Clean_JA_14-T-0025_signed.pdf

Title of Effort: Maintenance and Operation of the DoD PCOLS DM and RA applications.

Reference Number: 831403396

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

FAR Part 6 Justification, Supporting Procurements under

FAR Part 12, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: 831403396

Contract Number: To Be Determined

Task/Delivery Order Number: Not Applicable

Procurement Title: Maintenance and Operation of the DoD Purchase Card On-Line System

(PCOLS) Data Mining (DM) and Risk Assessment (RA) applications.

Contracting Office: Defense Information Systems Agency (DISA), Defense Information

Technology Contracting Organization (DITCO), Non-DISA Services and Mission Support

Section (PL8312)

Estimated Value: $594,221.82

Statutory Authority: Section 4202 of the Clinger-Cohen Act of 1996 or 41 U.S.C. 428a, Services

Acquisition Reform Act of 2003

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Upon the basis of the following justification, I, as Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of FAR Subpart 6.302-1 -- Only One Responsible Source and No Other Supplies or Services

Will Satisfy Agency Requirements and Statutory Authority Section 4202 of the Clinger-Cohen

Act of 1996 or 41 U.S.C. 428a, Services Acquisition Reform Act of 2003.

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

Office of the Under Secretary of Defense (OUSD) Acquisition Technology and Logistics

(AT&L) Defense Procurement Acquisition and Policy (DPAP) Program Development and Implementation (PDI) Purchase Card Policy Office (PCPO)

3060 Defense Pentagon

Washington, D.C. 20301-3060

b. Contracting Office

DISA/DITCO/PL8312

2300 East Drive

Scott Air Force Base, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to issue a bridge contract to continue the current firm-fixed price (FFP) Navy contract N00189-13-C-Z083 awarded originally to HNC Software, LLC (HNC), a large business. The current contract is for OUSD/AT&L/DPAP/PCPO

DM sustainment services and currently expires on February 28, 2014. These services include, but are not limited to: program/project management, production support; and

Department of Defense (DoD) information assurance certification and accreditation process (DIACAP).

b. The recommendation is to issue a bridge contract for a base period of March 1, 2014 through March 31, 2014, followed by five one-month option periods: April 1 through

April 30, May 1 through May 31, June 1 through June 30, July 1 through July 31, and

August 1 through August 30 of 2014. The estimated value for the six months of the contract is $594,221.82. This action will be completed using fiscal year 2014 Operations and Maintenance funding.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The contractor will continue to provide the required maintenance and operation support services for the PCOLS DM/RA applications currently under contract N00189-13-C-

Z083. The contract includes all necessary management, supervision, manpower, transportation, materials, supplies, and equipment to provide for uninterrupted services of an electronic DoD specific rule-based surveillance system for the PCOLS DM/RA applications of DoD purchase card transactions. The current contract covers the period of performance (PoP) of September 1, 2013 through February 28, 2014, which was issued by the Naval Supply System Command (NAVSUP) Fleet Logistics Center Norfolk, Philadelphia Office.

b. This is a request to award a sole source contract to continue the period of performance in order to allow time for award of a follow-on contract.

These support services are required as follows:

Period of Performance Total Labor

Base Period March 1, 2014 through March 31, 2014 $99,036.97

Option Period 1 April 1, 2014 through April 30, 2014 $99,036.97

Option Period 2 May 1, 2014 through May 31, 2014 $99,036.97

Option Period 3 June 1, 2014 through June 30, 2014 $99,036.97

Option Period 4 July 1, 2014 through July 31, 2014 $99,036.97

Option Period 5 August 1, 2014 through August 30, 2014 $99,036.97

Total March 1, 2014 through August 30, 2014 $594,221.82

4. IDENTIFICATION OF STATUTORY AUTHORITY: Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c)(1). (FAR 6.302-

1/DFARS 206.302-1)

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

(1) Eight offers were received on the original PCOLS DM/RA requirement that was awarded using full and open competition procedures for a base year plus four option years under contract N00189-07-C-Z058. This award was made based on best value tradeoff source selection procedures. Before expiration, a bridge contract was put in place for six months in order to award a follow-on contract. However, due to sequestration and civilian furloughs, the follow-on was not completed in time. Thus, this bridge is being awarded in order to complete the follow-on contract, which is currently in the evaluation phase.

(b) Justification:

(1) Minimum Government requirements. The Government requires the DoD PCOLS

DM/RA applications to meet Public Law (PL) 112-194 requirements to electronically transmit and review all transactions of each purchase card against DoD specific rules to identify potential fraud, waste, misuse and/or abuse of the purchase card. The applications are also required to identify supervisor user roles in PCOLS to take action(s) as necessary to recover the costs of illegal, improper, or erroneous purchases.

(2) Proposed sole source contractor. The incumbent contractor, HNC, is the only contractor that can meet these requirements in the required timeframe, which will avert mission impact to the PCOLS DM/RA applications supporting all DoD purchase card holders. This extension will ensure continuity of operations until the currently in-progress action for the competitive follow-on contract can be awarded.

(3) Discussion regarding cause of the sole source situation. The existing contract period of performance ends February 28, 2014. Despite best efforts, the follow-on competitive contract is not expected to be complete until approximately March 2014.

Additionally, transition time is necessary in the event a new contractor is determined to provide the best value to the Government. Sequestration-driven cost reductions combined with multiple personnel furloughs throughout 2013, resulted in a schedule delay.

(4) Demonstration of unique source. This effort requires highly specialized, multi-disciplinary knowledge and the need for staff to be available immediately to continue support operations. Due to the mission impact described below, a lapse in service is not an option for the Government. The use of any other contractor other than the incumbent, HNC, would result in significant delays in filling positions and threaten the ability to provide an acceptable level of support. While other contractors may have similar skill sets, no other contractor’s staff could immediately take-over/continue the services to meet the current and ongoing efforts without a major legal and financial risk and impact to the supporting DoD Purchase Card Mission.

The transition period must account for the months it takes to replace CAC cards, re-issue workstations, acquire system access, network account set-ups, security training, and accreditation, in addition to the impact of a steep learning curve. In addition, the exigencies, which may arise in the contracting process must be taken into account.

The estimated lead time for a new full and open, open market formal source selection is 6-8 months. If this extension is not approved, the supported organization will have mission failure. For these reasons, the work is a logical follow-on in the interests of economy and efficiency.

(5) Procurement discussion. This extension is required and intended only to span the time between the expiration of the current contract and the beginning of the new, competitively-award contract. The new contract is expected to begin March 31, 2014 or earlier, and upon completion of the new contract, any additional remaining option periods of this extension will not be exercised. The proposals for this competitive follow-on effort are currently under evaluation, based on a best value tradeoff source selection. The use of any other contractor other than the incumbent, HNC, would result in significant delays in filling positions and threaten the ability to provide an acceptable level of support. The current contractor has been performing the contracted duties at an acceptable level for over six years. Staffing is already in place to continue this effort for the duration of the extension without any delay in service.

This method represents the best value to the Government in order to allow sufficient time for a competitive follow-on.

(6) Impact: By not awarding a sole source bridge contract to the current contractor, HNC, the Government faces the threat of significant financial harm due to the loss of electronic surveillance of each purchase transaction to identify illegal, improper, or erroneous transactions and the attendant ability to recover monies. During the first quarter of FY 14, DoD had over 88,000 purchase cards with over $944M in purchases. The 2 nd

– 4 th

Quarters of FY 14 purchase card purchases are expected to be much higher due to the sequestration in the first quarter of FY 14 that resulted in personnel furloughs and lack of funding to process purchase card purchases. Any alternations to change the existing contractor will result in all new certifications that will create a complete disruption in data mining and purchase card reporting that will be harmful to the Government in cost and time of at least over 30 days to approximately over 88,000 cardholders, over 48,000 Approving/Billing Officials-

Certifying Officers, 1,700 Level 3/4 Agency/Program Coordinators, 25 Senior Level

Program Managers, and over 20 information technology program professionals for re-accreditation with at a minimum of 30-days training on a new system. In addition, the

Government faces the threat of significant mission impairment if a lapse in contract coverage causes the loss of electronic surveillance for purchase transactions. PL 112-

194, the “Government Charge Card Abuse Prevention Act of 2012” requires compliance surveillance thus a lapse in coverage would also cause a statutory breach.

Disruption of service to the Government in purchase and contingency missions around the world would be sensed; and purchase card support to the President United

States is also part the program.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A notice of intent to award this sole source action was published on the FedBizOpps (FBO) website on January 23, 2014, as required by the Federal Acquisition Regulation (FAR) in accordance with Subpart 5.2. The notice closed on January 30, 2014. The synopsis completely identifies the Government’s minimum mandatory requirements. No replies or interest were generated in response to the notice, indicating that no other firms possess the capability to perform this requirement.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The Contracting Officer (KO) will determine that this contract represents the best value (as defined in FAR 2.101) to meet the Government's needs. The technical team will perform an evaluation of the offeror’s price proposals based on a best value tradeoff evaluation. Certified cost and price data is not required for this commercial item acquisition in accordance with FAR

15.403-1(b)(3). The KO will determine whether the prices for each individual requirement are fair and reasonable based on one, or a combination, of the following:

a. Comparison of the proposed prices to historical and existing prices paid by the

Government for the same or similar items. The KO will conclude the prior price was valid for comparison.

b. Comparison with competitive published price list, published market prices of the same commodities.

c. Comparison of proposed prices with the Independent Government Cost Estimate.

8. MARKET RESEARCH:

a. In accordance with FAR Part 10, market research has been conducted for this acquisition.

The OUSD/AT&L/DPAP/PCPO Contracting Officer’s Representative (COR) performed a formal analysis of the market through GSA Advantage, and historical contract cost in

February 2012, and again in May 2013. It has been determined through market research and market analysis that the follow-on effort can be obtained for the above requirement using a full and open method on the open market. However, the only way to avoid a lapse in service while a competitive contract is being completed is to award a new, short-term contract to

HNC.

b. Additionally, DISA/DITCO/PL8312 issued a Request for Information (RFI) in October

2011, which resulted in nine responses. An amendment to the RFI was issued in March 2012, in which seven responses were received. Additionally, a sources sought notice for small business interest was posted in April 2013. Five responses were received; however none found to be capable of performing the entire effort based on their response to the sources sought notice. Based on the results of it was determined to issue a full and open competitive

Request for Proposal (RFP) #HC1028-13-R-0039.

9. ANY OTHER SUPPORTING FACTS:

In addition to the financial impact, and the impact on time as described above, without the execution of this bridge contract, the Government would face a breach of the PL 112-194. A breach of this nature requires, among other things, mandatory reporting to the Office of

Management and Budget and Congress, which cannot be accomplished, absent the services procured on the existing contract.

10. LISTING OF INTERESTED SOURCES:

None.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION.

(a) Procurement History.

1. Contract Number: N00189-07-C-Z058

Contractor: HNC, 3661 Valley Centre Drive, San Diego, CA 92130-3317

Contract Value: Total estimate for contract value (if all options periods exercised) is

$7,890,034.82. Total for Base period is: $3,516,875.05

Effective Date: July 27, 2007

Period of Performance: Base period for date of award for a period of 12 months thereafter with four option years for a total of 60 months.

Contract Type: Development/testing and fielding of DM (CPFF) and Firm-Fixed

Price (FFP) for other items and reimbursement for Travel

Objective: Data Mining of purchase card transactions

2. Contract Number: N00189-13-C-Z083

Contractor: HNC, 3661 Valley Centre Drive, San Diego, CA 92130-3317

Contract Value: Total estimate for contract value (if all options periods exercised) is

$7,890,034.82. Total for Base period is: $3,516,875.05

Effective Date: July 27, 2007

Period of Performance: Base period for date of award for a period of 12 months thereafter with four option years for a total of 60 months.

Contract Type: Development/testing and fielding of DM (CPFF) and Firm-Fixed

Price (FFP) for other items and reimbursement for Travel

Objective: Data Mining of purchase card transactions

(b) This action is for a short-term follow-on contract only. The Government is currently evaluating proposals for a new competitive acquisition to continue these services.

Actions are being taken to increase competition via use of a competitive RFP on the open market, estimated to be awarded by the end of March 2014. Delays in the re-compete process have been incurred due to fund sequestration and multiple personnel furloughs throughout 2013. Market research was conducted at the time of the initial award and has also been conducted in support of the anticipated new contract as described above.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

An acquisition plan is not required for this solicitation.

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Chris Webster SIGNATURE:

TITLE/ORGANIZATION: Program Manager/PDI/PCPO

PHONE: 571-338-9749

DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: LeAntha Sumpter SIGNATURE:

TITLE/ORGANIZATION: Deputy Director/Program Development and Implementation

(PDI)/Purchase Card Policy Office (PCPO)

PHONE: 703-697-4453

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief. Since this effort exceeds $150K but does not exceed $650K, this certification serves as APPROVAL.

NAME: Tara D. Schmitt SIGNATURE:

TITLE/ORGANIZATION: Contracting Officer/DISA/DITCO/PL8312

PHONE: 618-229-9485

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Tim

Ranz, 618-229-9470, timothy.d.ranz.civ@mail.mil.

Tara.Schmitt Typewritten Text January 30, 2014

Tara.Schmitt Typewritten Text January 30, 2014

Tara.Schmitt Typewritten Text January 30, 2014