FBO_-_Sole_Source_Justification_SAQMMA14D0153_SAQMMA14R0436.pdf

SAQMMA14R0436

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

The US Department of State (DOS) Office of Acquisition Management (AQM) is conducting this acquisition for Modular Data Centers (MDC) on behalf of the Bureau of Information Management Resource (IRM) Enterprise Server Operations Center (ESOC). The estimated cost is $40,000,000.

This justification supports the negotiation and award of a sole-source 8(a) contract exceeding the competitive threshold and exceeding $20 million. This justification meets the requirements at FAR 6.303-1, and contains the elements required by 6.303-2(d) and 6.304.

1. A description of the needs of the agency concerned for the matters covered by the contract: ESOC provides the centralized domestic enterprise data center infrastructure to house critical applications and data for the DOS. There are currently multiple core data centers located in the contiguous United States (CONUS). Two of the Department’s larger Tier III data centers provide colocation, co-managed, hosted, and managed data center services. One of the Tier III facilities is a government-owned facility; the other is currently hosted in a commercial facility. DOS is seeking to transition from the commercial facility into a government-owned campus at the Beltsville Information Management Center (BIMC), Beltsville, MD upon expiration of the commercial colocation contract in Fiscal Year (FY) 2017.

DOS is seeking to implement a “private cloud” model, implementing the first instance as a new container-based BIMC solution. This solution will break from the traditional, virtualized data center, and will form the foundation for a redesigned data center environment of the DOS to provide a true “private cloud” offering. A container-based private cloud in a box solution is defined as a standardized and self-contained data center unit that can be assembled at a contractor site and subsequently delivered to the customer’s ultimate location, to enable the Department to consolidate servers into an efficient and flexible data center infrastructure. The modular data center is delivered as a turn-key deliverable, including components such as the modular (container-based) data center trailer/building, the IT equipment populated and operational in the container, the cloud software/platform solution loaded and configured into the IT equipment, and all necessary configuration, installation, start-up, site-preparation, and commissioning services.

2. A specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract: FAR 19.805-1(b)(2) permits the SBA to accept for a sole source 8(a) award a requirement exceeding the competitive threshold if the requirement will be accepted by the SBA on behalf of a concern owned by an Alaska Native Corporation. This requirement will be offered to the SBA 8(a) program for Chenega Decision Sciences LLC, 14295 Park Meadow Drive, Chantilly, VA, an 8(a) firm owned by an Alaska Native Corporation.

3. A determination that the use of a sole-source contract is in the best interest of the agency concerned: The DOS engaged in market research subject to all applicable considerations in accordance with Federal Acquisition Regulation (FAR) Part 10 Market

Research and Part 19 Socioeconomic Programs. Specifically, an analysis of responses received in response to “Sources Sought” notice SAQMMA14I0024, posted publicly the Government Point of Entry (GPE) at www.fedbizopps.gov, yielded an Alaska Native Corporation-owned 8(a) firm that possesses the capability to perform the contract and already holds the SECRET Facility Clearance required for performance. Chenega Decision Sciences is an 8(a) firm owned by an Alaska Native Corporation that has expressed interest to DOS in response to its Sources Sought notice for the MDC requirement, has the capability to perform the contract, and already holds the SECRET Facility Clearance required for performance.

The schedule for this acquisition is driven by dependencies with site preparation activities as well as the lease end date and associated move schedule from the ESOC East facility.

The DOS identified in its Acquisition Plan the following schedule risks for this acquisition, among other risks:

Risk Impact Site preparation and construction delays Site pad estimated due date of March

2015 could be missed impacting overall solution delivery and the ability to meet the dates to move out of ESOC East by the 2017 lease end date

Cloud implementation delays ESOC East migrations could be delayed impacting the schedule to be out of Terremark by the end of 2017

The Department requires a contract award before the end of FY14 in order to accommodate the long lead time for the MDC necessary to ensure delivery by March 2015, which is required to meet the overall project schedule. If schedule goals are not met for FY14 and FY15 then a new ESOC East data center capability may not be ready in time to migrate systems and vacate the Terremark hosting facility before the Terremark contract end date. Using a statutory authority for a sole source 8(a) ANC acquisition will protect the government against potential delays in a competitive acquisition process, including solicitation and evaluation of multiple offers as well as potential protest risks and delays associated with competitive source selections. A sole source contract will enable the DOS to secure the contract in time to meet its ESOC move schedule. For these reasons, the competitive solicitation and evaluation scheme originally envisioned by the Acquisition Plan is determined to be inadequate to meet the needs of the Government for this project and will be revised in favor of a sole source 8(a) ANC contract award under the authority cited above. All elements of the Acquisition Plan as previously approved that are not affected by the sole-source/competitive approach remain in effect.

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

The Contracting Officer will analyze the sole source’s proposed cost/price pursuant to FAR 15.4, for delivery of the full solution specified in the SOW, including optional items, for the base period and all option periods. The sole source’s proposed cost/price will be analyzed on the basis of cost realism and cost reasonableness. The cost/price analysis will ensure that all technical elements of the proposal are priced, and that prices are generally consistent with expected commercial pricing for similar services and equipment. Price realism and reasonableness will be based in part on a comparison to the http://www.fedbizopps.gov/ independent government cost estimate. The Government will consider any exceptions taken by the sole source to the specifications, delivery schedule or other terms of the solicitation to determine if the negotiated price is fair and reasonable. A proposal offering prices that are unrealistically low or high will not be accepted without first negotiating to a fair and reasonable and realistic price.

5. Such other matters as the head of the agency concerned shall specify for purposes of this section: N/A

CERTIFICATIONS (FAR 6.303-1)

I certify that all supporting data that is the responsibility of the technical or requirements personnel and which form a basis for this justification are accurate and complete to the best of my knowledge and belief.

_________//original signed//_______________ ____8/28/2014____________ ------------------- Date Director, Vendor Management Office

IRM/OPS/VMO

I certify that this justification is accurate and complete to the best of my knowledge and belief and contains complete and sufficient information for others to make an informed recommendation for approval or disapproval.

_________//original signed//_______________ _____8/28/2014___________ ------------------- Date Contracting Officer

A/LM/AQM/IT/ISB

REVIEW (AQM Quality Assurance Plan 2.0, 5/3/2013)

_________//original signed//_______________ ____8/28/2014____________

Branch Chief, Information Systems

A/LM/AQM/IT/ISB

_________//original signed//_______________ ____8/28/2014____________

Chief, Information Technology Division

A/LM/AQM/IT

_________//original signed//_______________ ____8/29/2014____________

Assistant Legal Advisor for Buildings and Acquisitions

L/BA

_________//original signed//_______________ _____8/30/2014__________

Contracting Activity Competition Advocate Office of Acquisitions Management

APPROVAL (FAR 6.304)

_________//original signed//_______________ _____8/30/2014__________

Head of Contracting Activity Director, Office of Acquisitions Management