SSJ 26-208 PreSolNotice.pdf

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XACTA software
Solicitation number
1301381741
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This is a Federal Supply Schedule (FSS) Sole Source Justification for a task order award to Telos Corporation under the Multiple Award Schedule Program. The requiring activity is Naval Intelligence Activity (NIA) N6 in Suitland, Maryland, and the contracting activity is NAVSUP Fleet Logistics Center (FLC) Norfolk, Contracting Department, Regional Directorate. The justification is being submitted under GSAR 538.7104-3(b) for a sole source acquisition exceeding the Simplified Acquisition Threshold (SAT).

The requirement is for a one-year acquisition of Xacta software subscriptions and specialized integration professional services to support cybersecurity and risk management governance for Naval Intelligence. The specific deliverables include a 12-month subscription license for Xacta.io™ Tier 1 (1 project and 500 devices), a 12-month subscription license for Xacta.io™ Tier 6 (100 projects and 50,000 devices), on-site day-to-day support, and expert enterprise application development and implementation support. The estimated contract value is $880,219.00, and a firm-fixed-price order is anticipated. The justification authority relies on the premise that only one source—Telos Corporation—is capable of providing the unique and highly specialized products and services required, as Telos is the original equipment manufacturer and sole developer of the Xacta suite with proprietary access to the code, application programming interfaces, integrations, and database. Market research confirmed no other vendor or third-party reseller possesses the legal authority or necessary access to fulfill the full scope of requirements, including in-depth code development, customized workflow templates, and seamless architectural integration within the Naval Intelligence network. The contracting activity has no current plans to compete future contracts for these proprietary software and integration services but will continue monitoring the market for emerging alternatives that could promote competition or provide greater value.

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Source Selection Information See FAR 2.101 and 3.104

SSJ# 26-208

FSS SOLE SOURCE JUSTIFICATION (above SAT)

1. Identification of Requiring Activity and Contracting Activity.

This is a Sole Source Justification in accordance with GSAR 538.7104-3(b). The requiring activity is Naval Intelligence Activity (NIA) N6, Suitland, MD; the contracting activity is NAVSUP Fleet Logistics Center (FLC) Norfolk, Contracting Dept., Regional Directorate.

2. Nature and description of contract action.

This acquisition is conducted under the authority of the Multiple Award Schedule Program (Title 41 U.S.C. 152 (3) and Title 40 U.S.C. 501, Services for Executive Agencies). This sole source action is to be awarded as a new Federal Supply Schedule task order against a Federal Supply Schedule to Telos Corporation. The placement of a firm-fixed-price order is anticipated. This procurement action supports the provision of software subscription licenses and specialized integration services. The action is considered a new requirement.

3. Description of Required Supplies/Services.

The proposed acquisition is to acquire software and services to execute cybersecurity and risk management governance for Naval Intelligence. It is intended to acquire a 12-month subscription

-month subscription license for -site day-to-day support and expert enterprise application development and implementation support. The period of performance is one year after award. The estimated value of the requirement is $880,219.00.

4. Identification of the Justification Authority and Supporting Rationale.

The proposed requirement is to acquire Xacta software subscriptions and specialized integration professional services to meet the agency's cybersecurity and risk management needs. The statutory exception supporting the placement of an order exceeding the SAT on a sole source basis is:

GSAR 538.7104-3(b)(1)(ii) Only one source is capable of providing the products, services, or solution required at the level of quality required because the products, services, or solutions are unique or highly specialized.

Telos Corporation is the developer, manufacturer, and sole-source provider of the Xacta suite of products and its associated integration services to the Federal Government. Xacta is a unique cyber risk management and compliance automation solution that provides a comprehensive view of risk and compliance with applicable regulations, including National Institute of Standards and Technology (NIST) 800/37/53/53A, Federal Information Processing Standards (FIPS) 199/200, and Intelligence Community Assessment and Authorization processes.

Telos Corporation is unequivocally qualified as the only company with access to the proprietary Xacta Code, Application Programming Interfaces, Integrations, and Database. No other vendor has the insight, expertise, or legal authority into the code, design, and schemas of these applications and databases to provide effective and efficient integration and configuration.

Furthermore, utilizing Telos for these requirements promotes vital reciprocity within the Federal

Source Selection Information See FAR 2.101 and 3.104

Government, the Intelligence Community (IC), and Military Intelligence Commands, which have all implemented Xacta with Telos services as their security authorization system of record.

Because of this proprietary access and the need for seamless integration with existing IC enterprise architectures, Telos Corporation is the only source capable of providing the required software and specialized professional support.

5. Determination of Fair and Reasonable Price.

GSA has determined the prices of supplies, or fixed-price services, or rates for services offered at hourly rates of the schedule contracts to be fair and reasonable for the purpose of establishing the schedule contract. Per DFA activity contracting officer from the responsibility of making a determination of fair and reasonable pricing for individual orders, blanket purchase agreements (BPA), or orders under BPAs. Therefore, ordering activities are responsible to make a separate determination of fair and reasonable pricing for individual orders, BPAs, and orders under BPAs. The Contracting Officer will determine, using the procedures in FAR 15.404-1, that the prices are fair and reasonable and will document such determination with a level of detail commensurate with the complexity and circumstances of each order. By placing an order against a schedule contract, the ordering activity contracting officer concludes that the order represents a fair and reasonable price and best value to the Government.

6. Description of market research among schedule holders and the results or a statement of the reason market research was not conducted.

The requiring activity and contracting activity have conducted market research among schedule holders. Market research confirmed that Telos Corporation is the Original Equipment Manufacturer (OEM) and sole developer of the Xacta suite. A review of the market indicates that no other vendor or third-party reseller possesses the required legal authority or access to the proprietary Xacta infrastructure, database, and integration technologies necessary to fulfill the full scope of the PWS, which mandates in-depth code development, customized workflow templates, and seamless architectural integration within the Naval Intelligence network.

7. Any other facts supporting the justification.

This procurement uses a GSA Federal Supply Schedule and will be solicited and awarded in accordance with GSAR Subpart 538.71.

8. Actions the Agency may take to remove or overcome barriers to competition.

For the reasons set forth in Paragraph 4, the contracting activity has no plans at this time to compete future contracts for the specific types of proprietary software supplies and integration services covered by this document. However, if another potential source emerges as a result of any type of synopsis or any other means, NAVSUP Fleet Logistics Center Norfolk Contracting Department, Fleet Directorate and the Requiring Activity will assess whether competition for future requirements is feasible. Regardless of whether a new potential source emerges, the requiring activity and contracting office will continue to perform market research to consistently stay aware of new cyber risk management products and services that could bring more value to the government or promote competition in the future.

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