A16_JOFOC_FAR_6_302_IDIQ_Extension_redacted_Redacted_1.pdf

United States Department of the Interior

INTERIOR BUSINESS CENTER

Washington, DC 20240

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

AUTHORITY: FAR 6.302, 41 U.S.C. 3304

Contract: 140D0419D0007

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR 6.3 and in accordance with the requirements by FAR 6.303-1, the justification for the use of the statutory authority under FAR 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full and open competition.”

This document is a justification for other than full and open competition for the Department of the Interior (DOI), Interior Business Center, Acquisition Services Directorate, Division I, Branch IV, on behalf of the DOI Business Integration Office

(BIO).

2. Nature and/or description of the action being approved.

DOI/BIO has a need to extend the current ordering period of the Financial and Business Management System (FBMS) Support Services Indefinite Delivery, Indefinite Quantity (IDIQ) with CACI Federal, Inc (CACI). The current ordering period ends on July 31, 2024. The purpose of this action is to extend the ordering period for twelve months plus the six-month option included in FAR 52.217-8. This action will be executed via modification to the IDIQ 140D0419D00007.

FBMS is currently migrating to a new in-memory database solution. FBMS’s migration is the most critical deployment to date scheduled in October/November 2024. SAP1

Enterprise Resource Planning (ERP) is the software platform currently utilized for FBMS financials. The SAP platform requires current users to be migrated to its new SAP S4HANA platform by 2027 to continue SAP licensing and software maintenance support. Migrating all SAP ERP modules (i.e., ECC, BI, BOBJ, BPC, PI, GRC, Enterprise Portal, etc.) to SAP S4HANA, the new in-memory database solution supported by SAP, is the largest system effort since FBMS’s initial deployment with DOI’s nine bureaus and Departmental Offices that was completed in 2013.

It is critical that DOI maintain services from its current vendor, CACI Federal, Inc., that supports FBMS operations during the S4HANA deployment and stabilization on the new platform. To ensure the platform is fully stabilized before FBMS’s first major release on S4HANA, DOI expects its first major S4HANA release to be one year after the deployment to the S4HANA platform.

1 Software vendor

Contract 140D0419D0007

3. A description of the supplies or services required to meet the agency’s needs

(including the estimated value).

FBMS is a critical agency business management processes necessary for financial management, budget execution, acquisition, grants and cooperative agreements, real and personal property management, fleet management, aviation, travel, enterprise information management and reporting. Continuing contractor support is necessary to perform FBMS maintenance and operations, manage system security and support the production copy environment, perform business intelligence support, manage and deliver training in support of process standardization and support the training environment; optimize the solution including mobile and light applications, and lead application leverage efforts in support of legislative and regulatory compliance based on the direction of FBMS governance. In addition, the contract provides critical services related to FBMS production support and development, technical support of the FBMS environments, project management, and managing or providing assistance to other systems closely aligned with FBMS. DOI relies significantly on the contractor’s performance to carry out its mission in support of the greater enterprise-wide DOI mission.

Services unique to this requirement include:

Enhanced access to, and sharing of, real-time business information that supports effective business decisions for mission delivery across the Department, bureaus, and in the field;

More timely business reports that facilitate analysis of core financial, acquisition, financial assistance, and property data;

Retirement of outdated legacy systems that do not comply with current mandates and are no longer supported by their software vendors;

An improved internal control environment with separation of duties and standardized business practices to support the internal controls;

Support for the consolidated financial Department-wide audit with centrally produced information that can be used by the Department, the Office of Inspector General, and an independent auditor;

Shared expertise across the Department and the bureaus so personnel can be leveraged across the entire enterprise; and

Development and adoption of shared approaches improving reporting and data management, management of tracking and reporting of administrative efficiencies, and value management.

S4HANA is scheduled to go live in October/November 2024. Following this FBMS platform change, the following support work is needed to ensure S4HANA is stable through support of its current vendor:

S4HANA Hypercare Support, October/November 2024 – January 2025: This post go-live support will require resources available to fix emergency production issues that ensure FBMS operations are not disrupted;

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

DOI/BIO awarded a single award IDIQ due to the complexities of FBMS. Both the BIO Federal Staff and contractor staff must be well-coordinated to ensure that FBMS’s 12,000+ users do not experience any downtime. The BIO manages FBMS through closely integrated teams that administer the FBMS technical infrastructure. Within FBMS, the flow of work from development to implementation in production, to production support is tightly integrated, and having a single source enables the BIO to hold the contractor accountable for all phases of support. Due to the strict deadlines for quarterly and year-end close activities, FBMS must be closely managed to ensure users have continual and uninterrupted real time access to enter and extract financial and business data relevant to mission-related work and programs.

CACI has been performing the required services, including migration steps from SAP ERP modules (i.e., ECC, BI, BOBJ, BPC, PI, GRC, Enterprise Portal, etc.) to SAP S4HANA, the new in-memory database solution supported by SAP since 2019.

Additionally, CACI supports further development of the FBMS system in general and has in place the critical labor and skill mix and the required expertise to provide the necessary support for the FBMS operations and maintenance services required and S4HANA migration support. CACI’s personnel already possess the necessary security clearances, which allow them to work at the federal worksite, and to access the necessary systems that integrate with FBMS. Due to the lengthy process for securing the necessary background investigations for new contractors, in accordance with DOI Policy DOI-AAAP-0081 – Implementation of Homeland Security Presidential Directive-12 (HSPD-12) at DOI for Contractors and Recipients.

Changing contractors during this implementation could result in a failed migration which would be detrimental to DOI operations. DOI/BIO needs continuity and continued support from this team of CACI experts to ensure a seamless transition to the new S4HANA platform. After transition, the CACI team is needed to stabilize platform through the first major release.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

On October 12, 2023, the Contracting Officer (CO) posted a notice of intent to sole source this work to CACI through the S4HANA migration and stabilization. The notice of intent was posted to SAM.gov. Interested sources were directed to submit capabilities statements to the CO no later than October 27, 2023, at 4pm ET. The Contracting Officer did not receive any responses to this notice of intent to sole source.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

This modification will not increase the ceiling value of the IDIQ; it will only extend the ordering period to allow the BIO to continue to issue task orders against this vehicle.

The government will allow CACI the opportunity to update their established rates in accordance with the current escalation rate established in the IDIQ award. The government believes that the rates can be determined fair and reasonable based on comparing the historical data. All established rates will be reviewed and evaluated to determine fair and reasonableness.

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

As noted above, the CO posted a notice of intent to sole source to SAM.gov and requested capabilities statements. The CO did not receive any responses. DOI/BIO intends to recompete this IDIQ starting in 2025 with award in 2026. DOI/BIO will begin market research efforts in early 2025. A sources sought/request for information will be posted to SAM.gov. The team will also hold an industry day to provide additional information to interested vendors.

9. Any other facts supporting the use of other than full and open competition;

such as:

CACI resources have already been cleared and vetted to perform this work. They have also demonstrated that they have the knowledge and skills necessary to complete this migration effort. Onboarding and clearing new resources can take up to six months which would cause significant delays in migration timeline. When this IDIQ is recompeted, the team will allow ample time for transition.

At this time, this requirement cannot be modified to enhance competition. Due to the amount of daily work and coordination that is required for both upgrading and maintaining FBMS, BIO Federal staff and contractor staff must be well coordinated to ensure that the FBMS users do not experience any unnecessary downtime. Using multiple contractors would generate significant risk and cause operational issues and delays due to the complexity of FBMS operations. Past experience with multiple sources on previous system integration projects of similar complexity have led to a multitude of challenges which included extensive documentation and disagreements about how documentation was interpreted. Within FBMS, the flow of work from development to implementation in production is tightly integrated. Having a single source enables the BIO to hold the Contractor responsible for all phases of support.

Multiple contractors would complicate the associated tasks, relationships, and streamlined communication required for FBMS operations and management activities, as well as would create significant extra work for the BIO to identify and delineate responsibilities across multiple contractors. When this IDIQ is recompeted, the Department will likely continue to use a single award IDIQ structure.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

There were no vendors who responded to the notice of intent to sole source. Additionally, no vendors have reached out to the CO about a potential recompete.

11. A statement of any 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.

Once the S4HANA migration is complete, the BIO will compete a new IDIQ to be awarded in 2026. The BIO and AQD will begin market research in early 2025.

12. Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

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

Heather Watroba, Contracting Officer AQD, Division I, Branch IV

13. Requirements personnel certification.

I certify that the technical data which forms a basis for this justification is complete and accurate and meets the Government’s minimum needs.

Stacy Zellers, Contracting Officer’s Representative Business Integration Office

STACY

ZELLERS

Digitally signed by

STACY ZELLERS

Date: 2024.02.05 10:31:31 -05'00'

HEATHER

WATROBA

Digitally signed by HEATHER

WATROBA

Date: 2024.02.05 10:36:57 -05'00'

14. Reviews and Approvals

Concur

Rajendra Panchal Branch Chief, AQD, Division I, Branch IV

Shelita Saint-Luis Division Chief, AQD, Division I

Michael Farrell Bureau Competition Advocate

Sharon Roberts Head of the Contracting Activity

Tiffany Harvey Department Competition Advocate

Approve

Megan Olsen Senior Procurement Executive and Director, Office of Acquisition and Property Management

RAJENDRA PANCHAL

Digitally signed by RAJENDRA

PANCHAL

Date: 2024.02.05 10:45:30 -05'00'

SHELITA SAINT-

LOUIS

Digitally signed by SHELITA

SAINT-LOUIS

Date: 2024.02.05 13:18:50 -05'00'

MICHAEL FARRELL Digitally signed by MICHAEL FARRELL Date: 2024.02.05 14:23:02 -05'00'

SHARON

ROBERTS

Digitally signed by SHARON

ROBERTS

Date: 2024.02.05 17:49:27 -05'00'

HARVEY.TIFFANY.LA

SHAY.1282584332

Digitally signed by

HARVEY.TIFFANY.LASHAY.12825

84332 Date: 2024.02.06 10:36:33 -05'00'

MEGAN OLSEN Digitally signed by MEGAN OLSEN Date: 2024.02.07 10:39:04 -05'00'