ESM_Redacted_JandA.pdf

Enterprise Service Management Capability Support

Page 1 of 7 Pages

MIPR # DIAMC32017

JUSTIFICATION & APPROVALS FOR FAR SUBPART 16.5

ACQUISITIONS

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

Purchase Request Number: DIAMC32017 Contract Number: GS-06F-0575Z Task Order Number: HC1047-10-F-4158 Procurement Title: Enterprise Service Management (ESM) Capability Support Contracting Office: PL62 Estimated Value: XXXXXXX Authority: FAR 16.505(b)(2)(i)(B)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA13-124

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

1. REQUIRING AGENCY AND CONTRACTING OFFICE: (16.505(b)(2)(ii)(B)(1)

REQUIRING AGENCY:

Defense Information Systems Agency (DISA) Program Executive Office – Mission Assurance (PEO-MA) / MA2 P.O. Box 549 Ft. Meade, MD 20755-0549

CONTRACTING OFFICE:

Defense Information Systems Agency Defense Information Technology Contracting Organization National Capital Region (DITCO- NCR) / PL62 P.O. Box 549 Ft. Meade, MD 20755-0549

2. NATURE/DESCRIPTION OF ACTION(S): (16.505(b)(2)(ii)(B)(2)

The purpose of this modification is to extend the period of performance by six (6) months in accordance with FAR 52.217-8 - Option to Extend Services, under GSA contract # GS-06F- 0575Z, task order # HC1047-10-F-4158. The requirement was competitively solicited among small businesses via the COMMITS NexGen Government Wide Acquisition Contract (GWAC). The resultant cost-plus-fixed-fee (CPFF) contract was awarded to FGM, Inc., 12021 Sunset Hill Road, Suite 400, Reston, VA 20190. The award was made on 21 September 2010.

Page 2 of 7 Pages

MIPR # DIAMC32017

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

The period of performance is 21 September 2010 – 20 September 2011 with two (2) one-year option periods. The task order is currently in the final Option Year and will expire on 20 September 2013.

FAR Clause 52.217-8 is included in the terms and conditions of the task order, b u t pricing f o r t h i s o p t i o n w a s not specifically requested or evaluated for a six (6) month extension of services prior to award. The six (6) month extension is necessary to allow the Government sufficient time to transition the ESM capability from this contract into the DISA Unified NetOps Situational Awareness (UNSA) contract currently in Option Year 1. There is no expected follow on contract to support ESM.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXX. The period of performance will be 21 September 2013 – 20 March 2014. The existing task order will expire on 20 September 2013 and all options have been exercised in accordance with FAR 52.217-9 - Option to Extend the Term of the Contract.

3. DESCRIPTION OF SUPPLIES/SERVICES: (16.505(b)(2)(ii)(B)(3)

FGM engineering support se rv i ces on th i s cont rac t provide programmatic, technical, engineering and integration support to the NetOps Program Management Office (PMO) for operating, maintaining, sustaining and improving the ESM capability. FGM provides for the planning, management, coordination, and technical support of Service Oriented Architecture Foundation (SOAF) Enterprise Service Management (ESM) activities related to and necessary for the fielding of ESM in support of achieving program goals. The primary goal of this modification to extend services in accordance with FAR 52.217-8 - Option to Extend Services, is to work with the existing ESM capability, to continue to develop the capability and transition it onto the UNSA contract.

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: (16.505(b)(2)(ii)(B)(4)

(a) Exception to Fair Opportunity. 16.505(b)(2)(i)(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 of the Justification. Due to the specificity of expertise and scope of work, the Program Executive Office – Mission Assurance (PEO-MA) personnel cannot transition the current activities without the assistance of the current contractor, FGM, Inc. I t would not be reasonable or cost effective for the Government to expend the time and cost to conduct a full and open

Page 3 of 7 Pages

MIPR # DIAMC32017

competition and bring a new contractor into the agency to be trained and fully acclimated to support the existing and to-be productions systems/services when the intent of the Government is to transition the capability to UNSA by the end of the first quarter of 2014. The current contractor developed the ESM capability and the platform/environment the ESM capability resides in. It is imperative that this contractor document and transition this capability back to the Government UNSA operation and sustainment team.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXX

(c) Justification:

(1) Minimum Government Requirements. The minimum Government requirement consists of transitioning current infrastructure to UNSA without loss of current capabilities. The contractor has developed widgets that are reusable in the UNSA environment. Widgets are developed to provide information on the availability of systems. This is the ESM capability. The capability was developed to be reusable to provide system monitoring for any system without changing the code of the widget.

(2) Proposed Sole Source Contractor. The proposed contractor for the six (6) month extension of services is FGM, Inc.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

(3) Cause of the Sole Source Situation. With the recent PEO-MA reorganization, it has been determined that the current ESM software and hardware infrastructure could meet the infrastructure requirements of other programs in PEO-MA. DISA is in the process o f transitioning the capability to the UNSA contract in order to reduce the footprint and cost of the ESM capability.

PEO-MA is seeking to extend the HC1047-10-F-4158 contract for six (6) months in accordance with FAR 52.217-8 to transition this support to the UNSA contract.

The required support cannot be provided by the PEO-MA Government resources, because of the level of expertise and the scope of the work required. The FGM contractor developed and has been maintaining the ESM system since its inception before PEO-MA acquired the service from PEO-ES, and it is for this reason, the only source capable of providing the required level of expertise.

(4) Demonstration of Unique Source. FGM is the only contractor that has ever worked on the ESM software or hardware and brings unique experience and skill sets to the table. FGM engineering support activities on th i s cont rac t inc lude providing h ighl y speci a l ized programmatic, technical, engineering, and integration support to the NetOps Program Management Office (PMO) in operating, maintaining, sustaining, and improving the ESM capability. FGM provides for the planning, management, coordination, and technical support of Service Oriented Architecture Foundation (SOAF) Enterprise Service Management (ESM)

Page 4 of 7 Pages

MIPR # DIAMC32017

activities related to and necessary for the fielding of ESM in support of achieving program goals.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

(5) Procurement Discussion. Since the transition of the ESM Architecture to the UNSA contract is projected to be completed within six (6) months, it is not in the best interest of the Government to solicit a six (6) month bridge contract for the required services; it would be of more value to the Government to retain the level of support provided by FGM on the current contract for an additional six (6) months, and exercise the option in accordance with FAR 52.217-8 to maintain continuity and quality of service.

(6) Impact. Failure to extend the current task order by a period of six (6) months in accordance with FAR 52.217-8 – Option to Extend Services will result in the PEO-MA incurring significant schedule delays to ESM Continuity of Operations and development planning. .

Additionally, the Government would receive a low Return on Investment (ROI) if it chose to bring in a new contractor for six (6) months, as that contractor would need to be trained and brought up to speed on support of ESM systems and services.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

(16.505(b)(2)(ii)(B)(5)

The six (6) month extension of services will be executed in accordance with FAR 52.217-8 – Option to Extend Services.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

The technical scope of work will remain the same as work currently performed under the existing task order.

An independent government cost estimate (IGCE) was developed by the Government based on Cost Plus Fixed Fee historical data. The contractor’s proposal for this additional effort will be analyzed by the Contracting Officer and PMO technical evaluation team to determine cost reasonableness. Additionally, the proposal will be compared with the Government’s IGCE and other historical data available for similar procurement efforts. The results of the cost and technical evaluation will be used to substantiate the Government’s determination of fair and reasonable cost. DCAA may be utilized for verification of direct and indirect rates.

6. MARKET RESEARCH:

DISA intends to move the services being performed and the infrastructure in use under the current Enterprise Services Management task order # HC1047-10-F-4158 to an existing program and eliminate ESM as a separate service.

Page 5 of 7 Pages

MIPR # DIAMC32017

In the initial market research XXXXXXXXXXXXXXXX for task order # HC1047-10-F-4158 under the COMMITS NexGen Government Wide Acquisition Contract (GWAC), and subsequent informal searches for similar applications, FGM has been shown to be the only company with sufficient depth of understanding and experience necessary to successfully continue to develop, operate, and support the Enterprise Service Management (ESM) system. Similar applications exist, but the operating environment of the PEO-GES ESM Capability Support makes this a unique task.

The purpose of this six-month extension of services is to shift the support of the ESM software to the UNSA contract. FGM, as the only contractor that has ever worked on the ESM software or hardware is uniquely capable of supporting the intent of this extension. Market research in support of the exercise of FAR 52.217-8 was performed within the last 12 months through an informal analysis of comparable costs for Software Developers, Database Administrator’s, and System Architects across several GSA Government Wide Acquisition Contract’s currently available. FGM’s current labor costs were found to be comparable to other rates found in the marketplace. Exercise of the option is the most advantageous method of fulfilling the Government’s need, price and other factors considered.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

In addition, DISA does not anticipate any appreciable cost savings to be recovered through recompetition of the DISA Intranet Support Services contract for a six (6) month effort to provide uninterrupted support until the transition is complete.

7. ANY OTHER SUPPORTING FACTS: (16.505(b)(2)(ii)(B)(6)

This Justification and Approval is being issued because although FAR Clause 52.217-8 was included in the terms and conditions of the task order, pricing f o r t h i s o p t i o n w a s not specifically requested or evaluated for a six (6) month extension of services prior to award.

The six (6) month extension is necessary to allow the Government sufficient time to transition the ESM capability from this contract into the DISA Unified NetOps Situational Awareness (UNSA) contract currently in Option Year 1. There is no expected follow on contract to support ESM.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

BARRIERS THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(16.505(b)(2)(ii)(B)(7)

(a) Procurement History. Task Order 0018 was competitively solicited among small businesses on the Next Generation Engineering Contract (NexGen) and awarded to FGM on Contract # DCA100-02-D-4005 on April 22, 2002.

(b) Removing Barriers to Competition. There is no follow-on contract anticipated for this effort, as it will be included in the UNSA contract. The system will be transitioned to Network Services to be maintained as part of the NS OSS Central environment. PEO-MA will no longer

Page 6 of 7 Pages

MIPR # DIAMC32017

be responsible for maintaining the system. NS has their own contractor that maintains the services that are delivered as part of the OSS Central.

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

This effort does not meet the threshold requirement for an approved Acquisition Plan.

Original Signatures in Contract File