ja_Hood_JA_2019_49_28jun19__2_cafc_signed-CAFCsigned20190717_redacted_final3_19aug19_Redacted.pdf

Control No.: MICC 2019-49 Contractor: Evergreen Fire and Security

Program: Electronic Security Systems

Version March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: The customer is the Directorate of Emergency Services (DES) and the effort will procure the Maintenance of Electronic Security Systems (ESS) on Fort Hood, TX.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount: $6,397,766.04

Prepared by:

Contract Specialist Date:

Contracting Officer:

Contracting Officer Date:

Technical:

Date:

Contracting

Requirements:

Deputy Director of Emergency Services Date:

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

1. Contracting Activity: Mission and Installation Contracting Command (MICC) Fort Hood (FH), 36000 Darnall Loop, Fort Hood, TX 76544.

2. Description of Action: The Directorate of Emergency Services (DES) requests a Firm-Fixed price Requirements type contract with Evergreen Fire and Security (Evergreen). The Government projects award by August 2019, and fiscal year 2019 Operations and Maintenance funds will be used.

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) (total cost of all contracts for the acquisition program is estimated at $50 million or more for all years or $25 million or more for any fiscal year).

This action is a follow-on to Contract No. W91151-13-D-0011. The last extension to that contract was not competed using the authority of 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, Unusual and compelling urgency.

The paragraph of the previous justification for the above referenced contract extension provided: No action could reasonably be taken, see paragraph 6 above (which stated: Efforts to Obtain Competition: In accordance with FAR 5.202(a)(2), this action will not be synopsized. Due to the short time period for execution of a contract action to continue performance beyond 27 February 2019, there was not sufficient time to execute a contract action with any source other than the incumbent). A copy of the previous approved justification is attached.

Approval of this sole source justification for this follow-on contract will allow the use of sole source procedures for award of a contract for continued support for all of the work needed by the requiring activity, as explained below. For the reasons stated below, there is only one known source (Evergreen Fire and Security) capable of providing all of the services needed.

3. Description of Supplies/Services: The Electronic Security Systems (ESS) covered under the scope of this requirement are the Intrusion Detection System (IDS), Closed Circuit Television (CCTV), Electronic Entry Control System (EECS), and the Directorate of Emergency Services Secure Law Enforcement Network (SLEN). The SLEN is also a large scaled system equal in size to the CCTV system; however, it has the potential of being downsized or decommissioned during the performance of the contract. The Fort Hood IDS System is the Integrated Commercial Intrusion Detection System (ICIDS-II).

There are two separate ICIDS II systems; one for the protection of 600 zones protecting Headquarter buildings, firearm warehouses, document storage buildings, ammunition bunkers, in addition to other type zones. The other ICIDS II system is dedicated to the protection of over 20 Sensitive Compartmented Information Facilities (SCIF). The EECS services 8 facilities and also resides on the larger ICIDS II system utilizing the SAFEnet access control application. The CCTV system has approximately 350 cameras across the installation at various installation access control points and mission essential vulnerable areas. The CCTV system currently resides on the SLEN and are supported with 40 plus digital video recorders. The contractor performing the required services shall be a Monitor Dynamics (MD) Certified ICIDS II Service Provider. All contractor personnel maintaining, servicing, installing, repairing hardware and software of the IDS or EECS shall be certified as an MD trained technician or system administrator depending on services provided for the ICIDS II system. The contractor shall ensure each ESS remains in an operational status and ensure applicable Cyber Security Information Assurance (IA) measures are applied in accordance with Army Regulations and Department of Defense (DoD) standards provided in the Performance Work Statement. The Department of the Army approved commercial IDS system for Fort Hood is ICIDS-II, SAFEnet version 6.2.1.6, service pack 4. There is the potential that a new service pack may be installed with supporting hardware during the period of performance of the contract. The Contractor shall ensure the ICIDS primary and secondary servers are maintained and remain Cyber Security IA compliant, at all times.

The maintenance and compliance includes all monitoring, work stations, and EECS enrollment stations associated with ICIDS II. The CCTV is a large scale networked system that is spread out across 33 locations and requires continuous monitoring and maintenance by qualified and MD certified contractor personnel.

Base Period (includes phase-in): 1 AUG 2019 to 31 JUL 2020 Value: $1,437,639.17 Option Period 1: 1 AUG 2020 to 31 JUL 2021 Value: $1,404,372.57 Option Period 2: 1 AUG 2021 to 31 JUL 2022 Value: $1,418,040.74 Option Period 3: 1 AUG 2022 to 31 JUL 2023 Value: $1,425,142.37 FAR Clause 52.217-8 option: 1 AUG 2023 to 31 JAN 2024 Value: $ 712,571.19

Total: $6,397,766.04

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C.

1901, as implemented by FAR Subpart 13.5: Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited:

a. As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for. The proposed sole source contractor is Evergreen Fire and Security, as it is the only potential offeror capable of providing the required services that possesses the required MD certifications, as explained below, making it the only firm capable of performing the contract.

The contractor performing the required services is required to be a MD Certified ICIDS II Service Provider. MD is the manufacturer of the ESS on Fort Hood, and it will only provide certified service providers with manufacturer warranties and technical engineering support. Additionally, per Army Regulation (AR) 190-11 (Physical Security of Arms, Ammunition, and Explosives) dated 17 January 2019, paragraph 3-6l(4), larm maintenance personnel will be certified in the respective software appropriate to , all contractor personnel maintaining, servicing, installing, repairing hardware and software of the IDS or EECS are required to be certified as an MD trained technician or system administrator, depending on services provided for the ICIDS II system.

b. Alternatives.

(1) Full Technology Refresh (Procuring a New ESS). A full technology refresh is not a viable option. Although a full technology refresh would maximize competition it would come at a substantial increase in cost (the last estimate to convert Fort Hood to a new ESS was approximately $25,000,000). Furthermore, a full technology refresh would require Other Procurement, Army (OPA) funding from the program office, which will not

(tentatively scheduled for FY25).

(2) Discontinue ESS Maintenance Operations. Terminating IDS/ESS maintenance is not a viable option. These services are critical to ensuring the Fort Hood IDS/ESS remains operational.

ability to train, deployment readiness, security, quality of life, and potentially result in mission failure.

(3) Procuring ESS Maintenance Services from a vendor not MD certified as an ICIDS II service provider. Utilizing a non-certified service provider/vendor was only considered to be a viable option for an extension of the current contract for short term performance of a portion of the services, due to the protest. Because the manufacturer will not provide warranties, engineering support, technical support, and parts/materials to non-certified firms, utilizing a non-certified contractor would result in less than full performance under the contract. This would result in Fort Hood continuing to fail to get all the contracting support necessary to meet the operational needs of the requiring activity. Additionally, utilizing a non-certified contractor would not be in compliance with AR 190-11, as outlined above. For these reasons, this alternative is not acceptable for the follow-on contract.

(4) Execute Mission using Military personnel. Utilizing Military personnel on a long term basis is not a valid option because Fort Hood does not have, nor does it anticipate having sufficient permanent party Soldiers with the appropriate skills, knowledge and attributes available to support the mission. However, interim augmenting support until an award is made to a certified service provider may be required.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notice required by FAR 5.201. Although there is only one contractor (Evergreen Fire and Security) listed on the list of certified dealers (as of 22 May 2019) received from MD, a sources sought was published on FedBizOpps on 28 May 2019 seeking contractors that may be able to perform this requirement in order to support a competitive procurement.

Results of the sources sought are addressed concisely in paragraph 9 below, and in more detail in the Market Research Report.

7. Actions to Increase Competition: For the following reasons, future competitions will have to be limited to all vendors who are Certified ICIDS II Service Providers by MD.

Based on information obtained from the requiring activity (DES), the estimated date for system replacement is January 2025. DES noted the following main points regarding the ICIDS Program Fielding Plan: a) the ICIDS Program Fielding Plan, is only a plan and s and priority changes. , b) the Fielding Fort Hood has not yet been scheduled to receive the required site and system survey, and that once Fort Ho -3 year

, and that c) the actual timeline for system replacement is unknown, but that the Army Portfolio Management System (APMS) indicates that Fort Hood is estimated to receive a system replacement in January 2025, noting however, that this date is an estimate for planning purposes only, subject to adjustment, and that full funding has not yet been appropriated.

8. Market Research: The market research identified Evergreen as the only firm (a large business) certified and authorized by MD to perform MD-certified ICIDS II services. Only MD-certified ICIDS-II service providers having access to the necessary resources required to ensure the systems operating under the ICIDS-II software remain in maximum operational status and working condition were considered. According to market research, the system manufacturer, MD, only supports certified vendors with manufacturer warranties, engineering support, technical support, and parts/materials.

Without support from the system manufacturer, the Fort Hood IDS/ESS runs a high risk of substantial degradation in IDS/ESS capabilities, and the contractor will not be able to purchase necessary equipment to repair/replace existing systems. Also, system issues can go uncorrected over time and cause systematic failure at a larger scale; the patch needed to address the vulnerability will not be available; and catastrophic failure of front end operating systems that require MD engineering technical support would have a prolonged adverse impact on the Fort Hood installation.

9. Interested Sources: See paragraph 6 for the synopsis information. A sources sought was published on FedBizOpps on 28 May 2019 with a response date of 6 June 2019. In response to the Notice, five contractors responded and expressed interest in the procurement, those being:: HurtVet; BlueIce Engineering, LLC; Strategic Solutions Unlimited, Inc; XRT, LLC; and Chenega Security International, LLC. None of the aforementioned contractors submitted documentation showing that they were qualified as an MD Certified ICIDS II Service Provider as indicated in the sources sought and

Performance Work Statement (PWS). Having this certification is the most crucial part of this requirement as discussed in paragraph 5 above. The results of the sources sought are documented in greater detail in the Market Research Report.

10. Other Facts:

a. Procurement History:

(1) The previous contract, W91151-13-D-0011, had a period of performance from 28 August 2013 through 27 June 2019.

(2) Contract W91151-13-D-0011 resulted from a competitive solicitation.

However, the modification to extend services from 28 February 2019 through 27 June 2019 was not competitive and a justification was executed on 26 February 2019. See paragraph 4 below.

(3) The authority of 10 U.S.C. 2304(c)(2), as implemented by FAR 6.302-2, Unusual and compelling urgency, was used to extend W91151-13-D-0011 from 28 February 2019 through 27 June 2019 due to GAO protest B-416696.2.

(4) No action could reasonably be taken. In accordance with FAR 5.202(a)(2), the extension action was not synopsized due to the short time period for execution of a contract action to continue performance beyond 27 February 2019 (there was not sufficient time to execute a contract action with any source other than the incumbent) due to GAO protest.

Approval of the justification for the extension of the current contract using the exception to competition based on FAR 6.302-2, Unusual and Compelling Urgency, allowed the interim extension of the existing contract to prevent a lapse in service for the ESS while awaiting a decision on the GAO protest B-416696.2. There was not sufficient time between receipt of the GAO protest and the end of the performance period of the contract to solicit from multiple sources and award a contract that would prevent a lapse in service.

(5) The circumstances that necessitate the current procurement to be solicited on a sole source basis is the MD certification requirement, outlined above, in that the contractor performing the required services is required to be a MD Certified ICIDS II Service Provider. All contractor personnel maintaining, servicing, installing, repairing hardware and software of the IDS or EECS are required to be certified as an MD trained technician or system administrator, depending on services provided for the ICIDS II system. On 22 May 2019, MD provided an updated list of certified dealers, which currently lists Evergreen Fire and Security as the only MD Certified ICIDS II Service Provider.

b. Timeline of Events:

On 27 July 2018, MICC-FH issued solicitation number W91151-18-R-0038 for award of the follow-on contract for the maintenance on the IDS/ESS.

On 17 August 2018, the solicitation closed and two proposals were received timely (one was from the incumbent contractor (Government Contracting Services LLC (GCS)), and the other was from Evergreen Fire Alarms LLC, dba Evergreen Fire and Security (Evergreen)).

On 17 August 2018, GCS, the incumbent contractor, filed a pre-award protest with

GAO (B-416696).

On 27 August 2018, a modification to the incumbent contract was completed in order to exercise FAR clause 52.217-8, Option to Extend Services, for 6 months (28 August 2018 27 February 2019).

On pending corrective action.

On 7 February 2019, amendment 3 to solicitation W91151-18-R-0038 was issued with a new closing date of 11 February 2019.

On 11 February 2019, the solicitation closed and two proposals were received timely from: GCS and Evergreen.

On 11 February 2019, GCS, the incumbent contractor, filed a pre-award protest with

GAO (B-416696.2).

On 6 May 2019, the GAO protest (B-416696.2) was dismissed as academic based stated corrective action. The agency has, for the reasons outlined above, since determined that a sole source is the appropriate course of action based on the results of the market research. Solicitation W91151-18-R-0038 has been cancelled and a new contract will be solicited and awarded to Evergreen as supported by this J&A.

It is now anticipated that award will be made on 31 July 2019, and performance will start on 1 August 2019.

Approval

Based on the foregoing justification, I hereby approve the procurement of the Maintenance of Electronic Security Systems (ESS) on Fort Hood, TX on a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5. The estimated value of the contract is $6.4 million for a 4 year period of performance starting in August 2019 that consists of a base year, three 1-year options, and a six month option to extend services, if necessary. This approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

CRISTINA CHIAL

Command Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX