A04 Justification and Approval 13.5 23 April 2024 Final.pdf

CUI

CUI

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

April 23, 2024

Control No. 2024-WHS-1074

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION FAR (FAR) 13.5

1. AGENCY AND CONTRACTING ACTIVITY: The Department of Defense, Washington Headquarters Services, Acquisition Directorate (WHS/AD), on behalf of the Office of the Department of Defense (DoD) Chief Information Officer (CIO).

2. DESCRIPTION OF ACTION: CIO has a continuing need for Enterprise Architecture and Technical Support Services provided under task order no. HQ0034-19-F-0255, which was issued as a sole source task order using a firm fixed price structure to the incumbent, “Leidos” Innovative Corporation. The current Task Order expires on April 30, 2024, and the Government intends to award a sole source bridge to Leidos, without using full and open competition, for continuity of services while the Government works to award a competitive, long-term follow-on contract. This action continues providing required services to support the DOD CIO in all matters relating to information and the DoD information environment including network operations, information systems, information assurance (IA), defensive cyber security, and cyber workforce development. The bridge contract will be awarded as a Firm Fixed Price (FFP) contract type with a total estimated value of $2,656,612.80. The period of performance will be from May 1, 2024 to August 30, 2024, with one 2-month option. WHS/AD proposes to issue a bridge contract for an extension of services using FFP structure, to the incumbent, Leidos Innovative Corporation without using full and open competition.

3. DESCRIPTION OF SUPPLIES/SERVICES: To accomplish the DOD CIO objective’s the Government seeks to obtain the necessary non-personal support services to realize the DOD Information Enterprise, Cybersecurity (CS) and Information Technology (IT) Enterprise goals – increase mission effectiveness, improve cyber security, and deliver efficiencies. This task order will be established to fulfill the DOD CIO requirement for comprehensive IE and CS support services in areas such as defining strategies and policies, establishing enterprise architecture and standards, engaging with information capability providers, operators, & users, and assuring the planned and existing information environment.

Controlled by: Washington Headquarters Services

Controlled by: Acquisition Directorate CUI Category: CUI

Limited Distribution/Dissemination Control: FEDCON

POC: Aubrey McKinney, 571-992-4500

The performance requirements for this task order are delineated in the following three increments – general performance requirements, specific performance requirements, and special performance requirements.

The Period of Performance will consist of a four (4) month base period with one two (2) month option period for a total estimated dollar value of $2,656,612.80 as shown in the following table.

Performance

Periods Performance Period Dates Amount

Base Period 01 May 2024 – 30 August 2024 $1,792,448.00

Option Period 01 September 2024 – 30 October 2024 $864,164.80

Base + Option 01 May 2024 – 30 October 2024 $2,656,612.80

4. AUTHORITY CITED: This action is under the procedures of Federal Acquisition

Regulation (FAR) 13.5 under the authority of:

☒41 U.S.C. 1901, Simplified Acquisition Procedures ☐41 U.S.C. 1903, Special Emergency Procurement Authority

This action is authorized under provisions of FAR 13.501(a), “Sole source (including brand name) acquisitions”. DoD CIO requires continued, support from the incumbent in order to fulfill its requirement for Enterprise Architecture and Technical Support Services while working the long-term effort. If not, the Government would experience unacceptable delays in providing the necessary support for DoD CIO as further listed below.

REASON FOR AUTHORITY CITED: Failure to extend these services and losing the support and expertise of the DoD CIO Enterprise Architecture and Services contract team would result in significant delays that would derail or halt progress on this effort. These delays would impact efforts involving 1) assessing and validating architectures of the standards and technical profiles goals, 2) providing an enterprise standards governance body that collaborates and recommends common enterprise standards, profiles, and specifications for the respective DoD and Intelligence community (IC) information environments.

The incumbent is currently within the environment to provide to necessary personnel with the required Top-Secret clearance with SCI access, trained on the required processes, procedures, and regulations and possess the technical acumen to meet DoD CIO requirements for this short time period. To compete this requirement at this time would cause unacceptable delays in fulfilling DOD CIO requirements and substantial duplication of cost to the Government of estimated $1.2 Million (see the cost breakout below) that is not expected to be recovered through competition. A new vendor would have a significant learning curve of at least 2-months to fundamentally understand the work progress made by the incumbent and the delays in hiring the appropriate staff with the appropriate security clearance.

The Government would incur significant onboarding, training, and knowledge transfer costs in order to reach the current incumbent's level of expertise. We estimate the following cost breakdown:

• Onboarding and Training: $100,000 (based on average time to fill 15 positions with necessary clearances, estimated hours of training, opportunity cost during the learning curve period).

• Knowledge Transfer: $100,000 (based on estimated hours required for current staff to document work and transfer knowledge).

• Opportunity Cost of Delays: $1,000,000 (based on financial risk due to delayed JIE capabilities, including the Joint Operational Edge (JOE) Cloud capabilities for USEUCOM and USINDOPACOM). The legacy datacenters used by the combatant commands are expensive to operate and delaying the Initial Operating Capability of the replacement capability will have significant non-recoverable costs.

Based on the cost breakout above it is essential for the mission accomplishment of providing support to the a the full range of statutory and regulatory matters for Defense-wide architectures, services, data, standards and technical profiles.

A gap in support will threaten the DoD mission and national security and standing within the world. This extension of services will allow work to continue while proposals are evaluated, and a new task order is awarded. This extension will also allow for a phase-in of a new vendor, if necessary, when the new task order is awarded.

5. EFFORTS TO OBTAIN COMPETITION: On March 28, 2024, WHS/AD issued a Notice of Intent (NOI) to Sole Source on SAM.gov. The NOI was posted for 10 days and closed on April 6, 2024. No feedback or responses were received from industry in response to the NOI.

6. FAIR AND REASONABLE COST DETERMINATION: The Contracting Officer determines that the anticipated prices will be fair and reasonable by using the techniques identified at FAR 15.404-1, “Proposal Analysis Techniques” to ensure award will be at fair and reasonable prices. In addition, the Government will compare proposed prices set forth by Leidos to historical prices paid by the Government under the current contract, HQ0034-19-F-0255. The Government will also compare proposed prices with the Independent Government Cost Estimate (IGCE) prepared for the bridge contract.

7. MARKET RESEARCH: Market Research has been limited to the Notice of Intent (NOI) to sole source this action and was posted on SAM.gov as described in paragraph 5, above.

WHS/AD will solicit this effort as a 4-month base and one 2-month option period, sole source bridge contract to Leidos in order to maintain continuity of support being provided to DoD CIO. The bridge contract is the most efficient and logical strategy and solution to the Government in order to avoid unacceptable delays in fulfilling the agency’s requirement and a potential gap in performance of critical services to DoD CIO.

8. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: Due to the irreparable damage that may result to DoD CIO’s mission should services be interrupted, a sole source contract will be negotiated with Leidos. Leidos as been critically instrumental to the success and continuation of DoD CIO’s mission.

9. INTERESTED SOURCES: The synopsis / NOI posted on SAM.gov did not receive any interest, feedback, or challenges from other sources.

10. ACTIONS TO INCREASE COMPETITION: WHS/AD is actively working with CIO in the new effort undergoing a competitive source selection process. This procurement is for a long-term follow-on contract, and intends to award the follow-on contract by third quarter FY24.

Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis?

☐ Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification ☐ were ☐ were not completed [Must include explanation of why the answer is “no”].

X No. The original acquisition was conducted on a competitive basis.

☐ Not Applicable. This is a new requirement.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Contracting Officer’s Representative/Program Office Date

APPROVAL

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Aubrey J. McKinney, Contracting Officer Date

This justification is approved.

David H. Kao, Competition Advocate Date