SF 1009_Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1009 - FAR 13.106-1(b) SOLE SOURCE JUSTIFICATION FOR

ACQUISITIONS AT OR BELOW THE SIMPLIFIED ACQUISITION THRESHOLD

Treasury Standard Form – 1009 (Rev 10/18)

Prescribed by Treasury: DTAP 1013.106(b)

1. Identification of the requesting activity and contracting activity.

“The requiring activity is the Denali Commission (DNC) and the contracting activity is Bureau of the Fiscal Service.”

2.a A description of the supplies or services required to meet the agency’s needs.

The purpose of this justification is obtaining approval to award using SAM.gov for a sole source urgent and compelling contract for 7 strategic reports as describe in the Performance Work Statement (PWS). The need for these reports is imminent with the first report needed in the next 60 days then the other reports will be due between 30-45 days in order of delivery request by the COR and the Co-Chair. The period of performance will be for one year from date of contract.

2.b Name and business size of the vendor. Rane Network Inc. – Small Business 2.c Requisition No.

3. IGCE/Estimated dollar value.

The IGCE is for one year of performance.

4.a Identification of the circumstances that preclude competition (Check the appropriate box that applies).

Urgency Exclusive licensing agreements Brand-name Industrial mobilization.

Other 4.b Supporting information and facts (i.e. the details surrounding the requirement that supports the selection made in 4.a).

Denali Commission is overseen by a Federal Co-Chair that is appointed by U.S Department of Commerce Secretary. On December 29, 2023, Garrett Boyle the Alaska Federal Co-Chair resigned to take another position within the Federal Government. The position was left vacant until a recommendation on March 6, 2024, was made by U.S. Senators Lisa Murkowski and Dan Sullivan (both R-Alaska) and Representative Mary Peltola (D-Alaska) that Julie Kitka should serve as the Denali Commission Federal Co-Chair. In the Interim, Jocelyn Fenton would serve as the role of Federal Co-Chair until Julie Kitka’s appointment. Julie Kitka’s appointment as the Alaska Federal Co-Chair was October 21, 2024. Julie brings over 33 years of leadership experience from her tenure as President of the Alaska Federation of Natives (AFN). Her deep understanding of rural Alaska and her commitment to economic and infrastructure development make her uniquely suited for this important position. She is planning to work with the Governor and his team to strengthen the federal-state partnership and engaging the Commissioners to accomplish mutual goals.

Alaska is unique in that it is the only state with a national strategy for the Arctic in ten-year increments. No other state has the challenges and opportunities Alaska has because of our strategic location, wealth of natural resources, and the evolvement of governance over vast distances. The week of December 2, 2024, the latest yearly implementation strategy was released. The Commission understands this strategy will be updated with the incoming new

Presidential Administration and anticipates changes. Denali Commission Federal Co-Chair must be prepared to represent the state of Alaska and citizens with the current situations as well as in the future when attending meetings with Congressional leaders and the new Administration as well as World Leaders.

The Commission’s objective is to have the contractor attend 1- hour weekly Strategic Planning Sessions to address:

1) Supporting and enhancing the President’s National Strategy for the Arctic. Identifying aspects of the yearly implementation plan which the Commission can assist in.

2) Raise the urgency of prioritizing and resourcing critical infrastructure, resilience, and preparedness, economic activity, transportation, energy, and food security.

3) Seeking the Administration’s support to prioritize already appropriated funds to expedite addressing critical needs including dual use infrastructure.

4) Facilitating bringing together the Native peoples of Alaska, with federal and state officials, the military with responsibility for Alaska, and the private sector with their capabilities to innovate and help.

These objectives will include the critical topics listed below:

1) Seek the Administration’s support of bolstering engagements and partnerships with the indigenous people of Alaska and relations in Canada, Greenland, and Russia to bring capabilities in support of our country.

2) Seek the Administration’s support and acknowledgement of the growing partnership between Alaska Natives and the military to align and build capabilities to deal with the increasing threat environment.

3) Prepare now to address emerging threats to our national interests and national security coming from our strategic location of Alaska and the Arctic.

4) Seek the Administration’s support for greater resources to address real impacts of climate change especially on our infrastructure (homes, schools, hospitals, airports, facilities), erosion of our shores and continuing melting of the permafrost, scientific collaborations which are strained because of the situation with Russia, and support for more science and innovative efforts to further food security and the health of our fish and marine mammals in this changing environment.

5) Seek the Administration’s support for new and innovative deep collaboration and partnerships to effectively address threats, rapid change and create new opportunities.

The result of the weekly meetings will result in a total of seven comprehensive report(s) to the Commissioners.

The Contractor will facilitate the Commission’s accomplishments of these goals by providing critical analysis and supporting information to the Commissioners for the Denali Commission, Denali Commission staff and external partners. This analysis and information is essential for the Commission and external partners to make sound and timely decisions regarding the threats facing Alaskan communities and the potential solutions that may have both civilian and military benefits.

Not only is the subject matter critical but the timeliness of the reports and analysis are important. The Federal Co-chair for the Commission (its head of agency) is newly appointed and believes it is important to quickly engage the Commissioners for the Denali Commission and external partners beginning in early January so the Commission can develop a strategy for engaging the incoming Administration and Congress on these critical issues. Employing the contractor’s expertise in early January will allow the Commission to be prepared with relevant and persuasive information when the new Administration and Congress are sworn into office.

The Commissioners represent major sectors of Alaska- the Governor, the Alaska Municipal League, the Alaska Federation of Natives, the Alaska General Contractors, the University of Alaska and the AFL-CIO (unions).

The Commission intends to engage with the Administration and Congress on March 25-26.

Working backwards then this means that the Commission will need to have a series of meetings with Commissioners and external partners to determine the needs and strategies for fulfilling those needs 15 January – 28 February. Then, having made those decisions we will put together the presentation for the Administration and Congress 1 -24 March. This timeline requires the reports be available to the Commission by 15 January. If the reports are not provided by 15 January, then the Commission will be unable to meet its March 24-28th date which will result in billions of dollars of unmet needs continuing to be unmet resulting in the adverse economic and health outcomes for the residents of rural Alaska.

Furthermore, the optional reports included in the PWS will build on the work completed in the first report. It is therefore important the Commission have the same contractor for the full duration of the work envisioned in the PWS.

The Arctic may seem distant from the lower 48, but shifting climate is making our region more active, more dynamic, and the United States is falling far behind other Arctic countries in protecting and utilizing its Arctic territories. The land mass of Alaska is 1/5th the size of the entire United States. Further, the United States is a four-ocean nation, and Alaska has 6,640 miles of coastline including islands, and 33,904 miles of shoreline. Alaska’s coastline is longer than all the other 49 states combined.

The shifting global balance, the return of great power competition, are once again reminding us that the world is not flat, it is round, and in a round world, Alaska’s location is critical. Re-looking at the world through the round view of airpower rather than the flat view of sea power shows that the United States is not so isolated from the challenges in Russia and China.

Russia occupies 53% of the land mass of the Arctic and cannot be ignored. China and other non-Arctic nations are looking to internationalize Arctic governance. The breakdown of the Arctic Council and the expansion of NATO (with Sweden and Finland) are testing the Arctic governance models in place following the end of the Cold War. Recently, the news coming out of Russia is a suspension of its participation in the New Start nuclear reduction treaty, which raises the possibilities of resumed nuclear testing. Alaska and the entire Arctic is not immune from raised risks. You just have to look at a map of the nuclear testing site of Russia to see the vast number is in the Arctic. This example of potential start-up of testing drives home the vulnerabilities we have in our land, air and sea. The population living across Alaska and the Arctic would be impacted. Clouds of radioactive elements would sweep over our waters and land. This is not hypothetical. It is real. Other examples of the threat environment are 1) the joint military exercises off the coast of Alaska between Russia and China, in which the local population is concerned and calls the Alaska National Guard and asks do they need to evacuate from their homes and communities; 2) the arming of the Russian and Chinese fishing fleets (called dual flagging). With the warming of the oceans, movement of fish stocks, increased competition, there is an increased risk of conflict (intended or unintentional) with the US fishing fleet along with our partners.

Until recently, artificial intelligence was largely in the realm of science, but has rapidly developed. Artificial general intelligence is now woven into many of the aspects of modern life and expanding. Artificial super intelligence in just over the near- term horizon. Understanding how this technology works, how it shapes options and produces insights beyond anything humans can do, will help expand the thinking of leadership and open up options. The alternative is to ignore the developing technology and think you are immune to its impacts. One only has to look at how smart phones became a normal part of our lives and how dependent we are on their capabilities. The same with artificial intelligence. It will be built into every system we build in rural infrastructure and become essential to daily life. This is but one of the emerging technologies. For all the positive aspects, there will be a threat factor as well, and diligence and informed considerations will make it easier to protect the Denali Commission investments in rural infrastructure.

In this changing environment, US coordination with its Arctic counterparts is critical. The United States has a unique resource that it is underutilizing – the cultural, linguistic, and ethnic connections between the Native communities across the Arctic. The growing capabilities of the Native communities and their institutional development and presence in the global economy are vastly underestimated. The Indigenous peoples are major landowners, resource owners and have institutional capabilities which have grown over the last fifty years.

Main areas for dialogue, targeted reports and regular briefings. The seven reports wanted:

1) Dual Use Infrastructure – what it is, critical examples, practical steps moving forward tied to the national strategy.

2) Dual Use Infrastructure – Bulk fuel program, energy security and resilience in energy grids, with a focus on the coastal communities

3) Dual Use Infrastructure – Transportation, roads, airports, railway, use of FAA systems to control air traffic and tracking drones.

4) Dual Use Infrastructure – Energy – oil, gas, small scale nuclear; Testing opportunities

– What are people doing now. What is awaiting approval. Sense of urgency.

5) Focus on Technology & Innovation – overall, what innovation is happening now in small scale independent data centers, what is needed, pending opportunities,