A03-_SSJA___Kratos___NeuralStar___PLAD_17348_-_signed.pdf

Control No: JA-E-16-471

Contractor: Kratos:

Program/Equipment: Joint Management and Operations Subsystems / Kratos NeuraStar

Annual Gold Software Support Renewal

FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: Kratos NeuralStar Annual Gold Software Support Renewal for the United States (US) Army Joint Management and Operations Subsystems (JMOS)

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(c)(1)

Amount:

Prepared by: DSN:

Centralized Acquisition and License Management (CALM) Team Date:

Email:

Contracting Officer: DSN:

Supervisory Contracting Officer Date: 20 Jun 2016 Email:

Technical: DSN:

Requirements Planning Officer Date: 17 May 2016 Email:

Requirements: DSN:

Chief, Contracts Division Date:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Name: Date:

DSN:

Program/Equipment: Joint Management and Operations Subsystems /Kratos NeuraStar

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

1. Contracting Activity: Army Contracting Command 6001 Combat Drive, Building 6001

Aberdeen Proving Ground, Maryland 21005

2. Description of Action: Joint Management and Operations Subsystems (JMOS) program requests a firm-fixed-price contract for the brand name purchase of Kratos NeuraStar Annual Gold Software Support Renewal. This procurement will consist of a one (1) year base period and one (1) eight month option. The applicable North American Industry Classification System Code (NAICS) is 511210, Software Publishers. The Government projects an award date of June 2016 using Fiscal Year 2016 Operation and Maintenance, Army (OMA) 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).

This action is a follow-on to contract number W56JSR-15-C-0027. That contract was conducted as a sole source acquisition under the authority 10 U.S.C. 2304 (1) and FAR 6.302-1(c)(1) “An acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product, or feature of a product, peculiar to one manufacturer”.

3. Description of Supplies/Services: The proposed action is for the brand name purchase of Kratos NeuraStar Annual Gold Software Support Renewal.

The Kratos NeuralStar Software Maintenance required within this procurement is in direct support of the JMOS sustainment efforts. The total estimated price for this effort is

Base Year Kratos NeuralStar Annual Gold Maintenance Base Year: *31 May 2016 – 30 May

Option Year 1 Kratos NeuralStar Annual Gold Maintenance Option Year 1: 31 May 2017 – 30 Jan 2018

*The Base Year period of performance is inclusive of all software patches and updates from period of service lapses to date of contract award.

The Kratos NeuralStar software provides real-time intelligence, fault tolerance, centralized management, scalability, and cyber security awareness for true enterprise-grade Information Technology and network management. Software support consists of software support, updates, revisions, error detection and correction, and rights to new releases and/or versions.

a. Kratos NeuralStar software provides JMOS with the ability to view and manage heterogeneous networks for Satellite Communications (SATCOM) in real time from a single console.

b. When a network connection is lost, Kratos NeuralStar allows local collectors to continue to gather data until a network connection is re-established and replication continues. This capability provides a pseudo-level of redundancy without additional equipment thus reducing the hardware footprint as well as costly system downtime.

Procuring the software support allows the Army to extend the useful life of its investment by increasing current functionality and ensuring compliance with network security policies and regulations. The Kratos NeuralStar Software Maintenance includes the following components:

i. The NeuralStar Gold Maintenance

c. These are the same embedded software development suite tools set used by Diagnostic/Retrieval Systems Intelligence, Communication, and Avionic Solutions, LLC for their Joint Tactical Terminal-Integrated Broadcast Service (JTT-IBS) Black Side software development.

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(c)(1).

X Only one responsible source and no other supplies or services will satisfy agency requirements, and brand name descriptions.

5. Reason for the Authority Cited: This acquisition requires the purchase of brand-name Kratos NeuralStar Gold software support renewal manufactured by Kratos Network (Cage Code 1TVP5), 5 Industrial Way, Suite 2A, Salem, New Hampshire, 03079-4866. Kratos Network is the sole distributor for the Kratos NeuralStar software. Kratos’ sole source letter stated that they are the sole source for the purchase and renewals of the license, training, maintenance, and services of all Software products currently in use by our Commercial and DoD customers.

The use of a brand name description in this acquisition is essential to JMOS requirements, thereby precluding consideration of a product manufactured by another company.

The Kratos NeuralStar support agreement provides for periodic updates and patches that are required to maintain the security posture of the system and to fix software problems. If these updates and patches are not available, the

. The JMOS will have to reengineer a development environment which is estimated to take three years of effort at an estimated cost of would be incurred to replace NeuralStar at very high risk to the warfighter.

a.

. The brand-name software support is the only support that will function with the Kratos NeuralStar software.

Additionally, the Kratos NeuralStar software is the only one that supports the functional and interoperability requirement of Army.

The system provides real-time situational awareness of the network and cost effect use of network resources at all times.

b. If these updates and patches are not available, the JMOS will become more susceptible and may not be able to maintain its .

6. Efforts to Obtain Competition: Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

a. Effective Competition: Members of the Software Engineering

Center Centralized Acquisition and License Management (CALM) Team conducted market research - details of which are outlined in paragraph 8.

b. Subcontracting Competition: The Government will seek to maximize subcontracting competition with a focus on subcontracting to small and small disadvantaged businesses.

The Contractor has stated that they the sole distributor for the Kratos NeuralStar software.

7. Actions to Increase Competition: Commercial software manufacturers are encouraged to increase the number of authorized resellers. Additionally, upon receipt of the requirement an authorized list of authorized distributors for this software is immediately requested from the original manufacturer. The manufacturer is also encouraged to pursue distribution of their products/services through Small businesses, HUBZONE, Service Disabled Veteran Owned, and Woman Owned Small businesses. Market research will be conducted annually on the current baseline to determine if changes occur in the market place that would enable greater competition.

8. Market Research: Market research was performed by the technical experts from the SEC CALM team during the month of November 2015 through May 2016. Searches were performed on the Army Computer Hardware Enterprise Software Solutions (CHESS), National Aeronautics and Space Administration (NASA) Solutions for Enterprise Wide Procurement (SEWP), and General Services Administration (GSA) Advantage, as well as a query was sent to the manufacturer for a list of resellers. Kratos Network responded, letter dated 16 June 2016, that Kratos is the sole and exclusive manufacturer and distributor of the NeuralStar™ and Compass™software (the "Software") and supporting maintenance/warranty as well as supporting services tasks.. No bid responses were received from GSA and NASA SEWP. No contractor responses were received from Army CHESS, ESI. A CHESS Statement of Non-Availability (SoNA) Number 216707028 and Goal1 Waiver #20151221022181 was obtained for this requirement. Below are the responses received from the market research query:

Contractor Name Cage Code Business Category

Kratos Networks 1TVP5 Large Business

9. Interested Sources: The Government Point of Entry (GPE) notice required by FAR 5.201will be published on the federal opportunities business page. To date, no other sources have written to express interest in the acquisition beyond the vendor listed in paragraph 8.

10. Other Facts:

a. Procurement History

Company Name Contract Period of Performance

Extend Competed/ Authority

Sword and Shield Enterprise Security

W56JSR-15-C-

1 Sep 2015 - 30 May 2016

Brand Name / FAR 6.302-1(c) (1)

Sword and Shield Enterprise Security

HC1028-14-F-

19 Sep 2014

– 18 Sep 2015

Brand Name / FAR 6.302-1(c) (1)

There has not been any significant change in circumstances from the previous justification to this current justification.

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.

Date: 16 Jun 2016

Title: Supervisory Computer Engineer

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.

Name: Date:

Title: Chief, Contracts Division

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract 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.

Name: Date: 22 June 2016 Title: Supervisory Contracting Officer

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

Name: Date: 22 June 2016 Title: Supervisory Contracting Officer

*Contracting Officer signature at paragraph 14 (Contracting Officer Certification) constitutes approval. Approval page not required.