LSJ_24322618Q0046_HRLOB.pdf

HR LOB 24322618Q0046- Page 1 of 6

Limited Source Justification Human Resources Line of Business (HR LOB)

Program Management and Tech Support Services

1. Contracting activity

This Limited Source Justification (LSJ) supports a procurement action to be conducted under the authority of the Multiple Award Schedule Program (FAR 8.401). The procurement action is generated by the Office of Personnel Management (OPM), Office of Procurement Operations

(OPO).

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

The Program Office, Planning and Policy Analysis (PPA) Human Resources Line of Business (HR LOB), submitted a procurement request seeking a sole source task order awarded against a General Services Administration (GSA) Schedule contract with IBM for continued Program Management and Technical Support Services. This LSJ will result in a new task order under IBM’s GSA Schedule contract, GS-35F-110DA.

The objectives are to provide all strategic and technical program management support to the HR LOB in planning, developing, implementing, and providing oversight to Government-wide HR Information Technology (IT) systems and solutions. The overall vision of the HR LOB is modern, cost-effective, standardized, and interoperable HR solutions providing common, core functionality to support the strategic management of human capital and addressing duplicative HR systems and processes across the Government. OPM facilitates the governing body of the HR LOB comprising of a committee of twenty-four (24) federal agencies. This acts as a collective voice representing the federal agencies including establishing communities of practice, developing shared services requirements and defining healthcare standardization.

The Government requires these services for a period of performance of six (6) months from May 1, 2018 to October 31, 2018 to allow time for a competitive follow-on contract to be awarded. The current contract, OPM32-17-F-0124, expires on April 30, 2018 and a lapse in services would be detrimental and critical to the mission of the HR LOB, specifically the quality of the HR LOB program would be diminished throughout the Government. Without the program management and IT systems support of the HR LOB program, efforts to improve management, gain operational efficiencies and cost savings, and improve customer service will begin to breakdown across the federal Government. This has the potential to affect not only agencies in the governing body but also Shared Services Providers (SSPs) which could in turn affect up to 99% of federal employees.

3. Supplies or services required to meet the agency’s needs (including the estimated value)

The services required are a continuation of Program Management and Technical Support Services in planning, developing, implementing, and providing oversight to Government-wide (Human Resources Information Technology (HRIT) systems and solutions to meet the HR LOB

HR LOB 24322618Q0046- Page 2 of 6 requirements. Support and assistance to the HR LOB Program Manager and federal staff is required for each of the following work streams:

a. Planning and Strategy Formulation -- Includes all HR LOB planning and strategy work to promote and achieve the vision, goals, and objectives of the HR LOB and its primary governance bodies. Specifically:

• develop and execute the HR LOB strategy to achieve the initiative goals and objectives;

• formulate strategic plans for the HR LOB by developing key documents, organizing and facilitating strategic planning sessions, and consulting with OPM’s leadership concerning strategic alternatives;

• facilitate meetings with cross-agency representatives, generate meeting agendas, meeting facilitation content, and supporting materials to enable proper governance of the HR LOB;

• manage the extensive program governance structure;

• develop and execute a communications strategy;

• promote and support stakeholder involvement: Office of Management and Budget

(OMB), other federal agencies identified by OPM, Chief Human Capital Officers (CHCOs), Chief Information Officers (CIOs), OPM offices and Shared Service Centers (SSCs)/ SSPs;

• promote effective and efficient collaboration across partner agencies and other stakeholders through the HR LOB governance structure;

• support collaboration with OMB, especially regarding its “Shared First” shared services strategy, but also with IT, e-Gov and budget policy ;

• execute the Capital Planning and Investment Control (CPIC) process and develop required capital asset plans, funding strategies, budgets and business cases ;

• develop periodic OMB reports such as scorecards and dashboards;

• update web content on the OPM HR LOB web pages;

• coordinate initiative compliance with OPM’s system development life cycle methodology;

• develop and update cost benefit methodology and model to calculate cost savings and avoidance associated with the HR LOB initiative, conduct data gathering, analysis and reporting;

• develop, update and leverage a Government-wide inventory of HR IT systems; and

• support coordination of stakeholder Product Control Boards.

b. Performance Management Framework -- Includes all HR LOB work related to the promotion of improved management, operational efficiency, cost effectiveness, and customer service at agencies and SSPs through the collection and assessment of agency and SSP performance data. Specifically:

• Provide subject matter expertise and content review for ProviderStat, services catalog, metrics, and customer surveys. Survey results will be provided to the HRLOB for use in analysis, policy planning, etc.

HR LOB 24322618Q0046- Page 3 of 6

c. Migration Oversight and SSC Support – Includes all HR LOB work related to the support of agency selections of SSCs, oversight of agency migrations to SSCs, and management of the Schedule of approved SSCs. Specifically:

• oversee and monitor agency migrations to SSCs; and

• assist USSM in provider/customer dispute resolution, issue escalation, Exhibit 53 and

300 reviews, and migration oversight, as needed, and serve on Investment Review Boards as convened ad hoc by OMB SSPO.

d. HRIT Transformation -- Includes all HR LOB work related to defining the current and future state of government-wide HRIT and promoting the interoperability and integration of HRIT. Specifically:

• plan, implement and manage a government-wide HR IT strategy that integrates government-wide HR processes and systems, including OPM government-wide systems, agency systems and SSC systems;

• develop an end-to-end view of common HR solutions and their relationships and compile available information and resources to help HR LOB SSCs and customer agencies effectively envisage, design, and implement common HR solutions to interoperate with one another and with agency-specific solutions;

• establish and maintain government-wide HR IT standards and guidelines, e.g., maintain and update the human resources Federal Enterprise Architecture models covering business, service component, data, technology and performance standards;

• develop and maintain the HR service target requirements for SSCs and agencies;

• develop and implement integration and interoperability standards and requirements;

• develop and implement data standardization through the development of a government-wide HR data model and HR data exchange model; and

• support systems governance within OPM to achieve integration.

This LSJ supports the issuance of a sole source task order against GSA Schedule GS-35F- 110DA with a period of performance from May 1, 2018 to October 31, 2018. The award will contain FAR 52.217-8, Option to Extend Services. In accordance with FAR 52.217-8, if exercised, pricing shall be the equivalent to no more than six months of services based off the last option period for the stated CLIN structure that is being extended.

The estimated value of this procurement for the performance period May 1, 2018 to October 31, 2018 is $1,720,000.00.

4. Authority and supporting rationale, and a demonstration of the proposed contractor’s unique qualifications to provide the required 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.

HR LOB 24322618Q0046- Page 4 of 6

A Blanket Purchase Agreement (BPA) Call OPM32-12-A-0007_W0001 was awarded on August 1, 2012 as a result of a competitive Request for Proposal (RFP), OPM32-12-T-0041, and expired on July 31, 2017. The award was made to a large business concern, IBM, with a one-year base and four one-year option periods. This BPA was awarded against GSA Schedule 70 contract number GS-35F-4984H.

The current contract, OPM32-17-F-0124, was awarded to IBM on August 1, 2017 with a 3-month period of performance as a logical follow on to the BPA referenced in the previous paragraph. The clause 52.217-8, Option to Extend Services, was invoked for a 6-month period and the contract expires on April 30, 2018.

The work contemplated herein is a continuation of existing efforts that were started under the original BPA Call. Tasks cannot be replicated or improved through competitive procedures at this time without significant impact to Government operations. It is essential that the Government obtains the necessary completion of its objectives, which stem from performance of the existing work, as it moves to a new contract and the possibility of a new contractor through a separate competitive action.

The incumbent contractor, IBM, has the critical knowledge and experience with HR LOB’s work streams, is well engaged in the daily operations and maintenance of the of the organization and is uniquely qualified to ensure knowledge transfer to the Government and any potential incoming contractor. In addition, IBM has significant understanding of the business and has served in this absolute capacity for more than 10 years. A lapse in services would be detrimental and critical to the mission of the HR LOB, specifically the quality of the HR LOB program would be diminished throughout the Government. This has the potential to affect not only agencies in the governing body but also SSCs which could in turn affect up to 99% of federal employees.

The Government has the confidence IBM can properly perform the work in the available time and concluded that no other offeror could immediately perform all of the services required without unacceptable delays resulting in a lapse of services and incurring substantial transition costs.

5. Determination by the contracting officer that the anticipated order will represent the best value

Based on the nature of the requirement, the solicitation will be issued to a single source, IBM under GSA Schedule Number GS-35F-110DA. Competition will not be sought. To determine that the anticipated order will represent the best value, the Contracting Officer (CO) and requesting activity will review historic pricing as well as pricing data gained through market research. Additionally, IBM will be requested to provide any discounts available beyond their published GSA prices. Per FAR 8.404(d), pricing provided for services as hourly rates on the Federal Supply Schedule (FSS) is already determined to be fair and reasonable except for the price evaluation as required by FAR 8.405-2(d).

HR LOB 24322618Q0046- Page 5 of 6

6. Description of the market research conducted and the results or statement of the reason market research was not conducted

Market research conducted determined that IBM’s GSA schedule contract GS-35F-4984H expired on September 30, 2017 and is no longer a viable source for the subject requirement.

However, IBM has another GSA schedule contract, GS-35F-110DA, under the IT Professional Services SIN with an ordering period of December 21, 2015 through December 20, 2020 that will be utilized for this requirement.

Further market research was not conducted on potential sources because the Government concluded that no other offeror could immediately perform all of the services required without significant impact to Government operations. IBM has the critical knowledge and experience with HR LOB’s work streams and any lapse in service would be detrimental and critical to the mission of HR LOB.

For the competitive follow-on contract, various market research techniques are being used to identify the procurement method which will be most advantageous to the Government. A sources sought notice was posted to the Federal Business Opportunities (FBO) website in March 2017 in order to identify vendors with the capability to provide the required services.

A second notice was posted on FBO in November 2017 in order to identify small businesses with the capability to provide these services. An industry day was held in December 2017, to which fifty (50) vendors registered, both large and small businesses.

7. Other facts supporting the justification

None

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

A sources sought notice was posted to the FBO website under Solicitation Number OPM2617S0007, followed by a second notice under Solicitation Number 24322618S0001, as part of an effort to define the procurement method. The first notice requested information from any vendor capable of supporting the requirement, whereas the second notice requested further detail and additional information regarding the capabilities of the small business vendors. An industry day was also held that included numerous interested vendors. Based on the responses received, adequate competition is expected for the re-procurement of required HR LOB services, however, the re-procurement strategy has not been determined.

Competition among these potential sources is being sought, promoted, and sustained for that procurement.

The market research phase of the competitive acquisition is taking longer than anticipated to complete as OPM received a larger than anticipated number of responses to the sources sought notice and industry day. OPM is assessing all of the responses to determine capability of the potential sources, specifically whether small businesses can support this

HR LOB 24322618Q0046- Page 6 of 6 requirement. This sole source award is required to cover the service timeframe required to complete the in progress competitive procurement without a lapse in service prior to the completion of awarding a new contract.

9. Certifications and Approvals

I hereby certify that the information provided herein to support this Justification is complete and accurate to the best of my knowledge and belief. My signature signifies approval of this Limited Sources Justification.

Signature:_______________________________ Date: April 17, 2018 Patricia M. Smart Contracting Officer

I hereby certify that all technical data and information which form a basis for this justification are complete and accurate.

Signature: ______________________________ Date: _____________ Quentin Giles Program Office/Contracting Officer’s Representative

I hereby certify that all technical data and information which form a basis for this justification are complete and accurate.

Signature: ______________________________ Date: ______________ Dave Vargas Director, HR LOB

I hereby certify that the requirements identified within this LSJ are applicable to the authority [FAR 8.405-6(a)(1)(i)(B)] cited. My signature signifies approval of this Limited- Sources Justification.

Signature: ______________________________ Date: ______________ Dean Hunter OPM Competition Advocate