Sole Source Justification_Simplified Acquisitions - NCFTA.docx

09/07/2023

SOLE SOURCE JUSTIFICATION FOR SIMPLFIED ACQUISITIONS

FAR Part 13.501(a)(1)(ii)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 13.501(a)(1) and in accordance with 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903, the Department of Labor, Office of Inspector General, Office of Investigation (OI) proposes to award a purchase order on the basis of other than full and open competition with National Cyber-Forensics and Training Alliance (NCFTA) under the Commercial Items Test Program for both on-site and remote analytical and investigative case support as described in the Statement of Work (SOW) on behalf of the U.S. Department of Labor, Office of Inspector General (DOL-OIG). The total estimated cost is $50,000.00.

2. The nature and/or description of the action being approved:

A new firm-fixed price purchase order to the NCFTA on a sole source basis.

3. A description of the supplies or services required to meet the Department’s needs:

For an annual cost of $50,000.00, the NCFTA will provide DOL-OIG membership for a period of 365 days (1 year) from the date of contract execution for both on-site and remote analytical and investigative case support as more particularly described in the Statement of Work (SOW). An NCFTA membership would give DOL-OIG access to its suite of analytical tools, analysts, and partner organizations, including financial institutions, which would increase its ability to conduct intelligence and data analytics driven criminal investigations.

4. An identification of the statutory authority permitting other than full and open competition:

The resulting purchase order will be issued in accordance with FAR 13.501(a)(1)(ii), and in accordance with 41 U.S.C. 1901.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited:

The NCFTA was established in 2002 as a nonprofit partnership between the financial and cyber industries, government, and academia. The NCFTA developed as an outgrowth of one of the first federal/state/local High-Tech Crimes Task Forces, which recognized the significant need to attract ongoing participation from key subject matter experts within industry and academia to both enhance and sustain effectiveness. Today, it serves as a neutral space for stakeholders from these groups to collaborate to identify, reduce, and disrupt cyber and other related crimes. NCFTA has three locations – Pittsburgh, PA, New York, NY, and Los Angeles, CA.

The NCFTA offers programs in the areas of Brand and Consumer Protection; Cyber Financial; and Malware and Cyber Threat. It also offers other tools that can assist law enforcement in bolstering their criminal investigations. NCFTA also has a staff of analysts that can assist on agency investigations when asked to be a partner. The NCFTA has assigned reps from numerous financial institutions, as well as federal law enforcement agencies like the FBI, USSS, HSI, and USPIS. The collective aim of this group is to identify, reduce, and disrupt cyber and other related crimes, which impact the financial sector, as well as government benefit programs, such as unemployment insurance. Lastly, the NCFTA has pre-built relationships with law enforcement from foreign countries. These relationships can be leveraged to glean intelligence and other information regarding criminal subjects operating outside the United States.

Although there is a mix of private and public alternatives to the NCFTA, none match the unique capabilities of NCFTA, particularly as it relates to cyber and financial services tools aimed at furthering criminal investigations.

The current budget outlook indicates OI may soon be required to operate on much lower prior years’ funding levels. Although NCFTA membership will cost OI $50,000.00, the agency plans to harness NCFTA capabilities to perform the work of several FTEs. The majority of this work will include data and financial analysis and case support on high impact investigations with an international nexus where OI may not have the bandwidth to support given anticipated resource constraints. This is particularly significant given plans by the U.S. Department of Justice (DOJ) to expand the number of Pandemic Strike Force Teams (PSFT) across the country from four to six. As a consequence, should the award not be made to NCFTA, OI may not be able to effectively pursue some of the more complex international unemployment insurance (UI) fraud leads it is charged to investigate as the federal law enforcement agency with primary oversight over the UI program and valued member of DOJ’s PSFTs.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, include whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

NCFTA has unique relationships with various governmental and non-governmental organizations that are focused on identifying, reducing, and disrupting cyber and other related crimes, which impact the financial sector. NCFTA then has the relationships and resources to operationalize information and intelligence to further criminal investigations. Although there are some other public and private entities (see below) that operate in this space, none employ the same unique model as used by NCFTA.

Various methods were used to research alternatives that would offer similar capabilities as the NCFTA. This included open-source research, meetings with NCFTA leadership, and discussions with federal law enforcement and other industry officials. Although there is a mix of private and public possibilities, none match the unique capabilities of NCFTA, particularly as it relates to cyber and financial services tools aimed at furthering criminal investigations.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Office determines that the anticipated price(s) will be fair and reasonable. By signing the justification, the Contracting Officer makes a determination that the cost/price to the Government are expected to be fair and reasonable.

8. A description of the market research conducted (per FAR Part 10) and the results or a statement of the reason market research was not conducted:

Between approximately October 1, 2022 and July 12, 2023, OI used various methods to research alternatives that would offer similar capabilities as the NCFTA. This included open-source research, meetings with NCFTA leadership, and discussions with federal law enforcement and other industry officials, like the FBI and the Financial Services Information Sharing and Analysis Center (FS-ISAC). Although there is a mix of private and public alternatives to NCFTA, none match the unique capabilities of NCFTA, particularly as it relates to cyber and financial services tools aimed at furthering criminal investigations. The following were explored:

· INTSIGHTS

· Internet Society

· FS-ISAC

· InfraGard

· Cybersecurity and Infrastructure Security Agency CISA - Financial Services Sector

Multiple sources, including a source within the FBI advised OI that FS-ISAC would be the closest thing to a competitor for NCFTA. In July 2023, an OI rep spoke to a representative from FS-ISAC. According to this representative, FS-ISAC was created through an Executive Order in 1999, as a non-profit. FS-ISAC has member financial institutions in approximately 70 counties and offices in the U.S., U.K., Australia, Latin America, and Singapore. Member financial institutions ranging from large national banks to local banks belong to FS-ISAC. However, after closer inspection it was determined that the services provided by FS-ISAC would not meet OI’s very specific needs.

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition before any subsequent acquisition for the supplies or services required.

None.