20210326_21-23_JA DPS_Redacted.pdf

CUI

CUI

SOURCE SELECTION INFORMATION – See FAR 2.101 and 3.104

UNITED STATES TRANSPORTATION COMMAND (USTRANSCOM)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

CONTROL NUMBER 21-23

DEFENSE PERSONAL PROPERTY SYSTEM (DPS) CONTRACT EXTENSION

1. CONTRACTING ACTIVITY.

United States Transportation Command, Directorate of Acquisition, IT Programs & Support Services Division (USTRANSCOM/TCAQ-D), 508 Scott Drive, Scott AFB, IL 62225.

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

The Program Executive Office - USTRANSCOM (PEO-T) requires continued operations, sustainment, and software development support for the DPS. At this point in time and explained herein below, only the existing contractor, CACI, Inc., has the unique and specialized skills required at the level of quality to complete the technology upgrades and security improvements necessary to sustain the system during the transition period to the new DPS contract.

This action will be a modification to the existing task order (HTC711-18-F-D107), which was awarded using DITCO’s Encore III multiple award Indefinite Delivery/Indefinite Quantity (IDIQ) contract (HC1028-08-D-2016 6S01). This task order, which includes both firm-fixed price and cost reimbursable with incentive fee contract line items, was awarded on 27 September 2018 with a twelve-month base period (1 October 2018 – 30 September 2019) and one (1) twelve-month option period (1 October 2019 – 30 September 2020). The extension of services clause was exercised to extend the contract to 31 March 2021. An additional six-month extension period of 1 April 2021 through 30 September 2021 is required to ensure uninterrupted support while the follow-on contract is awarded and to avoid possible transition to a new contractor during peak season.

3. DESCRIPTION OF SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS.

DPS is a web-based system managing personal property shipments for the Department of Defense (DOD) in support of the Defense Personal Property Program (DP3), a Service member quality of life program.

Each year, the DOD is responsible for moving and storing approximately 550,000 household goods (HHG) shipments at a cost of $2B. DOD is the single largest customer in the personal property shipping industry representing approximately 15% of all domestic and international moves. DOD personal property shipments involve a complex logistical scenario, including: 1) determining member and employee household goods shipment entitlements established by the Joint Travel Regulations (JTR); 2) managing the HHG shipment from counseling to delivery; 3) qualifying carriers to perform DOD shipments; 4) soliciting rates for domestic and international shipments; 5) counseling Service members and DOD civilian personnel; 6) evaluating Transportation Service Provider’s (TSP) performance; and 7) paying invoices, computing excess costs, and settling claims. System operational availability worldwide is required twenty-four (24) hours a day, seven (7) days a week.

Controlled by: USTRANSCOM Controlled by: Directorate of Acquisition

CUI Category/ies: SSEL Limited Dissemination Control: FED ONLY

POC: Dave Swaney, 618-220-7136 tcmillam Cross-Out tcmillam Cross-Out tcmillam Cross-Out tcmillam Cross-Out tcmillam Cross-Out

The goal of the extension period is to allow sufficient time to complete the acquisition for the follow-on contract and to avoid a potential vendor transition during the peak moving season for personal property shipments. A potential vendor transition during this time period could result in disruption to thousands of DOD members who are moving during peak moving period of 15 May through 15 August 2021.

The total estimated value of this acquisition is $ for six months of performance.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY AND SUPPORTING

RATIONALE.

The applicable statutory exception for fair opportunity is Federal Acquisition Regulation (FAR) 16.505(b)(2)(i)(B), only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Due to the inherent risk of making major system changes, including transitioning to a new vendor, introducing technical system changes at both the user and commercial shipper levels, etc. during elevated system usage and critical business processes, the available window to make major changes to the program is limited. The periods are limited to those outside of the "peak season" timeframe from May-August and outside the time in which qualifications and rate filing/best value scoring processes are held, which is January-February. These events drive a unique schedule constraint not recognized in other software programs and restricts the Government to two (2) windows of opportunity (60-day and 120-day) to introduce major system changes to the production environment. Because of these limited windows, an extension to the current contract is necessary to allow for contract award and a potential transition under the follow-on contract outside of the peak moving season.

CACI, as the current developer, possesses the requisite knowledge of the DPS application code, commercial off the shelf (COTS) customized code, interface code, and technical architecture. This level of knowledge is necessary to fully comprehend the complex interactions within the DPS architecture.

Without that knowledge, the Government would accrue unacceptable delays and increase technical risks to the program. CACI, as the incumbent, is the only developer available with this requisite knowledge to carry on the development and sustainment required with no transition risk during the time period of this extension.

5. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COSTS WILL BE FAIR AND REASONABLE.

The Contracting Officer will utilize various methods of price analysis such as comparison to historical pricing, commercial price lists, Encore III IDIQ rates, and the Independent Government Cost Estimate. In addition, the PEO will provide a thorough technical review of the labor hours and skill mix proposed by CACI for both the fixed-price and cost reimbursable effort. Based on this approach, the Contracting Officer anticipates that a fair and reasonable price will be obtained.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION.

The current contract was a sole source award under the statutory exception to fair opportunity FAR 16.505(b)(2)(i)(B). In 2018, on behalf of the Office of Secretary of Defense (OSD), USTRANSCOM was directed to conduct a comprehensive review of the DP3. As part of this review, the entire HHG program was slated to be restructured. This restructuring included likely phase out of DPS and development of a new system for managing property shipments. At the time of the current task order award, the intent was for DPS capabilities to be phased into a different system. Multiple unforeseen complexities arising in the development of global HHG restructuring had a negative impact on a way ahead for DPS. Eventually, a tcmillam Cross-Out decision was made to continue with the current DPS application which required a new competitive acquisition. Consistent with the prior approved J&A, a follow-on contract of a longer duration will be competitively awarded. However, a follow-on contract will not be awarded prior to expiration of the current task order. This extension will allow time to complete source selection, award a new DPS contract and avoid a vendor transition during peak season.

7. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS THAT LED TO THE EXCEPTION TO FAIR

OPPORTUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SERVICES IS

MADE.

Upon completion of this six-month contract extension, a new DPS contract should be in place. The government is currently conducting evaluations of offers.

8. CONTRACTING OFFICER’S CERTIFICATION.

I certify that the data supporting the recommended use of exception to fair opportunity is accurate and complete to the best of my knowledge and belief.

DAVID Q. SWANEY

Contracting Officer

9. TECHNICAL OR REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that the data supporting the recommended use of exception to fair opportunity is accurate and complete to the best of my knowledge and belief.

KRISTINA R. SCHNEIDER

DPS Program Manager

10. WRITTEN DETERMINATION OF THE APPROVING OFFICIAL IDENTIFYING

THE CIRCUMSTANCE THAT APPLIES TO THE ORDER.

Based on the above cited justification, I hereby determine the circumstance in FAR 16.505(b)(2)(i)(B) applies to this justification for an exception to fair opportunity.

Competition Advocate tcmillam Cross-Out