CJA_26-013_Redacted.pdf

Class Justification and Approval (CJ&A) for DON Financial Improvement Program IV Multiple Award Contract Ceiling Increase

This Class Justification and Approval document authorizes a ceiling increase for the Department of Navy's Financial Improvement Program (FIP) IV indefinite-delivery/indefinite-quantity (IDIQ) multiple award contract (MAC) from $999,620,354.47 to $1,824,620,354.47 ($825M increase). The Naval Supply Systems Command (NAVSUP) Fleet Logistics Center Norfolk is the contracting activity. The contract maintains its existing five-year ordering period through April 21, 2027, with performance continuing through April 21, 2028. This ceiling increase is justified under 10 U.S.C. § 3204(a)(1), which permits non-competitive awards when supplies or services are available from a limited number of responsible sources.

The FIP IV MAC provides contract support for the Department of Defense's financial improvement and audit remediation (FIAR) efforts, addressing critical objectives including systems consolidation and modernization, financial data environment improvements, audit remediation, financial reporting operations, policy standardization, and internal controls institutionalization. Major areas of support include systems consolidation, financial data environment services (FMDDT), remediation sustainment, internal controls, financial reporting, budgetary reform, and compliance support across the DOD enterprise, including the U.S. Marine Corps. The ceiling increase ensures continued delivery of critical financial audit support services valued at approximately $825 million (FY26–FY28). The Government determined that recompeting the MAC or issuing standalone contracts would be inefficient given existing contractor performance, the complexity of ongoing work, and accelerated audit deadlines mandated by Congress (FY28 for full DoD auditability). No formal sources sought notice was required, as the determination identified only existing FIP IV MAC holders as capable sources. Fair and reasonable pricing will be ensured through task order-level evaluation per FAR § 15.402.