DTO_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

Task/Delivery Order Number: TBD Procurement Title: Multinational Information Sharing (MNIS) Program Management Office (PMO) Design, Transition and Operations (DTO) 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 of the 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)(B)

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 Acquisitions Building

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 existing ENCORE II base contract. This TO will be issued as a Cost-Plus-Fixed-Fee (CPFF) award for a four-month base period with two one-month options to continue MNIS PMO DTO Support Services during a transition period that will require coordination with the incumbent (Raytheon) and the potential winner of the current MNIS PMO DTO Support Services unrestricted ENCORE II fair opportunity solicitation, which is currently in source selection with an award anticipated no later than July 2013.

The period of performance of the current MNIS PMO DTO Support Services task order ends on 15 August 2013.

This transition period was approved in the MNIS PMO Combined Acquisition Strategy/Acquisition Plan (ASAP) FY 13. Also, potential offerors were advised during the Request for Proposal (RFP) phase that the contractor awarded the new ENCORE II TO would be afforded a transition period (if necessary) with the incumbent Raytheon. This transition period was established to provide:

1) Risk mitigation to prevent a lapse or failure of DTO services to MNIS PMO classified networks, which are in direct support of the warfighter in Afghanistan and other forward deployed sites.

2) Full transfer of technical data that are on-site in MNIS PMO central office spaces, which are in a Government-owned and operated facility at Fort Meade, MD. This data is Government owned but must be transferred with assistance from Raytheon as the incumbent to the winner of the new ENCORE II TO. These data must be transferred on-site; they shall not leave Government spaces. This transfer shall be documented and also include Raytheon institutional knowledge of work processes involving MNIS PMO, and, where necessary, include the participation of MNIS PMO Government staff. No Raytheon trade secrets or proprietary information shall be part of this transfer.

3) Sufficient competition on the new ENCORE II TO. The current DTO ENCORE II TO, which was awarded in 2009, received only one proposal- from the incumbent Raytheon. To encourage other ENCORE II multiple award contract (MAC) holders to propose on the new TO, the MNIS PMO undertook extensive market research efforts; attached detailed Government Furnished Information (GFI) on MNIS operations to the RFP; and, provided this transition period in the solicitation. This transition period is being providedin response to indications that potential offerors did not understand MNIS classified operations and consequently were reluctant to propose without clear insight and also a transition period in which they could incrementally assume full control of critical operations.

3. DESCRIPTION OF SUPPLIES/SERVICES:

Under this follow-on sole-source award, Raytheon will continue to provide a range of DTO tasks for Combined Enterprise Regional Information Exchange System (CENTRIXS), Pegasus (Griffin) and other directed capabilities to support the MNIS PMO, including the following:

• Service Design

Configuration Control Board (CCB) o Equipment engineering

• Service Transition

• Service Operations (CENTRIXS, Griffin) o Tier 3 support

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity.

lAW FAR 16 • 50 5 (b) ( 2 ) ( ) (B) Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

(b) Description ofthe Justification.

Transition support from Raytheon Company as the incumbent on the MNIS PMO DTO support services contract is necessary because Raytheon has data, work processes, and institutional knowledge from its on-site work in MNIS PMO central office spaces that must be effectively and fully transitioned to the successful offeror on the follow on ENCORE II TO. Raytheon alone possesses the data and institutional knowledge at the site and it is not practical to have another contractor attempt to step in at the site and provide a transition to the new ENCORE II DTO contractor. The data at the site is Government-owned and shall not leave the site.

(c)Justification:

(I) Minimum Government requirements.

The minimum Government requirement is four months of DTO services support from I6 August 2013 to I5 December 20I4 (four month base period). Two additional one month options have been included in the event additional transition time is required. By the end of that period, the new ENCORE II DTO contractor should have possession of all on-site data and be firmly in control of all on-site processes and cooperating with co-located Government staff. The new ENCORE II DTO task order will be cost-plus-fixed-fee with performance incentives; the period of performance (POP) will be 30 June 2013 to OI July 20I4, with four (4) one-year options.

(2) Proposed sole-source contractor.

The proposed sole-source contractor is Raytheon Company, 7700 Arlington Boulevard, Falls Church, Virginia 22042-2902. Raytheon currently possesses critical specialized knowledge and expertise of the MNIS PMO DTO support requirements that is required to transfer Government-owned data that is located on-site in MNIS PMO spaces. These data shall be transferred on site by Raytheon to the new ENCORE II DTO. .

(3) Discussion regarding cause of the sole-source situation.

The cause of this sole-source situation is Raytheon's inherent knowledge of critical Government-owned DTO data and information obtained under ENCORE II Contract HC I 028-08-D-2024, Task Order (TO) VC02. The new ENCORE II TO is currently in source selection. An award is expected no later than July 2013. Upon award, all Government-owned data in the possession of Raytheon will be transferred to the new ENCORE II contractor on-site in MNIS PMO central office spaces, where Raytheon DTO staff is currently co-located with Government personnel. This data possessed by Raytheon shall not leave Government spaces. Raytheon will also transfer knowledge of MNIS PMO world-wide business processes to the new contractor. Under Government oversight, Raytheon will incrementally shift control of critical DTO processes to the new contractor.

(4) Demonstration of unique source.

All government-owned data and non-proprietary information accumulated by Raytheon under their current TO, and stored within MNIS PMO spaces, must be transferred to the new ENCORE II DTO contractor within these secure spaces to enable 1) information assurance; 2) a satisfactory transfer to, and acceptance by, the new DTO contractor, including a broader knowledge transfer in order to give context to the data and information; and, 3) MNIS PMO Government personnel oversight and participation. Raytheon alone possesses these data and information and knowledge required by the new DTO contractor. Raytheon, as the incumbent, is the only contractor who can provide the required transition support. No other contractor can perform this function.

(5) Procurement discussion.

This DTO service was previously provided via a 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 of 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 on 15 February 2013. The DTO contract was extended in December 2012 under FAR 52.217-8 for a period of six (6) months from February 16,2013 through August 15,2013.

(6) Impact.

Raytheon possesses Government-owned data and knowledge that must be transferred to the new ENCORE II contractor. The Government must maintain control of, and account for, these data, which shall not leave Government spaces. Without these data, the new contractor cannot fully perform its tasks. If these data are not transferred in an orderly transition process, the Government risks a lapse or failure in critical MNIS classified network services, which support wartime and other forward-deployed operations. Also, the Government committed to a transition period as part of its solicitation process.

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, only Raytheon can provide the required transitional support to the successful awardee for the follow on procurement. A Request for Information (RFI)/sources sought for the DTO follow-on contract was posted on Federal Business Opportunities (FBO) from 20 August to 7 September 2012; the Government received seventeen (17) responses or Capabilities Statements from· industry with the following distribution by size and socioeconomic classification:

(8) Large Businesses (LB) (9) Small Businesses (SB)

(3) Economically Disadvantaged Woman-Owned Businesses (EDWOSB) (4) 8(a) Certified Small Disadvantaged Businesses (8(a) SDB)

(1) Service Disabled Veteran Owned Small Business (SDVOSB)

(1) Navajo Nation Tribally Owned Business

(Note: These numbers exceed seventeen (17) because of multiple classifications for some of the businesses.)

The Government's assessment of the respondents' Capabilities Statements indicated this requirement can only be provided by large business - that the small business respondents did not have the capability to deliver complex DTO network engineering services in a DISA-approved DISA Enterprise Service Management Framework..

Specifically, on the factor, "Demonstrated capability to perform the full scope of tasks outlined in this sources sought," six (6) of eight (8) large businesses received a positive assessment for this criterion.

Due to the complexity of this requirement, all of the small businesses received negative rating in their assessments. As a result, the Market Research Report for the DTO follow-on contract recommended this acquisition be an unrestricted fair opportunity on ENCORE II.

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 ENCORE II contractor, for the reasons cited in Section 2. 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 new DTO Task Order was competed unrestricted fair opportunity on ENCORE II. The Government received several proposals in response to its performance-based Statement of Objectives (SOO). The Government is presently in source selection with an award expected no later than July 2013.

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

MNIS PMO Combined ASAP FY 13 approved 2 April2013.

Justification

Approval

(FAR

Part

16.505)

MNIS

PMO

Design, Transition and

Operations

Support

Services