RedacF722Justification.pdf

Program/Item: Enterprise Hosting and Information Technology for Infrastructure Estimated Dollar Value: $11,685,131.72 Control No: MISC-14-TBD

FOR OFFICIAL USE ONLY- ACQUISITION SENSITIVE

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

(Task and Delivery Orders Exceeding the Simplified Acquisition Threshold)

SUBJECT: Request Special Competition Advocate approval of a Justification for an Exception to Fair Opportunity for task order F722 under the Computer Hardware Enterprise Software and Solutions (CHESS) contract W91QUZ-06-D-0016 to increase ceiling for the continuation of Enterprise Hosting and IT for Infrastructure support.

1. CONTRACTING ACTIVITY: U.S. Army Contracting Command – New Jersey

2. DESCRIPTION OF ACTION: This justification for an Exception to Fair Opportunity supporting a modification to existing Task Order F722 under W91QUZ-06-D-0016 that was originally competed and awarded against the CHESS Information Technology Enterprise Solutions 2S (ITES-2S) Multiple Award Indefinite Delivery Indefinite Quantity (IDIQ) contract holders. This proposed modification will provide for additional ceiling, required within the scope constraints of the awarded order’s three year period of performance, to support urgent surge requirements encountered under the Enterprise Hosting and IT for Infrastructure support effort. The current source for this order is Science Applications International Corporation (SAIC), 1710 SAIC Drive, McLean, VA 22102-3703.

3. DESCRIPTION OF SUPPLIES OR SERVICES: The Naval Air Warfare Center Aircraft Division (NAWCAD) Information Technology / Information Management (IT/IM) Department

7.2 has a requirement to continue providing enterprise-wide IT services to Naval Air Systems Command (NAVAIR) and its respective customers. The Service Delivery Environment under this order is comprised of a series of interconnected IT systems whose purpose is the integration of information, applications and processes throughout NAVAIR’s global operations footprint, as well as, across Department of Navy (DON) and Department of Defense (DOD) organizational boundaries. IT is a significant enabler of the NAVAIR war-fighter mission. As such, NAWCAD

7.2 requires continuing support for the operations, maintenance and IT engineering activities of the NAWCAD 7.2 IT environment. NAWCAD 7.2 provides services to a world-wide user base.

Successful NAVAIR mission achievement mandates IT services that are well integrated, flexible and adaptable with the ability to rapidly scale in response to NAVAIR’s dynamic mission requirements. In order to achieve government objectives, NAWCAD 7.2 requires the continuation of services of the highly qualified IT service provider that has displayed the skills and experience to provide enterprise-wide application(s), server, storage, data protection/recovery, voice, video, and data telecommunications support. In addition, requirements the vendor supports includes, but is not limited to planning, acquiring, provisioning, operating, administering, troubleshooting, repairing and managing all aspects of NAVAIR’s centrally and remotely located IT solutions.

This contractor-provided support under this task order covers Government-owned IT Infrastructure, but is not limited to:

a. Development, test, quality assurance (QA) and production application servers, web portal servers, database servers, middleware servers, Internet/intranet servers/devices, email/collaboration servers, Domain Name System (DNS) servers, proxy servers and file/print servers;

b. Storage Area Network (SAN) storage arrays, Network Attached Storage (NAS) devices, data warehousing and other data storage systems;

c. Server and storage related Information Assurance (IA) activities; and

d. Hardware and software tools, utilities, and other supporting infrastructure used to manage the resources and services.

The contractor provides support to the Government in establishing and maintaining an IT Service Management environment that aligns with the Information Technology Infrastructure Library (ITIL) V3 Framework and subsequent releases as approved for use by the Government. The contractor provides a management team structure aligned with the Government’s internal IT management requirements; and is responsible for performance of the tasks and activities, as specified within the order’s PWS to support:

a. the Government’s service planning and service design processes for enterprise-wide IT Services, including ensuring consistent IT linkage and alignment to overall mission objectives and technology standards, and regulations as defined by the Government;

b. the Government’s day-to-day IT operations management processes pertaining to IT service operations, IT engineering activities and continual service improvement across the Government’s enterprise;

c. the management and maintenance of IA integrity of all servers, devices, and storage computing resources from external and internal security threats;

d. the Government’s operations integration and coordination of IT service delivery with all other Government service providers; and

e. network infrastructure operations, design and engineering support requirements, including all voice, video and data cable plant and building infrastructure.

The contractor performs it’s IT Service Area delivery activities in close cooperation and coordination with the Government all other relevant IT service providers. This cohesive working relationship has ensured successful ongoing day-to-day service delivery for contractor IT Service Areas, and the corresponding Sub-Service Areas as identified below:

Enterprise Hosting Service Area:

Integration and Systems Engineering for process, integration and engineering requirements; and

Systems Administration for data center operations, applications administration, operating systems administration and data solutions.

IT Infrastructure Service Area:

Infrastructure Engineering; and Cable Plant Management.

Task Order F722 under contract W91QUZ-06-D-0016 was awarded on a Firm-Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) basis (for Labor), and Cost Reimbursement-No Fee (for Travel and Material) basis for a one-year base period and two (2) one-year options. There is no change to the total 36-month period of performance

In order to maintain these critical support services, Task Order F722 under W91QUZ-06-D-0016 requires a ceiling increase in the amount of $11,685,131.72 as defined in the Independent Government Cost Estimate (IGCE). This increases the ceiling from $36,745,670.81 to $48,430,802.53.

The program office currently estimates that Fiscal Year (FY) 2014/2015 Navy Working Capital Funds (NWCF) 86%, Research Development Test and Evaluation (RDT&E) 1%, and Operations and Maintenance, Navy (OMN) funds 13% will be used to fund the contract.

4. BASIS FOR JUSTIFICATION: FAR 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

5. RATIONALE FOR JUSTIFICATION: All awardees were given a fair opportunity to be considered for the original order. Solicitation W91WAW-12-R-0126 was released to all sixteen

(16) ITES-2S IDIQ prime contractors (see chart below) on 22 June 2012, and had three (3) amendments. Responses were received from two (2) of the sixteen (16) offerors. All awardees were given fair opportunity to be considered for award. Award was made to SAIC on 24 January 2013 (with an effective date of 1 February 2013).

Table 1

Contract Number Contractor

W91WAW-

12-R-0126

W91QUZ-06-D-0010 International Business Machines, Corp. Did not bid W91QUZ-06-D-0011 Dell Services Federal Government, Inc. Did not bid W91QUZ-06-D-0012 General Dynamics Information Technology, Inc. Unsuccessful Offeror W91QUZ-06-D-0013 HP Enterprise Services, LLP Did not bid W91QUZ-06-D-0014 Apptis, Inc. Did not bid W91QUZ-06-D-0015 STG, Inc. Did not bid W91QUZ-06-D-0016 Science Applications International Corp. Awardee W91QUZ-06-D-0017 Lockheed Martin Integrated Systems, Inc. Did not bid W91QUZ-06-D-0018 Computer Sciences Corp. Did not bid W91QUZ-06-D-0019 Booz Allen Hamilton, Inc. Did not bid W91QUZ-06-D-0020 CACI-ISS, Inc. Did not bid W91QUZ-07-D-0001 Harris IT Services Corp. Did not bid

Contract Number Contractor

W91WAW-

12-R-0126

W91QUZ-07-D-0002 Pragmatics, Inc. Did not bid W91QUZ-07-D-0003 BAE Systems Information Solutions, Inc. Did not bid W91QUZ-07-D-0004 NCI Information Systems Did not bid W91QUZ-07-D-0005 Northrop Grumman Information Technology, Inc. Did not bid

This exception to fair opportunity for ceiling increase is being requested to avoid a disruption of the critical urgent services being provided under this Task Order, which would result in unacceptable delays.

The primary drivers for the surge requirements being levied are the increase in competency alignment of system administrators throughout the command and unanticipated rise in cyber security events and the corresponding necessary network defense responses.

A small growth in customer demanded system administration support was anticipated and the corresponding CPFF ceiling was planned for at the inception of this contract; however the recent surge in requests and continued pace of inquiries to provide system administration support to the Program Management Air (PMA) and Air and Aircraft Division (AD) competencies was unanticipated. Previously unidentified but outstanding demand for support exists for Maritime Patrol and Reconnaissance Aircraft (PMA-290), H-53 Heavy Lift Helicopters Program Office (PMA-261), E-6B Airborne Strategic Command, Control and Communications Program Office (PMA-271), and Unmanned Aircraft Systems Test Directorate (AD 5.1.11). Support in all areas varies greatly; but all positions require providing system administration and engineering support to either systems directly supporting fleet customers or test and evaluation systems which impact products and services provided to our fleet customers. An example of the work includes architecting and setting up an Information Technology laboratory to support AD 5.1.11 Unmanned Air System Test facility located at St. Inigoes, Maryland. Extrapolating future required demand from the recent requests indicates a severe ceiling short fall in FY14 and FY15 as identified in the independent government cost estimate.

The Enterprise Hosting facility located at Naval Air Station Patuxent River hosts approximately two hundred and fifty (250) discrete systems providing service to over 100,000 customers world-wide. The recent developments of multiple cyber security events and corresponding initiatives have required a significant amount of unanticipated and unplanned work. The application of new and developing tactics, techniques and procedures to enable cyberspace operators to rapidly detect, assess, mitigate and respond in real time to cyber threats to our DOD networks; the implementation of the "kill-chain methodology," whereby the department implements a combination of tools within a system to examine the lifecycle of entities with malicious intent – how an adversary gets in and traverses a system, ex-filtrates data and then leaves; and mandates directed by Fleet Cyber Command via numerous Computer Tasking Orders and Framentary Orders for network redesigns, computer security modifications, process changes, and people verification efforts have required unanticipated level of support to harden systems and access based on evolving cyber security best practices. Without the increased ceiling, we will not have adequate personnel to address the emerging and ever changing cyber activities. Examples of systems placed at risk include:

a) Navy Enterprise Resource Planning (ERP) System, which is the Department of the Navy (DON) financial system of record. Using sophisticated business management software, Navy ERP streamlines the Navy’s business operations, namely financial and supply chain management. This enables the DON to be diligent stewards of taxpayer dollars while supporting the Navy’s mission to "maintain, train and equip combat-ready naval forces capable of winning wars, deterring aggression and maintaining freedom of the seas.” This system is critical to the war-fighter’s supply chain, insuring parts and equipment are delivered where and when required to meet their mission. For instance, Naval airplanes will not be available to fly sorties in support of current global operations.

b) Joint Deficiency Reporting System (JDRS), which is a web-based solution providing the US Navy Fleet the ability to report and track deficiencies. The Deficiency Reports are initiated by fleet customers and then submitted for review and process by the NAVAIR Engineering and Quality community. The analysis, findings and recommendations are stored in the database for users to be able to retrieve this information. JDRS is a one-stop shop for JDRS Engineering Investigation (EI), Hazardous Material Request (HMR), Product Quality Deficiency Report (PQDR), and Acceptance Inspection Deficiency Report (AIDR) processing, covering the investigation process from the inception of the request to the final report detailing the engineering recommendations.

It supports NAVAIR 4.0’s (Research and Engineering Competency) goal to streamline and standardize the JDRS Deficiency Reporting process, as detailed in COMNAVFORINST 4790.2, Naval Aviation Maintenance Program (NAMP) by providing a set of tools and processes by which to administer Engineering Investigations. In addition, JDRS houses the NAVAIR's Critical Item Management database of parts designated Critical Safety Items (CSI) or Critical Application Items (CAI). To further support the JDRS Deficiency Report process is a Clearing House, which is staffed by the Naval Aviation Depot (NADEP), and provides assistance in ensuring the proper and efficient processing of a JDRS Deficiency Report. Our Warfighters rely on this system to ensure safety of flight.

c) Airworthiness / Paperless Flight Clearance. The Airworthiness/Paperless Flight Clearance is the web-based software application used by fleet operators to determine weapon and mission system related safety-of-flight limits, technical performance envelopes, and employment planning limitations/data. This complex critical flight application requires significant maintenance to support the issuance of flight clearances for thousands of Navy aircraft. There are approximately 24,557 users of this application, 6,000 of these from non-NAVAIR DOD branches -- Army, Air Force, and Marines – supporting over 200,000 NAVAIR flight missions. The website is available to ensure all aviators operating around the world are provided the safest and most effective aircraft possible to accomplish their mission. In addition, a major version of this application and the corresponding hosting was implemented in May, 2014 with iterative releases scheduled in eight-twelve week increments over the following 12-18 months. This aggressive schedule is being accelerated due to Cyber Security Maintenance Upgrades required as a result of recent Computer Task Orders (CTO). A lapse in the efficiency, effectiveness or availability of this system would severely degrade NAVAIR's ability to deliver required combat capability to fleet operational commanders.

d) 6.8 Automated Logistics Environment (ALE,) which is a suite of logistic systems which provide logistic support to our fleet customers and reduces acquisition and sustainment costs for NAVAIR. The principal system in the ALE is the Decision Knowledge Programming for Logistics Analysis and Technical Evaluation (DECKPLATE). This system is the authoritative Naval Aviation Active Data Warehouse. It allows our fleet operators the ability to query and report on aircraft maintenance, flight and usage data, enabling them to make decisions based on readiness data in a near real-time environment, as well as, historical data for trend analysis and records reconstruction.

e) Infrastructure Business Operations, Navy/NAVAIR/NAWC (IBONS) is a vital component of the NAVAIR Business and Infrastructure Operations. IBONS integrates the technologies of Java, Oracle database, computer-aided design and drafting (CADD) and engineering document management functions in a Naval Network Warfare Command (NETWARCOM)-accredited application approved for the Navy / Marine Corps Intranet (NMCI) network. This system is used to track all NAVAIR assets including personnel, resources, property, and facilities. As a result of a recent efficiency initiative, IBONs is currently undergoing a major upgrade to augment and enhance its capabilities. Design and development has begun on the Integrated Move Management / Workspace Transformation Pilot; a NAVAIR approach to workspace transformation / agile seating for the NAVAIR organization / workforce of the future.

NAVAIR leadership has set the first project milestone for first quarter 2015. In addition to the enhanced capabilities, this system is being deployed command-wide, encompassing all NAVAIR site across the country. Loss of this tool through a disruption in operations and development support will add significantly to NAVAIR’s manpower costs to revert to manual infrastructure operations.

The ceiling constraints noted are further exacerbated due to the inability of the Government to provide contractor support services to meet un-forecasted critical mission need in the areas of cyber security initiatives, upgrades and the absorption of increasing information technology systems within the NAVAIR activity. The IT/IM Customer Services & Operations Division (7.2.4) have worked with the Director of 7.2) and the NAVAIR Chief Information Officer (CIO) to forecast upcoming initiatives. The information derived from these meetings have formed a solid estimate of known upcoming requirements and put into place a mechanism to address unknown/urgent requirements that may arise.

The award timeframe for the F722 task order took approximately eight (8) months to complete after preparation of a full procurement package. As the CPFF ceiling for the CLINs identified in the IGCE will be exhausted as of the mid October 2014 timeframe, insufficient time remains to make award and ensure coverage for the associated tasking. Should this effort be recompeted an additional 90 days of transition time would be required for an orderly handoff of work duties should the incumbent not receive the award.

Cost cannot readily be assigned to a gap in support and loss of mission-critical systems / support.

Interruption in support of the critical mission objectives as identified above (subparagraphs a through e) would impact the NAVAIR in its entirety and decrease the operational effectiveness for performing day-to-day business functions, ultimately affecting NAVAIR’s ability to operate and potentially impacting support to the warfighter. Should this effort not be approved degradation in support, at a minimum, would affect in-flight safety to aviators (via flight clearances processed via Airworthiness software); protection of U.S. Navy networks / databases / applications from cyber-attacks; and maintaining the foundation of NAVAIR’s Secret Internet Protocol Router (SIPR) environment.

The Government recognized there could be a potential issue with ceiling on the CPFF CLINs within four to eight months of award, with several separate urgent emerging requirements contributing to this risk. This urgency began with the unanticipated requirement for Embedded Systems Administration Support (CPFF 8301/9301). Enforcing competency alignment has surfaced demands for support from Maritime Patrol and Reconnaissance Aircraft (PMA-290), H- 53 Heavy Lift Helicopters Program Office (PMA-261), E-6B Airborne Strategic Command, Control and Communications Program Office (PMA-271), and Unmanned Aircraft Systems Test Directorate (AD 5.1.11). Support in all areas varies; but all support requests require providing system administration and engineering support to either systems directly supporting fleet customers or test and evaluation systems which impact products and services provided to our fleet customers. Additional support requests have also been identified in Air Traffic Control and Combat ID Systems (PMA-213), Air-to-Air Missiles (PMA-259), F/A-18 and EA-18G (PMA- 265), Persistent Maritime Unmanned Aircraft Systems (PMA-262), Navy and Marine Corp UAV (PMA-263), and the Air 7.2 Chief Technology Office.

In September 2013, the Navy had an unforeseen Cyber Security incident, named Operation Rolling Tide, which has resulted in a major redesign of the networks and affecting access to all NAVAIR hosted solutions. This has impacted the over 100,000 customers whose systems are hosted at NAVAIR. This is a time-critical, labor intensive operation, impacting NAVAIR applications, web sites, databases, and the supporting infrastructure each requiring re-engineering, dedicated testing and migration to a new architecture (CPFF 7303/8303/9303). The CPFF CLINs were designed to allow the Government flexibility on a FFP contract for unforeseen growth in resources. The work was within scope of the contract, however there was no way to anticipate the acceleration of schedules, additional requirements on existing projects, changes in command priorities, or the Cyber Security mandates. A delay of services in support of these efforts will cause undue schedule delays to complete urgent NAVAIR initiatives outlined in the bullets above (subparagraphs a through e).

6. MARKET RESEARCH: Market research was conducted at time of exercising the option in Jan 2014 and is being utilized for this urgent modification. The market place was tested analyzing the CHESS ITES-2 contract, GSA Alliant contract and NIH CIOSP3 contract. Market research revealed it was in the best interest of the Government to exercise the option year as pricing on the ITES-2s contract was sufficiently lower. In the future, this requirement will be competed via NAVAIR GSA Alliant, currently under development. A Sources Sought was conducted on 22 November, 2013 and market research will be conducted as part of the follow-on NAVAIR competitive effort.

7. ACTIONS TO OVERCOME/REMOVE BARRIERS: The NAVAIR is actively working on a new competitive action (via NAVAIR GSA Alliant) that will provide support for future NAVAIR requirements. The competitive action is anticipated to be awarded by 1 December, 2015.

8. OTHER FACTS: None.

9. 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.

__________________//Signed//_________________________________________________ Name: Patty Vernon-Rusher Signature:

Title: Division Head, AD 7.2.4 Date: 2 Oct 2014

10. 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.

__________________//Signed//__________________________________________________ Name: Stephen Dudley Signature:

Title: Director, Air 6.8 Corporate Business Office Date: 3 Oct 2014

11. CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Mark Skender Title: Contracting Officer Date: 9 Oct 2014

12. CONTRACTING OFFICER DETERMINATION: I hereby determine that the anticipated cost to the Government will be fair and reasonable.

Name: Mark Skender Title: Contracting Officer Date: 9 Oct 2014

APPROVAL

Based on the forgoing justification, I hereby determine that the circumstances of FAR 16.505(b)(2)(i)(A) apply to this order: The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

I hereby approve the Justification for Exception to Fair Opportunity for task order F722 under CHESS contract W91QUZ-06-D-0016, to increase the ceiling for the continuation of the Enterprise Hosting and IT for Infrastructure support, subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

REBECCA E. WISSER

Special Competition Advocate Army Contracting Command – New Jersey