Consolidation_DF_MCTO_redacted.pdf

DETERMINATION AND FINDINGS

FOR AUTHORITY TO CONSOLIDATE CONTRACT REQUIREMENTS

Based on the following findings, I determine that consolidating program and policy support contracts to serve the needs of the Military – Civilian Transition Office (MCTO), is necessary and justified in accordance with 15 U.S.C. 657q, as implemented in the Federal Acquisition Regulation (FAR) Part 7.107-2.

FINDINGS

1. Identification of Contracting Activity

Defense Human Resources Activity (DHRA) Acquisition Management Directorate 4800 Mark Center Drive, Suite 06J25-01 Alexandria, VA 22350

2. Nature/Description of Action

MCTO plans to consolidate three existing contracts: Transition to Veterans Program Office (TVPO) Program Management Support Services (H9821019F0102); SkillBridge Program/Website Support Services (GS10F085BA-47QFHA22F0026); and Defense Personnel and Family Support Center (DPFSC) EventPLUS Platform (EventPLUS) (H9821019C0011). These contracts will be consolidated into two contracts named MCTO Full Time (FT) Support and MCTO Information Technology (IT) to establish a smoother, more efficient Defense Support Services Center (DSSC) online IT platform. The consolidation will promulgate policies that support the successful transition and reintegration of Service members from the Active-Duty military into civilian communities, while also addressing challenges of the Reserve Components (National Guard and Reserve) and their families.

By way of background, MCTO utilized the TVPO (which included multiple programs) contract for our management support services and EventPLUS for IT type support. On 1 May 2023, the Under Secretary of Defense for Personnel and Readiness (USD(P&R)) realigned additional program management responsibilities supported by the SkillBridge contract that provided administrative and IT support. The SkillBridge contract and the support it provided to USD P&R includes similar administrative and IT support which already exists in MCTO’s TVPO and EventPLUS contracts.

Since all three contracts have similar objectives, it is logical for these three requirements to be reconfigured into two requirements that could be easily understood and managed. The first proposed consolidated contract, MCTO FT Support contract, will include all the existing TVPO management support services and similar supports efforts found in the recently transferred SkillBridge contract. The second proposed consolidated contract, MCTO IT Support contract, will support all the IT functions existing in the EventPlus contract and those similar IT efforts in the SkillBridge contract. In addition, MCTO currently supports Yellow Ribbon Reintegration Program (YRRP), Beyond Yellow Ribbon (BYR), and Troops to Teachers (TTT). The proposed

MCTO FT and MCTO IT will include support to these efforts that previously were not included within the existing support contracts for program management and IT support. Due to the expanded responsibilities under the realignment, additional contract support is required and will be included in the consolidated contracts. These combined efforts for the MCTO FT and IT programs, requires consolidation of the aforementioned support services and additional management responsibilities of the recent realignment of USD P&R to successfully achieve the MCTO program as a whole. Of note, all of the three existing contracts are in their final option year.

MCTO currently obtains contract support services with associated Full time Equivalent (FTE) manning, contract period of performance and contract value via the following contracts:

Contract Contractor # FTEs

Original Period of Performance Value

TVPO Full Time Support H9821019F0102

Archimedes Global, INC.

16 March 2019- 15 July 2024 $6,186,570.21

SkillBridge Support

GS10F085BA-

47QFHA22F0026

Solutions for Information Design, LLC (SOLID)

30 June 2022- 30 July 2024 $3,369,004.42

EventPLUS H9821019C0011

Goldbelt Glacier Health Services

15 Aug 2019 – 13 July 2024 $12,735,378.65

Acquisition History:

The TVPO contract, H9821019F0102, was awarded to Archimedes Global as a Service-Disabled Veteran Owned Small Business (SDVOSB) set-aside competed under a General Services Administration Multiple Award Schedule with a contract expiration date of 15 July 2024.

The SkillBridge support contract, GS10F085BA-47QFHA22F0026, was awarded by GSA through an assisted acquisition to Solutions for Information Design, a Woman-owned Small Business, with a contract expiration date of 30 July 2024.

The EventPlus contract, H9821019C0011, was awarded as an 8(a) Small Business Program sole source contract with Goldbelt Glacier Health Services, an Alaskan Native Corporation. The period of performance is a base plus four one-year options (to include an extension of 4-months utilizing FAR 52.217-8) with an ultimate contract expiration date of 13 July 2024.

MCTO determined consolidation of the IT portion of the SkillBridge requirement into the EventPLUS follow-on acquisition and the support service portion of SkillBridge into the TVPO Full Time Support follow-on acquisition as most advantageous to the government, through provision of enhanced capabilities, streamlined multi-functional program management, and cost savings while ensuring statutory and policy compliance as further discussed below.

MCTO is requesting an award of 1 July 2024, for both the MCTO IT and MCTO FT Support acquisitions to satisfy all stakeholders and to take advantage of the efficiencies and costs savings at the optimal time when all three contracts are ending, and consolidation of these contracts yield the highest return in both contract savings and MCTO management efficiencies. To align performance periods, the base period of the consolidation will consist of all MCTO services and will include a 14-day transition period. If approved, all services and IT functions will align under one of the two consolidated contracts. The May 2023 realignment date also created a compressed timeline for program analysis, decisions, and contract support. Consolidation is vitally important at this time because it minimizes mission critical website management, IT support, learning management, client management, and event scheduling during renewal of the contract support services. Consolidation is also the most efficient means to add in additional MCTO support as a result of the USD P&R realignment of requirements to MCTO and at the lowest price during competition/new contract awards.

For the consolidated requirement, MCTO performed the following activities in accordance with FAR Part 7.107-2:

(1) Market Research

For the MCTO FT Support Acquisition, market research was initiated through a Sources Sought Notice (SSN) on the General Services Administration Multiple Award Schedule eBuy system. The SSN was posted on 25 September - 9 October 2023, and was intended to identify parties having an interest in, and the resources for, providing services in accordance with the draft Performance Work Statement (PWS) that consolidated the requirements of the MCTO and SkillBridge. MCTO sought contractors capable of providing sufficient personnel, management, IT and materials necessary to include program support, policy compliance, training oversight, communications, and outreach and engagement.

MCTO received 16 Small Business (SB) submissions who were determined capable of potentially fulfilling the requirement. Of the 16 SBs, 11 were SDVOSB.

For the MCTO IT Support Acquisition, market research was done with the DHRA Office of Small Business Programs (OSBP) to help identify capable businesses in the SBA 8(a) Program. Four capable 8(a) Program businesses were identified, and they were all Alaskan Native Corporations.

(2) Organizational Results if Consolidation is not Approved

If consolidation does not occur, MCTO would continue having three existing contracts and have additional burden on the MCTO staff managing an additional contract and associated tasks. Inefficiencies would be rampant, especially through the IT realm of contract monitoring to include vulnerabilities throughout IT Governance. As such, this is not the preferred method as it will completely erode mission success across MCTO. This approach also would result in the highest contractor support costs.

(3) Coordination with the Office of Small Business Programs (OSBP) and Small Business Participation

The MCTO IT acquisition will remain in the SBA 8(a) Program, and the MCTO FT Support Services will be solicited as a SDVOSB set-aside. DHRA’s OSBP and the Small Business Administration (SBA) Procurement Center Representative (PCR) continue to support the overall consolidation acquisition strategy through early discussions, collaboration, and acquisition document reviews. DOD/OSBP coordinated on this consolidation and supports this approach due to the continue Small Business Participation for these requirements and no impact as a result to the small business community.

3. Justification and Findings for Determination

MCTO provides TAP, YRRP, BYR, and SkillBridge program management including research, strategy, policy development, program design, budget, and contract management, grant management, curriculum development, program evaluation, program assessment, program compliance, IT, public affairs, strategic communications, and outreach. MCTO ensures a common level of support, across all Military Departments and components, to respective program eligible service members and their families at over 200 locations around the globe.

MCTO manages formal DoD and federal interagency governance of transition and reintegration services and support while coordinating and collaborating with diverse stakeholders including the Department of Veterans Affairs/Department of Defense Joint Executive Committee, TAP Interagency, DoD Manpower & Reserve Affairs (M&RA), Joint Staff, National Guard Bureau, Military Departments, employers, institutions of higher learning, entrepreneurial activities, and other governmental and non-governmental entities. TAP and YRRP are programs of record with consolidated funding in the President’s Budget. SkillBridge is a program of record with FY 2024 through FY 2025 funding programmed through DoD M&RA. The benefits of the MCTO resource consolidation will provide streamlined program management and will support planned development of a single source, authoritative Enterprise Transition & Reintegration IT System that will enable seamless management of transition and reintegration requirements across the Services and supporting federal agencies while ensuring full statutory and policy compliance.

The benefit of consolidation substantially outweighs maintaining the current contract structure where three different contractors supporting MCTO’s function within DHRA DSSC. There will be a total of two contractors providing support under the MCTO Program. One contractor will manage the FT support contract, and another contractor will manage the IT contract.

A PM and COR will oversee the workload and deliverables of each of the two contracts.

Consolidating the three contracts into two will improve standardization and execution across MCTO, where three contractors are currently working in the same mission space performing related tasks that include: Program Management Support (training compliance, policy oversight, background papers, etc.); Meeting Support (scheduling, agendas, read-aheads, etc.);

Congressional Support (legislative initiatives, legal database, congressional committee list, etc.);

Annual Transition Report (data visualization, graphic design, report content, etc.);

Communications and Outreach (communication materials, implementation plans, media surveillance, affairs messaging, etc.); Transition Training (terminal learning objectives, learning management system, training monitor and compliance, etc.); and VA/DoD Service Members Transition Conference (logistical support, package development, abstract review, agenda review, signage, etc.).

Streamlining communication and expertise with two contractors while balancing the timeliness of deliverables is critical in supporting collaborative efforts across the Components. As such, contract consolidation is advantageous and prudent. As described below, the impact of the consolidation across the three contracts shows the “as is” with the proposed “to be” to include the additional realignment of workload from USD P&R:

(1) MCTO Full Time Support contract (H9821019F0102).

a. Pre-consolidation, the Full Time Support contract supports one program (Transition Assistance Program (TAP)).

b. Post-consolidation, the Full Time Support contract will support five programs (TAP, Yellow Ribbon Reintegration Program (YRRP), Beyond Yellow Ribbon (BYR), Troops to Teachers (TTT), and SkillBridge);

(2) MCTO IT contract (H9821019C0011).

a. Pre-consolidation, the EventPLUS contract supported two programs (Employer Support to the Guard and Reserve (ESGR) and TAP).

b. Post-consolidation, the MCTO IT contract will support six programs (ESGR, TAP, YRRP, BYR, TTT, and SkillBridge).

(3) SkillBridge support contract (GS10F085BA-47QFHA22F0026).

a. Pre-consolidation, the SkillBridge contract supported one program (SkillBridge).

b. Post-consolidation, the SkillBridge requirements are included within the MCTO FT and MCTO IT contracts.

Post-consolidation enhanced capabilities are mission critical requirements to address congressional, Administration, and Department identified program management shortfalls that include information technology, information management, tests and measurements, acquisition management, client management, learning management, data reporting, compliance, and dispute resolution. Streamlined multi-functional program management will deliver efficiencies by reducing duplication of requirements, leveraging commonalities, and sharing resources across the supported programs.

Based on program expansion and provision of enhanced capabilities, the scope of the two post-consolidation contracts far exceeds the scope of the three pre-consolidation contracts, effectively mooting direct comparison of the value proposition before and after the consolidation of the three contracts into two contracts. Correspondingly, post-consolidation cost savings are difficult to quantify in direct relation to the limited support in the pre-consolidation contracts, but rather in comparison to the alternative of establishing three distinct follow-on contracts that would each require duplicative enhancements across the critical requirements identified above. Given the extensive changes in scope, direct quantification of the cost savings via the percentile thresholds identified in Federal Acquisition Regulations is not the best measure for this consolidation.

collection and analysis capabilities requested by Congress and required by the Department.

As a result of the consolidation effort, DHRA is expected to save approximately $2.6M. This is due to the efficiencies of requiring less FTEs on board by having the IT Systems combined into one Enterprise System, and by having all of the MCTO Programs support services done through the same contractor.

Policy is the mechanism through which MCTO provides oversight and guidance to shape the Military Services’ efforts, as each Service is directly responsible for implementing transition activities and programs for their personnel. MCTO also conducts outreach and education to promote DoD’s Service Members transition efforts through strategic communication, ongoing public awareness, and internal (e.g., Military Services) and external partnerships. The current contract structure does not enable seamless support for MCTO to meet these critical mission areas. Consolidating the three contracts into two contracts and post consolidation having two contractors provide the program support would help bridge the gap and align these interrelated lines of effort to fully implement the Department’s Transition Assistance Program.

Additionally, consolidation aligns with MCTO’s new organizational structure that was established in 2020. In October 2020, the DHRA Director approved MCTO’s functional realignment to address necessary changes to consolidate supporting and complimentary functions within the MCTO’S mission. As a result, MCTO’s policy, strategy, and outreach efforts and requirements now fall within one portfolio. Consolidation of the contract requirements will create stability and helps mitigate the potential for creating conflict caused by having three contractors on the same team if the consolidation is not approved. Consolidating three contracts into two contracts for this portfolio’s requirements will help streamline operations and enhance MCTO’s efforts to fully integrate staff and their requirements per the new structure.

MCTO is a complex and dynamic program in DHRA but is expected to maintain the same level of support for business operations as its much larger counterparts. In order to have any chance of successfully supporting that workload as its mission operations tempo continues to increase, MCTO’s burden related to government oversight of contracts must also be minimized.

Consolidation, in addition to increased contract efficiencies with lower costs, reduces the number of reporting, surveillance, and other management requirements, supporting the reprioritization of government man-hours toward core mission requirements.

This consolidation will result in reduction of time-consuming tasks such as tracking and validating funding, reviewing, and approving invoices, reviewing monthly contractor reports, documenting performance issues, and maintaining proper COR files. Additionally, it will enable streamlined monitoring of contractor performance within the program office and worksites.

Other benefits of this approach include:

Synchronization of collaborative efforts across a single mission will allow the contract team to work seamlessly in a cross-functioning capacity.

More effective processes and efficiencies in single contract management with the onsite Program Manager leading one team.

Improved standardization of business practices, internal processes, and product quality with the two contractors versus three contractors learning and adhering to organization processes.

High expectations for improved service and performance as the contractors maintain the same standards of performance for the contract staff.

In summary, this consolidation is critical to the success of MCTO’s mission. Under the recent re-organization, two contracts supporting the program is the best choice to support MCTO in the execution of their requirements. Efficiencies are also gained across the areas of streamlined communication, coordination, and contract oversight, saving valuable man-hours for MCTO military and government team. Lastly, consolidation of the requirements is expected to reduce duplicative efforts and provide improved quality when the subject requirements are combined under two contracts.

DETERMINATION

Based on the foregoing findings, I hereby determine the benefits of consolidating the contract requirements substantially exceed the benefits of contracting for each requirement individually.

Aligning SkillBridge with other DoD military-civilian transition programs will certainly promote uniformity, best practices, and management efficiencies. Alignment under MCTO increases synergy across transition and reintegration programs (e.g. SkillBridge, Transition Assistance Program, Yellow Ribbon Reintegration Program).

The consolidation is necessary and justified in accordance with 15 U.S.C. 657q.

Mr. John M. Tenaglia Principal Director, Defense Pricing and Contracting