N0024418R0053_JA_signed_POSTED_1.pdf

J&A Number: 18-230-0006

Source Selection Information – See FAR 2.101 and 3.104 1

DEPARTMENT OF THE NAVY

NAVSUP FLEET LOGISTICS CENTER SAN DIEGO

3985 CUMMINGS ROAD

SAN DIEGO CA 92136-4000

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as Competition Advocate, hereby approve use of the other than Full and Open competition for the proposed contractual action pursuant to the authority of 41 U.S.C. 3304(a)(1).

1. Identification of Agency and Contracting Activity

Naval Supply Systems Command (NAVSUP), Fleet Logistics Center - San Diego (FLCSD), Contracting Department, Code 200.

2. Description of the Action Being Approved

Award of a contract on a brand name only basis for the full range of Amazon Web Services (AWS) in support of Naval Post Graduate School (NPS) programs and platforms based in the AWS cloud.

Line Item # Mfg. Part Number Description QTY

1 Amazon Web Services (AWS) Commercial Cloud 1

3. Description of Supplies/Services

This procurement is for Brand Name Product from Amazon Web Services LLC. which is located at 410 Terry Ave N, Seattle WA 98109-5210. The procurement provides a full range of Amazon Web Services (AWS) Infrastructure-as-a-Service (IaaS) commercial cloud services and features (including GovCloud), as well as AWS Professional Services, in support of NPS programs and platforms currently based in the AWS cloud. The Navy anticipates the award of a Firm-Fixed-Price (FFP) contract for the procurement of AWS cloud services and AWS Professional Services. The estimated period of performance is 1 September 2018 through 31 August 2023 for a one-year base period and four one-year option periods.

The actions will be funded with FY 2018 Operations Maintenance, Navy (O&MN) funding in the estimated amount of $4,950,000.00.

4. Statutory Authority Permitting Other Than Full and Open Competition

41 USC 1901(e)(2) - a sole source acquisition under simplified acquisition procedures for certain commercial items, as implemented by FAR 13.501(a).

5. Rationale Justifying Use of Cited Statutory Authority

NPS requires continued use of Amazon Web Services (AWS) Infrastructure-as-a-Service (IaaS) in order to provide a highly-reliable, and scalable infrastructure platform in the cloud that offers Naval Postgraduate School (NPS) users the ability to utilize, stand up and take down IT infrastructure (both programs and platforms) on demand. The on-demand nature of commercial cloud services reduces the necessity for NPS users to expend the time and resources required to procure, sustain and maintain IT infrastructure which may only be needed for limited periods of time.

Source Selection Information – See FAR 2.101 and 3.104 2

NPS has utilized AWS commercial cloud services for three years. In that time, more than 40 individual users in various departments, as well as multiple network and enterprise services providers, have utilized, or are currently utilizing, the following AWS cloud services: compute, storage, databases, high-speed computing/analytics, Domain Name System (DNS), virtual private cloud and web hosting. As part of this cloud service usage, multiple research projects have been initiated, completed or are ongoing.

NPS also requires professional services in relation to the use of AWS commercial cloud infrastructure.

The required services include advice, guidance and consulting for the following:

Implementation of a centralized account management structure to optimize enterprise management;

Implementation of a management architecture that extends identity management and security services to the AWS virtual private cloud;

Creation of a Cloud Center of Excellence for cloud governance and compliance;

Implementation of an AWS foundational environment and service delivery processes;

Implementation of a governance model using the AWS baseline technical environment; and Migration of workloads to the AWS cloud infrastructure.

Award of a competing cloud solution would substantially duplicate costs to the Government that are not expected to be recovered through competition. Award to a non-AWS vendor would have a significant impact on resources and program costs.

Requirement for 40 staff (5 Server Management, 3 Network Operations Center, 5 Development, 5 Management, 4 Cybersecurity, 4 Education Technology, 14 contractors) to attend training courses to learn, design, implement and maintain cloud configuration

Minimum 1600 hours for training Contractor hourly costs and contract modifications Travel costs Lost productivity while staff is TDY, in both training and gaining cloud building experience

Time/resources of ITACS staff to reconfigure a hybrid environment

5640 cumulative hours (2400hr Server Management, 360hr Network Operations Center, 2400hr Development, 320hr Cybersecurity, 160hr Education Technology) over 12 months for NPS staff to support reconfiguration.

Cost of new AWS contract to maintain concurrent AWS cloud environment during transition

Minimum 4912 cumulative hours for contractor support to support cloud infrastructure configuration and integration with on premise environment.

Hardware/software procurements to meet new on-site data storage requirements from reconfiguration

Procurement process delays Costs of new procurements Configuration and integration of new procurements into existing environments.

The table above provides insight into the considerations and minimum, known schedule and cost impacts to transitioning away from the AWS platform. Currently known cost impacts total a minimum of $819,208.00. NPS would also incur additional costs which cannot be quantified at this time (staff investment in research/meetings/configuration to support transition, procurement support, travel, etc.).

Given the inherent complexities of cloud computing, all transition costs cannot be identified until selection of a non-AWS cloud vendor and communication of existing configurations to a new awardee.

Source Selection Information – See FAR 2.101 and 3.104 3

In addition, utilizing multiple cloud service providers for the same and/or different cloud services would create operational inefficiencies, confusion amongst current and potential users, and unnecessary administrative complexities that would further serve to duplicate labor, resources and costs.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

Market Research was conducted in accordance with FAR 10. In addition to market research performed by NPS, FLC San Diego issued Request for Information to its in house multiple award contracts holders and issued a sources sought notice on 22 June 2018 via the Government Point of Entry, FedBizOpps. Twenty-one resellers of AWS Cloud responded. Capability statements from the respondents, as well as verification from AWS, indicate that authorized AWS resellers are able to meet the Government's minimum technical requirements. Further, FLC San Diego identified the Army ACCENT Basic Ordering Agreement as a DoD-wide source for procuring commercial cloud hosting services, including AWS. The ACCENT BOA includes 66 prime contractors capable of responding to this requirement. A review of the market indicates that multiple third party AWS retailers exist. As detailed in Section 5, the transition from AWS to migrate another cloud service would be both cost and risk prohibitive. A transition away from AWS would involve significant risk to ongoing delivery and availability of applications and research projects utilizing AWS.

7. Determination of Fair and Reasonable Cost

The Contracting Officer shall determine the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable prior to contract award.

8. Actions to Remove Barriers to Future Competition.

NPS will continue to conduct market research into the availability and capabilities of authorized resellers, as well as additional DoD contracting vehicles that would serve to expand the potential vendor pool and increase competition for these services.

9. Other Facts Supporting Use of Other Than Full and Open Competition

NPS has utilized Amazon Web Services (AWS) commercial cloud services for three years. In that time, 40 individual users in various departments, as well as multiple network and enterprise services providers, have utilized, or are currently utilizing, the following AWS cloud services: compute, storage, databases, high-speed computing/analytics, Domain Name System (DNS), virtual private cloud and web hosting. As part of this cloud service usage, multiple research projects have been initiated, completed or are ongoing.

The following projects currently utilize the AWS cloud:

The Department of Physics currently has 20 TB of imagery backup data in S3. This data would be lost and require a minimum of 14 days of upload to restore the lost data. Backup data would be unavailable if a failure occurred.

Global Ecco has created an online research gaming environment they run from AWS. A break in service would cause this online environment to be unavailable thus interrupting their research. This environment would need to be rebuilt from scratch – time to rebuild is unknown.

Center for Homeland Defense and Security utilizes AWS to back up their data. This data would be lost and backup data would be unavailable if a failure occurred.

Dudley Knox Library utilizes AWS to back up their data. This data would be lost and backup data would be unavailable if a failure occurred.

Easy CV utilizes AWS EC2 infrastructure for their research to perform mathematical calculations to further their research. An interruption of service would cause them to have to cease their

Source Selection Information – See FAR 2.101 and 3.104 4 research, and each instance would need to be recreated from scratch - rebuild time unknown. They also utilize S3 to store their datasets which would be lost and need to be uploaded.

The Cebrowski Institute, Naval Research Lab (NRL) and Fleet Numerical Meteorology and Oceanography Center (FNMOC) utilize AWS EC2 infrastructure for their research to perform mathematical calculations to further their weather research. An interruption of service would cause them to have to cease their research and each instance would need to be recreated from scratch - rebuild time unknown. They also utilize S3 to store their datasets which would be lost and need to be uploaded.

The Acquisition Research Program (ARP) currently hosts http://www.acquisitionresearch.net/ on AWS. This website is integral to ARP and was configured by a contractor that is no longer under contract by the Government. An interruption of service would force this website offline. The configuration would be lost, and ARP does not have the in-house expertise to recreate it.

The Moves Institute utilizes AWS EC2 infrastructure for their research to perform mathematical calculations to further their research. An interruption of service would cause them to have to cease their research and each instance would need to be recreated from scratch - rebuild time unknown. They also utilize S3 to store their datasets which would be lost and need to be uploaded.

ITACS currently utilizes AWS S3 and has ~30 TB of imagery backup data in S3. This data would be lost and require a new upload to restore the lost data. Backup data would be unavailable if a failure occurred.

ITACS also has created a Github server, Shared Services Environment and a Liferay server within AWS. These environments would be lost and require rebuilding.

The Meteorology Department utilizes AWS EC2 infrastructure for their research to perform mathematical calculations to further their research. An interruption of service would cause them to have to cease their research, and each instance would need to be recreated from scratch -rebuild time unknown. They also utilize S3 to store their datasets which would be lost and need to be uploaded.