Limited_Source_Jusification_5M15B901.pdf

Updated 12/18/14

Defense Microelectronics Activity 4234 54th Street, McClellan, CA 95652

Limited Source Justification

Using Federal Supply Schedules

1. Agency and Contracting Activity: Office of Secretary of Defense, Defense Microelectronics Activity (DMEA)

2. Nature and/or Description of Action:

Potential task order award to contractor, the Potomac Institute for Policy Studies (PIPS) under its GSA contract number GS-10F-0185N to provide in-depth research study and report on Trusted State-Of-The-Art (SOTA) Microelectronics Strategy identified below.

3. Description of Supplies/Services:

Impact Analysis and Assessment of IBM Alternatives: The contractor shall analyze the historical development of the Trusted SOTA access methods and Trusted Foundry program. The contractor shall assess stakeholder needs regarding Trusted SOTA microelectronics and provide a comparative analysis of these needs. The contractor shall identify possible courses of action and conduct a tradeoff analysis, highlighting the advantages, the disadvantages, and the relative costs and benefits of each option including policy assessment and recommendations, if applicable.

Post-IBM Strategy Development: Based upon the impact analysis and assessment, the analysis of stakeholder needs, and the identification and analysis of alternatives uncovered in the above paragraph, the contractor shall summarize the facts, findings and recommendations regarding future sources for Trusted SOTA microelectronics. The contractor shall provide assistance in the development of a Trusted SOTA Microelectronics Strategy. The contractor shall ensure that these recommendations anticipate realistic future challenges, balance current demands against the ability to create and execute strategic intent, adapt to emerging trends and requirements, address the efficacy of a growth strategy, and assess long term organizational performance and technology availability. This contractor may need to access Sensitive Compartmented Information (SCI); the SCI work under this contract will be conducted at the contractor’s SCIF.

To solicit for this contract the contractor must have personnel, facilities and processes in place to accommodate the access, creation, storage and transfer of SCI material. Estimated task order cost is $500,000.

4. Authority Cited and Supporting Rationale: This action is conducted under the authority of the Multiple Award Schedule Program (FAR 8.401). The circumstance for limiting competition is:

FAR 8.405-6(a)(1)(i)(B). Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Rationale: Under a separate task order, the Potomac Institute for Policy Studies (PIPS) delivered a report that provided DMEA with an extensive Microelectronics Strategy Study that encompassed a full analysis of the DoD’s Trusted requirement as it pertains to microelectronics as well as the key roles assumed by three portions of that market: legacy technology availability from DMEA, availability of Trusted services and sources of supply from DMEA-accredited industry partners, and state-of-the-art microelectronics availability from IBM. DMEA has been tasked by Office of Secretary Defense to determine the post-IBM Trusted sourcing strategy.

PIPS employs two highly specialized Subject Matter Experts (SME’s) that have the extensive experience to provide the services required in paragraph three above. One SME holds a Doctorate in solid state physics and has spent his career at both IBM and Motorola, accumulating more than 20 years of experience in the industry. The SME was also the 2008 IEEE-USA Congressional Fellow for a US congressman. The second SME served as the Executive Vice President of Texas Instruments and now serves an independent expert consultant to the industry.

These SME’s employed by PIPS and their knowledge of the microelectronics strategy are instrumental to this task in determining the strategic path forward for the microelectronics environment. PIPs currently has a government certified SCIF at their facility and has demonstrated on past tasks the ability to access, create, store and transfer SCI material.

5. Determination of Best Value:

The Potomac Institute for Policy Studies (PIPS) accumulated knowledge from previous similar work mentioned above is vital to being able to accomplish a deep dive assessment of impacts to the DOD and its strategy moving forward. PIPS has already gained experience and extensive knowledge about these issues that another contractor would have to develop at additional cost and schedule in excess of an estimated $300,000 additional funding. The recent experience that Potomac Institute has can be leveraged on this action moving forward with the ready access to key Subject Matter Experts (SME’s) makes Potomac Institute the best value alternative for this effort.

I have reviewed all factors and determine this order represent the best value to the Government.

Typed Name: Edward Kurjanowicz Date: 18 Dec 2014

Title: Contracting Officer Signature:

6. Market Research (among schedule holders): Have found no other schedule folders to have similar experience to the Potomac Institute for Policy Studies (PIPS) and its specialized Subject Matter Experts (SME’s) to meet the aforementioned requirements.

7. Other Facts: None

8. Actions to Increase Competition: This Limited Source Justification will be posted to the Mission Oriented Business Integrated Services (MOBIS) under GSA Schedule 874. Although the Contracting Officer has determined to limit this procurement to a specific source, schedule holders that can demonstrate similar in-depth knowledge and Subject Matter Experts (SME’s) to meet the aforementioned requirements will be invited to provide a capability statement which will be considered by the Government.

9. Contracting Officers Certification:

I certify the content of this Justification for Other than Full and Open Competition is accurate and complete to the best of my knowledge.

10. Technical or Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Daniel Sheddy Date: 18 Dec 2014

Title: Project Engineer Signature:

11. Contracting Officers Approval:

I hereby approve this Limited Source Justification.

Note: Project Engineers shall check appropriate box:

National Security Compromised – No posting (Rationale to PCO)

Redacted – Copy will be sent to PCO

No redaction