NAVAIR_COMFRC_Deloitte_Exception_to_Fair_Opportunity_Final_7-10-19_Redacted_for_Posting.docx

General Services Administration Office of Professional Services and Human Capital Categories

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

UNDER IDIQ CONTRACTS

The General Services Administration (GSA) makes this Justification for the issuance of an Exception to Fair Opportunity order pursuant to Federal Acquisition Regulation (FAR) 16.5.

a) Identification of Customer Agency and Contracting Activity:

Customer Agency:

Naval Air Systems Command (NAVAIR) Depot Maintenance System (NDMS) Program Management Office (PMO) and Command Information Officer (CIO) Support Services

(Customer POC information Redacted)

Contracting Activity:

GSA Contracting Office Office of Professional Services and Human Capital Categories (PSHC) 400 15th Street SW Auburn, WA 98001

b) Nature and/or Description of Action Being Approved:

The proposed 6 month task order under the GSA Alliant 2 GWAC will be firm fixed price, based upon an Exception to Fair Opportunity as defined in FAR 16.505(b)(2), and as further detailed in Section (d) below. Task order award will be made to Deloitte Consulting LLP, Arlington, VA, under their Alliant 2 GWAC contract, 47QTCK18D0029.

c) Description of Supplies/Services and Estimated Value:

The United States Fleet Readiness Centers (FRCs) have a continuing requirement for Naval Air Systems Command (NAVAIR) Depot Maintenance System (NDMS) Program Management Office (PMO) and Command Information Officer (CIO) Support Services. The required mission critical services support the delivering of Information Technology (IT) capabilities and solutions across all FRC activities for production planning, execution, and control; and data warehouse and business intelligence for the Commander Fleet Readiness Centers (COMFRC) Enterprise.

These services enable and sustain the goals and objectives of the NDMS Program Manager, COMFRC Command Information Security System Manager, COMFRC Application and Infrastructure Director, and FRC IT Department Leads in the management of COMFRC’s IT portfolio in the execution of key modernization initiatives to include migration of financial management within the Navy Enterprise Resource Planning (N-ERP) system and development of Electronic Work order Processing (EWP). They enable the establishment and sustainment of IT capabilities in support of improved business process and technology modernization employed by COMFRC and the FRCs in achieving their mission. Additionally, these support services facilitate management of the allocated functional baseline and brokering of functional requirements between COMFRC, NAVAIR 6.0 (Logistics and Industrial Operations Group), and other NAVAIR Competencies while integrating and implementing business processes, procedures, and policies with Department of Defense (DoD), Navy, NAVAIR, and other mandated information management strategies and solutions.

The estimated value of this 6 month task order, covering the period from September 01, 2019 through February 29, 2020, is $2.6M.

d) Identification of the Exception to Fair Opportunity and Rationale:

This Exception to Fair Opportunity is based upon the following FAR 16.505(b)(2) statutory exception and rationale:

(a) The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

Urgency Rationale:

On December 19, 2018, the contracting activity at Naval Air Warfare Center Weapons Division (NAWCWD) awarded Task Order N6893619F0175 under NAVAIR IDIQ contract N68936-16-D-0025 to support various FRC Program Management and IT Support requirements. Task Order N6893619F0175 is set to expire on August 31, 2019. In anticipation of the scheduled expiration date, NAVAIR contacted the Department of Health and Human Services (HHS) Program Support Center (PSC) in February 2019, an assisted acquisition service (AAS) organization, so that they could began working on a competitive follow-on action via their HHS CIO SP3 IDIQ contract. As the follow-on effort is anticipated to contain significantly more IT work than what would be appropriate under the NAVAIR IDIQ, which primarily focuses on Program Management and Consulting Support, NAVAIR determined that the HHS CIO SP3 IDIQ contract was a more appropriate vehicle for the proposed follow-on IT related services. At that time, the HHS PSC proceeded on with the necessary planning and document preparation assisted acquisition efforts in order to meet a September 01, 2019 award date and avoid any break in service. Initial timelines from the HHS PRC had indicated a plan to issue a competitive solicitation on or about June 2019.

In mid-June 2019, HHS informed NAVAIR that they were no longer available to support this effort, nor any effort for any DoD agency in the future, with plans to transfer all their existing procurement work, including this requirement, to alternate AAS organizations such as GSA. Although, at that time, HHS provided no explanation to NAVAIR regarding its abrupt decision, it was later discovered that effective June 14, 2019, the Acting Head of Contracting of the HHS PSC, Melissa McAbee, issued a Policy Directive of its termination of its assisted acquisition program for all non-HHS agencies, and in particular its DoD customers. The Directive stated that the HHS PSC, as a result of an internal audit, was unable to certify compliance to Section 801 of the Fiscal Year 2008 National Defense Authorization Act (NDAA), which involves "Internal Controls for Procurements on Behalf of the Department of Defense by certain Non-Defense Agencies". Section 801 requires the heads of all non-DoD agencies that provide acquisition support to the DoD Departments to be able to certify that their respective nonDefense agencies can comply with defense procurement requirements for assisted acquisitions executed on behalf of DoD. This requirement is also included in FAR 17.7.

As the HHS PSC determined that it was unable to certify its compliance to the Section 801 requirements for FY 2019, effective June 2019, the DoD Defense Procurement and Acquisition Policy division removed HHS from the list of agencies authorized to perform assisted acquisitions in support of DoD.

The Following non-DoD agencies, which includes GSA, have certified its Section 801 compliance for FY 19:

· General Services Administration

· Department of Energy

· US Government Publishing Office

· Department of the Interior

· National Aeronautics and Space Administration (NASA)

· National Technical Information Service (NTIS)

· UNICOR, Federal Prison Industries (FPI)

· Office of Personnel Management (OPM)

· Northwest Fisheries Science Center (NWFSC)

· Maritime Administration (MARAD)

· Department of Commerce As a result, NAVAIR contacted GSA Region 10 AAS in mid-June 2019 to determine whether or not it had capacity and capability to solicit and award an interim 6 month sole source contract to the incumbent contractor, Deloitte, to allow for the timeframe deemed necessary to award a competitive follow-on effort. It is anticipated that the 5 year (Base Year with 4 Yearly Options) follow-on effort (most likely T&M), estimated at (Estimate Redacted), will take approximately 6 months to accomplish under the GSA Alliant 2 GWAC vehicle.

The current task order with Deloitte is set to expire on August 31, 2019, which is less than 2 months from the date of the preparation of this Exception to Fair Opportunity document. During the timeframe of February 2019 through June 14, 2019, NAVAIR was under the premise that the HHS PSC would be fully able to award a competitive follow-on effort by September 01, 2019, thereby avoiding any break in support for these vital services. With HHS PSC’s sudden and unexpected decision to discontinue support, the competitive procurement process and timeline must begin all over again.

Given the above detailed unforeseen circumstances, and not due to any lack of advance planning on the part of NAVAIR, there is now an insufficient amount of time to competitively award a follow-on order to allow for a continuation of services beginning on September 01, 2019. Due to the importance of these requirements, and the impact to the Government if there were a break in service, a continuation of services until the competitive follow-on can be awarded must be accomplished on an urgent basis directly to the incumbent contractor, Deloitte.

The urgent need for these services and the negative impact to the Government in the event a break in service were to occur is detailed as follows:

· Currently, the NDMS Program is without an Authority to Operate (ATO) and operating under a Conditional Authorization Request (CAR). Deloitte is providing vital support to the PMO and CIO to ensure the NDMS Program transitions from CAR to a full ATO. Key activities include:

· Researching, correcting, and validating Department of the Navy (DON) Application and Database Management System (DADMS) and DoD Information Technology (IT) Portfolio Repository (DITPR) entries for the NDMS Program.

· Updating the Lifecycle Management (LCM) Plan and NDMS Organizational Standard Software Process (OSSP) to close prior ATO audit findings.

· Providing expertise in Security Technical Implementation Guide (STIG) and Risk Management Framework (RMF) processes for the NDMS Program.

· The NDMS Program is currently in Risk Management Framework (RFM) Step 4 and planning to reach Step 5 in Jul 2019 and Step 6 in Oct 2019. Loss of Deloitte support at this crucial time in the RMF process significantly affects the NDMS Program’s ability to transition from CAR to full ATO in 2019. Inability to attain NDMS ATO in 2019 will force the removal of the NDMS Program from the NMCI network and severely impact cost, schedule and performance throughout the COMFRC Enterprise to include:

· Complete loss of production and operation capability across FRC Activities worldwide at a cost of over $21M per day.

· Loss of payroll function for over 7,000 FRC employees.

· Delay in meeting production and delivery commitments for all Navy and Marine Corps aircraft, high performance jet engines, and fleet equipment components repaired at the FRCs, resulting in severe negative impacts on aircraft availability and mission readiness.

· FMB has mandated migration from the Defense Information Financial Management System (DIFMS) to Navy Enterprise Resource Planning (Navy ERP) across all COMFRC Activities by Oct 2020. This migration requires significant business process re-engineering within the NDMS Program as applications within the NDMS suite are currently fully integrated with DIFMS and share interdependent business processes. Possessing significant functional and technical expertise, Deloitte has participated in all assessment, transition, and design workshops as technical exchanges of information, business process interdependencies are re-defined and new solutions developed. Loss of Deloitte support will present significant risks in COMRFC’s ability to comply with the FMB mandated transition within the planned schedule, leading to up to a possible six (6) month delay.

-Over the past several years, there has been an increasing trend in quality escapes across FRC. Activities resulting in potential harm to flight crew and damage/loss of aircraft, increased level of rework and requisite cost, and unnecessary consumption of limited production capacity have had a negative effect on the ability to deliver products on schedule and at cost. To mitigate the effects of quality escapes, COMFRC is in the process of developing an Electronic Work Package system that enables the electronic capture of quality inspections through the integration of NDMS and the IDRN Quality Management System (QMS); scheduled to deploy in fourth (4th) quarter FY19. Having in-depth knowledge and experience in both systems, Deloitte is providing critical subject matter expertise in developing both the functional capabilities and technical solutions of this new capability. Loss of Deloitte support will delay deployment of the EWP system by a minimum of nine (9) months and presents significant risk to continuing trend of increasing quality escapes and requisite negative impacts to cost, schedule, and performance across all FRC Activities.

-Development of a capability and capacity planning capability across the COMFRC Enterprise is key to enabling the most effective and efficient use of limited production resources. As no business processes or IT support currently exists within the COMFRC organization, Deloitte is providing expertise to establish governance, processes, and positions/roles to deliver capability and capacity management across all FRC Activities; currently scheduled to meet Initial Operating Capability (IOC) January FY20. Loss of Deloitte support will delay IOC a minimum of twelve (12) months and will negatively affect the ability of COMFRC and the FRC Activities to capitalize on improved production planning/scheduling capabilities and the potential for improved throughput at a reduced net operating cost.

· If a break in service were to occur, IT portfolio management and modernization initiatives would be negatively affected, including the following impacts:

· CIO Governance Support – Loss of executive decision support through negotiation, facilitation, and analysis delaying externally mandated transformational Navy-ERP migration initiative.

· NDMS PMO and NDMS Field Team Lead Support – Loss of data analysis, development, and documentation that facilitates the timely translation of issues and risk negatively affecting change management, resource planning, and sustainment planning across COMFRC.

· CIO Chartered Enterprise Team Support – Loss of project management, problem analysis and decision-making support, meeting facilitation, and presentation and communication support for Enterprise chartered teams reducing the effectiveness of the Enterprise Functional Group, Technical Control Group, Technical Operations Board, and Enterprise Report Users Group.

· NDMS Program Lifecycle Management Planning and Execution Support – Loss of Lifecycle Management (LCM) Plan development, implementation and maintenance support delaying maturation of the NDMS Organizational Standard Software Process (OSSP).

· Department of the Navy (DON) Application and Database Management System (DADMS) and DoD Information Technology (IT) Portfolio Repository (DITPR) Support – Loss of DADMS and DITPR-DON management support negatively impacts accuracy in reporting applicable information to Functional Area Manager (FAM) in support of DON IT Portfolio Management.

· Executive NDMS Training and Knowledge Management Support – Loss of training material updates and scheduled training sessions negatively affecting the efficiency and effectiveness of Depot artisans throughout the Enterprise.

· CIO Sponsored Strategic Initiative support – Loss of definition, requirements engineering, design, development, validation, implementation, operations, and sustainment of strategic modernization initiatives delaying key capabilities such as Electronic Work order Processing.

e) Determination That the Anticipated Cost is Fair and Reasonable:

The task order will be solicited and awarded on a firm fixed price (FFP) basis. It is anticipated that there is adequate historical information to be able to FFP this effort for the proposed 6 month period. Price fair and reasonableness will be determined based upon a comparison to historical pricing information, comparison to the Independent Government Estimate (IGE), and in consideration of the labor rate ceiling pricing contained within the Alliant 2 GWAC.

f) Other Facts Supporting the Justification None.

g) Statement of Actions:

The awarding of this 6 month task order on an urgent basis allows for the necessary timeframe for the Government to procure the 5 year follow-on effort under Alliant 2 on a competitive basis, providing fair opportunity to all Alliant 2 vendors in accordance FAR Part 16.505.

h) Certification by Technical or Requirements Personnel I hereby certify that the supporting data is complete and accurate and complete.

(Signature Redacted)

i) Signature of Authorized Official:

I hereby certify that the Justification is accurate and complete to the best of my knowledge and belief, and determine on the basis of the findings above that the Exception to Fair Opportunity is in accordance with the requirements, and is in the best interest of the Government.

(Signature Redacted)

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