2-Month_FAR_Clause_52.217-8_LSJ-2_Redacted.pdf

PROCUREMENT SENSITIVE INFORMATION Page 1

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

8000 JEFFERSON DAVIS HWY

RICHMOND, VA 23297-5441

LIMITED SOURCE JUSTIFICATION

SUBJECT: DLA J62 Systems Engineering Support Services

Authority: This Limited Source Justification (LSJ) is in accordance with FAR 8.405-6. This acquisition is conducted under the authority of the Multiple Award Schedule Program, also known as the Federal Supply Schedule (FSS) Program or the General Services Administration’s (GSA) Schedules Program.

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Requiring Activity

DLA HQ J62

Program Executive Office (PEO) 8725 John J Kingman Rd Fort Belvoir, VA 22060

Contracting Activity DLA Aviation DLA Contracting Services Office 8000 Jefferson Davis Hwy Richmond, VA 23297-5441

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This limited source justification authorizes and approves the issuance of an option under FAR Clause 52.217-8, Option To Extend Services for contract number SP4703-12-A-0008-1009.

This Option will require Horizon Industries to provide continued support on J62 Systems Engineering Support Services. This action will require a modification to Horizon Industries’ existing Contract SP4703-12-A-0008-1009 (GSA Federal Supply Schedule (MOBIS 874) GS- 10F-0125S and (IT 70) GS-35F-0437M). The current contract was awarded effective 9/28/2015, through 9/27/2017, for a base period amount of . The total amount is

(inclusive of a base year and one option year, the 3 month extension option, and the 1 month extension option). The dollar value for this 2 month extension option is

This contract modification is necessitated by the requirement to fully support and invoke discipline in DLA’s systems acquisition process. Systems Engineering is a standardized, disciplined management process for development of system solutions that provides a structured methodical approach to system development. Systems Engineering ensures that the correct

Limited Source Justification for J62 Systems Engineering Support Services

PROCUREMENT SENSITIVE INFORMATION Page 2 technical tasks are performed during the development cycle through planning, tracking and coordinating. These requirements reflect a need for continuation of support currently provided under the Performance Work Statement of contract number SP4703-12-A-0008-1009.

The action being approved restricts the consideration from all GSA schedule contractors offering the required services, which is required by FAR 8.405-2(c) (3) (iii), to one (1) GSA schedule contractor.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT

The purpose of this action is to:

• Investigate and Analyze Incidents and Work Orders

• Conduct Gap Analyses and Present Findings to the Government

• Deliver SE Plan Supplements for various portfolio programs

• Support the development of DOD 5000 required SE related work products

• Gather and analyze metrics supporting technical assessments and formal technical reviews

The dollar value of this extension option is

4. IDENTIFICATION OF THE JUSTIFICATION RATIONALE AND, IF

APPLICABLE, A DEMONSTRATION OF THE PROPOSED CONTRACTOR’S

UNIQUE QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR

SERVICE.

The statutory authority cited for other than full and open competition is FAR 8.405-6(a)(1)(i) (C). This continued work is a logical continuation of an original Federal Supply Schedule Blanket Purchase Agreement (BPA) Task Order since the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original BPA task order was not previously issued under sole source or limited source procedures.

This requirement involves continued tracking and monitoring of J62’s key Program Management and Systems Engineering (SE) activities and events for the PEO’s emerging programs/projects and new capability initiatives. Open competition risks bringing a new vendor on-board that would go through a significant learning curve, put program funding at risk, and potentially cause program termination. Thus, open competition for this critical requirement may negatively affect DLA’s ability to deliver supplies to our customers.

Limited Source Justification for J62 Systems Engineering Support Services

PROCUREMENT SENSITIVE INFORMATION Page 3

5. DEMONSTRATION THAT THE NATURE OF THE ACQUISITION REPRESENTS

THE BEST VALUE CONSISTENT WITH 8.404(d).

The Contracting Officer anticipates issuing a contract modification on a firm-fixed price basis.

Labor rates will be based on Horizon Industries’ GSA Federal Supply Schedule labor rates, with the maximum ceiling rates being in accordance with Horizon Industries’ Program Management Support Services (PMSS) BPA Rough Order of Magnitude (ROM). The multiple award PMSS BPAs were issued under competitive procedures. The extension option will utilize the same rate currently on their PMSS BPA task order, this pricing was determined fair and reasonable and the acquisition represents the best value to the government at the time or original option exercise.

By exercising an extension option modification, to Horizon Industries against their current PMSS BPA task order, the Government will derive significant savings and meet the critical deadlines of the project.

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 was not conducted for the following reasons:

1) The proposed effort aligns with the overall scope of the current contract since the requirement is to provide full support to the PEO and DLA’s systems acquisition process.

2) From an enterprise perspective, the PEO requires assistance in its efforts to support DLA’s Systems Engineering objectives of the DLA Chief Information Officer (CIO) and the IT Governance Structure. The requirements under this proposed extension option modification are so directly related to efforts already accomplished by the contractor that no other source will suffice.

7. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

Although there are other approaches available in the market place, Horizon Industries provides continuity and aligns with other DLA initiatives. Horizon Industries has demonstrated that they meet the unique DLA requirements specified in the current contract. Also, DLA is operating in an environment that requires flexibility to adapt to a variety of fast-paced, highly challenging conditions while maintaining stable internal processes to ensure it can efficiently and effectively achieve its mission. Horizon Industries currently addresses the challenges that DLA is facing.

DLA needs to maintain internal consistency to maintain efficiency while simultaneously adapting to address issues related to our changing environment.

1/9/2018