J A_TI_13-2_Cray.pdf

HNC Control No.: 15-60506

Procurement Sensitive

FOR OFFICIAL USE ONLY - IAW FAR 3.104

JUSTIFICATION AND APPROVAL

For Other than Full and Open Competition

(Only One Responsible Source)

The U.S. Army Corps of Engineers (USACE)

Huntsville Engineering and Support Center Contracting Office (HNC)

Super Computer Administration and Maintenance

$649,313.64

Requirement: Issue a Basic Ordering Agreement (BOA) award for administration and maintenance support services to provide daily onsite and remote support for the High

Performance Computing Management Program (HPCMP) TI-13 at the Navy Research

Laboratory DoD Supercomputing Resource Center (DSRC) located at Naval Air Station

Patuxent River, Maryland. Description of work includes on-site system administration, remedial hardware/software inspection and maintenance, and preventative hardware/software inspection and maintenance.

Authority: 10 U.S.C. 2304(d)(1)(B) as implemented by Federal Acquisition Regulation (FAR)

6.302-1(a)(2)(ii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements For Follow-On Contract of Major System”

Brand Name Estimate: $649,313.64

Prepared By: Phone: (256) 774-1263

Name: Aaron Adkins

Signature:

Title: Contract Specialist Date: 28 July 2015

Procuring Contract Officer:

Phone: (256) 895-2532

Name: Tracey Shaw

Title: Contracting Officer Date: 30 July 2015

Technical Representative: Phone: (256) 895-1749

Name: Tony Benson

Title: ITS Project Manager Date: 30 July 2015

Technical Representative:

Phone: (256) 895-1766

Name: Alonzo Andrews

Title: ITS Program Manager Date: 30 July 2015

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Reviews: I have reviewed this justification and find it adequate to support this procurement as an exception to fair opportunity due to only one responsible source.

Deputy for Small Business:

Name: Rebecca J. Vucinaj Signature

Phone: 256-895-1385 Date:

Office of Legal Counsel:

Name: Clay Weisenberger Signature

Phone: 256-895-1140 Date:

Programs Director:

Name: Charles Ford Signature

Phone: 256-895-1301 Date:

FOR OFFICIAL USE ONLY - IAW FAR 3.104

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

(Only One Responsible Source)

The U.S. Army Corps of Engineers (USACE)

Huntsville Engineering and Support Center Contracting Office (HNC)

Super Computer Administration and Maintenance

$649,313.64

1. CONTRACTING ACTIVITY: United States Army Engineering and Support Center

(CEHNC), 4820 University Square, Huntsville, AL 35816-1822.

2. DESCRIPTION OF ACTION: Approval for other than full and open competition is requested for the renewal of supercomputer administration and maintenance support services including both on-site and remote support for a period of 237 days after order. CEHNC is requesting approval to execute a sole-source firm-fixed-priced (FFP) order, against BOA

W912DY-13-G-0022. This procurement will be made using FY 2015 RDT&E funds allocated to PR&C #W31RYO51902584. The funds provided for this purpose have been reviewed and approved for this effort, and have been made available in the Corps of Engineers Financial

Management System (CEFMS).

3. DESCRIPTION OF SUPPLIES OR SERVICES: The system maintenance is critical to the DSRC which is a premier provider of higher performance computing services, supporting the

US DoD scientists and engineers. It is one of five supercomputing centers established under the auspices of the DoD HPCMP. These systems leverage high performance computers to greatly improve the computational research environment for DoD researchers.

Period of Performance Description

237 days after contract award Super computer system on-site administration, remedial hardware/software inspection and maintenance, and preventative hardware/software inspection and maintenance.

The estimated cost of this acquisition is $649,313.64.

4. AUTHORITY CITED: 10 U.S.C. 2304(d)(1)(B) as implemented by FAR 6.302-1(a)(2)(ii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements For Follow-On Contract of Major System”

5. REASON FOR AUTHORITY CITED: Cray designed, developed, installed, and configured the supercomputer under the order W912DY-13-G-0022-0002. This order was originally structured to have system installation and configuration accomplished in the base period with the following four years of administration and maintenance support services to be conducted by the same contractor that designed and installed the system. After installation and successful

FOR OFFICIAL USE ONLY - IAW FAR 3.104

completion of the base year, the maintenance option was not exercised IAW the terms and conditions of the contract. The order resulted in the delivery, installation, system integration, and acceptance of the base system. The compute nodes of these systems are connected to and exchange scientific computational data over a proprietary high-speed interconnect network. The supercomputer relies upon a proprietary software stack, which provides the functionality to effect high-speed parallel communications and concurrent processing among compute nodes.

With the highly technical nature associated with implementing and designing a supercomputer construct, it is not feasible for a company other than the original that implemented the hardware and software solution to finalize the effort without the government assuming considerable risk.

Given the large number of nodes, disk drives, internal network infrastructure, and highly tuned and complex software stack, failures in any one of these elements can result in the immediate inability of the system as a whole to perform the DoD science and technology (S&T) and test and evaluation (T&E) missions for which they were acquired. Additionally, modern supercomputers rely heavily upon external electrical power distribution and absent quick action by system administrators; physical damage to these systems is a certainty. Each system provides modeling and simulation services to hundreds of DoD scientists and engineers, engaged in a wide variety of projects critical to the R&D mission of the department, therefore any downtime on the systems immediately impacts the progress of that mission. Any attempt to implement an alternative solution will result in large expenditures of time, money and other technical resources with no assurance of achieving the required levels of performance. Recovering a supercomputer to full operational performance after suffering a major outage—especially if the outage resulted in physical damage, but also in the case of a significant cyber security incursion—historically takes weeks, during which time the system is completely unavailable for DoD scientists and engineers to conduct their work or even retrieve data files that might be utilized on alternative systems elsewhere in the HPCMP. Inexperienced maintenance providers unfamiliar with the proprietary nature of the system design would undoubtedly extend this timeline excessively.

New hardware, configurations, and processes would need to be procured, designed and tested before being implemented and that is why it is not feasible to have a contractor other than the original designer to be expected to understand the nuances associated with maintaining and supporting the system. Although the BOA ordering procedures indicate that the original RFP for the BOA will be issued with each order to allow for on ramping opportunities, this situation does not offer any viable opportunity for additional competition. Further, with the last several awards there were no additional OEM vendors who met the minimum node count qualifications for

BOA eligibility.

6. EFFORTS TO OBTAIN COMPETITION: This procurement was previously competed prior to award but due to the proprietary nature of the solution implemented, it is no longer feasible to have any company other than the original designer to perform administration and maintenance support services for this system.

7. ACTIONS TO INCREASE COMPETITION: Although the government expects that only one company is able to fulfill this requirement, the J&A will be posted to FedBizOpps.gov within 14 days after award IAW FAR 6.305(a) as required by 10 USC 2304)(1)(a).

8. MARKET RESEARCH: Although similar products are available through other manufacturers under the BOA, none are able to understand the current construct of the system

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design and code in order to implement patches, upgrades and the technical support required to maintain the system within the stated parameters identified in the PWS. Additionally, failure to maintain the current system operation and configuration could result in reduced mission effectiveness. This mission degradation will generate a large amount of risk, unplanned costs, and work stoppages that would severely impair the operational effectiveness of the system and the capabilities of the DSRCs. Additionally, losing access to technical support, version upgrades, and security patches would eliminate the DSRCs ability to comply with DoD

Information Assurance (IA) requirements. In order to sustain the current operational software configuration baseline and IA security readiness, only the developer of the system will understand how to properly maintain and satisfy these requirements.

9. INTERESTED SOURCES: This procurement was previously competed prior to award but due to the proprietary nature of the solution implemented, it is no longer feasible to have any company other than the original designer to perform administration and maintenance support services for this system. Although the government expects that only one company is able to fulfill this requirement, a synopsis will be accomplished in order to publicize the government’s intention and solicit responses from industry. Although the government expects that only one company is able to fulfill this requirement, the J&A will be posted to FedBizOpps.gov within 14 days after award IAW FAR 6.305(a) as required by 10 USC 2304)(1)(a).

10. OTHER FACTS:

a. Procurement history.

(1) The call order, W912DY-13-G-0022-0002 was awarded on 5 February 2014 with a base and four, one year options. The base year consisted of system installation with a period of performance spanning from 5 February 2014 through 30 June 2014 and was valued at $20,800,000. Four years of options consisting of system administration and maintenance support were valued at $1,000,000 per year, for a total of

$4,000,000.

(2) The option due to be exercised on 1 July 2015 was not and the system is in jeopardy of not functioning properly if maintenance is not accomplished soon.

b. Acquisition data availability.

The technical data packages and statement of work (SOW) is available but the follow-on administration and maintenance support services to the existing system is not suitable for full and open competition because Cray is the sole designer of the architecture and code that has been developed and implemented into the system, creating a unique software solution that only this vendor is able to decipher and maintain. At this time there are no other valid alternatives other than awarding this contract to Cray.

c. Unusual and compelling urgency.

N/A

d. Subcontracting competition.

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The BOA contains specific language to address subcontracting competition and small business participation. Subcontract work under this order is expected to be carried out in an ethical manner that provides the maximum benefit to the government IAW FAR 52.203-6

“Restrictions on Subcontractor Sales to the Government,” FAR 52.203-13 “Contractor Code of Business Ethics and Conduct,” FAR 52.209-6 “Protecting the Government’s Interest

When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment,”

FAR 52.204-10 “Reporting Executive Compensation and First-Tier Subcontract Awards,”

DFAR 252.222-7000 “Restrictions on Employment of Personnel,” and DFAR 252.209-7004

“Subcontracting with Firms that are owned or Controlled by the Government of a Terrorist

Country.” Additionally, as this contractor is a small business, they have been determined to exceed the recommended thresholds associated with small business participation.

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11. TECHNICAL CERTIFICATION: “I certify that the supporting data under my cognizance, which is included in the justification, is accurate and complete to the best of my knowledge and belief.”

ITS Project Manager:

Tony Benson

30 July 2015

Signature Date

12. REQUIREMENT CERTIFICATION: “I certify that the supporting data under my cognizance which is included in the Exception to Fair Opportunity is accurate and complete to the best of my knowledge and belief.”

ITS Program Manager:

Alonzo Andrews

13. FAIR AND REASONABLE DETERMINATION: “I hereby determine that the anticipated cost to the Government for this contract action will be fair, reasonable and based on a price analysis to be conducted prior to award.”

Contracting Officer:

Tracey Shaw

14. PROCURING OFFICER’S CERTIFICATION: “I certify that this Justification and

Approval is accurate and complete to the best of my knowledge and belief.”

Contracting Officer:

Tracey Shaw

FOR OFFICIAL USE ONLY - IAW FAR 3.104

APPROVAL

Based on the foregoing justification, I hereby approve the procurement for administration and maintenance support services IAW FAR 6.302-1(a)(2)(ii), “Only One Responsible Source and

No Other Supplies or Services Will Satisfy Agency Requirements For Follow-On Contract of

Major System,” for the total estimated amount of $649,313.64 provided that the services and property herein described have otherwise been authorized for acquisition.

Procuring Contracting Officer - CEHNC

Date: 30 July 2015