Budget and Financial Support Services_LSJ_Redacted.pdf

DEFENSE THREAT REDUCTION AGENCY

8725 JOHN J. KINGMAN ROAD, STOP 6201

FORT BELVOIR, VA 22060-6201

LIMITED SOURCES JUSTIFICATION AND APPROVAL

Amendment # 0001

1. Nature and/or Description of Action

The Defense Threat Reduction Agency (DTRA) proposes to issue a sole-source, firm-fixed-price task order to the incumbent contractor, Savantage Financial Services, Inc., under GSA

Federal Supply Schedule Contract .

This Justification and Approval (J&A) authorizes a bridge action to extend the performance of Savantage Financial Services, Inc., under contract to ensure critical comptroller, financial, and program management support services for the

. The period of performance will be a twelve (12) month base period and two (2) six-month option periods, starting . The need for this bridge is a direct result of unforeseen and unavoidable delays. This bridge contract is required to prevent a critical service gap that would cause unacceptable mission delays and costs, directly impacting the agency’s ability to meet its congressionally mandated financial and audit obligations. A major directorate-level reorganization, compounded by multiple rounds of budget cuts and persistent fiscal uncertainty, has fundamentally delayed the finalization of the long-term requirement, making it impossible to complete the planned competition without causing a critical lapse in service.

The revised total estimated value is .

The initial acquisition for the competitive follow-on contract was proceeding on a timely schedule, however, multiple, compounding events impacted the Agency’s ability to move forward as scheduled. The initial disruption: Executive Order on Budget Reductions, June

23, 2025: As directed by the Secretary of War memorandum “Implementation of Executive

Order 14222- Department of Government Efficiency Cost Efficiency Initiative, the Secretary of War authorized the Department of Government Efficiency (DOGE) team the authority to review and provide input for certain requirements packages. This directive created budgetary uncertainty impacting the scope of the requirements in both the near and long term;

requirements are obligatory to align with the new budget projections. In addition to the mandatory A&AS reductions, a considerable portion of the Civilian workforce elected to accept the Deferred Resignation Program (DRP) further impacting the ability to support its mission organically. Lastly, major Agency wide reorganization introduced further uncertainty in meeting the planned competition milestones.

The acquisition planning began early April 2025, the Services Requirements Review Board

(SRRB) reviewed and approved the requirement on . Around this time, the events detailed above were introduced causing the acquisition team to pause while alternative courses of action were developed. While planning continued, no meaningful determination on acquisition strategy could be implemented. Further compounding the schedule delays, a government shutdown commenced on 1 October 2025 thru mid-

November during which the DTRA civilian staff was furloughed. While planning resumed after the government re-opened the significant impacts to the acquisition schedule could not be recovered to successfully proceed with a competitive acquisition.

The estimated cost increased under Amendment 0001of this J&A from to

. This revision corrects a miscalculation in the Independent Government Cost

Estimate (IGCE), which failed to account for the total number of Full Time Equivalent

(FTE)s that are currently performing on the task order and are critical to maintaining current service levels during the twenty-four-month bridge period. The intent behind this bridge action is to continue the services currently being received. An amended IGCE has been provided to reflect the accurate staffing baseline and revised total cost estimate and authority of this J&A.

2. Description of the Supplies/Services Required

The contractor shall provide continuity of comprehensive Budget and Financial Support

Services, (BFSS) of a highly complex nature, to prevent a disruption of mission-critical operations. The scope is a direct continuation of the services currently provided under Task

Order . The required services include subject matter expertise and direct support in the following key areas:

o Program & Budget: Budget formulation, integration, and execution.

o Financial Operations: Full-scope Planning, Programming, Budget, and Execution (PPBE) support.

o Finance & Accounting: Financial reporting, statement certification, reconciliations, vendor pay operations, audit response and sustainment, risk management, and internal controls.

o Chemical, Biological, Radiological, and Nuclear Defense (CBRND) Program Support: Financial statement support, Enterprise Risk Management (ERM), and funds management.

o Financial Systems Sustainment: Support for the Defense Agencies Initiative (DAI) and other financial systems.

o IT & CIO Compliance Support: IT investment lifecycle management and budget support for agency-wide IT governance.

o Cross-cutting Comptroller Support: Management of high-visibility agency taskers and data analysis.

3. Statutory Authority

This acquisition is conducted under the authority of FAR Subpart 8.405-6(a)(1)(i)(C) logical follow on in the interest of economy and efficiency. The existing DTRA Budget and

Finance Support Services contract awarded through a small business Set–Aside to

Savantage Financial Services, Inc., under the General Services Administration (GSA), Multiple Award Schedule (MAS) , competitive task order

. The value was for a five-year period of performance ending on .

4. Justification Rationale

This bridge action is a logical follow on to a previously competed GSA Federal Supply

Schedule (FSS) order. Executing this short-term bridge extension with the incumbent

Savantage Financial Services, Inc., is in the best interest of the government based on the in economy and efficiency, any source other than the incumbent would impose substantial duplication of costs and unacceptable delays that would be detrimental to the agency's mission-critical objectives.

This necessity arises from a unique convergence of three critical and time-sensitive events.: A major directorate-level reorganization, coupled with multiple rounds of budget cuts and future budget uncertainty has directly impacted the planned competition for the long-term

BFSS contract, which have delayed the finalization of the long-term requirement and necessitated this short-term bridge action to maintain mission stability, and cause immovable audit deadlines, jeopardizing the agency's ability to maintain it’s a clean audit standing as required by law

Awarding this short-term bridge to any contractor other than the incumbent would cause duplicative costs associated with repeated expenses of onboarding, security clearances, a critical gap in institutional knowledge. From an efficiency perspective, the incumbent is positioned to prevent unacceptable delays by continuing the successful achieved unmodified audit opinion of the multi-year, congressionally mandated Financial Statement Audit (FY23-

FY27). A new contractor would need 3-6 months to gain contract mobilization, an operational learning cure, triggering a potential lapse in service.

Therefore, extending the current task order is the only viable course of action. It ensures the continuity of mission-critical services, mitigates the risk of audit failure, and provides the necessary time to properly define requirements for a future competitive procurement.

Awarding this bridge contract to any source other than the incumbent would result in a considerable duplication of cost to the Government, conservatively estimated at in direct costs alone. More significantly, it would introduce unacceptable risk of mission failure in critical areas such as PPBE, financial reporting and mandated financial audit responsibilities. In the current environment of increased reporting demands and budget uncertainty, the agency’s mission would be severely impacted by any gaps or delays in the services being acquired under this bridge action.

While it is typical for an incoming vendor to hire the incumbent’s workforce, there is an expectation a percentage of the workforce may not transition, requiring the hiring, onboarding and training of any new employees. For the purposes of quantifying duplication of costs, it was assumed of the would not transition. The table below estimates the cost of would be new. The rates below are based on average fully burdened rates for financial management labor categories.