B05 HQ003424R0185_19F0023_Everwatch_Bridge_JA_20240612.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

June 12, 2024

Control No. WHS-2024-1097-JA

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 (DoD), Washington Headquarters Services, Acquisition Directorate (WHS/AD), Enterprise Office of the Secretary of Defense Division (EOSD), Technical Analysis Branch (TAB) on behalf of the Office of the Under Secretary of Defense for Intelligence and Security (OUSD (I&S)) Executive Directorate (EXDIR).

2. DESCRIPTION OF ACTION: OUSD (I&S) has a continuing need for Professional, Technical & Administrative Support Services provided under task order no. HQ003419F0023, which was awarded to Ian, Evan, & Alexander Corporation (IEA). The current contract expires on May 31, 2024, and the Government intends to award a sole source bridge to IEA for continuity of services while the Government works to award a competitive, long-term follow-on contract by September 2024. The bridge contract will be awarded as a Firm Fixed Price (FFP) contract type with a total estimated value of $3,992,948.00 with a potential price variance of +/- 5%, using Fiscal Year (FY) 24 Operation and Maintenance of Funds. The period of performance will be from June 1, 2024 to September 27, 2024, with a six-month extension of services in accordance with FAR 52.217-8 (Extension of Services). WHS/AD proposes to issue a bridge contract for an extension of services under task order HQ003419F0023 using a FFP price structure, to the incumbent, Ian, Evan, & Alexander Corporation (IEA) without using full and open competition. As of April 1, 2024, Ian, Evan & Alexander Corporation (IEA), an EverWatch Company. EverWatch is now a wholly owned subsidiary of Booz Allen Hamilton Inc. (Booz Allen). Booz Allen Hamilton Holding Corporation (BAH) [CAGE Code: 17038; 8283 Greensboro Dr., McLean, Virginia 22102-3838, United States] and IEA executed an Asset Transfer Agreement by which the predecessor contract was transferred from IEA to BAH.

3. DESCRIPTION OF SUPPLIES / SERVICES: To accomplish the OUSD (I&S)’s objectives, the EXDIR requires customer focused technical, professional, administrative, management, policy, and operational support capabilities that enable the day-to-day operations of the OUSD (I&S)’s mission. The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform services as defined in the Performance Work Statement. The Contractor’s performance and deliverables shall provide wide ranging technical and administrative support at the direction of the EXDIR.

Performance Period Performance Period Date Amount Base Period June 1, 2024 – September 27, 2024 $1,680,244.80

Optional 6 month

- 8 extension September 28, 2024 - March 27, 2025 $2,394,568.80

Total $4,074,813.60

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”. The ordering period for the WHS TEAMS BPA on which call order HQ003419F0023 was awarded has since expired. EXDIR requires continued, support from the incumbent in order to fulfill its requirement for professional, technical, and administrative support while working the long term effort. If not, the Government would experience unacceptable delays in the necessary support for EXDIR and subsequently within the I&S Enterprise as described below.

REASON FOR AUTHORITY CITED: Only one or a limited number of sources can satisfy the agency’s need for uninterrupted comprehensive technical, professional, administrative, management, policy, and operational support services for the day-to-day operations of OUSD (I&S)’s mission. BAH will continue providing support on critical functions and activities for EXDIR such as coordinating with WHS Financial Management Directorate (FMD) and other stakeholders on the president’s budget for FY2025, ensuring ongoing personnel and Operations Security (OPSEC) requirements are being met, and responding to short-fused manpower and personnel taskers and data calls. BAH will also continue providing support directly to the OUSD (I&S) in the areas of secure communications and facility support. Failure to extend these services and losing the support services of BAH would result in significant delays that would derail or halt the mission in the EXDIR. These delays would impact efforts involving critical budget, manpower, security and information-sharing activities. For example, interruption or delays in services will severely degrade OUSD (I&S)’s ability to perform budget activities to include 100% commitment of FY24 funding (due July 31, 2024) FY24/ FY25 spendplan (due in July 2024), and FY26 Program Objective Memorandum (POM) build, due June/July 2024. Some additional examples include:

• DEVELOPMENT OF PRESIDENT’S BUDGET AND PROGRAM OBJECTIVE

MEMORANDUM: EXDIR’s Financial Management team is in the process of building the OUSD (I&S) FY 2025 President’s budget and FY 2026 program objective memorandum. These are critical and time-sensitive budget activities to which BAH contractor team provides daily support.

• PERSONNEL SECURITY ACTIVITIES: EXDIR’s security team is responsible for day-to-day personnel and physical security activities critical to the I&S mission. In addition, the security team, to which the BAH contractor staff provide support is in the process of developing an OPSEC plan for the entire organization. This is a compliance issue and must be accomplished by summer 2024.

• MANPOWER AND PERSONNEL INITIATIVES: EXDIR’s Manpower and Personnel team is in the process of responding to and mitigating the significant lag in time-to-hire challenges. These challenges are impacting OUSD (I&S) manpower authorizations and, therefore, require immediate and timely action. The BAH contractor team provide direct and critical support to these initiatives. If a new contractor were to come in, it would create an untimely gap in support causing a transitional delay of 45-75 days for a learning curve with operations with additional impacts to larger OUSD (I&S) responsibilities.

In addition, competing the bridge contract would result in substantial duplication of costs to the Government while it pursues a competitive, long-term, follow-on contract that is expected to executed by September 2024. The substantial duplication of cost is estimated at approximatley $2,721,100.91 for a total of 75 days, which is not expected to be recovered through competition.

Awarding services to a contractor other than BAH would involve multiple transitions between potential vendors (incumbent vendor, temporary vendor, and long-term vendor), which involves the Government paying multiple vendors of different contracts for at least 45 days for transitioning in new contract personnel, conducting appropriate security indoctrination procedures, issuing new accounts, and granting accesses to respective applications. This 45-day transition cost is estimated at $1,632,660.55 for continuous support which includes 21 FTEs performing 7560 hours transitioning from one contract to the next. This 45-day transition for a new contractor does not account for any ramp up or necessary training time, adding approximately another 30 days. This additional cost is $1,088,440.36, bringing the duplication of costs to a total of $2,721,100.91.

Multiple transitions involve additional resources and unnecessary costs for the Government, and can cause unacceptable risks, delays, and interruptions in services. In order to accomplish the work within the allotted schedule, the follow-on effort must seamlessly follow the initial effort to maintain continuity of services. A sole source bridge award to BAH avoids unacceptable delays in fulfilling the operational objectives of the EXDIR. Therefore, an extension to BAH is necessary to continue providing uninterrupted services while the Government is working a competitive acquisition with an anticipated award date of September 2024.

5. EFFORTS TO OBTAIN COMPETITION: On February 7, 2024, WHS/AD issued a Notice of Intent (NOI) to Sole Source on SAM.gov. The NOI was posted for 15 days and closed on February 22, 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.” The Government intends to base pricing on current contract rates and will compare proposed prices set forth by BAH to historical prices paid by the Government under the current contract, HQ003419F0023. The Government will also compare proposed prices with the Independent Government Cost Estimate (IGCE) prepared for the bridge contract. Certified cost and pricing data will not be obtained as these are commercial services.

7. MARKET RESEARCH: Market Research has been limited to the NOI to sole source this action and was posted on SAM.gov as described in paragraph 5, above. The results of the NOI indicated that no other contractors were interested in this short bridge contract.

8. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: Irreparable damage may result to EXDIR's mission in negotiating a competitive five-month bridge contract and substantial duplication of costs.

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 the acquisition strategy for a competitive procurement for the long-term follow-on contract, and intends to award the follow-on contract by September 2024.

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”].

☒ 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.

Marcia P. Jones, OUSD(I&S) Date

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.

Jacqueline T. Patierno, Contracting Officer Date

APPROVAL

This jusitifcation is approved.

David H. Kao, Competition Advocate Date