DF Consolidation Redacted.pdf

CUI//PROCURE//FEDCON

CONSOLIDATION OF CONTRACT REQUIREMENTS DETERMINATION

FOR NON-PERSONAL PROFESSIONAL SUPPORT SERVICES

RATIONALE

1. Consolidation may provide substantial benefits to the Government. However, because of the potential impact on small business participation, before conducting an acquisition that is a consolidation of requirements with an estimated total dollar value exceeding $2 million, a written determination shall be made that the consolidation is necessary and justified in accordance with 15 U.S.C. 657q, after ensuring that--

(a) Market research has been conducted;

(b) Any alternative contracting approaches that would involve a lesser degree of consolidation have been identified;

(c) The determination is coordinated with the agency's Office of Small Disadvantaged Business Utilization or the Office of Small Business Programs;

(d) Any negative impact by the acquisition strategy on contracting with small business concerns has been identified; and

(e) Steps are taken to include small business concerns in the acquisition strategy.

2. Introduction: The United States Army Medical Research Acquisition Activity (USAMRAA) plans to solicit offers for a non-personal service requirement to provide financial analysis, cost accounting, Defense Travel System (DTS)/Government Travel Charge Card (GTCC) Management, manpower support, accounting analysis and internal control management services under the Deputy Chief of Staff for Resource Management (DCSRM) G8 in support of the United States Army Medical Research and Development (USAMRDC) Command. Services will be performed at Fort Detrick located in Frederick, Maryland. USAMRAA has conducted market research that demonstrates consolidation of this procurement to be both necessary and justified. Federal Acquisition Regulation (FAR) 2.101 defines consolidation as (1) a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy -- (i) two or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or (ii) requirements of the Federal agency for construction projects to be performed at two or more discrete sites; or (2) “separate contract” as used in this definition, means a contract that has been performed by any business, including small and other than small business concerns.

This non-personal professional support services requirement submitted under PANMRA- 22-P-0000 000433 meets the requirements of a consolidation. This consolidation will incorporate work currently performed under five separate contracts/task orders as follows: GS00Q14OADU113/W81XWH-17-F-0064, GS06F1247Z/W81XWH-18-F-0132, W81XWH-19-C-0179, GS00Q14OADS110/W81XWH-17-F-0029 and W81XWH-16-D-

0013- W81XWH-20-F-0028.

3. Description of the Procurement Action: The new consolidated effort will be a non-personal service requirement to provide financial analysis, cost accounting, DTS/GTCC Management, manpower support, accounting analysis and internal control management services under the DCSRM G8 in support of the USAMRDC Command. Services will be performed at Fort Detrick located in Frederick, Maryland. The consolidation of the requirements will assist the Government in meeting mission objectives by reducing the administrative burden and removing duplicated performance task areas. In addition, the consolidation of requirements will minimize the risks and vulnerabilities of the Government by ensuring functional expertise required for mission success.

The resultant consolidated contract is being combined from five separate contracts/task orders to streamline internal processes and allocate funds more efficiently.

A. Contract/Order GS00Q14OADU113/W81XWH-17-F-0064 was awarded against the United States General Services Administration (GSA) One Acquisition Solution for Integrated Services (OASIS) Unrestricted Pool 1. One Offeror was received as a result of the solicitation (Deloitte Consulting, LLP). Deloitte Consulting, LLP (Large Business) proved to be the best value to the Government and was awarded the requirement.

B. Contract/Order GS06F1247Z/W81XWH-18-F-0132 was awarded as an 8(a) sole source to Allied Technologies and Consulting, LLC (Small Business) under GSA 8(a) Streamlined Technology Application Resource for Services (STARS) II Government wide Acquisition Contract (GWAC).

C. Contract W81XWH-19-C-0179 was awarded as an 8(a) sole source to Wittenberg Weiner Consulting, LLC (Small Business).

D. Contract/Order GS00Q14OADS110/W81XWH-17-F-0029 was awarded against the GSA OASIS Small Business Pool 1. Four Offerors were received as a result of the solicitation. Cherokee Nation Technologies, LLC proved to be the best value to the Government and was awarded the requirement.

E. Order W81XWH-20-F-0028 was issued against single award Indefinite Delivery/Indefinite Quantity (IDIQ) Contract W81XWH-16-D-0013 which was awarded competitively as a 100% Small Business Set Aside to a Service Disabled Veteran Owned Small Business (SDVOSB). Eleven Offerors were received as a result of the solicitation.

Ansible Government Solutions, LLC proved to be the best value to the Government and was awarded the requirement.

In summary, all five contracts/orders listed above support the USAMRDC Command under the DCSRM G8. One contract (GS00Q14OADU113/W81XWH-17-F-0064) was awarded against the GSA OASIS Unrestricted Pool 1 to Deloitte Consulting, LLP (Large Business). Two of the contracts/orders (GS06F1247Z/W81XWH-18-F-0132 and W81XWH-19-C-0179) were awarded as 8(a) sole source requirements to Allied Technologies and Consulting, LLC and Wittenberg Weiner Consulting, LLC (Small Businesses). One contract/order (GS00Q14OADS110/W81XWH-17-F-0029) was awarded as a competitive small business set-aside on GSA OASIS Small Business Pool 1 to Cherokee Nation Technologies, LLC (Small Business). One contract/order (W81XWH-16-D-0013-W81XWH-20-F-0028) was awarded competitively as a 100%

Small Business Set Aside to a SDVOSB to Ansible Government Solutions, LLC (Small Business).

Therefore, the consolidation of these five contracts/orders will have a positive impact on small business participation, as one of the contracts being consolidated (GS00Q14OADU113/W81XWH-17-F-0064) was awarded to a large business (Deloitte Consulting, LLP). The requirement will now be set aside for a small business as a result of this consolidation. Please see a more detailed procurement history of each of these five contracts/orders below:

Procurement History:

Contract Number Contractor Contract Period of

Performance for

Consolidated Services

Contract Value of

Consolidated Services

Size Standard

GS00Q14OADU113/

W81XWH-17-F-0064

Deloitte Consulting, LLP.

10/01/2017- 09/30/2022

$1,848,473.58 Large

GS06F1247Z/

W81XWH-18-F-0132

Allied Technologies Consulting, LLC.

06/01/2018- 05/31/2023

$2,560,431.98 8(a) Small Business

W81XWH-19-C-0179 Wittenberg Weiner Consulting, LLC.

09/01/2019- 08/30/2024

$580,239.28 8(a) Small Business

GS00Q14OADS110/

W81XWH-17-F-0029

Cherokee Nation Technologies, LLC.

03/27/2017- 03/26/2022

$771,686.40 GSA

OASIS

Small Business Pool 1

W81XWH-16-D-0013-

W81XWH-20-F-0028

Ansible Government Solutions, LLC.

12/03/2019- 08/14/2021

$265,881.60 (20 Months):

$797,644.80 (Pro-Rated for 60 Months)

SDVOSB

Total Contract/ Order Value of Consolidated

Services

$6,558,476.04

Per the chart above, the total contract/order value of the services (6 full time equivalents) to be consolidated under this requirement for a 60 month period of performance is $6,558,476.04. The contract/order value under W81XWH-16-D-0013-W81XWH-20-F- 0028 of $265,881.60 only encompassed a 20 month period of performance. To ensure that all five contracts/orders encompassed a 60 month period of performance, $265,881.60 was multiplied by 3 (20 months X 3= 60 months) to arrive at a value of $797,644.80. This value of $797,644.80 was used in determining the total contract/order value of consolidated services.

Per the chart below, please see the estimated value of the consolidated positions for services (6 full time equivalents) that are being procured under this consolidation for a 60 month period of performance. These estimates were created by the Contracting Officer Representative (COR) within the Independent Government Estimate (IGE). Please note this estimate is only for the positions being consolidated under this requirement. The total projected costs of consolidated services is $5,806,365.81.

Base Period 08/29/2022-02/28/2023 $532,080.00

Option Period 1 03/01/2023-02/29/2024 $1,101,385.60

Option Period 2 03/01/2024-02/28/2025 $1,139,954.79

Option Period 3 03/01/2025-02/28/2026 $1,179,853.22

Option Period 4 03/01/2026-02/28/2027 $1,221,148.07

FAR 52.217-8 03/01/2027-08/28/2027 $631,944.13

Total Projected Costs of Consolidated Services

$5,806,365.81

While the consolidation of services within the IGE accounts for $5,806,365.81 encompassing 6 full time equivalents for a 60 month period of performance, the IGE total for a 60 month period of performance is $9,821,356.66 encompassing 10 full time equivalents. The North American Industry Classification Code (NAICS) for the requirement is 541611 – Administrative Management and General Management Consulting Services, with a size standard of $16.5 million. Please see the below chart for a breakdown of the periods of performance along with the estimated project costs.

Base Period 08/29/2022-02/28/2023 $904,960.00

Option Period 1 03/01/2023-02/29/2024 $1,862,567.20

Option Period 2 03/01/2024-02/28/2025 $1,927,407.05

Option Period 3 03/01/2025-02/28/2026 $1,994,516.30

Option Period 4 03/01/2026-02/28/2027 $2,063,974.37

FAR 52.217-8 03/01/2027-08/28/2027 $1,067,931.74

Total Projected Costs $9,821,356.66

4. Results of Market Research: Market research has been conducted that demonstrates consolidation of this procurement to be both necessary and justified. FAR 2.101 defines consolidation as a solicitation for a single contract, a multiple-award contract, a task order, or a delivery order to satisfy – (i) Two or more requirements of the Federal agency for supplies or services that have been provided to or performed for the Federal agency under two or more separate contracts, each of which was lower in cost than the total cost of the contract for which offers are solicited; or (ii) Requirements of the Federal agency for construction projects to be performed at two or more discrete sites. A separate contract as used in this definition, means a contract that has been performed by any business, including small and other than small business concerns.

A Request for Information (RFI) inclusive of a Draft Performance Work Statement (PWS) was issued by USAMRAA to the GSA OASIS 8(a) Pool 1 Contractors on 02 February 2022 with a closing date of 01 March 2022. Capability Statements were to be submitted which demonstrated relevant past performance based upon the size and the scope of the requirement as well as capabilities that are similar, related or identical to the work outlined in the Draft PWS.

USAMRAA received eight Capability Statements by the closing date. Each Capability Statement was evaluated by USAMRDC’s COR. The purpose of the evaluation was to make an informed decision on the capabilities and possibilities of the GSA OASIS 8(a) Pool 1 Contractors to satisfactorily perform and deliver the required services as the prime contractor. After review of the eight Capability Statements, the COR indicated through the Market Research Report that there is adequate competition. The overall determination provided by the COR was that at least two of the GSA OASIS 8(a) Pool 1 Contractors were able to demonstrate relevant knowledge and expertise to support this procurement and supported the Government’s intent to consolidate the five task orders and issue one competitive 8(a) award. Given eight Contractors provided Capability Statements in response to the RFI and given there are more than 71 SBA certified 8(a) Contractors under GSA OASIS Pool 1, the recommendation is for this requirement to be a competitive 8(a) set-aside under the GSA OASIS 8(a) Pool 1 as a Tier 3, best in class solution.

5. Benefit Analysis: Contract support within USAMRDC has been provided by the following five separate contract/task orders GS00Q14OADU113/W81XWH-17-F-0064, GS06F1247Z/W81XWH-18-F-0132, W81XWH-19-C-0179, GS00Q14OADS110/W81XWH-17-F-0029 and W81XWH-16-D-0013- W81XWH-20-F- 0028. The consolidated contract will be of critical importance to DCSRM mission and the overall USAMRDC mission. Consolidating these contracts/orders will increase cost-efficient use of resources, promote quality improvements that will save time and enhance performance, reduce the current amount of Government oversight and administrative burden associated with managing five task orders.

Managing five separate contracts/task orders requires duplication of deliverables, meetings, invoices and discussions with separate contractors. When consolidated, the Government would only require one set of deliverables, one invoice per contract and communication with one contractor instead of five contractors. Furthermore, utilizing one contractor will allow movement of positions across divisions in response to workload fluctuations, crisis response, maximizing task support and minimizing redundancy in active and surge requirements.

The Government is anticipating efficiencies and improvement of performance by consolidating technical support with functional expertise which will reduce acquisition cycle times. It is anticipated that the new, consolidated scope will provide synergy for the requirements, and ultimately the overall mission, by avoiding overlap in tasking and eliminating confusion. Further benefits to this strategy include cost savings by reducing contractor management oversight.

As was calculated in Section 3 above, the total contract/order value of the services (6 full time equivalents) to be consolidated under this requirement for a 60 month period of performance is $6,558,476.04. As was calculated through the IGE in Section 3 above, the estimated value of the consolidated positions for services (6 full time equivalents) that are being procured under this consolidation for a 60 month period of performance is $5,806,365.81. By consolidating the five contracts/orders, it is estimated that the Government would receive a cost savings of approximately $752,110.23 or 12.95%. This estimate does not take into account that the pricing of the five contracts/orders was provided multiple years ago and inflation rates have increased significantly over the past few years. Thus, the Government’s cost savings are estimated to be higher than $752,110.23.

6. Alternative Contracting Approaches and Rationale for Rejection: The alternative contracting approach would be to continue with five separate contracts/orders, which increases the contract overhead costs and the administrative burden to manage those contracts. Separate contracts require five times the deliverables, meetings, invoices, contract surveillance and modifications.

As stated in paragraph 5 above, the Government is anticipating efficiencies and improvement of performance by consolidating technical support with functional expertise.

It is anticipated that the new, consolidated contract will provide synergy for the requirement, and ultimately the overall mission, by avoiding overlap and conflicts in tasks and labor categories, eliminating confusion. Historically and currently, the five contracts/orders have areas of similar tasks and scope that introduce confusion with regard to tasking and responsibilities. If no consolidation is undertaken, this confusion would continue, especially if the orders were again awarded to five different contractors.

Consolidating would help ensure a more cohesive team approach within USAMRDC.

There are no viable alternative contracting approaches that would involve a lesser degree of consolidation at this time. As indicated above, this requirement is being consolidated to align services under one requirement to improve efficiencies and reduce costs.

7. Bundling: In accordance with FAR 2.101, “Bundling,” this procurement does not meet the criteria associated with contract bundling. The intent is to award this consolidation competitively through the OASIS Small Business 8(a) Pool 1. Thus, the consolidated procurement has been determined to be suitable for award to a small business and is not considered “bundling”.

8. Considerations, Facts, Reasoning Supporting the Determination: The Small Business Coordination Record (DD2579) will include a draft copy of this justification and will be submitted to the Small Business Specialist and Procurement Center Representative (PCR) for review. Ultimately, the consolidation of these five contracts/orders will benefit small business participation as one of the contracts being consolidated (GS00Q14OADU113/W81XWH-17-F-0064), is currently being performed by a large business.

9. Summary: Consolidating contract/orders GS00Q14OADU113/W81XWH-17-F-0064, GS06F1247Z/W81XWH-18-F-0132, W81XWH-19-C-0179, GS00Q14OADS110/W81XWH-17-F-0029 and W81XWH-16-D-0013- W81XWH-20-F- 0028 will reduce the duplication of effort, decrease the overall cost and increase the efficiency and effectiveness of work within the DCSRM in support of the USAMRDC.

10. Program Manager/Requiring Activity Justification: Pursuant to AFARS 5119.202-1(1), I hereby support the consolidation of contracts/orders as specified within this document.

Signature

DETERMINATION

Based on the foregoing rationale, I hereby determine, pursuant to FAR 7.107-2 and Army Federal Acquisition Regulation Supplement (AFARS) 5107.170, that the consolidation of the requirements as specified within this document is both necessary and justified and will serve the best interests of the Government.

The Senior Procurement Executive has delegated authority to make the consolidation determination prescribed at FAR Part 7.107-2 and AFARS Part 5107.107-2(b)(ii) as follows:

Where the total value of the consolidated procurement is above $2 million but less than $500 million, the HCA delegated to the SCO to make the determination.

Signature