Notice of Intent to Sole Source.docx

NOTICE OF INTENT-SOURCES SOUGHT

Defense Information Systems Agency (DISA) Nexus Human Capital Management (HCM) Modernization

The Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization intends to negotiate a sole source contract with KPMG LLP. A sole source Justification & Approval document is being coordinated and, upon approval, a copy of it will be posted here on SAM.gov to comply with the public display requirements of FAR 6.305.

Contract FA701420D0009 Order No. FA701424F0418 was awarded with a period of performance of 30 Sept 2024 to 16 Dec 2027. The order was competitively awarded under the Air Force Strategic Transformation Services (AFSTS) contracting vehicle to KPMG LLP for $39,233,247. Following a 19 May 2025 executive meeting with DOGE, DISA was informed that the Nexus contract on the AFSTS vehicle would be terminated on 29 Sept 2025, instead of the planned contract end date of June 2027. AFSTS is being terminated as a result of a review of all AFSTS contracts, conducted by the Department of Government Efficiency (DOGE). DOGE deemed that the majority of AFSTS contracts were consulting contracts and work that could be performed by the Government. DOGE determined that the best course of action to address the majority consulting contracts was to terminate the AFSTS vehicle and all orders awarded on it, leaving DISA Nexus at risk of losing all progress made in the base year. Consequently, it was decided that the work under this task order could continue under a different procurement, but not under the AFSTS vehicle where it was originally competed since it will cease to exist.

Nexus is DISA’s transformative HCM Information Technology (IT) Platform, which is currently under development by KPMG LLP. DISA will have invested a full year, fielded the initial release, and completed multiple planning increments, each composed of 6, 2-week sprints. Transformative programs such as Nexus require continued momentum to realize desired results and minimize negative impact on the agency and the warfighter.

This contract action is needed to continue critical development that is transforming the Agency’s HCM IT platform. This contract will continue the great progress made in the first year of the AFSTS order, and build on the initial release, ultimately allowing DISA to retire the vast majority of its legacy Corporate Management Information System (CMIS) by the end of the proposed Period of Performance. Furthermore, this transformation supports modernization and workforce development initiatives including:

1. Executive Order 14210 of February 11, 2025 (Implementing the President's “Department of Government Efficiency” Workforce Optimization Initiative.)

2. Executive Order 14170 of January 20, 2025 (Reforming the Federal Hiring Process and Restoring Merit to Government Service).

3. Executive Order 14271, (Ensuring Commercial, Cost-Effective Solutions in Federal Contracts)

4. Human Resources Modernization and Reform Act,

5. Federal Information Security Management Act (FISMA),

6. Cybersecurity and Infrastructure Security Agency (CISA) Standards,

7. The Federal Cloud Computing Strategy,

8. Office of Management and Budget’s Memorandum M-15-14 and Circular A-130,

9. Office of Personnel Management's Digital Transformation Initiatives.

10. DISA Director’s priorities which states his four pillars of priorities. 1) Readiness, 2) Campaigning, 3) Continuous Modernization, 4) Establish Lethality.

DISA Nexus is being developed to address current challenges inherent in DISA’s Human Resources processes, structure, and systems, and is already transforming those underlying processes and procedures. Nexus is being developed to address the following pain points:

1. Non-standard Processes and Operations.

2. Ownership and Commitment (limited customer service focus, lack of consistent training).

3. Bottlenecks in Time-to-Hire and Time-to-Fill Processes.

4. Systems and Data Interoperability (manual workarounds, processes, and tools; inconsistent interoperability with mandatory systems of record).

5. Data Visibility (lack of data transparency, lack of centralized enterprise dashboard view(s), lack of effective/efficient data recording).

DISA and the competitively selected incumbent contractor, KPMG LLP, have invested significant time and effort to map out these pain points and inefficiencies, and have collaboratively built out a backlog of work aligned to the Nexus Roadmap. Without the level of knowledge that the incumbent has built up over the base year, and the momentum of the development effort presently underway, DISA will lose at least a year and significant investment. Further, it will delay the sunset of the majority of CMIS functionality, requiring DISA to extend dual operations one year or longer.

To continue this transformative effort in delivering a modern HCM IT Platform, the Government requires specialized subject matter experts with both domain expertise and technical knowledge. This knowledge of the Nexus mission and component software systems, the architecture, its configurations, interfaces is integral to continue the development of the system. For example, a certified ServiceNow System Architect is required to ensure the components are appropriately configured to avoid the introduction of technical debt. Of the 70 developmental sprints, KPMG LLP has completed seven, the vast majority would require rework should another vendor be contracted. The domain knowledge gleaned from the work performed under the AFSTS order, and as well as the subject matter expertise and technical knowledge that KPMG LLP provides would be impossible to replace the loss of significant time, which would lead to cost over-runs and the delay of the sunset of DISA’s legacy CMIS application. In addition to the CLIN 0001 funds, DISA has obligated additional funds to other contracting vehicles for various aspects of the program, supporting the architecture as bid by the incumbent, to include procurement of ServiceNow licenses and the data layer.

The solution that KPMG LLP is implementing was designed by KPMG LLP and would require significant if not full reengineering should this contract be competed. The amount of time it would take to reengineer a solution would significantly set DISA back more than a year and create unnecessary duplication of development costs. DISA’s costs incurred should a new vendor result in re-engineering of the solution would exceed $10M based on expenditures already made and planned in the base year.

The statutory authority for other than full and open competition is 10 USC 2304 (c) (1), as implemented by FAR 6.302-1(a)(2)(iii), only one responsible source and no other supplies or services will satisfy the agency’s requirements. Companies who believe they can provide this service must indicate their interest in writing within 15 days of this notification and include a detailed capability statement. No reimbursement for any cost connected with providing capability information will be provided. All responsible sources will be considered in evaluating the determination to issue a sole-source contract. Quotations or proposals received in response to this notice cannot be accepted since this synopsis cannot be considered a request for quote or a request for proposal. A solicitation will NOT be posted to SAM.gov due to the sole source nature of the requirement.

The North American Classification System (NAICS) code 541512 will be used for determining company size status.

CONTRACT/PROGRAM BACKGROUND: The Nexus HCM requirement is a new requirement. However, portions of this requirement are currently being executed under the following:

Contract Number: FA701420D0009/FA701424F0418 Contract Type: FFP Incumbent and their size and CAGE: KPMG LLP / Large / EBH12 Method of previous acquisition: Full and Open Competition Period of performance: 30 September 2025 to 16 December 2027 SPECIAL REQUIREMENTS: Must have Secret safeguarding clearance and Secret facility clearance.

Points of Contact:

Sebrina Lewis - sebrina.a.lewis.civ@mail.mil, (667) 891-4461 Adelis Rodriguez - adelis.m.rodriguez.civ@mail.mil, (667) 890-0327

For information on DISA’s requirements, you can find current information on our home page: www.disa.mil – that includes current forecast and the current acquisition strategies. If there is no information regarding the requirement you may be inquiring about, then there is no additional publicly available information. Please continue to review www.disa.mil.