Redacted.J A.(4June13).pdf

A C Q U I S I T I O N S E N S I T I V E Control No: 13-026 Program/Item: ITES-2H Est Dollar Value:

DEPARTMENT OF THE ARMY

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Agency: US Army Contracting Command (ACC) - Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 61299-8000.

2. Description of Action: The purpose of this proposed action is to obtain approval to modify the Army Computer Hardware, Enterprise Software and Solutions (CHESS) contract vehicle, Information Technology Enterprise Solution-2 Hardware (ITES-2H), to extend the ordering period, and to prevent the disruption of this Army mandated standardized Information Technology (IT) hardware ordering capability. Under the ITES-2H extension, ordering will be restricted to satisfying only Army requirements. Therefore, other DoD and Federal Agencies will not be permitted to fulfill their requirements under the ITES-2H extension. Additionally, an Acquisition Plan addendum is required for this action and is being staffed for approval. When the follow-on ITES-3H contracts are awarded, any new requirements within the scope of the ITES-3H contracts will be fulfilled by issuing orders under the ITES-3H contracts. The following six companies were competitively awarded Firm Fixed Price (FFP) Indefinite Delivery/Indefinite Quantity (ID/IQ) contracts under ITES-2H:

W91QUZ-07-D-0006 – Dell;

W91QUZ-07-D-0007 – IBM;

W91QUZ-07-D-0008 – UNICOM (formerly GTSI);

W91QUZ-07-D-0009 – CDW-Government (CDWG);

W91QUZ-07-D-0010 – IRONBOW (formerly Apptis);

W91QUZ-07-D-0011 – World Wide Technology (WWT);

This action will extend the period of performance for the six current ITES-2H contracts for a period of eleven months commencing on 22 August 2013 through 18 July 2014. This extension serves as a critical bridge, on an interim basis, during the period between the end of ITES-2H and the award of the follow-on ITES-3H. The award of ITES-3H will be the result of full and open competition and is anticipated during

The ITES-2H contracts were previously extended on 09 February 2012 for 18-1/2 months to 21 August 2013. This extension was put in place to allow Army customer’s continuity of utilizing the CHESS contract while the follow-on ITES-3H was being worked with an original anticipated award date of The previous extension was supported by a J&A on the basis of FAR part 6.302- 1(a)(2)(ii)(B) Only One Responsible Source. The J&A was approved at the Senior Procurement Executive (SPE) level.

Program/Item: ITES-2H Est Dollar Value:

The ITES-2H ceiling is currently The estimated cost of this extension is The additional will be required to accommodate Army orders prior to the award of ITES-3H. This figure is based on historical average monthly sales per month over the life of the ITES-2H with a reduction of 15% due to the recent budgetary guidance and outlook of Army spending in Fiscal Year (FY) 13 and FY

14. Therefore, ITES-2H ceiling will increase by from to

The type of funds used will consist of Operations and Maintenance Army (OMA), Research Development Test & Evaluation (RDT&E) and Other Procurement, Army (OPA) funding, as appropriate, based on the nature or purpose of the purchase and the requiring activity’s mission. Ordering under ITES-2H is decentralized.

3. Description of Supplies/Services: ITES-2H provides a full range of state-of-the-art IT equipment, software, and related incidental services. The ITES-2H scope remains the same during the extension and encompasses all requirements for IT, including hardware, software and related integration services for providing end-to-end solutions. This includes servers, desktops, notebooks, workstations, thin clients, storage systems, networking equipment (including wireless), Unified Capabilities Approved Products List (UCAPL) items, network printers, product ancillaries (including equipment cabinets, racks and mounts), peripherals (including monitors), network cabling products, video teleconferencing (VTC) products, standalone displays (e.g., plasma screens, High Definition Television (HDTV), scanners, Everything over Internet Protocol (EoIP) products, communications devices, power devices, software, basic warranty and warranty options, and other related accessories and options. Services are incidental to the hardware buys and include system configuration and integration, physical site analysis, installation and relocation, high availability configuration, warranty, and legacy equipment maintenance. This extension and ceiling increase will allow for continued ordering of the current ITES- 2H products and related incidental services. The actual products and related incidental services to be acquired will not be known until each individual delivery order is competed under ITES-2H as precise requirements are identified and funded.

No option provision will be included in this extension.

4. Authority Cited: 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As implemented by FAR 6.302-1(a)(2)(ii)(B), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

Program/Item: ITES-2H Est Dollar Value:

Outside of ITES-2H, there are simply no practical and non-adverse alternative sources (identified in the market research in paragraph 8) that meet the Army’s unique standards, security and enterprise architecture requirements. The Army Federal Acquisition Regulation Supplement (AFARS) Part 5139, Acquisition of Information Technology, identifies the CHESS program as the “mandatory source for commercial IT purchases.” CHESS contracts provide IT products and services that comply with Network Enterprise Technology Command (NETCOM), Army and DoD policies and standards. Army purchasers of commercial hardware and software must satisfy their IT requirements by utilizing CHESS contracts and DoD Enterprise Software Initiative agreements first, regardless of dollar value. Any purchase outside of CHESS contracts requires a waiver in accordance with AFARs 5139.101(S- 90)(a). The Army Regulation (AR) 25-1 dated 05 January 2009, provides that IT “contract support will be obtained using existing Army enterprise contracts available from CHESS” and provides information on the use of CHESS contracts.

The proposed sources are the six ITES-2H contractors identified and the requirements identified below can be satisfied only through use of the ITES-2H vehicle. ITES-2H offers critical IT equipment and incidental services to be used to support the warfighter in conducting secure communications, command and control operations, logistic and management operations and intelligence operations. This equipment is a major component of the trust and identity networking and security solutions throughout the Army. To undermine that posture as well as the achievements in the strategic IT portfolio investment would exponentially increase risk and ultimately may have dire consequences across the globe including potential failure to the LandWarNet as discussed below.

A gap between the expiration of the ITES-2H contracts and award of ITES-3H contracts will disrupt the Army portfolio management of IT investments that adhere to the Army Enterprise Architecture (AEA) and its strategies. The AR 25-1 paragraph 4-1c, states: “The purpose of the AEA is to support the acquisition, implementation, and management of integrated and interoperable systems that provide required operational capabilities to the Operating Force and the Generating Force as well as business operations. The Army’s AEA is the framework and decision support tool to guide the maintenance of existing IT investments, acquisitions, and fielding of integrated system-of-systems capabilities. The AEA through the development of rules limits the diversity of IT initiatives and supports the development of IT resources that are compatible with the Army strategic direction. The standards are the rules that enforce compatible IT development across the enterprise”.

ITES-2H is an integral component of the CHESS program. It is the only vehicle that provides the network-related products and end-to-end IT solutions with full lifecycle support that adhere to evolving standards and are aligned (i.e., where the ITES-2H products and end-to-end IT solutions fit, meet, support and adhere to Army

Program/Item: ITES-2H Est Dollar Value:

strategies) with enterprise architecture strategies to support the Army in meeting its infrastructure and infostructure goals. The ITES-2H requires solutions that adhere to the Global Information Grid (GIG), the DoD Information Technology Standards Registry (DISR) Online, and other Army and DOD architecture and security standards as listed below:

1. FM 6-02.71, Network Operations. This document describes the organizations, procedures, and technologies required to monitor, manage, defend, coordinate, and control the LandWarNet.

2. Army Golden Master. The US Army Golden Master is the Army’s portion of the United States Government Configuration Baseline (USGCB) initiative that establishes the security configuration baselines for Information Technology products widely deployed across the Army.

3. Electronic Product Environmental Assessment Tool (EPEAT). EPEAT is Federal regulatory guidance regarding the acquisition of personal computer products such as desktops, notebooks (also known as laptops), and monitors pursuant to the Energy Policy Act of 2005 and Executive Order 13423, “Strengthening Federal Environmental, Energy, and Transportation Management.”

4. DoD IT Standards Registry (DISR). The DISR mandates the minimum set of standards and guidelines for the acquisition of all DoD systems that produce, use, or exchange information. DISR standards are to be used within DoD as the “building codes” for all new systems. The standards are intended to facilitate interoperability and integration of systems within the Global Information Grid (GIG).

5. Information Assurance (AR 25-2/Office of Information Assurance and Compliance (OIA&C) Approved Products List) (APL). AR 25-2 assigns responsibilities for all Headquarters, Department of Army (HQDA) staff, commanders, directors, IA personnel, users, and developers for achieving acceptable levels of IA in the engineering, implementation, operation, and maintenance (EIO&M) for all information systems (ISs) across the Army Enterprise Infostructure (AEI). The IA APL is a list of IA tools certified by JITC which Army customers are mandated to use on Army installations.

Failure to implement proactive or corrective IA security measures, guidance, policy, or procedures may prevent system or enclave accreditation, installation, or operation and may increase system vulnerability to foreign and domestic computer network operation (CNO) activities designed to deny service, compromise information, or permit unauthorized access to sensitive information.

Program/Item: ITES-2H Est Dollar Value:

6. Internet Protocol version 6 (IPv6). Achieving a net-centric operations and warfare environment requires a transition from the Internet Protocol version 4 (IPv4) to Internet Protocol version 6 (IPv6). The capabilities offered by IPv6 are critical to the Army’s transformation to a net-centric knowledge-based force. Before DOD (DISA) enables the NIPRNet core, Army organizations with internal network backbones that interface with the NIPRNet must plan for their networks to be IPv6-enabled to synchronize with the NIPRNet core transition.

7. Networthiness (AR 25-1). Networthiness is the operational assessment of systems, applications, or devices to determine security, interoperability, supportability, sustainability, usability (SISSU) and compliance with Federal, DoD and Combatant Commander, Services, Agencies (CC/S/A) regulations, policies, and guidelines. Networthiness was developed in a proactive way to preclude drive-by fieldings of systems, serve as a safety-net prior to anything connecting to the LandWarNet (LWN), prevent products from causing damage or interoperability issues, and to mitigate the risks posed to the LWN from numerous threat vectors.

8. Section 508 of the Rehabilitation Act. Section 508 requires that Federal agencies’ electronic and information technology is accessible to people with disabilities.

9. Smart Card Reader (CAC –NIST IR 6887). Smart Card Reader (CAC – NIST IR 6887) establishes the standards and specifications for all federal smart card readers. Since Army Common Access Cards (CACs) are smart cards, all must meet this specification. Without a smart card reader, an Army user cannot logon to their computer.

10. Trusted Platform Module (TPM v1.2). NETCOM Army Enterprise Desktop Standardization mandates all Army PCs running the Windows operating system use the trusted platform module version 1.2. The TPM uses encryption and specialized memory to secure a computer's data, allowing only the application that created a file to access that data and allowing hard drive data to be locked to a specific computer.

11. Wireless Networking (DoDD8100.2 & AR 25-2). DODD 8100.2 establishes policy and assigns responsibilities for the use of commercial wireless devices, services, and technologies in the DoD Global Information Grid (GIG).

12. Unique Identification (UID), Radio Frequency Identification (RFID). It is the DoD policy at DFARS 211.274-5 that requires UID for all serially managed items and DFARS 211.275-2 requires Passive RFID tags be affixed at the case and palletized unit load packaging levels.

Program/Item: ITES-2H Est Dollar Value:

13. Hardware Requirement for VISTA FIPS 140-2 Certified Mode in Support of

802.11 Wireless Connection. Hardware Requirement for VISTA FIPS 140-2 Certified Mode in Support of 802.11 Wireless Connection is required for the protection of unclassified but sensitive information.

Compliance with the above statutes, regulations, standards and policies will ensure total process transformation by implementing integrated, interoperable, enterprise wide, multifunctional, net-centric, and end-to-end solutions that provide reliable information throughout the Army enterprise.

ITES-2H is also a major component of the networking and security solutions throughout the Army in support of the LandWarNet and other military missions throughout the world. LandWarNet is the Army’s contribution to the Global Information Grid (GIG) that consists of all globally interconnected, end-to-end set of Army information capabilities, associated processes, and personnel for collecting, processing, storing, disseminating, and managing information on demand supporting warfighters, policy makers, and support personnel. Additionally, ITES-2H provides the Warfighter the ability to continue to improve their operations management by enabling Army teams to understand IT situational awareness, prioritize problems and automate responses, thus protecting the GIG. Failure to extend ITES-2H: (a) will jeopardize the security posture of the GIG; (b) will hinder the availability of valuable battlefield intelligence information to stakeholders; and, (c) will undermine the Army strategic investment in IT and reverse the enterprise-wide achievements to date.

The ITES-2H is continually monitored by CHESS in regards to new/emerging technologies, security threats and new DoD and Army guidance on IT protocol. This information is pushed out to our customer base via the CHESS website, our contracted vendors and customer service team. Therefore, the ITES-2H must be extended to avoid a considerable amount of risk to the Army in the security, logistics, asset visibility, investment and information dominance arenas. One non-compliant item could introduce devastating vulnerabilities into the entire GIG and/or cause security breaches.

The Army cannot risk a gap in this level of asset visibility and data security currently provided under ITES-2H. The Army requires mature asset visibility capabilities and built-in security features that cannot be immediately met by any contract alternative other than the ITES-2H contract

Program/Item: ITES-2H Est Dollar Value:

vehicle. The ITES-2H vehicle will ensure that the above requirements continue to be met until the competitive follow-on ITES-3H is awarded.

In addition, there are significant cost savings attributed to using the CHESS program and ITES-2H. For this action only, discounts could approach approximately for the Army. The progress that has been made to date, in this realm, through years of effort and cost avoidance will be jeopardized if the Army is required to revert to decentralized acquisitions using Air Force Network-Centric Solutions (NETCENTS), General Services Administration (GSA), National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) and other non-Army vehicles. Additionally, there is a fee associated with using these contracts as follows: GSA NASA SEWP IV NIH and NETCENTS II For example, if the Army used the NETCENTS contract, the likely cost would be for every spent. There is no fee associated with using ITES-2H and there are tremendous discounts offered averaging from to off list prices depending on the product and services.

Milestones set forth in August 2011, projected the ITES-3H Request for Proposal (RFP) to be released to industry in March 2012. It was estimated it would take approximately eighteen and one-half months to complete the pre-award/post-award ITES-3H acquisition, therefore based on the anticipated RFP release date of March 2012 the original extension was through 21 August 2013. However, due to a new requirement imposed on 29 September 2011, which required a Business Case Analysis (BCA) be prepared in support of all new Government Wide Acquisition Contracts, there was a six month delay in issuing the ITES-3H RFP. The BCA had to be approved by the Senior Procurement Executive (SPE), which did not occur until 20 September 2012. The RFP could not be released until this approval was obtained. With the BCA approved, the RFP was released on 25 September 2012. In addition, due to the significant number of questions that were received (over 800) from industry on the RFP, and the fact that the Government received approximately 105% more proposals than anticipated, which must be reviewed and evaluated, the projected timeline has slipped and the ITES-3H contract will not be awarded in the timeframe originally anticipated. The new projected timeline for award is however a transition is required for the new awardees.

Based on the Summer 2013 closure of the ACC-National Capital Region (ACC- NCR), the Project Director, Computer Hardware, Enterprise Software and Solutions (PD CHESS) determined the best way forward was to move the ITES-2H contracts to ACC-RI for contract administration and management. ACC-RI assumed contract administration in February 2013 and encountered several outstanding actions not previously completed. Due to transfer of the ITES-2H and ITES-3H actions to ACC-RI as well as multiple changes and updates to the BCA, it is necessary to execute a second extension period for ITES-2H.

Program/Item: ITES-2H Est Dollar Value:

6. Efforts to Obtain Competition:

The current ITES-2H must be extended to provide commercial IT equipment to support Army needs pending the award of the competitive follow-on, ITES-3H.

Conducting a separate competition for a multiple award bridge cannot be accomplished in sufficient time to provide for the immediate Army IT needs.

An interim contract bridge competition would take approximately the same amount of time as the ITES-3H competition. It is impracticable, for the Army, to conduct two separate competitions for identical work without a tremendous expenditure of resources to accomplish what would be, in essence, a duplicative acquisition.

Additionally, under the ITES-2H extension, in accordance with FAR 16.505(b), DFARS 216.505-70(c) and AFARS Subpart 5116.5, each ITES-2H contractor will be afforded a fair opportunity to compete for delivery orders unless an exception is justified IAW FAR 16.505(b)(2).

7. Actions to Increase Competition: A fully competitive acquisition is in process for the follow-on ITES-3H. Award is anticipated during

8. Market Research: Market research has been conducted for this extension of ITES-2H. Original market research was conducted by a team from ACC-NCR and the Product Lead at CHESS. Additional information was added upon completion of the BCA from the ITES-3H in September 2012 Although this contract vehicle is only open to the US Army at this time, significant savings over other existing contract vehicles can be realized by the extension of ITES-2H. Alternative feasible sources considered were as follows:

a. The use of non-mandatory GSA Federal Supply Schedule (FSS) contracts was determined not to be a viable alternative for the following reasons: (a) higher prices are anticipated due to the (b) a large number of schedules would be needed to provide a source for all requirements; (c) cannot ensure products are in compliance with Army or DoD standards; and (d) OCONUS coverage and contingency support are generally not available from GSA schedules.

b. The use of National Aeronautics & Space Administration (NASA) Scientific & Engineering Workstation Procurement (SEWP) IV was determined not to be a viable alternative for the following reasons: (a) higher prices are anticipated due to the

(b) the multiple contracts that make up SEWP IV were awarded either as single award, multiple award, or 8(a) set-aside, which will be confusing for ordering activities; (c) cannot ensure products are in compliance with Army or DoD standards; and (d) OCONUS coverage and contingency support are not available from NASA SEWP IV.

c. National Institute of Health (NIH) Electronic Commodities Store III (ECS III) was determined not to be a viable alternative for the following reasons: (a) higher prices david.a.gannon Typewritten Text david.a.gannon Typewritten Text david.a.gannon Typewritten Text david.a.gannon david.a.gannon Typewritten Text david.a.gannon Typewritten Text david.a.gannon Typewritten Text david.a.gannon Typewritten Text david.a.gannon

Program/Item: ITES-2H Est Dollar Value:

are anticipated due to the (b) cannot ensure products are in compliance with Army or DoD standards; and (c) OCONUS coverage and contingency support are not available from NIH ECS III, unless negotiated between the ordering office and the contractor; and (d) orders over the SAT would have to be approved in accordance with the Army’s policy for review and approval for the use of non-DoD contract vehicles.

d. Air Force’s Network Centric Solutions II (NETCENTS II) contracts were determined not to be a viable alternative for the following reasons: (a) higher prices are anticipated due to the (b) cannot ensure products are in compliance with Army standards; and (c) program standards, terms, and conditions are specific to Air Force standardized networking technical architectures.

e. Individual contracts were determined not to be a viable alternative for the following reasons: (a) contracting centers have limited experience with the acquisition of IT thereby increasing the risk the IT solution does not adhere to the GIG, DISR Online, and other Army and DOD architecture and security standards described, above; (b) does not permit unified contracting and vendor management strategy across the DA; (c) excessive contract administration costs associated with the award and management of individual contracts; (d) does not permit the Army CIO-G6 asset visibility in how much the Army spends on IT; and, (e) Army can’t leverage economies of scale.

9. Interested Sources: The proposed action will be synopsized on the Federal Business Opportunities Page in accordance with FAR 5.201 for subcontracting opportunities only.

10. Other Facts:

a. A Statement of Applicability will be prepared against this class J&A for each contractual action effected under its authority. These Statements of Applicability will be made a permanent record in the contract file.

b. Procurement History:

(1) Army Infrastructure Architecture Solutions-1 (IAS-1), contract number DAAB15-99-D-0001, was awarded on 16 November 1998, to Telos Corporation.

This contract was the first Army Small Computer Program (CHESS predecessor) contract to provide COTS equipment to integrate, modernize, and refresh the existing sustaining base architecture. The performance period was from 16 November 1998 to 15 November 2003.

Program/Item: ITES-2H Est Dollar Value:

(2) The ITES-1 Enterprise Hardware Solutions (ITES-1 EHS), awarded on 02 September 2003, was the second CHESS vehicle established to support the Army enterprise infrastructure and infostructure goals with a full range of state-of-the art IT equipment and related incidental services. The period of performance was seven years, including option periods. The sources for ITES-1 EHS:

Contract# Contractor Requirement Period of Performance

DABL01-03-D-1006 Lockheed Martin ITES-1 EHS 01 Oct 03–30 Sep 07 DABL01-03-D-1007 GTSI ITES-1 EHS 01 Oct 03–30 Sep 07 DABL01-03-D-1008 Dell ITES-1 EHS 01 Oct 03–30 Sep 07 DABL01-03-D-1009 Hewlett Packard ITES-1 EHS 01 Oct 03–30 Sep 07

(3) ITES-2H was awarded on 09 February 2007. The period of performance was for five years (three-year base and two one-year options). ITES-2H is currently in the final Option Year, Extension Period (09 February 2012 through 21 August 2013).

The sources for ITES-2H are:

W91QUZ-07-D-0006 – Dell

W91QUZ-07-D-0007 – IBM

W91QUZ-07-D-0008 – UNICOM (formerly GTSI) W91QUZ-07-D-0009 – CDW-Government (CDWG) W91QUZ-07-D-0010 – IRONBOW (formerly Apptis) W91QUZ-07-D-0011 – World Wide Technology (WWT)

(4) Competitive status of these actions. IAS-1, ITES-1 EHS and ITES-2H were awarded on a full and open competition basis.

c. Acquisition data availability. Not applicable, commercial products were procured under both ITES-1 EHS and ITES-2H.

d. Unusual and Compelling Urgency. Not applicable.

e. Subcontracting Competition. The ITES-2H contains the following clauses: FAR 52.219-8 (Utilization of Small Business Concerns), FAR 52.219-9 (Small Business Subcontracting Plan), and DFARS 52.219-7003 (Small Business Subcontracting Plans (DoD Contract)).