Redacted JOFOC V2.pdf

U.S. Department of Energy Washington, DC 20585

Justification for a Sole-Source 8(a) Contract over $25 Million Office of Headquarters Procurement Services Artificial Intelligence and Technology Office

1. Identification of the Agency and Contracting Activity

This document sets forth the justification and approval of a sole-source 8(a) Indefinite Delivery Indefinite Quantity (IDIQ) contract to a Tribally Owned Firm over $25 million in accordance with Federal Acquisition Regulation (FAR) 19.805-1(b)(2); where an acquisition exceeds the competitive threshold (i.e., $7.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4.5 million for all other acquisitions), the Small Business Administration (SBA) may accept the requirement for a sole source 8(a) award if-

(1) There is not a reasonable expectation that at least two eligible and responsible 8(a) participants will submit offers at a fair market price; or

(2) SBA accepts the requirement on behalf of a concern owned by an Indian tribe or an Alaska Native Corporation.

In accordance with FAR 19.808-1(a), the SBA may not accept for negotiation a sole-source 8(a) contract that exceeds $25 million unless the requesting agency has completed a justification in accordance with the requirements of 6.303. As such, the proposed contractor, Chickasaw Strategic Pointe, LLC, (hereafter referred to as “CSP”) is a Tribally Owned Firm and this justification satisfies the requirements of FAR 6.303-2(d), which states the following:

(d) As a minimum, each justification for a sole-source 8(a) contract over $25 million shall include the following information:

(1) A description of the needs of the agency concerned for the matters covered by the contract.

(2) A specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract (see 19.805-1).

(3) A determination that the use of a sole-source contract is in the best interest of the agency concerned.

(4) A determination that the anticipated cost of the contract will be fair and reasonable.

(5) Such other matters as the head of the agency concerned shall specify for purposes of this section.

This sole-source contract under the 8(a) Business Development Program (15 U.S.C. 637) is being issued by the U.S. Department of Energy (DOE), Office of Headquarters Procurement Services (MA-64), located in Washington, DC on behalf of the Artificial Intelligence and Technology Office (AITO).

2. A Description of the Needs of the Agency Concerned for the Matters Covered by the

Contract

AITO’s Mission and Strategic Goals:

The AITO mission accelerates Machine Learning (ML) and Artificial Intelligence (AI) enabled capabilities through strategic portfolio alignment while scaling Department-wide use cases that advance the agency’s core missions. As the coordinating arm for program offices, AITO provides advice on trustworthy AI/ML strategies; and expands public, private, and international partnerships, policy, and innovations – all in support of National AI Leadership and Innovation. AITO enables DOE to improve AI strategic coordination and AI partnerships that advance the Department’s mission in critical areas ranging from national security to climate resilience to energy justice.

The AITO has ten strategic goals:

• Retain experts in AI portfolio optimization and program management, with the ability to establish departmental strategies, form partnerships, apply AI and data science, and successfully operate in an evolutionary, changing environment to achieve the AITO and DOE-wide mission.

• Organize to more effectively and holistically collaborate, align, and optimize artificial intelligence and machine learning investments across departmental elements, focusing more on the administration needs, strategic outcomes, and improved partnerships.

• Facilitate change to the AITO culture so that the team embraces a shared risk-reward approach to success and generates higher quality outcomes.

• Advance AITO strategic partnerships across federal, state, local and tribal communities to advance the administration’s goals through the application of AI/ML, addressing the climate crisis, promoting environmental justice, and grid and cyber resilience.

• Create a more robust, innovative AI Portfolio Management System, repository, and catalogue of DOE AI/ML investments. Evolve Artificial Intelligence Exchange (AIX) into a Product and manage accordingly.

• Establish baseline assessments of DOE-wide AI/ML projects, outstanding needs, and gaps in AI assets to formulate the DOE AI strategy and actionable implementation plan, considering classified and unclassified networks. The AI strategy is cross-cutting, eliminates redundancy, prevents wasteful activities, identifies research and development AI/ML opportunities and gaps in investments, and ultimately strengthens our national cyber security by providing timely direction to the department regarding investment decision making.

• Commence fiscal year (FY) 2023 planning for a minimum of two (2) DOE-wide challenges; the challenges will facilitate Program Offices achieving their goals. In addition, plan summer research accelerator for early-career PhDs from HBCU’s (Historically Black Colleges and Universities) and Minority Service Institutions (MSI’s) in AI/ML, including their counterparts in various science domains relevant to DOE; and industry partners.

• Develop and deploy AIRMP (Artificial Intelligence Risk Management

Playbook) external version.

• Develop and operationalize AITO communications plan and evolve operations infrastructure including standard operating procedures.

• Implement an AI cloud platform and an advanced AI operating environment for conducting AI/ML analytics and predictions and data mining for responsible decision making. Provide a platform for cross-cutting and public enablement of Responsible and Trustworthy AI capability. Explore a re-platforming solution for AIX in FY 2023.

AITO’s Required Support Services and Tasks:

The AITO requires program management and support services to accomplish its mission, strategy, and strategic goals. In support of AITO’s mission and strategic goals, the following support services and tasks may be required in the performance of this IDIQ contract. This list is not all-inclusive; rather, it represents the types of expertise required and the work requirements that may be performed under the IDIQ.

Contractor support may include, but is not limited to, assisting DOE with the following:

• Evaluating, selecting, and implementing a robust, innovative AIX AI Portfolio Management System that serves as a repository and catalog of DOE AI/ ML investments.

• Improving AITO user and customer experiences and establishing service level agreements with assurances for performance excellence.

• Supporting the development and deployment of the external version of the

Artificial Intelligence Risk Management Playbook which guides leaders of new AI/ML projects and references risks and mitigation techniques for users.

• Implementing an AI cloud platform for conducting advanced analytics including data mining and public enablement of Trustworthy AI capability.

• Operationalizing an AI Advancement Council (AIAC) to commence a DOE-wide AI requirements and governance through the establishment of an AIAC that is comprised of DOE Departmental Element Heads or Dash-1 decision makers, to include the DOE community at large as operating task forces.

Designing and implementing AI governance and operational policies supporting the AITO mission.

• Establishing baseline assessments of DOE-wide AI/ML projects, programs, outstanding needs, and gaps in AI capabilities to formulate the DOE AI strategy, developing actionable implementation plans, and executing as pilots and process change as needed. Update implementation plans annually and on-demand, as required.

• Conducting AI legislation and advisory support for AI legislation, circulars, and executive orders.

• Delivering recommendations and pilot implementations that align and optimize investments across departmental elements.

• Evolving communications and operating infrastructure to develop and operationalize AITO communications plan, evolving operations infrastructure including standard operating procedures, enhancing social media, and Powerpedia communications.

• Planning and conducting workforce education, development, and upskilling, in accordance with Executive Orders: 13985, 14008, 14028. Creating and executing action plans that advance employee talent in AI and ML so that adoption, construction, and integration of solutions are responsible, trustworthy, and support national security.

• Defining and implementing Artificial Intelligence Exchange (AIX) new features and releases.

• Implementing advanced dashboards in advanced interactive maps for greater visibility into DOE-wide AI portfolios and award recipients for greater insights into EO 13895 and Justice40.

• Delivering AI and ML research, development, testing, algorithmic training, data annotation, and deployments to fulfill the mission, including climate, energy, grid, and cyber security resiliency and disadvantaged community equities.

• Creating a more robust, innovative AI Portfolio Management System, repository, and catalog of DOE AI/ML investments.

• Automating interfaces in AITO systems for Program Offices with large AI investments to reduce manual data entry.

Name and Address of the Proposed Contractor:

Chickasaw Strategic Pointe, LLC 2600 John Saxon BLVD STE 2209 Norman, Oklahoma 73071-1166 DUNS Number: 167135891 NAICS Code: 541611 - Administrative Management and General Management Consulting Services

Contract Type:

The Office of Headquarters Procurement Services (MA-64) plans to award an IDIQ contract, where Firm Fixed Price (FFP), Time and Materials (T&M), Labor Hour (LH), or a combination of these contract type task orders, may be issued under the IDIQ.

Pursuant to FAR subpart 16.601(d), prior to the issuance of a T&M or LH task order, the Contracting Officer will:

• Prepare a determination and findings that no other contract type is suitable. The determination and findings will be-o Signed by the contracting officer prior to the execution of the base period or any option years of the order; and o Approved by the head of the contracting activity prior to the execution of the base period when the base year plus any option years exceed three years; and

• Ensure that the order includes a ceiling price that the contractor exceeds at its own risk.

Estimated Total IDIQ Contract Value (including options):

The estimated total IDIQ contract value and period of performance is as follows:

3. Specification of the Statutory Provision Providing the Exception from the Requirement to Use Competitive Procedures in Entering into the Contract (see 19.805-1)

Sole-source awards under the 8(a) Program (15 U.S.C. 637) are authorized, therefore full and open competition is not required. Likewise, FAR 19.805-1(b)(2) states, “where an acquisition exceeds the competitive threshold, the SBA may accept the requirement for a sole source 8(a) award if the SBA accepts the requirement on behalf of a concern owned by an Indian tribe or an Alaska Native Corporation.”

4. Determination that the Use of a Sole-Source Contract is in the Best Interest of the

Agency Concerned

The award of an 8(a) sole-source IDIQ contract that exceeds $25 million to a Tribally Owned Firm is in the best interest of DOE because this contract will support the achievement of the AITO mission objectives and goals, and it will support the achievement of DOE’s socio-economic goals.

The proposed contractor, Chickasaw Strategic Pointe, LLC (CSP), has experience providing robust, scalable, and iterative approaches for delivering AI/ML capabilities. Their core competencies, gained through combined extensive experience with hands-on business and digital transformation through the use of AI/ML technologies, provide the necessary expertise to support the AITO’s functional and technical needs. CSP also has the required corporate experience, staffing/recruiting capability, and past performance to manage a contract of this size, scope, and complexity. In addition, CSP prioritizes three areas as critical for delivering value to the AITO:

• Program Management and Execution: Focusing on managing and delivering the task commitments in a timely manner to the expected quality utilizing capable technical personnel.

• Enterprise Architecture: Focusing on designing and developing a conceptual blueprint that defines the structure and standards and the technical framework for robust AI/ML solution deployment to effectively achieve the objectives.

• Strategic Advisory: Focusing on thought leadership, future state visioning, industry best practice and senior leadership advisory, and road mapping activities.

CSP is a tribally owned SBA certified 8(a), a small, disadvantaged business (SDB), a minority owned small business, and a member of the Chickasaw Nation Industries, Inc. (CNI) family of companies. The CNI family of companies offers extensive understanding of the DOE environment gained through service to the DOE since 2004 coupled with their expertise in program management, and the ability to provide highly technical subject matter experts (SMEs) to progress the AITO’s mission. CSP’s organizational structure allows them to leverage a shared services model that provides DOE with standardization, consistency, and quality control as well as dedicated back-office infrastructure while maintaining the flexibility, readiness advantages, and status of a small business. CSP can also easily access CNI’s resources, tools, and employee expertise to contribute to the performance of the IDIQ contract.

Furthermore, CSP’s robust understanding of the AITO’s requirements and their history of providing like services, demonstrates their capability to fulfill the full spectrum of DOE’s anticipated requirements. In addition, since CSP is a tribally owned SBA certified 8(a), a small, disadvantaged business, and a minority owned small business, these certifications will help DOE meet a multitude of small business acquisition goals while simultaneously fulfilling and meeting the needs of the AITO.

Based on the above information and market research, DOE has determined that awarding a sole-source 8(a) award to Chickasaw Strategic Pointe, LLC is in the best interest of the Government.

5. Determination that the Anticipated Cost of the Contract will be Fair and

Reasonable

The contracting officer (CO) will compare proposed prices to the Independent Government Cost Estimate (IGCE) developed for this requirement which incorporated a labor category and rate analysis that compared labor rates from similar labor categories, published on the General Services Administration (GSA) Federal Supply Schedules (FSS) for companies that provide similar services.

6. Such other Matters as the Head of the Agency Concerned Shall Specify for Purposes of this Section

A sole-source 8(a) IDIQ contract is necessary to support the AITO’s need for program management and other support services to accomplish its mission, strategy, and strategic goals.

CSP has the required capabilities and expertise to satisfy AITO’s requirements to include assisting the AITO with meeting Department-wide strategic AI/ML initiatives.

The CO will provide a copy of DOE’s approved justification to the SBA’s Associate Administrator for Business Development to obtain the SBA’s authorization for DOE to negotiate directly and issue a contract award to the identified 8(a) Tribally Owned Firm.

Additionally, a copy of this justification will be posted to beta.SAM.gov for a minimum of 30 days in accordance with FAR 6.305, Availability of the Justification.

7. Certification and Signatures:

The information contained in this Justification for a Sole-Source 8(a) Contract Over $25 Million is accurate and complete to the best of my knowledge and belief.