EFO 2025-56 AWS Hosting (P4)_redacted.pdf

Controlled by: DLA DCSO – Philadelphia (DCSO-P) CUI Category: General Procurement and Acquisition / Source Selection Information see FAR 2.101 & 3.104 Distribution/Dissemination Controls: FED ONLY POC: John.Garbarino / (445) 737-7451

Controlled Unclassified Information (CUI)

Source Selection Information – See FAR 2.101 and 3.104

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE -

PHILADELPHIA 700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION FOR AN EXCEPTION TO FAIR

OPPORTUNITY (FAR 16.505(a)(4) and FAR 16.505(b)(2))

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using an exception to fair opportunity, pursuant to the authority cited herein.

1. IDENTIFICATION OF AGENCY AND CONTRACTING

Requiring Activity:

DLA Information Operations J62BK 8725 John J Kingman Rd Fort Belvoir VA 22060 POC: Gregory Riley Phone: (571) 767-7568

Contracting Activity:

DLA Contracting Service Office- Philadelphia 700 Robbins Avenue Philadelphia, PA 19111-5092 POC: John A. Garbarino Phone: (445) 737-7451

2. NATURE AND DESCRIPTION OF THE ACTION BEING APPROVED:

Pursuant to FAR 16.505(a)(4) and FAR 16.505(b)(2), the action being approved is an exception to fair opportunity. This justification authorizes the use of other than full and open competition to award: A task order for the existing contractor (Credence Management Solutions LLC) for support.

Pursuant to FAR 16.505(b)(2), the action being approved is an exception to fair opportunity. This justification authorizes the use of other than full and open competition to issue a modification to an existing competitive task order, SP4709-24-F-0075, to provide AWS hosting support services for

CUI

Source Selection Information – See FAR 2.101 and 3.104

Applied Research & Testing Emerging Technologies (ARTET) that is currently being provided by Credence Management Solutions LLC.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The TDMT program is an Infrastructure as a Service (IaaS) hosting to provision environments for Development, System/User Acceptance Testing and Production instances to support the Tech Data PMO with Technical Data Management Transformation (TDMT) efforts in an DoD Accredited Cloud environment enclave applications and data lake analytics hosted applications within DoD Level 4 and Level 5 approved hosting facilities. These environments will also support acceptance, stress, and load testing to ensure performance tuning which will keep the applications performing at optimum levels.

The DLA Research and Development (R&D) located in Ft. Belvoir, VA has implemented a new program called Applied Research & Testing Emerging Technologies (ARTET) to provide the technological infrastructure to propel early-stage adoption for emerging and disruptive technologies. Currently the ARTET architecture consists of multi-cloud offerings such as AWS Cloud Services and AZURE Cloud, in partnership with DISA Liaison & Hosting Services, for prototyping and piloting innovative logistics research solutions for the warfighter and other non- R&D program projects and prototypes.

AWS support services for ARTET were provided as CLIN of the existing ESMC support contract SP4709-22-F-0061 awarded to Credence Management Solutions LLC. ARTET’s research, development, testing, and evaluation of critical and emerging technologies of piloting and prototyping technologies were unable to continue utilizing the ESMC contract due to unacceptable risks to thousands of ESMC users.

DLA’s mission is to sustain warfighter readiness and lethality by delivering proactive global logistics in peace and war. Doing so has both a present and future component to it – the future component, including ongoing research and development efforts to find new and better technologies, products, services, and ways of doing business. To deliver against this mission, and to meet operational goals, DLA R&D requires the ability to efficiently acquire secure cloud computing services on an ongoing basis. The projected AWS Cloud Managed Services and Transition Services capability will provide single cloud intake process for all cloud related services. R&D AWS Cloud will be a partnership between R&D ARTET and a vendor to define and coordinate enterprise cloud delivery and support. R&D ARTET will:

Enable R&D to acquire and implement the right effective services Unify R&D cloud projects, vendors, platforms to meet our requirements Define and coordinate a secure, integrated cloud environment Support applications systems transition to DLA enterprise-level cloud computing environment.

Cloud computing is defined by the National Institute of Standards and Technology (NIST) as “a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.”

NIST has identified five essential characteristics of cloud computing: on-demand service, broad

Source Selection Information – See FAR 2.101 and 3.104 network access, resource pooling, rapid elasticity, and measured service. DLA R&D expects these to lead to cloud computing benefits of cost savings, expedited processing and storage scalability and expedited processing provisioning.

To obtain the necessary services of qualified contractors to support the DLA R&D ARTET missions, including researching and developing, testing, and evaluating capabilities through a simulation and modeling approach, and providing a cloud infrastructure adhering to DoD and DLA policy and obtain an Authority to Operate (ATO). Additionally, to facilitate process engineering improvements using advanced and disruptive technologies, and to provide support to the R&D ARTET Program Manager in prototyping, piloting, testing, evaluating, implementing, and sustaining the cloud research and development environments. This includes the crucial aspect of testing and evaluating prototype and pilot efforts for the demonstration of capabilities and support in transitioning from R&D to implementation.

Contractor support is required to implement, manage, enhance, and improve the ARTET multi-cloud architectures. Collaboration will be provided to these contractors for system administration and database management from the local information technology support organization DLA Information Operations. Department of Defense (DOD) policy requires that Information Assurance (IA) requirements be included in all DOD information systems and that these systems maintain an appropriate level of IA throughout their life-cycle. This policy is addressed in several documents such as those referenced below. To effectively implement these requirements an enterprise IA solution must be developed and integrated into Defense Logistics Agency (DLA).

Since ARTET has active projects that are required to be hosted in AWS hosting support services and can no longer be hosted under the existing ESMC Contract, a change to the scope of services and a modification to the existing Credence Management Solution LLC task order is necessary to provide AWS hosting support services for TDMT.

This modification will expand the scope of the current production services being provided by Credence Management Solution LLC under Task Order Number SP4709- 24-F-0075 to provide AWS Hosting Support Services to the TDMT program. The expansion to scope will now include AWS Hosting Support Services for any and all requirements associated with the ARTET program.

It is essential for Credence Management Solution LLC to continue performing the services required under the current task orders as well as provide AWS Hosting Support Services to

ARTET.

The full estimated dollar value for all periods of performance for the AWS Hosting Support Services modification requirement IGCE total is $803,468.42. The option 1 Period of Performance will be from September 8, 2025 to July 7, 2026. Option 2 period from July 8, 2026 to December 31, 2026.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY (SEE FAR

16.505(a)(4) and FAR 16.505(b)(2)) AND THE SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S

UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION

REQUIRES USE OF THE EXCEPTION CITED:

Source Selection Information – See FAR 2.101 and 3.104

In accordance with FAR 16.505(b)(2)(i)(C), the order must be issued on a sole-source basis in the interest of economy and efficiency to Credence Management Solution LLC because this is a logical follow- on to an order that was already issued under the contract and all eligible awardees were given a fair opportunity to be considered for the original order.

The work to be performed under the modification to the current task order is an extension of the current sustainment and development services and require a similar level of complexity, skillsets, and knowledge-based understanding of the requirements that were solicited. The new work added ensures that the systems developed and sustained under the current contract can be continually operated in the DoD environment. It is essential that the Credence Management Solution LLC task order be modified to include the additional services to ensure continued support of requirements.

The proposed modification to the current task order is a direct extension of existing sustainment and development services vital for the continued operation of DoD systems. This extension requires expertise that Credence Management Solution LLC already possesses due to their deep understanding of the current architecture and requirements. A new contractor would face significant and costly ramp-up, delaying deployment, and increasing risks. Credence uniquely offers Research & Development (R&D) domain knowledge for providing the cloud infrastructure to host emerging technologies, coupled with a valuable pre-existing DLA Authority To Operate (ATO). Obtaining a new ATO would cost between $500,000 and $3,000,000 and take years, posing a substantial financial burden and delayed deployments to other programs. Modifying the Credence task order will save approximately $500,000 by eliminating duplicated effort and avoiding ATO acquisition costs, and preventing delays to new prototype applications.

Consequently, using Credence provides a more efficient and economical solution, mitigating risks and saving time and money for the government.

The decision to award this service contract as a sole source is based on the urgent need to continue software support and the impracticality of conducting full market research or transitioning to a new provider within the necessary timeframe. The original contractor has intimate knowledge of the software architecture, custom integrations, and operational requirements, making them uniquely positioned to provide uninterrupted support. Engaging a new contractor would require significant time for market research, onboarding, and familiarization with the software, leading to delays and potential disruptions in service. Additionally, a new provider would necessitate the development of new solutions and integration processes, which could introduce significant risks to system stability and performance. By utilizing the original contractor, we can ensure seamless continuity of operations, avoid costly delays, and meet critical project deadlines.

5. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

As Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable. Price will be analyzed in accordance with FAR 15.404-1 procedures. It is anticipated that the Government will use various price analysis techniques including, but not limited to: (1) Comparison with competitive price lists in accordance with FAR 15.404- 1(b)(2)(iv); (2) Comparison of proposed price with the Independent Government Cost Estimate in accordance with FAR 15.404-1(b)(2)(v); and (3) Comparison of proposed prices obtained through market research for the same or similar items in order to obtain a fair and reasonable price in

Source Selection Information – See FAR 2.101 and 3.104 accordance with FAR 15.404-1(b)(2)(vi). The Contracting Officer will determine that the price is fair and reasonable prior to this modification being issued against the existing task order.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

None

7. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE EXCEPTION

TO FAIR OPPORUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE:

In order the remove barriers or obstacles to increased competition, DLA continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both within industry and the Government, as a continuing effort within DLA.

Furthermore, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure future full and open competition as indicated by market research. The original requirement was competitively awarded, and the agency will attempt to exercise full and open competition for future requirements, if any, the sustainment of the ARTET will be competed among eligible contractors under the DLA JETS contract vehicle to the maximum extent practicable.

8. CERTIFICATIONS.

I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Keith Lutz COR and Records Manager

J62H/J62XC

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

John A. Garbarino Contracting Officer DLA Contracting Services Office Philadelphia

LUTZ.KEITH.WIL

LIAM.1037299347

Digitally signed by

LUTZ.KEITH.WILLIAM.10372993

Date: 2025.09.09 08:40:36 -04'00'

GARBARINO.JOH

N.A.1515104395

Digitally signed by

GARBARINO.JOHN.A.15151043

Date: 2025.09.09 08:42:39 -04'00'

Source Selection Information – See FAR 2.101 and 3.104

In accordance with FAR 16.505(b)(2)(ii)(C)(2), I have determined that FAR 16.505(b)(2)(i)(B) applies and I approve this justification.

MATTHEW S. RYAN

Competition Advocate DLA Contracting Services Office