DAI P2P_OY3 4 Increase_JA_ Final_Redacted.pdf

CUI

Source Selection Information See FAR 2.101 and 3.104

The statutory authority permitting other than full and open competition is 10 U.S.C.2304(c)(1), as implemented by the FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. The unique qualifications described below apply to performance under SP4701-18-C-0048.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF ACQUISITION REQUIRES USE OF CITED

AUTHORITY:

In accordance with FAR 6.302-1(a)(2)(iii)(B), the services required by DLA are available from only one responsible source and no other services will satisfy the Agency’s requirements. The subject services are deemed to be available only from the original source in the case of this follow-on modification for the continued provision of highly specialized services because it is likely that award to any other source would result in unacceptable delays in fulfilling the Agency’s requirements.

The additional services to be procured by virtue of this modification are needed to sustain development efforts and maintain both the USMC and DFAS legacy financial systems within the DAI System. It is essential that IBM continue performing the aforementioned development services in order to maintain the DAI Program’s schedule/milestones for development Releases 3.1, 4.0, 4.1 and 5.0, which are scheduled to be put into production during Option Year 3 and Option Year 4. IBM’s ability to provide highly specialized services in support of DAI is essential to maintaining continuous, effective, and reliable support specific to the supported community.

IBM’s in-depth knowledge of the current Budget Formulation architecture and requirements, and functional and technical expertise in designing, configuring, and implementing capabilities in the Oracle EPM environment is essential to meeting this requirement within the timeframe allotted.

The DAI has modernized and transformed the financial management capabilities of the DoD agencies and DoD field activities. IBM provides highly specialized Oracle software application functional and technical expertise necessary for application management support, integration across Oracle commercial off-the-shelf (COTS) business modules, and DoD agency implementations. This functional and technical support is required for DAI to address financial standards in effect for the entire Federal Government and DoD, as well as to support standard processes using a single architecture to support multiple financial and diverse components. No other contractors could successfully provide the required services in the timeframes necessary without a significant delay and/or interruption of services.

The IBM Team possesses unique and highly specialized knowledge and capability with regard to the DAI applications requirements based on their extensive knowledge and experience with the program application and operating environment. The IBM Team has unparalleled knowledge of the Functions, Data, and Customers (and their expectations), as well as the partner interfaces as it relates to the various systems. The IBM Team is the only contractor that has the expert ability to configure and customize unique functionality based upon their detailed knowledge of DoD financial and procurement processes as it relates to the DAI application.

To date, the IBM Team has achieved every major program milestone (within their control – scope/schedule) as planned in the Integrated Master Schedule (IMS) at the cost and price awarded. At this juncture, attempting to transition the Program to a new contractor team would result in major impacts to the Schedule (Acquisition Program Baseline) and the Program’s ability to meet DoD Audit Readiness goals. Schedule impacts place the program at risk of mission failure, ultimately impacting multiple DoD and Federal agencies supported by the Program.

Award to an alternate source for this period would result in unacceptable delays, increased performance risks, and interruption of services. The result would be a severe, negative impact on meeting the mission needs for DAI deployments for the USMC and DFAS in a timely manner and an inability to support the DoD priority of reducing financial audit findings for agencies and organizations currently using legacy financial systems. This effort must be coordinated not only through traditional development, integration, and training, but must also be managed in accordance with an integrated master plan that considers a number of intersecting and mutually supporting programs. Program delays would result in a negative impact on the DoD agencies utilizing DAI because it would result in numerous unresolved Notice of Findings and Recommendations from financial audits that would remain unresolved.

After current contract award, it was discovered that Oracle would be sunsetting the current DAI budgeting tool (Oracle Hyperion) and replacing it with Oracle EPM.. Due to this replacement the DAI PMO must implement the Oracle EPM to ensure the stakeholders have the required budgeting tools and capabilities needed to complete their mission. Failure to obtain support for EPM would prevent the DAI PMO from completing the required initial connection approval process, which takes a minimum of 6 months to complete, and must be done before the DAI Release 5.0 software development lifecycle can be started, which is estimated to begin October 2022. Failure to complete the connection approval process would prevent the DAI PMO from implementing the EPM solution, thus resulting in the loss of budgeting capability for 25 stakeholder agencies. DAI deployment of EPM Budget Formulation capabilities will benefit DoD by enabling the retirement of legacy systems, creating savings of annually beginning in FY23, and reducing Program Office Budget Formulation maintenance requirements by approximately annually once EPM is fully implemented.

Additionally, support of USMC and DFAS will ensure stakeholder confidence in system and application availability and reliability, which is paramount as the stakeholder base and number of users continue to grow.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

As discussed above, no other sources are capable of meeting this requirement without causing unacceptable delays. A redacted Justification & Approval will be posted to Contract Opportunities under the System for Award Management (SAM.gov).

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

12. CERTIFICATIONS:

Technical Certification:

I hereby certify that the supporting data provided for which I am responsible, and which form a basis for this justification are complete and accurate.

Date

Contracting Certification:

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

Date

I have reviewed and hereby approve this justification.