DCSOR22113_Redacted.pdf

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

8000 JEFFERSON DAVIS HIGHWAY

RICHMOND, VIRGINIA 23297

J&A No. DCSO-R2-21-13

Justification for Other than Full and Open Competition

(1) Identification of the agency and contracting activity:

Requiring Activity:

HQ Defense Logistics Agency (DLA) Defense Logistics Agency (DLA) Reform Program Management Office 8725 John J. Kingman Road, Suite 4240 Fort Belvoir, VA. 22060-6221

Contracting Activity:

DLA Contracting Services Office 8000 Jefferson Davis Hwy Richmond, VA 23297

(2) Nature and/or description of the action being approved:

In accordance with FAR 13.501(a) & 10 U.S.C. 2304(c)(1) this justification authorizes and approves this acquisition to be limited to one source utilizing simplified acquisition procedures. The service required is a new requirement with BOSTON CONSULTING GROUP, INC.(BCG) for implementation of the DLA Strategic Cost and Performance Transformation initiatives developed in FY2021.

The resultant purchase order will be awarded on a non-competitive basis through a combined synopsis solicitation in accordance with FAR 12.603 utilizing beta SAM.gov (open market) following the procedures in FAR subpart 13.5.

(3) Description of the supplies or services required to meet the agency’s needs (including the estimated value):

This contract is to secure non-personal services to assist DLA in implementing Reform recommendations developed under the terms of Washington Headquarters Services (WHS) contract task orderHQ003416A0003- HQ003420F0557 conducted from 29 September 2020 through 28 February 2021. These recommendations include extensive reform to business and operational processes, to assist DLA in Implementing a strategic executable roadmap and Strategic Plan which will directly address these challenges and continue DLA’s position as a world leader in the provision of agile logistics solutions. The agency intends to award a contract with a base period for 6 months. The total estimated value of the resultant contract is .

(4) Identification of statutory authority permitting other than full and open competition:

10 U.S.C. 2304(c)(1), One source or limited sources.

(5) Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

Over the past four months, DLA has been developing a strategic executable roadmap and strategic plan to directly address the challenges of today’s environment and continue DLA’s position as a world leader in the provision of agile logistics solutions. The additional requirements to develop supporting strategic plan implementation elements and governance for monitoring the plan need to be completed prior to the start of FY22. During the process of developing the strategic plan, DLA has invested three to four months educating BCG on every aspect of DLA’s mission, building in-depth insight into critical operations, metrics, and stakeholders.

The next phase is to develop DLA’s strategic implementation plan and governance. The contextual understanding of the strategic plan, how the plan was built and the vision going forward provides an important foundation of knowledge to ensure successful execution of the strategy. At this point in the project, no other consultant can provide the highly complex consulting support for this effort without significant reinvestment of time and money, losing critical momentum and jeopardizing the completion of the implementation plan prior to the Director’s suspense date.

The trust and rapport BCG has built with DLA leadership required multiple meetings on a weekly basis throughout the four-month contract period with all the agency’s senior leadership, which has totaled in to hundreds of hours of leadership time that has been invested. This rapport in DLA starts at the highest levels of DLA leadership, and continues through the J-Code and Major Subordinate Command (MSC) leadership. Continuing with BCG means less time spent getting leadership comfortable with the competency of the consultant to deliver satisfactory results. Based on the time DLA invested to educate the BCG team, starting from scratch with a different consultant would take months, both in the contracting process and establishing baseline knowledge with a new vendor, which does not support the current goal to complete the DLA Strategy and implementation prior to the start of FY 2022. Due to this, BCG is uniquely positioned to continue delivering the best implementation, with the least resistance, as efficiently as possible.

Awarding to a consulting firm other than BCG would severely limit the likelihood of successful and timely implementation of strategic initiatives and would require reinvesting significant amounts of money and time in another company’s understanding of DLA, its operations, the data, and analysis performed by BCG. Awarding to any other consulting firm would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Specifically, DLA has obligated funds for contract requirements totaling from September 2021 through present to develop the strategic initiatives. Part of that investment was spent educating the contractor and developing a synchronized vision with DLA leadership, which would be a duplicate cost if DLA pursued a different vendor. Rebuilding this context for another consultant would be cost prohibitive and the time necessary would be detrimental to the likelihood of success. Leaving the implementation to another consultant based on their industry experience would likely result in major changes to the strategic vision without valid understanding or appreciation of the complexities, magnitude, or unique characteristics of the work that has been done to date. The initial investment would be marginalized.

Utilizing a firm other than BCG would also require additional time from leadership to familiarize the new consultant with their intent and develop a shared vision and way ahead for the desired end-state.

Not only will this jeopardize DLA implementation timelines, but also carries the additional risk of exhausting leadership interest and losing their backing for the effort.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies:

The contracting officer intends to publicize a notice as required under FAR Subpart 5.2 upon approval of this sole source J&A via a combined synopsis/solicitation.

(7) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer determines the anticipated cost to the government will be fair and reasonable, and that the resulting contract represents the best value to the Government, by utilizing one or more of the price analysis techniques at FAR 13.106-3.

Description of market research conducted and results or a statement of the reason market research was not conducted:

Limited market research was conducted due to the nature of the strategic plan implementation. The contracting officer did conduct market research to determine commerciality of the services. Regardless of the outcome of market research, BCG, having developed the DLA strategic plan, is uniquely positioned to consult on the implementation of the plan.

No other vendor is as knowledgeable of the plan or positioned to consult on DLA’s implementation plan at this point in the project.

Other facts supporting the use of other than full and open competition:

Not Applicable

Listing of sources that expressed, in writing, an interest in the acquisition:

Not Applicable

Actions, if any, the agency will take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

Based on the reasons set forth in Paragraph , DLA has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, DLA will assess whether competition for future requirements is feasible.