ACES Sole Source Justification_Redacted.pdf

Navy Marine Corps Acquisition Regulation Supplement APRIL 2018 (Change 18-24)

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 3204(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements, as implemented by Revolutionary FAR Overhaul (RFO) 6.103-1.

5. Rationale Justifying Use of Cited Statutory Authority.

This acquisition is for highly specialized services as implemented in RFO 6.103-1. It is the Government's determination that award to any other source would result in unacceptable delays in fulfilling the agency's requirements and create an unacceptable risk to critical fleet operations and financial data reporting.

Specifically, the legacy systems and associated data (including ASKIT and ACE Reporter) are currently hosted on CACI’s commercial servers. The Government is currently experiencing significant technical difficulties extracting this data from CACI's infrastructure. If a new contractor were awarded this effort, they would be unable to access the necessary data to execute the GOVCLOUD migration or maintain the systems, rendering them "dead in the water" upon award. This would result in an immediate and unacceptable delay, leaving the Government completely without access to the critical financial data required for the Official FHCR and halting fleet financial operations.

The ACES database and ASKIT system are essential for the production of the Official FHCRs.

These reports are provided monthly to OPNAV N832, who utilizes the detailed breakdowns to analyze and project future years' FHP budget forecasting. Without ACES or a suitable replacement process, there is no alternative means to accurately project future years' flying hours and associated pricing.

CACI is the incumbent vendor and has successfully provided ACES support services under the current and previous task orders. Several of CACI's key personnel programmers have been incumbent employees for this same continuous duration, possessing uniquely deep institutional and technical knowledge of the nearly 600K lines of application code and 323K lines of Oracle database code that currently constitute the Commander Naval Air Forces Comptroller System

(CNAFCS).

The Navy has determined that transitioning the ACES database to the GOVCLOUD and migrating the ASKIT and ACE reporter systems from a contractor-hosted commercial domain to an approved .mil domain is in the best interest of the Government to reduce costs and maintain direct Government control of the domain. Furthermore, the COMNAVAIRFOR transition to the Navy ERP program for financial requirements over FY26 was exceptionally challenging.

Executing a transition to a new vendor concurrently with the complex GOVCLOUD transition, the .mil domain migration, and the critical stabilization period following the Navy ERP transition introduces an unacceptably high level of risk.

Awarding this follow-on contract to a vendor other than CACI would result in a substantial loss of institutional knowledge and technical expertise at a highly vulnerable transition point. This would severely increase the risk of losing critical financial data and operational continuity for staff and fleet operational units, leading to unacceptable delays in producing mandated budgetary and financial reports for OPNAV N832 and resulting in a substantial duplication of cost to the Government that is not expected to be recovered through competition.

This substantial duplication of cost is estimated at approximately . This estimate is derived by calculating the fully burdened labor costs of a new contractor's transition team (estimated at 4-5 Full-Time Equivalents) who would be unable to perform their migration duties for 3 to 4 months while the Government and the incumbent attempt to resolve the server data extraction issues. Paying a new vendor to sit idle while concurrently paying the incumbent to troubleshoot data extraction would result in duplicative costs that yield no direct benefit to the migration effort itself and could not possibly be recovered through competition.

Consequently, the Government is limiting the period of performance of this sole-source contract to a short 6-month base period and a single 2-month option period. This duration represents the absolute minimum timeframe required to complete the GOVCLOUD transition, secure the necessary ATO, migrate the systems to the .mil domain, and stabilize the system under the Navy ERP data structures. Awarding this short-term contract to CACI will prevent a substantial duplication of costs and prevent unacceptable delays in monthly financial reporting to OPNAV N832 while maximizing competition for the follow-on contract.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Market research was conducted in accordance with RFO Part 10 to assess the competitive landscape. A Sources Sought Notice was posted to the SeaPort-NxG portal on 19 February 2026, which closed on 11 March 2026. The Government received nine (9) capability statements, and the technical evaluation team determined that eight (8) of these responding vendors were capable of performing the long-term ACES support requirements. These eight capable sources include:

Four (4) Woman-Owned Small Businesses (WOSB) Two (2) Service-Disabled Veteran-Owned Small Businesses (SDVOSB) One (1) 8(a) Certified Small Business One (1) Large Business (the incumbent, CACI)

The market research results indicate a robust and highly competitive small business industrial base capable of performing this work. However, due to the complex, high-risk nature of the impending GOVCLOUD migration, the .mil domain migration, and the critical stabilization required after the challenging FY26 Navy ERP transition, transitioning to a new contractor at this exact moment would introduce unacceptable risks of financial data loss and operational disruption. Consequently, the Government has restricted this sole-source action to a short 6-month base period and one (1) 2-month option period. This brief transition period is the minimum time required for CACI to complete the GOVCLOUD migration and establish a stable technical baseline, after which the requirement will be competed.

A synopsis of the proposed procurement was published on the System for Award Management (SAM.gov) website in accordance with RFO Subpart 5.3, stating the Government's intent to solicit and negotiate with only one source under the authority of RFO 6.103-1.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

The primary barrier to competition is the high risk of transitioning vendors during active GOVCLOUD migration, mil domain migration, and post-Navy ERP stabilization. The short 6-month base and 2-month option period is designed solely to complete these high-risk migrations.

Once CACI has successfully migrated the ACES system to the GOVCLOUD environment and transitioned ACE Reporter and ASKIT Home to the .mil domain, the technical baseline will be fully established and hosted in a secure Government-controlled domain. At that point, the high risk of transition will be mitigated, allowing the Navy to compete the follow-on 5-year sustainment contract among the numerous capable businesses identified in the 2026 market research.

J&A No. 26-240-0002

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical / Requirements Cognizance:

Signature Name (Printed) Phone No. Date

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

COMPETITION ADVOCATE APPROVAL

Upon the basis of the above justification, I hereby approve, as Senior Procurement Executive of the Navy, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).