19-K_B-015_JA_9_Sep_2019_Final_Redacted.pdf

J&A Number: 0222-19-231-00 Code:

P.R. Number: 19-K B-015

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center, Philadelphia Division (NSWCPD), Code .

2. Description of Action Being Approved

Award of a Firm-Fixed-Price (FFP) contract on a sole source basis to OWL Computing Technologies 42 Old Ridgeway Road Danbury, CT 06810 for the procurement of OWL Cross Domain Solution – Multi- Protocol Platform (OCDS-MPP) hardware appliances and associated equipment/software/IT service.

3. Description of the Supplies or Services

This proposed acquisition will be a key component of planned cyber security enhancements to United States Navy (USN) vessels to provide critical network isolation and boundary protection. The proposed acquisition is for ( ) hardware units, associated software, and licensing fees described below for CVN ( ), CVN ( ), CVN ( ), and lab systems ( ).

The OWL NAV-MPP-0026-FO is a hardware-enforced, one-way transfer (OWT) Cross Domain Solution that consists of OWL’s 1U OCDS-1000 hardware platform hosting two physically separate processing environments, OWL’s MPP (Multi-Protocol Platform) software, OWL’s DUFS (Dynamic UDP Filtering Service), OWL filter policy, and OWL failover application.

The part numbers, quantities and estimated costs are as follows:

Equipment Part Numbers Unit Cost Qty Total Cost 1U One-Way Transfer (OWT) Cross Domain Solution

NAV-MPP-0026-FO

One-year Software Support ATSO-OCDS-MPP-0026 Months

Mission Specific Tailoring for OCDS and ECDS* Configuration for Protocol Interfaces and Filters

NRE-CDS Tailoring

TOTAL

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

PHILADELPHIA DIVISION

5001 SOUTH BROAD STREET

PHILADELPHIA PA 19112-1403

*ECDS – Enterprise Cross Domain Solution The Government’s schedule requirements have been verified by the certifying technical and requirements personnel in accordance with FAR 6.303-2(c).

The total estimated value of this requirement is . This contract will be fully funded using FY19 OPN funds.

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), Only one Responsible Source and No Other Sources and Services Will Satisfy Agency Requirements, as implemented by Federal Regulation (FAR) Subpart 6.302-1

5. Rationale Justifying Use of Cited Statutory Authority

OWL Cross Domain Solution – Multi-Protocol Platform (OCDS-MPP) hardware appliances and associated equipment/software/IT service is used to increase cyber security posture on various ship systems to meet mission specific requirements. OWL Computing Technologies offers the only product on the market that has a patented secure one-way transfer mechanism and is technically compatible with the data type and protocol requirements specific to NSWCPD Hull, Mechanical and Electrical (HM&E) current system.

OWL supports the redundancy needs of NSWCPD HM&E and Navigation Systems’ network by offering a fail-over solution. The way the OWL solution is architected, it will not only increase the security of NSWCPD HM&E networks, but it will also enhance overall reliability by decreasing complexity.

The shipboard rack design utilizes the OWL solution’s unique fully integrated 1U design that allows a very small size to meet the requirements of multiple units within the rack. Other racks have undergone EQT and cannot accommodate this 1U size. In addition, the security features of OWL's patented dual-diode technology include required high security capabilities and a fully integrated package.

Any other solution would require a new rack design and a new round of Environmental Qualification Testing (EQT). In addition, all Ship Installation Drawings (SIDs) would need to be redone to accommodate a new rack. Installations that are currently in late stages would need to be cancelled as parts have been procured, Ship Installation Drawings (SIDs) developed, EQT completed, system testing completed, and Integrated Logistics Support (ILS) packaged submitted and approved. This particular solution is already incorporated into the CVN Navigation and Ship Controls Land-Based Test Facility which is an accurate shipboard representation in a land based facility where the equipment is undergoing operational, performance, and security testing.

SIDs specific to this design were received for CVN 70 in September of 2018 and for CVN 77 in August of 2019. CVN 72 SIDs are currently in production. Each package was designed with the current rack design as the key installation element.

Ship Change Document 17709 was Phase III approved on 7/26/18 and SCD 19594 was Phase III approved in 8/7/18 based on this specific design. These two SCDs cover this installation onboard CVN 68 and 78 ship classes. Changing the design would require updating the SCD and returning to Phase II.

Choosing a new vendor for the data diode portion of this project would incur at least a two to four-year delay in installation onboard USN ships. If the Government were to switch vendors, it would require a rack redesign, new EQT, new developmental/systems/and security testing, new ship installation documents, new ILS, and new procurements.

Phase Schedule Cost Rack Redesign 2 months (2 FTE) Hardware and System Redesign 6 months (2 FTE) Equipment Prototype Fabrication 6 months (3 FTE + HW) Environmental Qualification Tests 12 months

(Qty. Items @ each)

Ship Installation Drawings (SIDs) 6-12 months (Qty. ships @ each)

Rack Shipset Purchase 6 months (Qty. ship already purchased)

AIT Costs (Missed Installations) Qty. ship already awarded Lab / Test Procurements Unit Price is an estimate Total Duration / Cost 48 months

Based on the above estimate, it would cost the Government an additional to re-engineer the existing Boundary Defense Capability design which would result in substantial duplication of cost that is not expected to be recovered through competition. Also, it would require an additional 38-44 months of engineering and testing, which would not support the planned procurement and shipboard installation schedule to start in FY20 and cause unacceptable delays. Approved installations onboard 3-6 ships would not be able to be completed during their currently planned availabilities, missing the goals of the Commander’s Intent to improve the cybersecurity posture onboard USN ships.

Thus, no other supplies or services will satisfy the Navy’s requirements.

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

In 2015, other vendors were sought out for this procurement via a market research assessment and analysis of alternatives. The other vendors were either not US-based (security implications) or could not currently support NSWCPD HM&E’s system requirements. OWL currently is the only vendor that meets NSWCPD HM&E needs. Some of the specific needs addressed by OWL are:

1. Hardware enforced one-way transfer (OWT) utilizing a Data Diode (LED light to send the data very fast)

a. Physical separation with Fiber Optics between Data Diode Communication Cards.

b. Requirements for extremely low latency (<= 2ms)

c. LED (LiFi) Blue Send Optic and Red Receive optic sends data via Asynchronous

Transfer Mode (ATM)

2. Enhanced Security: Source Data protection (NO MAC/IP Address is sent) and customized for

CVN specific data sets

3. SWAP – 1U/19” Rack Mountable Appliance (Smaller footprint in test stage now)

a. Rack chosen for minimal shipboard footprint.

b. Amount of directional network interfaces requires 4 diode solutions, which the 1U footprint enables

c. Other vendors require 5-10U per stream

4. Bandwidth License Key Upgradability (Current 26Mbps throughput)

a. Hardware can stay installed and can be upgraded to increase bandwidth at any future time

5. NAVSEA customization for UDP Traffic on multiple sources

a. UDP Filtering capability

b. Customer capability to modify and tailor devices and settings

6. Pricing logic for “Plug & Play” Operation

a. No Scope of Work to operate (One-Time Fee for Hardware/Software)

b. Annual Technical Support Option (ATSO) for budgeting 3 or 5 year contract

It is the product that has been determined technically compatible for the approved alterations onboard USN ships that are going to begin FY20.

In addition, a Request for Information (RFI) was posted to FBO on 17 April 2019. A synopsis of this procurement was also published to FBO on 18 June 2019. BAE Systems submitted a capability statement in response to the RFI. The BAE solution was reviewed by the CVN Boundary Defense Capability (BDC) project team. It was determined that due to the size of the solution per network interface, that BAE could not meet the Government’s needs.

7. Determination of Fair and Reasonable Costs

The Contracting Officer will make a determination as to whether the costs to the Government for the supplies covered by this J&A are fair and reasonable, prior to award. The contractor will submit a formal price proposal and sufficient information to support the accuracy and reliability of the estimate. The contractor’s proposal will be reviewed by experienced technical analysis, cost analysis, and contract specialist with the aid of necessary field pricing support. The Contracting Officer will utilize cost and pricing analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Competition

NSWCPD will continue to monitor the marketplace and identify potential sources of the supplies identified in this Justification. Any sources discovered that could potentially satisfy this specific procurement will be taken into account for any future requirements.