Consolidation DnF_MissionNet Support Services_REDACTED.pdf

DEPARTMENT OF THE AIR FORCE

10 CONS/PKB

United State Air Force Academy, CO

DETERMINATION AND FINDINGS

CONSOLIDATION OF CONTRACT REQUIREMENTS FOR THE MISSIONNET SUPPORT

SERVICES CONTRACT

Pursuant to DAFFARS MP 5301.601(a)(i) and FAR 7.107-2(a), the Senior Contracting Official shall make a determination that the consolidation of contract requirements is necessary and justified.

FINDINGS

A. Acquisition Background. This is a non-personal services contract to provide MissionNet Support Services. The Air Force Academy's network infrastructure is designed to meet the demanding requirements of a prestigious military institution, supporting a diverse user base and a wide range of events. The robust connectivity and dedicated IT support ensure that cadets, faculty, staff, and visitors can effectively utilize the network for academic, administrative, and event-related needs, contributing to the Academy's mission of developing officers of character for the United States Air Force.

The United States Air Force Academy (USAFA) operates an extensive network infrastructure supporting a diverse community of 9,600 users, which includes 4,200 cadets and over 5,400 faculty and support staff, spanning multiple buildings across the Academy's expansive 18,500-acre campus. The network leverages cloud services such as Microsoft O365 and Azure, Cisco, VMware, Aruba wireless, and other technologies. These resources collectively provide a comprehensive suite of tools essential for academic activities, administrative operations, and supporting the Academy's mission to develop future leaders of the United States Air Force.

Additionally, the network accommodates over 1 million visitors annually, ensuring seamless connectivity and access to resources for guests attending various events and activities hosted by the Academy throughout the year.

1. Historical Acquisitions

a. FA873215D0050 / FA700018F4100 – MissionNet O&M - Total Contract Value:

$7,238,738.28. Period of performance: 5 Dec 17 – 31 May 23. Firm-fixed price NETCENTS-2 Network Operations and Infrastructure Solutions task order awarded to Telos Corporation (Large Business). NAICS code 517110, Wired Telecommunication Carriers. This contract supported USAFA’s multi-tenancy backbone, commercial ISP (CISP) network & boundary protection, and wireless distribution system supporting 6,500 students, faculty and staff on USAFA.

b. 75N98118D00025 / FA700020F0205 - Cloud Services O&M – Total Contract Value:

$4,286,766.00 Period of Performance: 30 Sep 20 – 31 Mar 25. Firm-fixed price NITAAC CIO-SP3 task order awarded to Nelson Enterprise Technology Services LLC (Service-Disabled Veteran Owned Small Business (SDVOSB)). NAICS code 541519, Other Computer Related Services. This contract supports operation and maintenance of USAFA's Cloud-hosted Services and Information Technology. Tasks include operation, maintenance, and management of day-to-day functions and deployment of USAFA cloud services in support of approximately 7,000 users. Lines of operation include but are not limited to: Cloud services, email services, collaboration services, security and backup, and mobile services. Other tasks include operation, maintenance, and management of Information Technology (IT) support systems, IT equipment custodial duties, and security patching.

B. Market Research. Market research was conducted to assess the market for cloud and network infrastructure support services in support of the MissionNet network. The technical team (10 CS), in conjunction with 10 CONS began their market research efforts by canvassing the National Institutes of Health Information Technology Acquisition and Assessment Center’s (NITAAC) Chief Information Officer-Solutions and Partners 3 (CIO-SP3) multiple award indefinite delivery-indefinite quantity contracts to determine fit of USAFA’s MissionNet Support Services requirement within the program. 10 CS and 10 CONS have had numerous success cases as it relates to execution of other institutional IT support contracts under CIO-SP3. A sources sought/request for information (RFI) was posted from 23 Aug 24 – 9 Sep 24 to the small business vendor pool with nine companies providing a response. A review of each response determined that all vendors appear capable of performing the MissionNet Support Services requirements.

Additionally, Nelson Enterprise Technology Services LLC, as the incumbent under the existing Cloud Services O&M effort, has the requisite experience to accomplish the MissionNet network infrastructure support, and thus represent a tenth capable vendor. Based on the condensed acquisition timeline, further contract solutions were not reviewed/considered. Following is a summary chart of respondents.

Entity Name SAM Small Business Status Advanced Systems Design, Inc (ASD) No Exclusions SB, SDB, SDVOSB, VOSB Apogee-SAIC Capabilities Integrator, LLC No Exclusions SB, 8(a) Computer World Services, Corp (CWS) No Exclusions SB, SDB CyberData Technologies, Inc No Exclusions SB, SDB, WOSB CompQsoft No Exclusions SB, SDB Dfuse Technologies, Inc. No Exclusions SB ECCO Select Corporation No Exclusions SB, WOSB inode ink Corporation (INODE) No Exclusions SB, WOSB Nelson Enterprise Technology Services LLC

(NETS)

No Exclusions SB, 8(a), SDVOSB

Systems Engineering Solutions Corporation

(SES)

No Exclusions SB

C. Alternative Contracting Approaches. Alternative contracting approach would be to continue with the status quo of two separate contracts, one contract for Cloud Service O&M and another contract for MissionNet O&M.

D. Impact on Small Business. Consolidating does not affect the Government’s ability to set this acquisition aside exclusively for small business participation. The selected NAICS code (541512), Computer Systems Designs Services, has a size standard of $34M. This NAICS code is in the same industry description class as the NAICS code (541519), assigned to the Cloud Services O&M (Nelson Enterprise Technology Services). The size standard under NAICS code 541519 is $34M, consistent with the size standard under the selected NAICS for this consolidated acquisition. The NAICS code assigned to the previous MissionNet O&M contract was 517110, Wired Telecommunication Carriers. Upon further review, this NAICS code may not have been the best fit, however this contract was awarded to a large business under the Air Force NETCENTS-2 mandatory-use program. The annual value of this requirement is estimated at just over $3M, meaning small businesses will have ample opportunity to support this requirement as part of a larger execution portfolio. The existing Cloud Services O&M requirement was awarded to an SDVOSB under the CIO-SP3 program. Nelson Enterprise Technology Services LLC remains as an active contractor under the CIO-SP3 vendor pool and is fully capable of supporting the consolidated effort. To ensure maximum opportunity for qualified capable vendors under this mission critical requirement, the intent is to not limit the small business set-aside to a particular socio-economic category.

E. Steps Taken to Include Small Business. The proposed acquisition strategy is for a total small business set-aside under NAICS code 541512. RFI responses determined there is a capable pool of small businesses under the NITAAC CIO-SP3 program.

F. Benefits of Consolidation.

1. Cost. Through discussions and analysis among the 10 CONS and 10 CS team, there is an expectation that the Government will realize a cost savings in the range of $676,000- $1,300,000, or 5-10%, across the term of the contract by combining Cloud Services and MissionNet O&M support into one requirement. The contractor will realize economies of scale through consolidated management, the ability to cross utilize full-time equivalents (FTEs) across the two different mission areas, and the ability to share overhead and general and administrative expenses across a larger scale effort.

a. Consolidated Management. Based on prior contract experience with each separate requirement, the Government expects that a contractor would assign a management premium (10-15%) to the pay of a senior IT engineer for oversight/management of the contract effort. This equates to $15-$25 per hour and across 2,080 hours this equates to $31,200-$52,000 per year. The Government anticipates the same management structure under the consolidated effort. Eliminating the additional contract manager premium would save the Government $156,000-$260,000 or 1-2% across the life of the contract. This does not factor in anticipated escalation across the five-year life of the contract.

b. Labor Efficiencies. The Government anticipates the contractor can save .5 – 1 FTE through efficiencies gained in cross utilization of employees between the two separate contract areas. The average of the lower end labor rates anticipated for this contract effort, based on a review of the NITAAC CIO-SP3 contract labor rate data, works out to ~$100 per hour. Across .5 – 1 FTE, this works out to a savings of $104,000-$208,000 per year. Over the life of the contract, the Government will realize a savings of $520,000-$1,040,000 or 3-6%. This does not factor in anticipated escalation across the five-year life of the contract. Labor chart included for reference:

business concerns, therefore no negative impact to small business participation exists for this acquisition.

Consequently, I have determined that the proposed consolidation is necessary and justified.

JAMES A. ANDERSON, NH-04, DAFC

Senior Contracting Official (SCO) AFICC OL - US Air Force Academy

ANDERSON.JAM

ES.A.1124028252

Digitally signed by

ANDERSON.JAMES.A.11240282

Date: 2024.12.11 07:28:24 -07'00'