A16_JOFOC_Sole_Source_Justification_FHFA_Data_Center_Co-location_1.pdf

United States Department of the Interior

INTERIOR BUSINESS CENTER

Washington, DC 20240

SOLE SOURCE JUSTIFICATION

SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901

Solicitation 140D0424Q0257

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Sole Source Justification.”

This document is a Sole Source Justification for the Department of the Interior (DOI), Interior Business Center (IBC), Acquisition Services Directorate (AQD), Division II Branch II on behalf of the Federal Housing Finance Agency (FHFA).

2. Nature and/or description of the action being approved.

This proposed action is a limited-sources Task Order award to HII Mission Technologies Corp.

(HII MTC) in accordance with FAR 8.405-6(a) which includes an open market component which is hereby justified in accordance with FAR 13.501(a) sole source acquisitions. The contractor has been providing this service to FHFA for ten years on the current Task Order (D14PD00447) parent contract number GS00Q09BGD0036, which was competed and awarded off General Services Administration (GSA) Alliant Governmentwide Acquisition Contract (GWAC) and expires April 30, 2024. The Alliant ordering guide requires that performance on all Task Orders issued under the GWAC be completed by April 30, 2024. Therefore, the Alliant GWAC cannot be used for any new work. Task Order D14PD00447 was competed using full and open competition and awarded to NTT Data Federal Services, Inc., which was later novated to HII

MTC).

HII MTC will receive a short-term limited sources Task Order issued off their GSA MAS contract number 47QTCA18D008U which covers the labor portion of the short-term Task Order.

A limited source justification was previously prepared and approved for this action in accordance with FAR 8.405-6(a)(1)(i)(B). In addition to the labor, HII MTC is teaming with their existing Data Center Facility vendor, NTT Americas, to offer a best value solution for FHFA based on their experience and understanding of the FHFA requirements. This portion of the Task Order is considered an open market item in accordance with GSA MAS ordering procedures. This sole source justification covers the open market portion of this Task Order. The award will include an eight (8) month base period and a four (4) month option period covering a total period of performance of up to one (1) year from May 1, 2024 to April 30, 2025.

3. A description of supplies or services required to meet the agency’s needs (including the estimated value).

FHFA requires a data center co-location space and services for its alternate operational hardware.

Specifically, it includes secure cage space and necessary data center physical facilities such as power, connectivity, Computer Room Air Conditioning (CRAC), and other amenities that will support the co-location of Government-owned equipment in a contractor’s data center facility.

Paramount to this effort is the Contractor’s demonstrated ability to mitigate risks associated with service degradation and interruption during performance. Only support required to maintain current FHFA program needs will be provided under this award.

This up to one (1) year effort is being requested to avoid any interruption in service while HII MTC completes the transition under the new Task Order for these services on behalf of FHFA.

The new competitive Task Order was awarded on March 21, 2024, and will contain a transition period to move the data center to a new location with actual data center support anticipated to begin approximately October 1, 2024. This short-term limited sources/sole source effort will be fully funded as an eight (8) month base period, with the option of an additional four (4) month period which can be exercised and fully funded if needed.

The anticipated cost of these services is (including a option) which includes the GSA schedule portion and the open market portion for one year until April 30, 2025.

The open market portion for this sole source is anticipated to cost $ (including a $ option).

4. An identification of the statutory authority permitting sole source acquisition.

The open market portion of this acquisition is conducted under the authority of the Simplified Procedures for Certain Commercial Items. The statutory authority permitting sole source acquisition is 41 U.S.C 1901 as implemented by FAR 13.501(a)(1)(ii).

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The current Task Order expires on April 30, 2024 and a new Task Order was recently awarded that will begin May 1, 2024. The new Task Order requires, at a minimum, 8 months of transition to a new facility. To ensure that the client’s needs are met during this time, it is necessary to award a short-term limited sources/sole source award to maintain continuity of services. As FHFA requires continuous support during this time, it is not feasible for another Contractor to provide these services. The sole source portion of this award will allow FHFA to maintain use of their existing data center facility and provide the necessary time for FHFA to complete the move to the new facility. Therefore, this short-term Task Order is being awarded for a total of one year (eight month base and a four month option if needed) to accommodate the relocation timeline. A delay in executing this award to maintain support for these services would be detrimental to the mission of FHFA and would result in a gap in service as no data center would be available to support FHFA’s information technology needs.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Notice of Intent to Sole Source was posted to the System for Award Management (SAM) on April 10, 2024 with responses due April 15, 2024. No responses were received.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer anticipates that the price will be fair and reasonable based on the prior acquisition history and available commercial pricing data. A final determination of price reasonableness will be made prior to award.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

In addition to the Notice of Intent to Sole Source, Market research included an analysis of previous procurement history for these services.

Market research conducted indicated that HII MTC was the only vendor capable of performing these services due to their status as the current awardee of FHFA’s Data Center Colocation Services. HII MTC has a GSA Schedule Contract 47QTCA18D008U, which is current through March 19, 2028. A quote was requested from HII MTC for the short-term limited sources Task Order. The data center space portion of the quote was listed as an open market item, therefore a sole source justification is required in accordance with FAR 13.501(a). No further market research was conducted as HII MTC is the only vendor who can support this work at this time.

9. Any other facts supporting the use of other than full and open competition.

Not Applicable

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

No responses to the Notice of Intent to Sole Source were received.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

AQD recently competed and awarded a new 10-year Task Order for these services which will begin on May 1, 2024.