OUSD_SCRM DPA_SBIR III_JA_Redacted.pdf

The Letter Contract signed on April 01, 2020 is for supplies, delivered as a managed service subscription. 202 Group LLC will provide a subscription-based managed service on a FFP basis to the OUSD. This service will provide automated supply chain risk intelligence on 10,000 vendors, and perform data analysis on results from other supply chain screening tasks. The work performed on this contract will assist OUSD in identifying and mitigating unacceptable risks in the supply chain as they identify potential vendors to produce urgently needed medical equipment and personal protective equipment (PPE). The proposed SBIR Phase III definitized contract will be a FFP with an estimated period of performance of 12 months from date of award. The total dollar value is $4,045,850.00, which includes mandatory items as well as FFP optional CLINs.

3. A Description of Supplies/Services Required to Meet Agency’s Need:

This requirement is for supplies, delivered as a managed service subscription. The OUSD requires urgent and immediate analytics and data intelligence assistance from 202 Group LLC to conduct Supply Chain Risk Management (SCRM) on companies/vendors who are being identified as a result of the DPA. Under the DPA, the Government will call upon the industrial base to prioritize and enhance production of critical supplies and materials to combat the virus and mitigate its impacts. In exercising this authority, it is critical for the Government to holistically screen and vet vendors and the underlying supply chain networks to ensure suppliers are reputable, in good standing, and will not further introduce unacceptable risks to the fight against COVID-19.

202 Group LLC will provide a subscription-based managed service on a FFP to the OUSD to provide automated intelligence on 10,000 vendors and monitor the supply chain for emerging risk. Supply chain risks include foreign ownership, legal, regulatory, financial, and technical issues.

This contract will provide and implement a SCRM intelligence solution, vendor profiling and vetting, as well as illumination of the defense industrial base to potentially identify access to medical equipment and supplies. 202 Group LLC will provide deep insights into individual market participants and suppliers to help DOD understand the capabilities, workforce, financial health, and material risks of doing business with a company/vendor.

4. An Identification of the Statutory Authority Permitting Other Than Full and Open Competition:

The authority under which this J&A is made is pursuant to FAR 6.302.

a. FAR 6.302-5(a)(2)(i), Authorized or Required by Statute.

The project is a SBIR Phase III award that is derived from, extends, or completes efforts made under prior SBIR funding agreements and is authorized under 15 U.S.C. 638(r)(4).

In accordance with the SBA SBIR Policy Directive dated May 2, 2019, the competition for SBIR Phase I and Phase II awards satisfies any competition requirement of the Armed

Services Procurement Act, the Federal Property and Administrative Services Act, and the Competition in Contracting Act. Furthermore, 15 U.S.C. 638(r)(4) states:

“To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue, without further justification, Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.”

5. A Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires Use of the Authority Cited:

Based on market research, 202 Group LLC is the only company that can provide the specific work for this contract. They are the developer and exclusive provider of the 202 Group Market Intelligence Platform, of which Exiger DDIQ is a critical commercial tool in the platform that enables automated vendor and supply chain vetting that is immediately deployable, with no customization, for enterprise use.

This product provides customers immediate access to a web-based data analytics and market intelligence platform for the performance of due diligence analysis, risk identification, and reporting, and continuous monitoring. The software compiles, processes, and displays information of relevance based on pre-configured risk events directly tailored to the supply chain risk management use case. All content return maintains its provenance and date/time captured, and all search functions and results are fully auditable.

The platform also ensures the highest level of ethics and transparency in how results and reports are generated and complies with DOD’s Ethical AI Principles. Additionally, the platform performs automated language translation in the search process in over 60 different languages to enable identification of potential foreign risk indicators including foreign ownership, control, and influence.

The nature of the acquisition requires the use of the authority cited. The SBIR Program is structured in three phases.

PHASE I: The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed Research/Research and Development (R/R&D) efforts and to determine the quality of performance of the small business awardee organization prior to providing further Federal support in Phase II.

PHASE II: The objective of Phase II is to continue the R/R&D efforts initiated in Phase I.

Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase II. Only Phase I awardees are eligible for a Phase II award.

PHASE III: The objective of Phase III, where appropriate, is for the SBIR awardee to pursue commercialization objectives resulting from the Phase I/II R/R&D activities. The SBIR program does not fund Phase III. For some federal agencies, Phase III may involve follow-on non-SBIR funded R&D or production contracts for products, processes, or services intended for use by the U.S. Government. The Phase III work derives from, extends, or completes efforts performed under Phase I and/or Phase II; therefore the use of the authority cited is required.

The previously successful Phase I/II awards make 202 Group LLC uniquely qualified as the Phase III awardee.

6. A Description of Efforts Made to Ensure that Offers are Solicited From as Many Potential Sources as Practicable:

No other efforts were made to solicit other potential sources in accordance with the SBIR Policy Directive. Furthermore, in accordance with FAR 5.202(a)(7), proposed contract actions resulting from the acceptance of a proposal under the Small Business Innovation Development Act of 1982 are exempt from being publicized.

SBA SBIR Policy Directive: “The competition for SBIR Phase I and Phase II awards satisfies any competition requirements of the Armed Services Procurement Act, the Federal Property and Administrative Services Act, and the Competition in Contracting Act.”

Additionally, the directive states: “There is no limit on the number, duration, type, or dollar value of Phase III awards made to a business concern. There is no limit on the time that may elapse between a Phase I or Phase II award and Phase III award, or between a Phase III award and any subsequent Phase III award.”

7. A Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer will conduct proposal analysis in accordance with FAR Subparts 15.404-1 (Proposal Analysis Techniques) and 15.405 (Price Negotiation) to ensure that the final price is fair and reasonable.

This determination will be documented in the Award Decision Document, which will be included in the contract file.

8. A Description of the Market Research Conducted and the Results or a Statement of the Reason Market Research was not Conducted:

FAR 10.001(a)(2) states that market research appropriate to the circumstances must be conducted. SBIR Phase III procurements are such that the traditional market research to determine alternative sources is generally not applicable. The Government conducted market research to verify and determine that the proposed Phase III work derives from research, effort, and/or prototypes performed under Phase I and Phase II efforts by obtaining copies of the previous SBIR contracts, and obtaining verification from the previous entities of the Phase I and II awards. The Government also determined that 202 Group LLC is available, capable, and willing to perform the work, and has completed

Final Approval:

I certify that this justification is accurate and complete to the best of my knowledge and belief, and I determine on the basis of the findings above that an other than full and open competition approach is in accordance with the requirements and is in the best interest of