NOF-001_Sole Source Justification.pdf

EXHIBIT 1

U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

Clarksville Data Center Contract

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY,

AND SPECIFIC IDENTIFICATION OF THE DOCUMENT AS A “JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION.”

U.S. Department of Housing and Urban Development (HUD) Office of Chief Procurement Officer (OCPO)

451 7th Street SW, RM 5184 Washington, DC 20410

Contracting Activity: Office of the Chief Procurement Officer, Headquarters

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

The purpose of the justification is to request approval for a five (5) year contract to continue the leasing of Clarksville Data Center currently delivered by Peraton Inc., as outlined in contract nu mber 86615423C00001. This comprises of a 12-month base period with four 12-month options and incorporates a necessary three-month transition out period.

The existing contract, set to expire on 01/31/2025, plays a pivotal role in supporting the Office of the Chief Information Officer (OCIO) in delivering essential disaster recovery capability services.

These services encompass critical IT infrastructure to mitigate the risk of failure in the event of natural disasters, outages, or other unforeseen events. .

The Clarksville Data Center location houses all of HUD’s development, test, and disaster recovery environments and is a critical part of the HUD infrastructure.

Method of Contracting:

Type of Contract: Firm Fixed Price

Type of Funds: IT Funds are provided for this action

Docusign Envelope ID: 4134A425-EB20-4AD8-A215-7E82F56F0A4F

3. A DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE).

HUD requires continued provisioning of a stable, reliable Disaster Recovery Colocation Data C enter to meet its strategic objectives and responsibilities under Federal legislation and executive orders. The contractor shall provide a commercial facility for an External Disaster Recovery Col ocation Data Center to secure HUD’s critical IT infrastructure.

A requisition, RCS-Q-2024-00174, was established to support an estimated total value of $ 3,749,719.84 to continue External Disaster Recovery Colocation Data provided under the current Peraton Contract# 86615423C00001.

The total estimated value of the award is $3,749,719.84.

12-Month Base Period $25,478,307.36

3-Month Option Period $6,369,576.85

3-Month Option Period $9,830,291.02

Contract Total: $41,678,175.23

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The statutory authority cited is FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

As the incumbent, Peraton currently currently leases the Clarksville Data Center space. This co ntract will expire next January, and the Government will be continuing most of the work under t he new O&M contract. However, that contract does not include the leasing of data center space.

The customer is concerned that attempting to compete this work will result in the loss of the Clarksville Data Center and require a move of resources that the Government cannot support, as well as downtime that would seriously impact HUD IT operations..

12- Month Base Period $937,551.32 12- Month Option Period $603,017.68 12-Month Option Period $620,042.93 12-Month Option Period $637,590.39 12-Month Option Period $951,517.52 Contract Total: $3,749,719.84

Since late March 2024, HUD has diligently been in the process of finalizing the PWS.

Additionally, during this time period, there have been personnel transitions, resulting in new team members supporting the requirement, which caused some unexpected delays.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE,

INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS

REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202

APPLIES.

Because of the lengthy required transition period and PIVing requirements, Peraton Inc. is the only source that can fulfill the agency’s requirements at this time. As a result, there were no other sources from which to solicit offers.

The notice of intent to award a sole source bridge follow-on contract to the incumbent contractor Peraton for the External Disaster Recovery Colocation Data Center will be posted within the 14-day notification period following award in IAW FAR.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE.

The Contracting Officer will ensure a fair and reasonable price to the Government utilizing the price analysis techniques and procedures: 1) Comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government for same or similar services; and 2) Comparison of proposed prices with the Independent Government Cost Estimates (IGCE).

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10)

AND THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH

WAS NOT CONDUCTED.

Because of the lengthy required transition period and PIVing requirements, Peraton is the only source that can fulfill the agency’s requirements at this time. As a result, no market research was conducted for this sole source bridge contract.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

Without the critical external disaster recovery co-location data center support currently bein g provided under the Peraton contract, HUD would experience a detrimental impact to its in formation technology infrastructure. HUD would not be able to deliver critical information Processing and Storage (NCCIPS), located in southern Mississippi experiences an outage, degradation of operational services, weather event, and/or natural disaster. HUD would no longer be able to support the capabilities, investments, and services in relation to the degrad ation of operational services, weather event, and/or natural disaster.

The impact of a break-in-service would result in the immediate shutdown of the Department’s communication rendering HUD unable to support the needs of the American public and HUD’s mission.

At this time, for the reasons discussed in this justification, Peraton Inc., located in Reston , Virginia, is the only responsible source that can satisfy HUD’s End User Services requirements currently under contract without a potential break in service.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION.

No other vendors have expressed an interest in this sole source acquisition.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED.

The Office of the Chief Information Officer (OCIO) is currently pursuing a competitive acquisition for DCIO IOO Operations and Maintenance (O&M) Services contract.

12. CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION IS

ACCURATE AND COMPLETE TO THE CONTRACTING OFFICER'S

KNOWLEDGE AND BELIEF.

See certification at Part 2, Form-24012