RedactedACCR0238.pdf

Control No:

Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command – Warren (ACC-WRN) is the procuring activity responsible for this action.

2. Description of Action: ACC-WRN proposes to award, on an other than full and open competition basis, a new firm-fixed-price, cost plus fixed fee contract. The firm-fixed-price portion of the contract is for continuous coverage of 37 sites by the contractor for 12 months.

The cost plus fixed fee portion of the contract will address incidents that require additional travel by the contractor. The period of performance (PoP) will be 12 months with one six-month option. This action will be funded with Operations and Maintenance, Army (OMA) appropriations.

3. Description of Supplies/Services: The contractor, Cassidian Communications, will perform the services required by the Government in order to ensure the Telephone Alert System (TAS) remains fully operation. The TAS is a Joint Interoperability Test Center (JITC) certified solution that can interface with the Defense Switched Network (DSN) and the Non-Secure Internet Protocol Router Network (NIPR Net). The TAS is a web based application that provides telephone and email notifications capable of distributing messages containing event-related information or potentially life-saving instruction. The services requested by the Government that are to be performed by Cassidian Communications include technical support, remote access to the system, 24-hour helpdesk, routine service support, emergency onsite support, and software updates and upgrades for the TAS at 37 CONUS and OCONUS Army installations. The estimated value of the base PoP is $433,000.00. The estimated value of the option PoP is $216,000.00. The total estimated value of this action is $649,000.00.

4. Authority Cited: The statutory authority permitting acquisition of these services by other than full and open competition is 10 USC 2304(c)(1), “Only One Responsible Source and No Other Supplies or Services Will Satisfy the Agency’s Requirement,” as implemented by FAR 6.302-1.

This acquisition will be executed under the authority of the test program for commercial items (section 4202 of the Clinger-Cohen Act of 1996) as implemented by FAR 13.5.

5. Reason for Authority Cited: The TAS operates by the use of the Communicator NXT 4M software. The Government does not own the proprietary rights to the software. The Communicator NXT 4M system is a proprietary system owned by Cassidian Communications.

As a result, Cassidian Communications is the only vendor authorized to provide installation, repair, support, software updates, and software upgrades to the TAS. It is essential that the TAS remains fully operational and updated. If the TAS or its software becomes inoperable, military and civilian personnel would be at risk of not receiving notification of event-related information or potentially life-saving instruction.

Pursuant to FAR 6.302-1(a)(2)(iii), “For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts from the continued provision of highly specialized services when it is likely that award to any other source would result in, (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, and (B) Unacceptable delays in fulfilling the agency’s requirements.” Due to the complexity of TAS and the expertise that would be required to develop a replacement capability, the Government would endure considerable duplication of cost and time delay to competitively solicit and award a new contract.

A competitive solicitation and award to develop and implement a new software and hardware solution for the TAS would require the current systems at all 37 Army installations to be uninstalled and replaced by the system resulting from the competitive award. Developing new Government owned software would cost approximately $807,040.00. The development team would consist of three information technology professionals, a program manager, information assurance specialist and a documentation specialist. The estimated cost of acquiring the new servers and hardware would cost approximately $20,000.00 for each location, or a total of $740,000.00. There is also an implementation cost, which includes installation of the new software and training personnel on the operation of the new software, of approximately $5,000.00 for each site, or a total of $185,000.00. This effort will primarily be conducted by Government personnel in an effort to reduce cost. The total estimated cost associated with a competitive solicitation is $1,732,040.00, approximately three times the cost of the proposed action. The estimated cost for a competitive solicitation was formulated by taking the average labor rates from a variety of contractors from the Computer Hardware Enterprise Software Solution (CHESS) Information Technology Enterprise Solutions – 2 Services (ITES-2S). ITES- 2S contract includes a full range of services and solutions necessary for the Army to satisfy its support of Army net centric goals with Information Technology (IT) services worldwide.

Industry knowledge was utilized in deciding the job descriptions needed to complete the development of a new TAS.

A competitive solicitation and award to develop and implement a new software and hardware solution for the TAS would result in an approximate delay in service of 24 months. The solicitation and award timeline would be approximately six months. It is estimated to take 12 months to develop and accredit the new software and hardware. Implementation of the new software and hardware, including removal of the existing systems, at all 37 Army installations is estimated to take six months. To ensure that the TAS remained operational during the estimated time delay associated with solicitation, award, development, and installation of a new system, as discussed below, a 24 month bridge contract awarded to Cassidian Communications would be necessary. If a bridge contract were not awarded, the TAS would be at risk of failure, leaving military and civilian personnel at risk of not receiving notification of event-related information or potentially life-saving instruction.

Alternatively, the Government could procure a commercial off the shelf (COTS) software and hardware solution for the TAS. A COTS system would result in an approximate duplication of costs in the amount of $2,035,000.00 and a delay in service of approximately 12 months. Market research was conducted to estimate the cost of purchasing and installing a basic COTS TAS.

The procurement of a COTS software and hardware solution for the TAS would require the current systems at all 37 Army installations to be uninstalled and replaced by the system resulting from the new award. The estimated cost procuring a new system would be $45,000.00 for each installation or a total of $1,665,000.00. There is also an implementation cost, which includes program management, installation and configuration of the new software and hardware and training personnel on the operation of the new software, of approximately $10,000.00 for each site, or a total of $370,000.00. The total estimated cost associated with COTS software and hardware solution is $1,950,000.00, more than three times the cost of the proposed action.

As a result of COTS procurement, a technical data package (TDP) would be proprietary to the vendor and not available for use by the Government. Follow-on service contracts would be subject to sole source acquisition; otherwise, a new software and hardware solution would have to be solicited, awarded, and implemented, which would result in further duplication of Government costs and potentially harmful delays in service.

The procurement of a COTS software and hardware solution for the TAS would result in an approximate delay in service of 12 months. The solicitation and award timeline would be approximately six months. Implementation of the new software and hardware, including removal of the existing systems, at all 37 Army installations is estimated to take six months. To ensure that the TAS remained operational during the estimated time delay associated with solicitation, award, development, and installation of a new system, as discussed below, a 12 month bridge contract awarded to Cassidian Communications would be necessary. If a bridge contract were not awarded, the TAS would be at risk of failure, leaving military and civilian personnel at risk of not receiving notification of event-related information or potentially life-saving instruction.

6. Efforts to Obtain Competition: Cassidian Communications is the proprietary owner of the software and hardware configuration of the TAS, and is the only vendor authorized to provide installation, repair, support, software updates, and software upgrades to the TAS. Based on the Government’s technical expertise and market research, Cassidian Communications is the only known source available to complete this effort. However, any information received will be considered to determine if a competitive acquisition should be conducted.

7. Actions to Increase Competition: No further action to increase competition is contemplated at this time as Communicator NXT 4M is proprietary software, although the Government will continue to survey the marketplace. Any information received will be considered to determine competition for future requirements.

8. Market Research: The TAS operates by the use of the Communicator NXT 4M software.

The Communicator NXT 4M software is a proprietary system owned by Cassidian Communications. As a result, Cassidian Communications is the only vendor authorized to provide installation, repair, support, software updates, and software upgrades to the TAS. The Government has researched the cost to replace the current proprietary configuration. Pursuant to FAR 12.101(b), agencies shall acquire commercial items or non-developmental items when they are available to meet the needs of the agency. Current market research suggests that the replacement of the TAS with a COTS system would cost the Government approximately $2,035,000.00 and would result in a delay in service of approximately 12 months. As a result of COTS procurement, a technical data package (TDP) would be proprietary to the vendor and not available for use by the Government. Follow-on service contracts would be subject to sole source acquisition; otherwise, a new software and hardware solution would have to be solicited, awarded, and implemented, which would result in further duplication of Government costs and potentially harmful delays in service.

9. Interested Sources: The Communicator NXT 4M system is a proprietary system owned by Cassidian Communications. Thus to date, no other sources have expressed an interest in this effort. A combined synopsis and solicitation will be release in accordance with (IAW) FAR 13.105(b).

10. Other Facts:

a. Procurement history. Cassidian Communications has successfully provided service to the TAS since 2009. The following are U.S. Army contracts previously awarded to Cassidian Communications to install software and provide service to the TAS:

• Contract No. W56HZV-11-C-0442, $385,681.00, 9/27/2011 – 3/31/2013.

Technical support services for TAS at 34 Army installations, ACC-WRN.

Sole source per FAR 6.302-1 Only One Responsible Source.

• Between 2008-2011 warranty extensions where purchased on a per site basis.

Warranty extensions were purchased as the initial warranty from the vendor ran out. The period of performance on the warranty extensions corresponded to the fielding dates of the installations. The cost of support gradually increased every renewal period with an average cost of $8,000.00 per site over this time period.

b. Acquisition data availability. Joint Program Manager Guardian (JPMG) is the current system owner and configuration manager. Upon selecting Cassidian Communications as the Vendor for mass warning and notification (MWN), the technical data package for Communicator NXT 4M was not available. Cassidian Communications still remains the as the sole proprietary owner of the Communicator NXT 4M software.

c. Subcontracting competition. Pursuant to FAR 19.702(a)(1) and FAR 19.705-2, the threshold for obtaining a subcontracting plan is $650,000.00. The proposed action falls below this threshold; therefore, a subcontracting plan is not required.

11. Technical Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Terell Williams Date: 25 February 2013 Title: General Engineer Signature: O/S/B (see pdf file)

12. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Thomas Fiems Date: 25 February 2013 Title: Consequence Management Team Leader Signature: O/S/B (see pdf file)

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable by using both cost/price analysis and Defense Contract Audit Agency (DCAA) audit recommendations to discern whether the costs proposed are current and justifiable. Pursuant to FAR 15.403-4(a)(1), the threshold for obtaining cost or pricing data is $700,000. The proposed action falls below this threshold; therefore, certified cost or pricing data is not required.

Typed Name: Eric F. Heil, Major, US Army Date: 22 March 2013 Title: Contracting Officer Signature: //s// Eric F. Heil

14. Contracting Officer Certification:

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

Typed Name: Eric F. Heil, Major, US Army Date: 22 March 2013 Title: Contracting Officer Signature: //s// Eric F. Heil

Approval

Based on the foregoing justification, I hereby approve the procurement of technical support services for the Telephone Alert System (TAS) on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) as implemented by FAR 6.302-1, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Typed Name: Eric F. Heil, Major, US Army Date: 10 June 2013 Title: Contracting Officer Signature: //s// Eric F. Heil