NCAPS Bundling D and F.pdf

Rev.: 12/2020

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Information Technology Procurement Office (ITPO)

Determination and Findings (D&F) for Bundled Requirements

I. Requirement Specific Information

A. Proposed/New Requirement

1. Description of Services: The proposed NASA Consolidated Applications and Platform Services (NCAPS) contract vehicle will be a comprehensive enterprise solution to standardize and centralize NASA’s IT support. This includes the maintenance of IT systems, development of new applications as needed for NASA, a rationalization of duplicative efforts to create efficiencies across NASA Centers, and other functions. The NCAPS contract will be critical in consolidating the scope of NASA's Office of the Chief Information Officer (OCIO) application and platform services at NASA Centers, IT Programs, and the NASA Shared Services Center (NSSC). This acquisition will support application and platform requirements in the following scope of work areas:

• Operations, maintenance, enhancement and end-user support for Center and Agency applications, mobile apps, websites, and information systems including:

Requirement development and management Design, configuration, and development Integration Functional testing Change management

• Platform applications support services (currently includes, for example:

systems, applications, and products (SAP), Salesforce, ServiceNow, Office365, SharePoint, DevSecOps)

• Application and platform compliance with Government information security management policies and procedures including, for example, Federal Information Security Management Act (FISMA), National Institute of Standards and Technology (NIST), and NASA-specific policies

• IT systems engineering, modernization, management, and operations support services

• Information and data analytics services, including data science, big data and advanced analytics, artificial intelligence, machine learning methods and practices

• Digital Transformation automation support services (Artificial Intelligence / Machine Learning / Robotic Process Automation / Chat Bots) and emerging technologies

• Expertise in Agile and scaling agile frameworks (i.e., ScaledAgile Framework (SAFe) for Lean Enterprises)

• Full-system life cycle and process execution support for new and existing application capabilities

• Continuing review of NASA's legacy applications, for recommendation to deprecate, upgrade, replace, or rationalization and consolidation for efficiency, cost, and modernization

• Facilitation of service integration among existing local and Agency contracts

• Relationship management among the NCAPS contractor, OCIO service lines, customers, and other stakeholders

• Support, develop and maintain enterprise IT governance, policies, and processes

• Purchasing, renewal and tracking software licensing and maintenance

• Integration services, including integration architecture, service-oriented architecture, web services, and technical integration support

• Quality management, including plan quality, quality assurance, and quality control

2. Identify whether the requirement will be competed or sole source: Full & open competition

3. Solicitation Number Contract Name, or Contract Number, if known:

4. Contract Vehicle (e.g. contract, task order, IDIQ contract): This is a performance-based, hybrid contract that includes Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF) Core elements and Indefinite Delivery/Indefinite Quantity (IDIQ) task orders. Phase-in is FFP.

5. Period of Performance (including all options):

days (https://sam.gov/opp/2834f301a6ef440a807b27b3ffd51ca8/view). Although the RDT considered the use of Solutions for Enterprise-Wide Procurement (SEWP), the proposed NCAPS North American Industrial Classification System (NAICS) code is not applicable to SEWP. Industry was encouraged to inform NASA of interest in performing a contract resulting from the Performance Work Statement (PWS), as well as to ask questions and clarifications, propose improvements to the PWS, express experience with contracts of this scope and complexity, and make recommendations on contract type and the structure of the award.

The ITPO received a total of 42 responses from 23 small businesses and 18 large businesses.

One (1) response is pending registration in SAM.GOV and did not indicate its size status.

Based on this market research, the RDT concluded that only one small business could perform the NCAPS requirements as the prime contractor. The remaining small businesses either: (a) did not provide sufficient history in demonstrating meeting the requirements of efforts of similar size and complexity, or (b) proposed a contract strategy that would be counterproductive to the NCAPS goals of reducing costs and increasing efficiency. For example, several small businesses described strategies whereby they would serve as a pass-through to Amazon’s Web Services (AWS) services. The RDT could not identify any small businesses with the depth required for the size and scope of this requirement. Indeed, any company with the resources capable of meeting the proposed requirement had long since surpassed the small business size standard. The RDT reviewed the marketplace and was unable to identify a small business firm (within current size standards) that has the ability and financial capacity to handle the entire NCAPS requirement.

Another factor is whether the aggregate dollar value of the requirement is too large for a small business to perform. Typically, the NAICS code determines the relevant small business size standard applicable to the requirement. The RDT determined that the solicitation bundles requirements such that the aggregate dollar value is too large for a small business to handle.

Additionally, the RDT determined that the geographically dispersed requirements would be too difficult for a small business to perform.

In the current environment, the ITPO plans to issue a solicitation for a wide range of application and platform support services to be provided to all NASA centers and facilities.

The NASA ITPO, in conjunction with NASA OCIO, envisions this procurement as part of an overall effort to realign support services throughout the agency to reduce costs to the agency through increased efficiencies. Currently, each NASA Center purchases these services from one or more contractors on a firm-fixed-price or Cost Plus basis. These organizations independently purchase the same items from different contractors without any coordination.

Driven by the need to streamline agency operations, the ITPO proposes that consolidating requirements with a single source will reduce costs to the agency.

The results of market research reveal that the agency may achieve significant price reductions if it consolidates its applications and platform support services requirements across all NASA centers and facilities. Price reductions are likely, because contractors will be motivated to offer a more competitive bid given the larger volume of requirements and 8-year contract

2. ☒ Evaluation of offerors’ small business subcontracting commitment as a part of the evaluation criteria, NFS 1815.304(c)(4)(C).

III. Substantial Bundling

A. Describe the specific benefits anticipated to be derived from planned substantial bundling.

The Government sought to determine whether the estimated benefits are sufficiently substantial to warrant proceeding with the proposed acquisition strategy. Having a single point of contact provides for better communication, coordination, and continuity of support. This also tends to improve quality because there is less chance for confusion and errors when interfacing with one contact rather than multiple contacts. The team noted that administrative savings account for almost half of the savings under the proposed strategy, but because the contracting officer determined the savings to be substantial, the acquisition strategy team elected to proceed with the proposed strategy.

The bundling of all OCIO IT Software development support into one contract vehicle will drive efficiencies. Currently there are multiple requirements duplicated in every contract that will be consolidated when all activities are included in one contract vehicle. The costs for functions like Help Desk and Project Management will be reduced by having the requirements for all Centers included in one contract vehicle.

The consolidation into one contract will also drive standardization in processes, which will also result in efficiencies.

Having all the OCIO software development work under one contract will also provide the benefit of shared resources. Currently, when high priority projects receive approval, contractors may have a difficult time finding resources to work such projects. Having all software development under one contract will enable the Government to prioritize software development work across NASA and free up resources to accomplish the higher priority work.

B. Provide an assessment of the specific impediments to participation by small business concerns as contractors that result from the planned substantial bundling.

The overall management of a single, agency wide application and platform services contract is likely beyond the capability of a small business due to the size and complexity of the requirements. The specific impact would be that a small business would not likely be a prime contractor on the NCAPS requirement. In addition, small business participation in application and platform services could diminish across the centers.

C. Describe the actions designed to maximize small business participation as contractors, including provisions that encourage small business teaming.

To ensure that all prospective small businesses and small business teams understand the nature of the requirements, understand the solicitation provisions for enhanced small business subcontracting, and have an opportunity to share their capabilities with prospective prime contractors, the agency intends to schedule a combined prime contractor and subcontractor virtual Industry Day for NCAPS. In addition, the NCAPS Industry Day will promote possible teaming arrangements for the NCAPS requirement. If warranted, the team will revise the RFP to incorporate some of the suggestions from participants at the Industry Day event. All participants will be provided with a list of the business firms represented at the Industry Day which will include points of contact for each firm. Time will be given to allow networking and matchmaking among firms.

Additionally, the RFP has removed requirements that contractors and contractor management maintain a physical presence at each individual center and other geographic restrictions that limit small business participation. The RFP provides additional time for preparing the proposal beyond the historical 30 days that has commonly been the response date.

D. Describe the actions designed to maximize small business participation as subcontractors (including suppliers) at any tier under the contract, or order that may be awarded to meet the requirements.

The small business participation plan was constructed to utilize mandatory minimum small business subcontracting provisions and incentives to encourage the successful contract recipient to, at a minimum, retain the current level of participation by small business subcontractors. The Mission Suitability evaluation criteria, within the NCAPS RFP, allocates 100 out of a possible1000 points to Small Business Utilization (SBU). The solicitation will contain FAR clause 52.219-9—Alternate II, “Small Business Subcontracting Plan” requiring all other than small businesses to submit a small business subcontracting plan with their initial proposals. The Plan described and required by the clause, including the associated subcontracting percentage goals and subcontracting dollars, shall be submitted with the offeror’s proposal. The Plan that the Offeror submits with its proposal shall be incorporated in the resulting contract.

The Offeror shall provide rationale for any proposed goal and demonstrate their proposed approach as to how they determined that the proposed goals are reasonable and achievable. If no goals are proposed, then the Offeror shall provide an explanation as to why no subcontracting opportunities exist and shall provide a detailed explanation to address how the Offeror will achieve small business participation. In addition, if an offeror does not propose a goal for a small business category, the Offeror shall describe the efforts made to establish a goal for that category and what ongoing efforts the Offeror plans during contract performance to increase participation in that category.

In addition to the Small Business Utilization (SBU) portion of the NCAPS RFP, there will be a section devoted to responses from Offerors for commitment to the Small Business Program. All Offerors must briefly describe the work that small businesses will perform to meet the stated requirements. Proposals shall also identify any work to be subcontracted that is considered “High Technology.” “High Technology” is defined as research and development efforts that are within or advance the state-of-the-art in technology discipline and are performed primarily by professional engineers, scientists, and highly skilled and trained technicians or specialists. If the subcontractor(s) is known, Offerors shall describe the work that each subcontractor will perform and specify the extent of commitment to use the subcontractor(s) (enforceable vs. non-enforceable commitments). (Small Business Offerors shall provide this information to the extent that subcontracting opportunities exist in their approach to performing the requirement.) All Offerors shall provide information demonstrating the extent of commitment to utilize small business concerns and to support their development. Information provided shall include a brief description of established or planned procedures and organizational structure for Small Business outreach, assistance, counseling, market research and Small Business identification, and relevant purchasing procedures. (For Other than Small Business Offerors, this information shall conform to applicable portions of the submitted Small Business Subcontracting Plan.) Offeror’s shall provide a description of their planned participation in the NASA Mentor Protégé Program. The NASA Mentor-Protégé Program is designed to incentivize NASA large prime contractors to assist a Small Disadvantaged Business, a Women-Owned Small Business, a HUBZone Small Business, a Veteran-Owned or Service-Disabled Veteran-Owned Small Business, or Historically Black College and University/Minority Serving Institution in enhancing their capabilities to perform NASA contracts and subcontracts, foster the establishment of long-term business relationships between these entities and NASA large prime contractors, and increase the overall number of these entities that receive NASA contract and subcontract awards.

The SEB has structured full and open solicitation and evaluation criteria that encourage teaming with small businesses and aggressive small business subcontracting. The SEB will make a concerted effort to communicate the small business plan at Industry Day and reiterate that the plan was to craft a small business action plan that ensured significant small business participation at the first-tier and lower levels of subcontracting. The small business bundled scope represents approximately on an annual basis across all of the current contracts containing applications and platform services. Although it is unlikely that there will be a small business prime contractor, ambitious small business goals in the low 30 percent range phased plan to transform all mission support functional areas from their current state to an enterprise architecture.

A third alternative would divide the performance area into six regions and require separate solicitations and awards for each of the regions. This alternative would involve bundling, but it would be to a lesser degree than under the current proposed strategy. This would offer more potential to local firms, but it would not provide the desired reduction in inconsistencies and inefficiencies that would result from the use of a single agency-wide contract. Again, it would also conflict with goals of FITARA and will not meet the BSA and MAP goals to implement a phased plan to transform all mission support functional areas from their current state to an enterprise architecture.

IV. Determination

In accordance with the section II. Justification, above, it has been determined that the anticipated benefits of the proposed bundled contract(s) justifies its use. This written determination demonstrates that the bundling is necessary and justified.