AFNWC-2023-0405-1-MS3 Consolidation.pdf

Consolidation of Requirements -- Determinations and Findings

Program: Management and Staff Support Services (MS3)

F I N D I N G S

In accordance with the definition provided at FAR 2.101, “Consolidation or consolidated requirement” means a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy—

(i) Two or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or

(ii) Requirements of the Federal agency for construction projects to be performed at two or more discrete sites.

While FAR 7.107-2(a) recognizes consolidating requirements may provide substantial benefits to the Government, further account is given to the potential negative impact upon small business participation. Accordingly, before actions are taken by an agency to consolidate requirements under a subsequent solicitation and/or contract award, accompanied by an estimated total dollar value exceeding $2 million, a written determination is required. IAW AFFARS 5307.107-2(a) – Consolidation, the Senior Contracting Official (SCO) is the authority to make the consolidation determination for actions exceeding $2 million.

Requirements: The organization below proposes to solicit a consolidation of the following listed requirements:

The Air Force Nuclear Weapons Center’s Nuclear Enterprise Contracting Support Branch (AFNWC/PZNK) has previously procured “Staff Support Services” and “Management Support Services” (previously known as “Programs Support Services”) under separate contracts which are now subject to consolidation under a single solicitation. The “Staff Support Services” contracts have historically supported five (5) offices located at the AFNWC’s headquarters location at Kirtland Air Force Base (KAFB) near Albuquerque, New Mexico. These offices include the Financial Management Directorate (AFNWC/FMS) and the Deputy Program Executive Officer for Strategic Systems (AFNWC/SS). Specialized support provided under “Staff Support Services” has consisted of program management, business/financial management, and administrative support services. The “Management Support Services” contracts have historically supported the AFNWC’s Program Execution Group (PEG) and Commander’s Action Group (CAG) located at KAFB. Support under the “Management Support Services” contracts has been comprised of program management, business management, schedule analysis, Department of Defense acquisition and administrative support services. The similarities between the types of support provided under these separate efforts drove consideration for a consolidated effort for management and staff support services for the AFNWC headquarters location.

The consolidated effort is expected to consist of a year-long base period and two (2) year-long option periods. The total anticipated value of the base and both options is . These requirements have been previously purchased through a combined four (4) contracts. To provide relevant comparison of historic values to the Government’s estimated value for a consolidated effort, this document focuses on the most current 12-month price for each current contract in comparison to the estimated value for the first 12-months of the anticipated consolidated effort. The most current 12-month period for the current efforts is the same timeframe: 01 May 2022 – 30 April 2023.

The first 12-months of the consolidated effort are expected to be 01 May 2023 – 30 April 2024.

Provided below are dollar values associated with the historical efforts. Specifically, provided is the most current 12-month price for each current contract.

Staff Support Services, firm-fixed-price amount 01 May 2022 – 30 April 2023: $1,227,508.00 Management Support Services, firm-fixed-price amount 01 May 2022 – 30 April 2023: $643,638.00

For comparison purposes, the Government’s estimated value for the first 12-months of the anticipated consolidated effort, MS3, is provided below.

Government Estimated firm-fixed-price amount for MS3 01 May 2023 – 30 April 2024:

The Government estimate was prepared independently of previous estimates and proposals for historical efforts.

Indeed, the estimate was constructed by researching salaries with a locality of Albuquerque, New Mexico, utilizing online tools like salary.com, for comparable positions. Despite escalation, the anticipated first year amount for MS3 is lower than the $1,871,146.00 ($1,227,508.00 + $643,638.00) being paid for the current 12-month period of both the “Staff Support Services” and “Management Support Services” efforts. This reduction in estimated cost is the result of the anticipated consolidation of duplicate tasks that are currently performed by the contractor for each stand-alone effort. Specifically, each stand-alone effort has tasks, requirements, and CDRLs, which under this planned consolidation can be combined into single occurrence thereby reducing effort and resultant cost of that effort.

Background: Both the “Staff Support Services” and “Management Support Services” requirements have previously been acquired as sole source awards under the 8(a) Program pursuant to FAR 6.302-5(b)(4). Particulars regarding the previously awarded contracts are provided below:

Contracting Office: AFNWC/PZNK Contractor (if applicable): Galactic Network Integrators, Inc, 3620 Wyoming Blvd NE, Albuquerque, NM 87117-3297 Contract Number / Est Total ($) Value (if applicable): FA2360-17-C-8028, $1,850,460.40 Requirement Title: Programs Support Services (PSS) Total Period of Performance: 29 September through 28 September 2020

Contracting Office: AFNWC/PZNK Contractor (if applicable): Montech Inc, 2109 Airpark Road SE-110, Albuquerque, NM 87106-3233 Contract Number / Est Total ($) Value (if applicable): FA9422-19-C-5014, $3,877,874.00 Requirement Title: Staff Support Services (S3) Total Period of Performance: 15 August 2019 through 30 April 2022

Contracting Office: AFNWC/PZNK Contractor (if applicable): Montech Inc, 2109 Airpark Road SE-110, Albuquerque, NM 87106-3233 Contract Number / Est Total ($) Value (if applicable): FA9422-20-C-5012, $1,627,618.00 Requirement Title: Management Support Services (MSS) Total Period of Performance: 01 October 2020 through 30 April 2023

Contracting Office: AFNWC/PZNK Contractor (if applicable): Montech Inc, 2109 Airpark Road SE-110, Albuquerque, NM 87106-3233 Contract Number / Est Total ($) Value (if applicable): FA9422-22-C-0001 Requirement Title: Staff Support Services 2.0 (S3 2.0) Total Period of Performance: 01 May 2022 through 30 April 2023

All of the above referenced contracts within the “Staff Support Services” and “Management Support Services” requirement portfolio were the result of a direct award to an 8(a) firm. As such these requirements have only been performed by 8(a) small businesses. Of note, Montech Inc has served as the contractor on three (3) of the four (4) historic awards. Due to the concurrent performance periods of this portfolio, Montech Inc has demonstrated that a single 8(a) firm can successfully perform both the “Staff Support Services” and “Management Support Services.”

On 03 November 2022, a Sources Sought posting was made to both SAM.gov and to the General Services Administration’s One Acquisition Solution for Integrated Services (OASIS) Symphony tool for responses from vendors from OASIS’ 8(a) Pool.

1. In total, the Sources Sought received twenty-eight (28) responses.

2. Twenty-three (23) vendors could be verified as active participants in the 8(a) program.

3. Of the twenty-three (23) vendors only three (3), including the incumbent, demonstrated that they could potentially perform all services required.

Discussion of Findings:

1. Describe the market research conducted.

As discussed above, a Sources Sought was posted on 03 November 2022 to both SAM.gov and made available to GSA OASIS’ 8(a) Pool 1 vendors. The posting was made available for 28 calendar days. A total of 28 companies provided capability statements in response to the Sources Sought. Additionally, Montech Inc, the contractor currently performing the two (2) requirements proposed for consolidation, supplied a “Continuity and Pricing Narrative” which provided the Government additional insight into the benefits of consolidation.

2. Explain any alternative contracting approaches that would involve a lesser degree of consolidation have been identified.

The only lesser alternative to consolidation would be to procure each requirement separately as has been done in the past. Given the size and similarity of the services provided under both Staff Support Services and Management Support Services, any partial consolidation would not achieve the benefits identified in detail below and would provide no advantage over not consolidating the requirement at all.

3. Evidence the determination has or will be coordinated with the agency's Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs.

On 03 November 2022, prior to Sources Sought release, a letter was issued to the Small Business Administration’s (SBA’s) Procurement Center Representative (PCR) for Area V and to the AFNWC’s Director of Small Business Programs. The purpose of the letter was to provide courtesy notice that AFNWC/PZNK was exploring the potential re-procurement of “Staff Support Services” and “Management Support Services” as a single consolidated effort in fiscal year 2023. Both the PCR and Director of Small Business Programs acknowledged receipt of this correspondence. Additionally, on 08 November 2022, AFNWC/PZNK sent correspondence to the cognizant Business Opportunity Specialist at the SBA New Mexico District Office. This correspondence served to inform the Business Opportunity Specialist of the Sources Sought issued on 03 November 2023 and allow the Specialist to ask any questions of AFNWC/PZNK.

Coordination by the AFNWC Director of Small Business is requested on this form and on the associated DD Form 2579, Small Business Coordination Record.

4. Address any negative impact by the acquisition strategy on contracting with small business concerns that has been identified.

No negative impacts to small businesses have been identified based on this planned consolidation. The same small business concern currently performs both requirements, demonstrating the feasibility of consolidation. Further, the number of responses to the Sources Sought suggests that small businesses have a strong interest in this consolidated effort.

Additionally, based on the conducted market research activities, three (3) small business firms were found capable of performing all requirements of this consolidated effort. The fact that competition could be obtained for this consolidated requirement is evidence in support of consolidation. That all three (3) of these small businesses are currently within the 8(a) Program concludes that this consolidation would not result in “bundling.” As defined at FAR 2.101, bundling is a subset of consolidation that combines two or more requirements for supplies or services, previously provided or performed under separate contracts, into a single effort that is likely to be unsuitable for award to a small business concern (even if it is suitable for award to a small business with a Small Business Teaming Arrangement). Given that three (3) small businesses could reasonably perform this effort without a teaming arrangement, this consolidation does not constitute bundling.

5. Describe steps taken to include small business concerns in the acquisition strategy.

The Sources Sought posted as part of Market Research requested responses from only 8(a) firms as this consolidated effort must be made to a company currently within the 8(a) Program (FAR 19.815(a)). Additionally, a letter was sent to Montech Inc on 03 November 2023, the same day as the Sources Sought posting, to provide this incumbent contractor with a courtesy notice of the posting. It was recommended that the company submit a capability statement in response to the Sources Sought if interested in the consolidated effort.

Benefits

A consolidated solicitation would provide numerous benefits over procuring the “Staff Support Services” and “Mission Support Services” requirements separately. Both requirements have the same performance location – AFNWC Headquarters at Kirtland AFB. Additionally, the requirements are of the same type, both needing a contractor to provide programmatic, business management, and administrative support. Consolidating the effort would reduce the administrative burdens and actions by having one (1) fewer contract award for the AFNWC/PZNK. In addition to this noted contracting benefit, consolidation would also have a positive impact on the workload of others reliant upon this contract support. As explained below, under a single award, the contractor will have more flexibility to adjust staff to meet work needs across all serviced departments. In contrast, under the historical stand-alone efforts, contractor staff are tied to those departments specific to that contract, which diminishes flexibility and agility to meet need.

Additionally, consolidation will positively impact other Government personnel with some form of reduced contract oversight or directed effort. For example, under a single effort AFNWC’s financial personnel will only need to track and plan funding for a single contract versus two (2). With that stated, the benefits span further than simple Government workload reduction.

Given that these two (2) requirements have been for some time fulfilled by the same firm, the Government team has been able to witness potential benefits of consolidation. For instance, the incumbent contractor has been able to take advantage of performing both requirements. Specifically, when its employees under one (1) contract completed advanced degrees or were seeking breadth of experience, Montech Inc would transfer those employees to the other effort where their new skillsets could be better utilized or where they could gain different experience. Under a consolidated effort, that same benefit could be achieved with more ease as the contract number would remain the same, reducing in-processing and out-processing requirements along with security procedures.

Additionally, the incumbent contractor has provided AFNWC/PZNK with insight on cost savings it would experience on a consolidated effort that would be likewise experienced by the Government. For example, Montech Inc explained that a single award would result in one (1) less insurance policy to purchase and maintain. This would likely contribute to the cost savings expected from consolidation as discussed in the “Requirements” section of this document. As explained above, the Government estimate was prepared independent of historical information. Expected contributors to cost savings include a reduction in costs for Contract Data Requirements List submissions. At present, the Government is currently paying for a Monthly Program Status Report and Quality Control Plan under each requirement. Further, programmatic oversight is currently being provided at the incumbent’s home office for both efforts which is expected to be a reduced cost on the consolidated effort. In short, economies of scale are likely to result in better terms and conditions.

Montech Inc provided a “Continuity and Pricing” document for the Government’s consideration after supplying a statement of capabilities. This document was offered to provide continuity of operations content. Additionally, the document provided rough orders of magnitude (ROMs) for two (2) different staffing approaches the consolidated effort might take. It serves noting that this document was not shared with the individuals who crafted the Government’s estimate for the consolidated effort. Additionally, Montech Inc provided this documentation not at the Government’s request, but of its own volition. The first staffing approach Montech Inc discussed would keep the same Key and Non- Key Personnel positions as currently required under the two requirements. This approach is similar to what the AFNWC independently determined would best match the written requirement and for which it developed the Government estimate. For this approach, Montech Inc stated the following:

This provides further support that consolidation is in the best interest of the Government.

Per FAR 7.107-29(d)(1)(i), benefits that are quantifiable in dollar amounts are substantial if individually, in combination, or in the aggregate the anticipated financial benefits are equivalent to – ten (10) percent of the estimated contract or order value (including options) if the value is $94 million or less. The price the AFNWC is paying for the 12-month period from 01 May 2022 through 30 April 2023 for both the “Staff Support Services” and “Management Support Services” efforts is $1,871,146.00. The Government’s estimate for the period of 01 May 2023 through 30 April 2024 under a consolidated effort is . That is, the estimate for consolidation is less than the current combined effort amounts. Based on these calculations, the benefits for consolidation are considered substantial.

D E T E R M I N A T IO N

IAW FAR 7.107-2 and AFFARS 5307.107-2, and based on the above findings, I have determined that that the consolidation is necessary and justified.

Date 23 Mar 2023

/ Contracting Officer

AFNWC/PZNK,

Date 23 Mar 2023

/ Contracting Officer

AFNWC/PZNK,

Date / Small Business Office Representative

AFNWC/SB

Date / Division Chief

AFNWC/PZN

Date / Policy Analyst

AFNWC/PZC

Date / Senior Contracting Official (SCO)

AFNWC/PZ