LSJ_-_ES_PMO_(draft).docx

Limited Sources Justification Enterprise Services Office of Acquisition 1401 Constitution Avenue NW Washington, D.C. 20230

(1) Identification of the agency and the contracting activity:

1401 Constitution Ave, NW Washington, D.C. 20230

1401 Constitution Ave, NW Washington, D.C. 20230

(2) Nature and/or description of the action being approved:

The agency plans to enter into a follow-on Federal Supply Schedule Blanket Purchase Agreement (BPA) with Deloitte Consulting LLP for program management support of the developing Enterprise Services organization and transformational service delivery planning and implementation within the Department of Commerce. This contract action is a follow-on to GS-10F-0083L/YA1323-15-BU-0009 issued in May 2015. BPA YA1323-15-BU-0009 was competitively awarded under the GSA MOBIS Federal Supply Schedule. Since award, Deloitte has timely performed orders issued under the BPA in accordance within the prescribed statement of work with successful results and no delays. Pursuant to FAR 8.405-6(a)(1)(C), this logical follow-on contract will be placed in the Government’s interest of economy and efficiency for the continuance of program management support to the developing Enterprise Services organization. This follow-on contract action is specific to the Enterprise Services organization and requires a breadth of institutional knowledge and expertise of the current state profile of the Enterprise Services organization, the Department of Commerce customer base and the successes and roadblocks that have been encountered since the inception of Enterprise Services in November 2016.

The mission of the Department of Commerce (DOC) is to create the conditions for economic growth and opportunity. As part of the President’s economic team, the Secretary of Commerce serves as the voice of U.S. business within the President’s Cabinet. The Department works with businesses, universities, communities, and the Nation’s workers to promote job creation, economic growth, sustainable development, and improved standards of living for Americans. DOC is comprised of over 47,000 employees across 11 bureaus that work together to drive progress in five key goal areas: Trade and Investment, Innovation, Environment, Data, and Operational Excellence.

In order to perform its mission, the DOC must ensure that its bureaus have access to high quality mission support services in the core functional areas of Human Resources (HR), Acquisitions, Financial Management and Information Technology (IT). In 2016 the DOC stood up the Enterprise Services organization to provide these functions using a shared services delivery model designed to gain economy and efficiency by reducing redundant efforts and incorporating enabling technology and innovative business processes. The Enterprise Services organization began performing initial services in HR, IT and Acquisition shortly thereafter and has continued to rollout new service offerings periodically through the present time.

The Enterprise Services Program Management Office (PMO) is integral to the management and oversight of operations, data capture and planning of future services, transition and implementation efforts. The PMO ensures the underpinning characteristics of Enterprise Services are maintained to the highest levels possible.

(3) A description of the supplies or services required to meet the agency's needs:

The Contractor shall provide planning, transitioning and implementation support for shared services delivery activities in continuing to operationalize additional shared services throughout the Department. The functional scope includes mission support services in the areas of HR, Acquisitions, IT, Financial Management and other related administrative services. The organizational scope includes current provider organizations of the relevant functional areas, the DOC’s Enterprise Services organization, all DOC customer organizations, and the retained organizational components of the DOC’s shared services model. The contractor shall be required to have the scale and expertise to support multiple initiatives related to each of these organizational components simultaneously, at times, as part of an enterprise-wide strategy and implementation plan for additional shared services.

The Enterprise Services requires a broad scope of activities that are interrelated to the build, implementation and functional delivery of Commerce’s shared services delivery model that provides Human Resources, Acquisition, Information Technology and Financial Management services to more than 47,000 Federal employees, including:

· Developing and managing project, transitions and operations plans across multiple organizational components and initiatives related to shared services implementation.

· Assisting Enterprise Services in developing and implementing organizational design, location and operating strategies for the shared services and retained organizations.

· Facilitating strategic planning sessions and briefings with key stakeholders, DOC executive leaders and project teams.

· Providing advisory support and subject matter expertise across a number of key specializations including shared services design and operations, the relevant functional areas, organizational change management, customer experience management, organizational development, enterprise architecture strategy, outsourcing, and business process reengineering.

· Conducting technology, resource and process assessments in preparation for enterprise services transition and operations activities.

· Conducting requirements analysis to define and document as-is processes, customer requirements, and to-be processes within the shared services and retained organizations for designated new service deliveries.

· Assisting Enterprise Services in developing and implementing technology strategies related to shared services transition and operations activities.

· Conducting process reengineering, standardization and improvement initiatives in preparation for shared services transition and operations activities.

· Conducting market research on potential service providers and assisting the DOC team in developing acquisitions strategies, performance management analytics and structuring agreements with new providers.

· Assisting Enterprise Services in conducting cost/benefit and alternatives analysis for strategies related to shared services transitions and operations activities.

· Assisting Enterprise Services in developing and implementing governance models for shared services and retained organizations.

· Drafting communications and briefings for key stakeholders across multiple organizational components and initiatives.

· Developing and managing communications and change management initiatives across multiple organizational components and initiatives.

· Provide forecasting and strategic insight for potential additional service offerings and industry best practices.

· Have a pulse on growth opportunities in the space of government shared services roadmap.

· Provide implementation support for Enterprise Services developed offerings.

The established BPA will be for 5 years with an estimated value of $63m.

(4) An identification of the statutory authority permitting other than full and open competition:

The statutory authority permitting limiting sources is FAR 8.405-6(a)(1)(i)(C) where in the interest of economy and efficiency, this work is a logical follow-on to an original Federal Supply Schedule that was placed competitively in accordance with applicable Federal Supply Schedule ordering procedures.

(5) A determination by the contracting officer that the order represents the best value consistent with FAR 8.404(d):

The issued BPA will be under the Contractor’s approved GSA MOBIS Schedule. GSA Federal Supply Schedule pricing has already been determined to be fair and reasonable. Pricing will be verified to be consistent with the Contractor’s GSA Schedule pricing or discounted. The nature of the organizational development, build and transition to service delivery in progress requires program environment institutional knowledge and intellectual capital gained through performance of the original contract that cannot be transferred to a new contractor. With any new start-up, the only way to gain this type of vital information is to have been exposed to it during the initial stages of conceptual design and actual development. This knowledge of successes, failures and barriers is of extreme importance in order to not repeat situations where lessons have been learned. Any setback of a service delivery provides an opportunity to cause substantial schedule delays that result in cost increases. Setbacks also erode customer confidence in the ability for a shared services model to perform effectively which jeopardize the investment already made to mature the Enterprise Services organization to its current state. Given the facts of this acquisition and the intuitive nature of any firm having the pre-requisite knowledge of the trials and tribulations learned to date, the intricate change management and communications strategies with existing stakeholders required to avoid delays and duplication of costs, a logical follow-on contract represents the best value for the Government.

(6) A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted:

Market research was conducted in accordance with FAR Part 10 and is documented in the Market Research Report. As the report describes, PMO support activities are available from many firms, large and small at varying levels of breadth and depth into the different topic areas required under this acquisition. However, there are no firms that were identified that have the requisite knowledge, experience and capabilities based on the inter-workings of Commerce, and most specifically, with evolving nature of the Enterprise Service’s service offerings and known pitfalls which lead to a significantly lower risk of repeating similar setbacks when developing and introducing new services. This institutional knowledge makes Deloitte uniquely qualified to provide the necessary PMO support to the “first of its kind” shared services organization in the Federal Government without increased performance risks, duplication costs resulting from repeating learning curves or a complete loss of learned information. Any such loss at this critical point in the evolution of the Enterprise Services organization will jeopardize the efficacy of the organization in its entirety. While this rationale is intuitive, personal experience with wholesale changing of critical support within an evolving organization can have detrimental effects in its ability to perform (efficiency).

Notwithstanding the market research conducted and documented which lead to the clear conclusion that a logical follow-on will result in economy and efficiency, this (draft) Limited Sources Justification (LSJ) is published publicly in advance of award to provide any interested vendors who believe they possess the necessary knowledge, experience and capabilities to provide comment or capabilities. The Market Research report and/or this LSJ (final) will be revised as necessary from any additional information obtained.

(7) Any other facts supporting the use of other than full and open competition, such as:

The original BPA, YA1323-15-BU-0009, was awarded through a competitive process under the GSA MOBIS Federal Supply Schedule in accordance with FAR 8.4. There were 4 respondents to the GSA solicitation and Deloitte was selected as the best value awardee.

Currently Deloitte is managing and delivering on a multitude of different aspects within Enterprise Services as these services are multi-faceted and integrated throughout the entire Department. Deloitte possesses the institutional knowledge to complete the establishment of Enterprise Services and the development and implementation of projected new service offerings while eliminating redundancy and duplication of efforts.

(8) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition:

None at this time.

(9) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

This acquisition is for a specific and unique effort that is projected to be continue maturing over the next five years. When reaching organizational maturity, PMO operations are anticipated to enter an operations and maintenance profile which may be fulfilled through open market competition.

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