Logistics_Support_Bridge_JA-FBO.docx

JUSTIFICATION & APPROVALS FOR FAR SUBPART 16.5

ACQUISITIONS EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule (MAS)/ Multiple Award Contract (MAC) Orders under MAC/ Fair Opportunity- FAR 16.505, DFARS 216.505-70, PGI 216.505-70

Procurement Title: Multinational Information Sharing (MNIS) Program Management Office (PMO) Asset Management and Logistics Support Services Contracting Office: Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO)- PL62

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: ----

Upon the basis ofthe following justification, I, as Procuring Activity Competition Advocate, hereby approve this exception to fair opportunity pursuant to the authority FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

DISA Multinational Information Sharing (MNIS) Program Management Office (PMO), Contracting Office:

DISA/DITCO National Capital Region (NCR), PL62

2. NATURE/DESCRIPTION OF ACTION(S):

The purpose of this action is to issue a new sole source logical follow on Task Order (TO) to Raytheon Company under its ENCORE II base contract. This TO will be issued as a Cost-Plus Fixed-Fee (CPFF) award for a three-month base period with three one-month options to continue MNIS PMO Asset Management and Logistics Support Services during a transition period that will require coordination with the incumbent (Raytheon) and the winner ofthe Logistics Support 8(a) competitive, which was posted to Federal Business Opportunities (FBO) on 12 July 2013, with an anticipated award made in September 2013. This transition period will allow the physical transfer of MNIS PMO owned information technology (IT) infrastructure equipment from the current Raytheon storage facility to the contractor-owned contractor-operated (COCO) facility of the winner of the 8(a) competitive acquisition, while adhering to all statutes and regulations on DoD equipment accountability and management. This transition period was approved in the MNIS PMO Combined Acquisition Strategy/Acquisition Plan (ASAP) FY 13.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The period of performance of the current MNIS PMO Asset Management and Logistics Support Services task order ends on 15 August 2013. Under this follow-on sole-source, Raytheon will continue to provide comprehensive logistics and asset management services to include managing, tracking, auditing, general transportation and delivery as required; maintenance and control, materials and storage management, property storage and disposal, shipping and receiving operations; and general equipment audit and logistics management services primarily at the Raytheon storage facility, but also at the Fort George G Meade (FGGM) MNIS PMO laboratory. Raytheon will also cooperate with the new 8(a) contractor upon award to transfer physical control and custody of all MNIS PMO IT infrastructure equipment to the new contractor, and incrementally transition associated logistics and asset management services and oversight until the new 8(a) contractor has full control and responsibility. Without compromising trade secrets or proprietary information, Raytheon will also perform a knowledge transfer with the new 8(a), in order to provide the new company with a complete understanding of existing logistics processes and their interfaces with MNIS PMO operations worldwide, particularly in forward deployed areas, to ensure no lapse or security failures in these critical areas.

PROPOSED CONTRACTOR'S UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity.

IAW FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

(b) Description ofthe Justification.

The specific requirement for Raytheon Company logistics and asset management services support continues because Raytheon has physical control and custody of MNIS PMO IT infrastructure equipment that must be transferred to the new 8(a) Contractor after award of the 8(a) competitive solicitation in September 2013. This new contract will be firm-fixed price with a cost-type, surge contract line item (CLIN) for a single full-time equivalent (FTE). The period of performance (POP) will be 15 September 2013 to 16 September 2014, with four (4) one-year options. The planned September award date is one month after expiration of the current Raytheon task order (TO). To fulfill legal and regulatory requirements for accountability and management of equipment, a maximum of an additional five months may be required to complete the formal transfer of Raytheon's over 4,000 line item inventory to the new 8(a). Also, this potential five-month period will be used to conduct a knowledge transfer from Raytheon to the new 8(a), as a risk mitigation to prevent a lapse or failure of this vital service in support of MNIS operations worldwide.

Under the follow-on TO authorized by this J&A, Raytheon will cooperate with the new Contractor to conduct an inventory and audit that meets all legal, regulatory and MNIS PMO requirements. This will include reconciliation of discrepancies (i.e., duplicates, missing records and warranty information, mismatched serial numbers) between the internet Network Tracking Information System (iNTIS) and the Government Defense Property and Accountability System (DPAS) for all line items, and entering equipment records into DPAS. This exercise will be based on an initial inventory of IT equipment in the Raytheon facility, which will be provided to the new 8(a) contractor as Government Furnished Information (GFI) at the time of contract award. Also, as a result of this inventory, Raytheon will identify equipment that is eligible (e.g., excess property) for tum-in to Defense Logistics Agency (DLA) Disposition Services (formerly the Defense Reutilization and Marketing Service) at FGGM. Raytheon will provide support to fulfill DLA Disposition Services procedures for useable or scrap IT equipment tum-ins.

In the interest of both economy and efficiency, Raytheon must continue to provide this support and transition this work to the successful 8(a) contractor. As an initial matter, only Raytheon can physically transfer the inventory from its contractor owned facility and only Raytheon has the capability to transfer its own working knowledge and experience to Performance by another contractor not only impractical but legally infeasible. Furthermore, it would be unreasonable and cost prohibitive to transfer Raytheon's current knowledge and inventory to either the Government or an interim contractor pending award to the successful 8(a) contractor. (c) Justification:

(1) Minimum Government requirements.

The verified minimum Government requirement is three months of logistics and asset management services support from 16 August 2013 to 15 November 2014, with three additional one month option periods if additional transition time is required. By the end of that period, all MNIS PMO IT infrastructure equipment inventory and associated logistics and asset management services support will be formally transferred to the new Contractor selected under the 8(a) competitive acquisition, which will be posted in June 2013.

(2) Proposed sole-source contractor.

The proposed sole-source contractor is Raytheon Company, 7700 Arlington Boulevard, Falls Church, Virginia 22042-2902. Raytheon currently has control and custody ofMNIS PMO IT infrastructure equipment at a Raytheon COCO facility, and provides associated logistics and asset management support services.

(3) Discussion regarding cause ofthe sole-source situation.

The cause of this sole-source situation is Raytheon's physical control and custody of MNIS PMO IT infrastructure equipment, which was properly furnished by the Governrnent under ENCORE II Contract HC1028-08-D-2024, Task Order (TO) VC02. This large TO was split into four different procurement actions. The "MNIS PMO Asset Management and Logistics Support Services" portion was designated an 8(a) competitive based on the Market Research performed to support this acquisition. The Governrnent anticipates an award in September 2013. Upon award, all MNIS PMO IT infrastructure equipment in the hands of Raytheon must be accounted for and transferred to the new 8(a) contractor. This will be a gradual process and is designed not simply as a hand-off of inventory from large business Raytheon to an 8(a), but as a cooperative effort to permit the 8(a) to efficiently and effectively take control of this vital effort and benefit from a Raytheon knowledge transfer. The Government deems 8(a) candidates fully capable, based on Market Research, but has established this transition period not only to verify and validate inventory, but also to prevent any lapse or failure in this critical service that might compromise MNIS PMO worldwide operations.

(4) Demonstration of unique source.

Raytheon warehouses MNIS PMO IT infrastructure equipment principally at an Annapolis Junction facility leased and operated directly by Raytheon. Another contractor cannot work at this site, that is, simply step in, take control of the inventory, and transfer it to the new 8(a). Raytheon alone has the legal control and authority over the site, including the equipment accounting and configuration records. Raytheon is the only company that can work at the site and systematically transfer inventory and associated records to the new 8(a). This J&A authorizes this indispensable transition of equipment, records and related non-proprietary business knowledge from Raytheon to the new 8(a) contractor.

(5) Procurement discussion.

This service was previously provided via a competitive TO placed against the ENCORE II contract vehicle, HC1028-08-D-2024, TO VC02. The base ENCORE II contract was issued to Raytheon in May 2008. The original requirement for these services was competed under the ENCORE II suite of contracts; however, only one proposal was received. TO VC02 was awarded to Raytheon on 13 Feb 2009 with the original period of performance set to expire 15 February 2013. The DTO contract was extended in December 2012 for a period of six (6) months from February 16, 2013 through August 15, 2013.

(6) Impact.

Raytheon physically possesses IT infrastructure equipment owned by the MNIS PMO. Since Raytheon's current TO is expiring on 15 August 2013, MNIS PMO must account for and move its equipment upon award of the follow on 8(a) contract. This Government property is subject to strict accountability standards by statute and regulation. The Government must maintain control of this equipment.. Raytheon owns the current storage site, which makes performance by another contractor not only impractical but legally infeasible. It would be unreasonable and cost prohibitive to transfer Raytheon's current knowledge and inventory to either the Government or an interim contractor pending award to the successful 8(a) contractor. If this sole source transition period is not permitted, Raytheon will have to transfer the equipment and working knowledge to the Government and/or an interim contractor which then have to again transfer the same knowledge and equipment to the successful 8(a) contractor. This would be inefficient and cost-prohibitive. Furthermore, the Government does not have a facility available to store this equipment nor the means to execute the requirements for equipment accountability. In addition, failure to provide adequate time for Raytheon to successfully transition its substantial inventory and working knowledge to the successor contractor could impact the mission of the MNIS PMO operations worldwide, particularly in forward deployed areas, risking lapse or security failures in these critical areas.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The Contracting Officer will obtain certified cost or pricing data, lAW FAR 15.403-4 and will use this information to determine fair and reasonableness. After completion of negotiations, a Certificate of Current Cost or pricing Data will be obtained.

6. MARKET RESEARCH:

Market Research was not performed to support this sole source logical follow on award to Raytheon, since as discussed above, in the interests of economy and efficiency, only Raytheon can provide the required transition of inventory and knowledge to the successful 8(a) awardee for the follow on procurement. A Request for Information (RFI)/Sources Sought was posted on FBO from 6 December 2012 to 20 December 2012 to support the follow on competitive procurement. The Government received five (5) Capabilities Statements with the following distribution by size and socioeconomic classification:

(1) Large Business (LB) (4) Small Businesses (SB)

The SDVOSB respondent did not show the capability to perform this Asset Management and Logistics Support requirement. The large business respondent and all of the 8(a) respondents fully demonstrated capability for this requirement. DISA did not identify two (2) or more capable small businesses in any other category aside from the 8(a) program. This requirement was determined eligible for a firm fixed price (FFP) contract type with some cost-reimbursement type contract line items (CLIN) for travel and other direct costs and work that cannot be FFP.

This information was incorporated into the formal Market Research Report.

7. ANY OTHER SUPPORTING FACTS:

The approved MNIS PMO Combined ASAP FY 13 provided for a transition period between the incumbent Raytheon and the new 8(a) contractor, as a means to 1) permit the transfer of MNIS PMO owned equipment from Raytheon to the new 8(a) in full compliance with equipment accountability and management statutes and regulations; and, 2) allow a knowledge transfer between Raytheon and the 8(a) to prevent a failure in this critical service. This J&A implements this transition requirement.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

The 8(a) competitive RFP for the "MNIS PMO Asset Management and Logistics Support Services" requirement was posted to FBO on 12 July 2013. Based on market research and information from the Small Business Administration (SBA), the Government anticipates adequate competition.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

The MNIS PMO Combined ASAP FY 13 was approved 2 April2013.

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CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Mr. Christopher Gray SIGNATURE: - - - -- - - - TITLE/ORGANIZATION: DITCO/NCR-PL62 PHONE: 301-225-4083

DATE: _

PROCURING ACTIVITY COMPETITON ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification does not exceed $12.5M, this review serves as approval.

NAME: Mr. Douglas Packard SIGNATURE:---------

TITLE/ORGANIZATION: PLD/PL PHONE: 301-225-4120

DATE: _

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