A17_JA_Limited_Source_Justification_FHFA_Data_Center_Co-location_2.pdf

United States Department of the Interior

INTERIOR BUSINESS CENTER

Washington, DC 20240

LIMITED-SOURCES JUSTIFICATION

AUTHORITY: FAR 8.405-6 and 40 U.S.C 501

Solicitation 140D0424Q0257

This acquisition is conducted under the authority of the Multiple Award Schedule Program.

1. Identification of the agency and contracting activity, and specific identification of the document as a “Limited-Sources Justification.”

This document is a Limited Sources Justification for the Department of the Interior (DOI), Interior Business Center (IBC), Acquisition Services Directorate (AQD), Division II Branch II on behalf of the Federal Housing Finance Agency (FHFA).

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

This proposed action is a Task Order award utilizing a limited source justification to HII Defense and Federal Solutions, Inc. The contractor has been providing this service to FHFA for ten years on the current Task Order (D14PD00447) parent contract number GS00Q09BGD0036, which was competed and awarded off General Services Administration (GSA) Alliant Governmentwide Acquisition Contract (GWAC) and expires April 30, 2024. The Alliant ordering guide requires that performance on all Task Orders issued under the GWAC be completed by April 30, 2024.

Therefore, the Alliant GWAC cannot be used for any new work. Task Order D14PD00447 was competed using full and open competition and awarded to NTT Data Federal Services, Inc.

During the course of Task Order performance, there were two (2) different novation’s as noted in the chart below. The current contractor (HII Defense and Federal Solutions, Inc.) holds GSA contract 47QTCA18D008U. HII Defense and Federal Solutions Inc. will receive a short-term limited source Task Order issued off their GSA Schedule contract number 47QTCA18D008U on a limited source basis to allow time for a competitive action to be completed. This limited source award will include an eight (8) month base period and a four (4) month option period covering a total period of performance of up to one (1) year from May 1, 2024 to April 30, 2025.

Previous Contractor Type of Change New Contractor Effective Date NTT Data Federal Services, Inc.

Novation Agreement

Fulcrum IT Services, LLC May 24, 2017

Fulcrum IT Services, LLC Novation Agreement

HII Defense and Federal Solutions, Inc.

April 4, 2023

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

FHFA requires a data center co-location space and services for its alternate operational hardware.

Specifically, it includes secure cage space and necessary data center physical facilities such as power, connectivity, Computer Room Air Conditioning (CRAC), and other amenities that will support the co-location of Government-owned equipment in a contractor’s data center facility.

Paramount to this effort is the Contractor’s demonstrated ability to mitigate risks associated with service degradation and interruption during performance. Only support required to maintain current FHFA program needs will be provided under this award

This up to one (1) year effort is being requested to avoid any interruption in service while AQD competes a new Task Order for these services on behalf of FHFA. The intended award date for the new competitive Task order is April 1, 2024, and will contain a transition period to move the data center to a new location with actual data center support beginning approximately October 1, 2024. This short-term limited source effort will be fully funded as an eight (8) month base period, with the option of an additional four (4) month period which can be exercised and fully funded if needed. This will give the Government the ability to transition services and remaining current-year funds to the new Task Order once awarded.

The estimated cost of these services is (including a option) for one year until April 30, 2025. The cost estimate is based on the Independent Government Estimate (IGE) received from the customer. Travel and/or Other Direct Costs are not anticipated for this Task Order.

4. The authority and supporting rationale (see 8.405-6(a)(1)(i) and (b)(1)) and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(i)B - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

To ensure that the client’s needs are met during this time, it is necessary to award a new Task Order utilizing a limited source justification. As FHFA requires continuous support during this time, it is not feasible for another contractor to provide these services. This contractor has been providing these services for approximately ten (10) years and another contractor providing services would require that the hardware be transferred to another contractor’s data center. This transfer of hardware will occur during the transition period of the new Task Order. This short-term award will provide the necessary time for AQD to compete and award the replacement Task Order for these services. Therefore, this Task Order is being awarded for up to one year to accommodate the re-compete timeline. HII Defense and Federal Solutions, Inc. is the only source that can provide these services in the time remaining on Task Order D14PD00447, which expires on April 30, 2024.

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

HII Defense and Federal Solutions, Inc. GSA Schedule rates were previously determined to be fair and reasonable at the time of contract award by GSA. Even though FAR 8.404(d) indicates that the rates for services offered at a fixed price for performance of a specific task (e.g., installation, maintenance, and repair) under schedule contracts are fair and reasonable, additional discounts will be requested. As a result, it has been determined by the Contracting Officer that the new Task Order award will represent the best value to the Government considering price, and administrative costs.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research indicated that HII Defense and Federal Solutions, Inc. has a GSA Schedule Contract 47QTCA18D008U, which is current through March 19, 2028. Additional market research on other GSA Schedule vendors was not conducted for this limited source Task Order.

7. Any other facts supporting the justification.

N/A

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for supplies and services is made.

AQD is currently re-competing these services as part of a new Task Order, the new is estimated to be awarded by April 1, 2024. This award will only be utilized until the support can be transitioned to the new Task Order. A delay in executing this award to maintain support for these services would be detrimental to the mission of FHFA and would result in a gap in service as no data center would be available to support FHFA’s information technology needs.

9. The ordering activity contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

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

Date

Contracting Officer

10. Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

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

Program Office/COR

11. For justifications under 8.405-6(a)(1), a written determination by the approving official identifying the circumstance that applies.

FAR 8.405-6(a)(1)(i)B - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

12. Reviews and Approvals

Concur

Branch Chief

Approve

Division Chief