A03_-_SOLE_SOURCE_JUSTIFICATION___Jericho__EnterSpace_04292016_signed_(1).docx

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: Distributed Common Ground System-Army / Jericho EnterSpace Decisioning Service Unlimited Maintenance Renewal.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901(a)(2); as implemented by FAR Subpart 13.501(a)(1) and FAR 6.302-1.

Amount:$ 1,525,125.00.

Management (CALM) Team

Email:melrone.a.mccray.civ@mail.mil

Email:richard.m.newberg.civ@mail.mil

JA-E-16-244

Technical:

DSN: 848- 3277

Supervisory Computer Engineer Date: 08 April 2016 Email: arlene.rodriguez.civ@mail.milArlene

Rodriguez

Email:loyd.r.williams.civ@mail.mil

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager: Chief, Intelligence Support Division

Legal Counsel:

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole Source Justification and Approval

1. Contracting Activity: Army Contracting Command Aberdeen Proving Ground Division E 6001 Combat Drive, Building 6001 Aberdeen Proving Ground, MD 21005

2. Description of Action: Communications Electronics Command (CECOM) Software Engineering Center (SEC) requests a new firm-fixed-price contract for the procurement of Jericho Systems’ EnterSpace Decisioning Service (ESDS) unlimited maintenance with Jericho Systems Corporation. The NAICS Code is 541511. This purchase order will consist of a one (1) year base period and three (3) one (1) year options. The Government projects an award date prior to 29 April 2016 using Fiscal Year 2016 Operation and Maintenance, Army funds for the base period. Funds are currently available for this procurement.

X An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

(Insert approval authority title) approved an acquisition plan in accordance with DFARS 207.103(d)(i)(B) on (insert date).

The required acquisition plan in accordance with DFARS 207.103(d)(i)(B) is currently awaiting (insert approval authority title) approval.

This action is a follow-on to contract W56JSR-15-F-0001. That contract was sole source under authority FAR 8.405-6(b)(1). This new contract will be sole source under FAR

13.5 and not under a GSA Schedule - FAR Part 8; hence a Limited Source Justification is not required. Paragraph, “Actions to Increase Competition” of the previous justification, stated: “Market research will continue to be conducted to determine if changes occur in the market place that would enable greater competition to future actions. If any information is received from the Requests for Information (RFI) and Request for pricing for Jericho ESDS products, it will be forwarded to the Contracting Officer for review”. There has been no change in the market place. Jericho is still the sole source provider of these proprietary software licenses and maintenance support services. There are no authorized resellers.

3. Description of Supplies/Services: Distributed Common Ground System-Army (DCGS-A) currently utilizes ESDS to identify and provide access management software to facilitate information security for regulatory compliance, quality, and efficiency. The DCGS-A system consolidates functions of several military intelligence (MI), geospatial and weather systems into a single integrated system. ESDS maintenance services consists of (1) upgrades and revisions to the Licensed Software as Jericho Systems makes such updates and revisions commercially available; (2) Jericho Systems will respond to customer inquiries relating to errors that are submitted to Jericho Systems via a toll-free technical support line and e-mail; and (3) a Jericho Systems subject matter expert (SME), specifically assigned to the customer’s account, to act as a customer’s single point of contact for issue resolution.

DCGS-A requires annual software maintenance for one (1) EnterSpace Decisioning Unlimited Maintenance Service.

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901(a)(2) as implemented by FAR Subpart 13.501(a)(1) and FAR 6.302-1 (One responsible source and no other supplies or services will satisfy agency requirements):

Unusual and compelling urgency X One Responsible Source Industrial mobilization Other:

5. Reason for Authority Cited:

Jericho Systems Corp., 6600 LBJ Freeway, Suite 250, Dallas, TX 75240 is the developer for EnterSpace Decisioning Service. The use and maintenance of this proprietary software in this acquisition is essential to the Government’s requirements, thereby precluding consideration of a product developed by another company. Jericho ESDS products are an embedded part of the DCGS-A (Intelligence Fusion Server) IFS fielded baselines. Ongoing maintenance support service is required to receive patches, support, and cost-effective upgrades. Failure to renew support by 29 April 2016 will severely reduce effectiveness to the Warfighter over time. Jericho has stated they will charge a penalty in the amount of $200,000.00 if the Army misses the award date.

Jericho releases new versions annually with improvements to functionality and design that are beneficial to the Warfighter and the DCGS-A mission. Jericho ESDS products were originally selected by Program Manager (PM) DCGS-A as meeting Warfighter requirements for the IFS. The IFS became programs of record under the DCGS-A program. Generally speaking replacing a major component of a fielded baseline is out of scope of SEC Intelligence Support Division’s (ISD) sustainment mission while the PM for DCGS-A program continues to work new, not-yet-transitioned baselines. ISD does not create additional baselines, it only sustains the current baseline. To date no other product provides similar capabilities. If another product were identified and selected, it would impact the entire baseline. Any product replacement would result in developmental efforts to re-engineer all authentication and authorization procedures, followed by production and certification testing efforts.

Possible Course of Actions: Recommend Option 3 to purchase annual maintenance services:

1) Removal of Jericho ESDS would remove all current authorization procedures for Web Services and widgets. All users that login would have all access to all widgets. Since there are no other Commercial-Off-the-Shelf (COTS) products available; it would require intensive re-engineering to devise a new architecture, re-write, and modify all existing code. The additional reengineering cost would exceed $1.5 million plus an estimated minimum development, testing, certification and deployment time of at least 24-36 months.

2) Keep Jericho ESDS and do not renew maintenance services. There will be no ability to upgrade/update. Security requirements change frequently and the risk of security vulnerabilities would be greatly increased. Any product failure would not be addressed.

3) Purchase maintenance services. Jericho is the sole source company for the EnterSpace Decisioning licenses and software support service. Jericho has the license keys that enable their staff to develop and install all patches, changes, enhancements and updates. The US Army does not have access to the software application or the specific expertise to perform these functions with organic staff. Additionally, the Jericho software application has the security architecture that authorizes interface and support with other (DCGS-A) Army systems. The additional reengineering cost would exceed $1.5 million plus an estimated minimum development, testing, certification and deployment time of at least 24-36 months.

6. Efforts to Obtain Competition: The Contract Division’s, Software License Acquisition Branch conducted market research, details of which are in the market research section of this document, paragraph 8. The Contracting Officer shall publish the notices required by FAR 5.201.

7. Actions to Increase Competition: Market research will continue to be conducted to determine if changes occur in the market place that would enable greater competition to future actions. If any information is received from the Requests for Information (RFI) and Request for pricing for Jericho ESDS products, it will be forwarded to the Contracting Officer for review.

8. Market Research: Market research was performed by the SEC CALM Team during the month of November 2015. Searches were performed on the Army Computer Hardware Enterprise Software Solutions (CHESS), the National Aeronautics and Space Administration (NASA) Solutions for Enterprise Wide Procurement (SEWP), and General Services Administration (GSA) websites. A query was sent to the developer’s website for a list of resellers as well as a general web search. CALM received a statement that Jericho Systems does not have any resellers for the ESDS software. SEC CALM obtained a CHESS Statement of Non-Availability, Number 216702964, for this requirement.

9. Interested Sources: The notice required by FAR 5.201 will be published on the Federal Opportunities Business page. Any proposals that are received shall be considered. To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement History:

The prior contracts utilized 41 U.S.C. 1904(c)(1) and FAR 8.405-6(b)(1), Limited Sources Justification. Jericho is the creator / developer of this proprietary product and has not authorized any company to sell this software license(s) or maintenance support services. The difference between the authorities cited is due to the previous use of a CHESS GSA Federal Supply Schedule, whereas we are processing this requirement under FAR subpart 13.5 and FAR 6.302-1 as a sole source proprietary product and maintenance service.

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.

Name: Arlene Rodriquez: Date: 4/8/2016 Title; Requirements Planning Officer DSN: 848-3277

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.

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this acquisition action will be fair and reasonable.

This determination will be made using the following: X price analysis X IGCE

As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial in accordance with FAR15.403-1(b)(3) and at or below the simplified acquisition threshold in accordance with FAR15.403-1(a).

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Richard. M. Newberg Date: 29 April 2016 Contracting Officer DSN: 848 4870

Approval

Based on the foregoing justification, I hereby approve the procurement of Jericho’s EnterSpace Decisioning Service Unlimited Maintenance Renewal on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901(a)(2) as implemented by FAR Subpart 13.501(a)(1), and FAR 6.302-1 subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the below date, this document shall be returned to the Competition Advocate for revalidation. Additionally, if any changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action occur at any time, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence by the Competition Advocate.

Name: Cynthia Jackson Date: April 29, 2016 Title: Special Advocate for Competition DSN: 848- 4844 image1.png image2.png image3.png image4.png image5.png