because that supplies or services are unique or hig Based on market research conducted at the time, E-9 with its partnership with RSI and its package was the only company able to fulfill the entirety of the requirement.

E-9 Corporation partner, RSI, was acquired by ESO, Inc. in June 2021. E-9 Corporation informed MCICOM that ESO, Inc. would not seek FedRAMP compliance for the emergency reporting application. Instead, the application was scheduled for a shelf-life expiration resulting in a failure of the to meet the DOD cybersecurity requirements for hosting. In April 2023, the USMC Authorizing Official revoked the approval for use of the emergency reporting application via Denial of Authority to Operate (DATO) on the Marine Corps Enterprise Network (MCEN). A DATO made the emergency reporting URL inaccessible from any MCEN computer system and resulted in a loss of records management and critical reporting capabilities for Marine Corps F&ES enterprise wide.

As a result, E-9 Corporation identified a new partner vendor, First Due, to provide the USMC MCFIRS system with an application that meets F&ES functional end-user requirements, DOD, and USMC cybersecurity requirements, and is hosted in a FedRAMP/DISA DCAS approved environment at DoD specified Impact Level 5 (IL5) as required for Controlled Unclassified Information (CUI). Per an Office of Management and Budget (OBM) memorandum dated 08 December 2011, cloud services that hold federal data must be FedRAMP authorized. E- oint Authorization Board high authorization (FR1802451335) was achieved in January 2024 for the First Due (SaaS) application.

Through a multi-year sole strategic partnering agreement between First Due and E-9 Corporation, a Service-Disabled Veteran-Owned Small Business, under E-9 Corporation's GSA Multiple Award

; E-9 Corporation holds the responsibility for hosting, deployment, maintenance, and continued authorization of the First Due SaaS program for use by Federal and DOD agencies. While First Due is the SaaS software creator and owner, E-9 owns the FedRAMP compliance authorization, and all efforts to remain compliant. The UMSC requires FedRAMP High compliance, and this is provided exclusively by E-9 Corporation. No other company, including First Due acting without E-9, can provide any Federal or DOD customer with the First Due SaaS software product or the proper clearance/certifications required to host, install, configure, deploy, or maintain the first due in a FedRAMP authorized cloud service provider.

Requirement:

The First Due software consists of a number of licenses that are uniquely integrated using proprietary source code. The manner in which the term software licenses are integrated, proprietary source codes, and uniquely qualified professional staff allows the term software licenses to function to meet the requirements under the performance work statement (PWS). The First Due software package is the only platform that currently meets is capable of meeting F&ES records management needs as well as including product licensing, Pre-Incident Planning, Fire Prevention, NFIRS/NEMSIS reporting, ePCR, Scheduling, Events and Activities, Personnel Management, Hydrant Management, Assets and Inventory, Response, Community Risk Reduction, and data analytics. The E-9 Corporation is the only company authorized to host, install, configure, deploy, or maintain the first due to support the First Due program within the FedRAMP environment. The company employes personnel who have and maintain proper clearances as required to work within the DOD information system environment, provide specialized knowledge and experience and have familiarity with &ES operational environments configuration, set-up, installation, cybersecurity compliance, and maintenance of the term software licenses. The E-9 Corporation is the only known and approved vender for the First Due SaaS solution that can provide the Marine Corps F&ES program required functionality while meeting all required DOD IT standards, regulations, and policy requirements in accordance with DoDI 6055.06 Services (F&ES)

Additionally, E-9 has been providing the USMC with the First Due SaaS product since August 2023, in support of MCFIRS. Since then, E-9, together with First Due has been providing both software licenses and ongoing technical support. This includes continuous software updates, refinement, and enhancements tailored to specific USMC needs while meeting DoD compliance requirements. The Marine Corps has invested millions of dollars and thousands of man-hours in implementing MCFIRS as well as its transition to First Due. This includes training and the synchronization of fifteen years of historical F&ES records and incident reporting data. It would not be feasible nor cost-effective for the Government to contract with another source. The award to another source would result in substantial duplication of effort and associated costs to implement and integrate a new enterprise software and to train all users across the enterprise that the Government is not expected to recover through competition. Additionally, the loss of MCFIRS would severally degrade an optimal level of emergency care and response. For example, MCFIRS enables the ability to ramp up emergency medical responses based on real-time analysis of incident trends and types in a particular area or during a particular time period, and the ability to adjust training to minimize the impact to emergency response during periods of high call volume based on data provided.

The Government intends to issue a sole-source task order to E-9, under its GSA MAS 54151S contract number GS-10F-0311W. Under the sole strategic partnering agreement with First Due, this contract allows the utilization of the First Due software application and E-9's expertise in program management and support services.

In accordance with FAR 8.405-6(a)(2), within 14 days after placing the order, the order will be synopsized through the government point of entry and the justification will be posted, as well, to the government point of entry in accordance with FAR 5.30l(a)(2)(i).

C. ___ IN THE INTEREST OF ECONOMY AND EFFICIENCY, THE NEW WORK IS A LOGICAL

FOLLOW-ON TO AN ORIGINAL FEDERAL SUPPLY SCHEDULE ORDER (FAR 8.405-

6(a)(1)(i)(C)):

D. ___ ITEMS PECULIAR TO ONE MANUFACTURER (FAR 8.405-6(b)):

VI. DETERMINATION THAT THE ORDER OR BPA REPRESENTS THE BEST VALUE:

The Contracting Officer has determined that the order covered by this justification will represent the best value to the Government. Fair and reasonable pricing will be determined in accordance with DoD Class Deviation 2014-O0011 using the proposal analysis techniques at FAR 15.404-1.

Though GSA has determined the prices of its supplies and fixed-price services to be fair and reasonable, it does not relieve the ordering activity from the responsibility of making a fair and reasonable determination of pricing for its orders. The Contracting Officer will determine the cost to the Government for the services covered by this Limited Sources Justification and Approval (LSJ) will be fair and reasonable before award. E-9 Corporation will be required to submit a formal price proposal and sufficient information to support the accuracy and reliability of its estimate. E- 9 Corporation's proposal will be reviewed by experienced technical subject matter experts and the Contract Specialist. The Contracting Officer will use cost and price analysis, as appropriate, including historical cost estimating relationships from previous procurements, to determine that the final price to the Government is fair and reasonable.

VII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE

HOLDERS:

Sources Sought Announcement (SSA) / Request for Information (RFI), M95494-24-0021, with a draft Performance Work Statement (PWS) was issued on both SAM.gov and GSA e-Buy from 22 April 2024 to 08 May 2024, to survey the industry for adequate sources capable of meeting this requirement.

Respondents were asked to recommend an appropriate NAICS code. Two (2) responses were received: 1) E-9 Corporation and 2) Image Trend. Each response was forwarded to the COR, Mr. Barry Shughart, for

. As the Subject Matter Expert (SME), Mr. Shughart reviewed each of the submissions to determine if the respondent company appeared capable to satisfactorily complete the tasks required for this acquisition. The COR determined Image Trend did not have the relevant capabilities, history, and experience to fulfill the requirement. Although Image fire and emergency services capabilities associated with PWS requirements.

program does not meet DOD and USMC IL5 cyber security requirements. Image Trend recommended multiple NAICS codes including 541519.

Additional market research was also conducted by comparing the vendors who responded to the current

NEMSIS (National EMS Information System) vendor list. A vendor listed on either site meant their software product was tested and found compliant with respective measures, thus meeting the NFIRS and NEMSIS requirement. Those listed on both sites formed the basis for further market research to determine if a vendor held a current GSA contract (Schedule 54151S Information Technology Professional Services) and for small business status. The table below reflects the assessment of the market:

Distribution List for DL ONLY Limited Dissemination Control

MCFCS Personnel

LB Personnel

Procurement Team Personnel (to include but not limited to: Legal, Customers/Requirements Owners, Source Selection Personnel, Small Business Representatives)

Any other individual designated by the KO