Justification for an Exception to Fair Opportunity FAR Part 16_Redacted.pdf

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Redacted EFOJ: BIES- PIPS Modernization and Migration
Solicitation number
W9128Z25FA001
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This is a Justification for Exception to Fair Opportunity document for a sole-source task order to IBM Corporation under the ITES-3S contract for modernizing and migrating the Background Investigation Enterprise Systems (BIES)/Personnel Investigation Processing System (PIPS) to the cloud for the Defense Counterintelligence and Security Agency (DCSA).

The task order is valued at $34,880,346 for a 30-month period (1-year base plus one option year and a 6-month option) starting November 22, 2024. IBM is deemed the only capable vendor due to their unique expertise with the legacy IBM mainframe system, which contains 5.7 million lines of code in archaic languages like COBOL, Natural, and Assembler. The justification cites the critical nature of PIPS in processing background investigations for over 100 federal agencies, recent cybersecurity incidents, and the risk of system failure due to the aging technology and 68-year average age of the current support team. Market research conducted June-October 2024 found no other vendors with relevant experience in modernizing similar mainframe systems. The modernized system must be completed by FY27 and will transition to commercial cloud services using current software development languages.

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CUI//SP-SSEL

Control Number: JA-25-DC3oE-0030

CUI//SP-SSEL

(Source Selection Information - See FAR 2.101 and 3.104-4)

Reviews

I have reviewed this justification and find it adequate to support the justification for an exception to fair opportunity.

Legal Counsel

Typed Name: DSN:

Date:

Command Advocate for Competition

Typed Name: PH: (

20241115

CUI//SP-SSEL

Justification for an Exception to Fair Opportunity Under FAR 16.505(b)(2)

1. Contracting Activity: U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG) DC3oE, 6472 Integrity Court, Aberdeen Proving Ground, MD, 21005

2. Description of Action: The Defense Counterintelligence and Security Agency (DCSA) requests a time-and-materials task order (TO) under the Information Technology Enterprise Solutions 3 Services (ITES-3S) contract with International Business Machines (IBM) Corporation. ACC-APG will execute this action against the ITES-3S, IBM contract W91QUZ06D0010-2T01. ACC-APG projects award for 22 Nov 2024 and fiscal year 2025 working capital funds will be used.

3. Description of Supplies/Services: This requirement is to modernize and migrate to commercial cloud the Background Investigation Enterprise Systems (BIES) / Personnel Investigation Processing System (PIPS), a critical sub-system of the National Background Investigation Services (NBIS). The BIES applications are responsible for providing investigative products and services for more than 100 Federal agencies to use as the basis for a variety of adjudicative decisions, including but not limited to credentialing, national security and suitability determinations, as required by Federal law. PIPS is the largest component of BIES, and all other systems underneath BIES require PIPS to function. PIPS is the case management system for DCSA’s Background Investigation mission. PIPS underlying software runs on an IBM Mainframe and has approximately 5.7 million lines of code in multiple archaic software languages such as, Natural, Common Business Oriented Language (COBOL), and Assembler. These languages are no longer taught or used by commercial industry, and finding support for the software is incredibly challenging. In addition, PIPS has suffered from several Cybersecurity attacks and incidents. As a result, DCSA has an immediate requirement to modernize PIPS and all other dependent BIES applications to a modern, supportable software language and migrate them to commercial cloud. To meet minimum Government requirements, the modernization/migration must be completed prior to the end of FY27, as further discussed below. The estimated period of performance is 22 November 2024 through 21 May 2027. The proposed action will include one base year, one evaluated option year and one six-month evaluated option. DCSA estimates a dollar value of $34,880,346 including options, based on the Independent Government Estimate (IGE).

Base Year OY 1 OY2 (6 month) Total

$34,880,346

CUI//SP-SSEL

11. 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: Title: Acquisition Lead

12. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be made via cost analysis and price analysis of the contractor’s proposal. Certified Cost or Pricing data is not required as the exception found in FAR 15.403-1(b)(3) applies.

Typed Name: Title: Contracting Officer

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

Typed Name: Title: Supervisory Contracting Officer

14 November 2024

CUI//SP-SSEL

Approval

Based on the foregoing justification, I hereby approve the procurement of Background Investigation Enterprise Systems/Personnel Investigation Processing System Modernization and Migration to Cloud for 30 months (base year plus an option year and a six-month option) at an estimated value of $34,880,346 on an other than full and open competition basis pursuant to the authority of 10 United States Code 3406(c)(2) as implemented in Federal Acquisition Regulation 16.505(b)(2)(i)(B) subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Typed Name: Title: Senior Contracting Official

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