DML-ES ITISM Consolidation.pdf

DEFENSE HEALTH AGENCY

DETERMINATION AND FINDINGS FOR

CONSOLIDATION PROCUREMENT

I have reviewed this requirement for the Defense Health Agency (DHA), Solution Delivery Division (SDD) variety of highly technical Services in support of the Defense Medical Logistics

– Enterprise Solution (DML-ES) LogiCole application and legacy application consolidation and decommission. The Contract Operations Branch - Professional Services Contracting Division, (PS-CD) proposes to solicit this requirement as a consolidated procurement action under 15 U.S.C. § 657q(c)(2)(B) and 7.107-2(e)(2)(i). The review resulted in the following findings:

FINDINGS

1. Agency/Requiring Activity/Contracting Activity: DHA/SDD/PS-SA

2. Nature and/or Description of Action being approved: This contract consolidates contract support for two (2) requirements within DML-ES as follows:

Requirement Existing Contract Period of Performance Ends Technical Program Management Support (Financial compliance, audit, data, enterprise catalog, Military Health System (MHS) GENESIS integration, Inventory management, strategy, risk, schedule and business analysis).

HT0011-23-C-0098

30 September 2024

Systems Applications and Products (SAP) Certified Integration HT0015-19-F-0039 30 September 2024

The two (2) contracts requirements supporting the DML-ES capabilities will combine into one single award contract with a base period of 12 months and 3 option periods that are 12 months each. Inclusion of the FAR 52.217-8 extension of services clause enables extension up 6 months, if needed. This is a firm fixed price contract.

The products supported and services provided within this contract are:

a. The current program support Program Management Support Services (PMSS) contract managed by DHA SDD J6 supports a small portion of the requirement of 24 Full Time Equivalents (FTEs) supporting areas in financial compliance, audit, authoritative data, enterprise catalog, MHS GENESIS integration, inventory management, strategy, risk, schedule, and business analysis. The PMO has been under audit for eight (8) years as the Defense Medical Logistics Standard Support (DMLSS) is categorized as an application materiel to the DoD statement of budgetary resources. LogiCole is the technical refresh application replacing DMLSS. The DMLSS application is in technical decline and LogiCole is on a tight schedule to fully rationalize the business capabilities.

b. The program management office has a current small business contract with Advanced Solutions Inc. for one (1) certified SAP technical expert. This FTE provides critical support to the Theater Wide Enterprise Logistics Solution (TEWLS) which in turn serves joint forces in Outside the Continental United States (OCONUS) environments as the Theater Lead Agent. The TEWLS application provides depot level support for repairable, medical, dental, and pharmaceutical consumables as well as stored ready to deploy pre-packed kits and sets. This capability is critical to the DHA Combat Support mission and the Services. The core of the TEWLS application is SAP this commercial product requires a certified technician to validate, test, configure and debug the application.

3. Citation of the appropriate statute and/or regulation upon which the determination and findings (D&F) is based: Applicable Statutes/Regulations are 15 United States Code (U.S.C.) § 657q(c)(2)(B) and 7.107-2(e)(2)(i).

4. Findings that detail the particular circumstances: The objective of this contract is to provide technical support that includes expertise to design, develop, modify, upgrade, test, troubleshoot, implement, support, administer, sustain, maintain security, train, and/or conduct change management practices for all capabilities to achieve the LogiCole technical refresh, consolidation of TEWLS and decommission of DMLSS.

a. This contract has a 12-month base period and three 12-month options. The FAR 52.217-8 extension of services clause enables extension up 6 months, if needed.

b. Market research was conducted between 28 November 2023- 16 April 2024, by using the Small Business Administration Quick Market Research database, GSA Advantage database, GSA STARS III, and current/historical contract data for the same services to collect and analyze data pertaining to significant market changes, technological advancement and/or economic indicators that could affect the cost or the requirement itself.

The MEDLOG IT department is currently receiving identical contracted services from two vendors for two separate contracts (HT001519F0039 & HT001120A1012/HT001120F2012). The focus during the market research process was to identify small business vendors to retain the same level of performance and achieve SBA, DHA, and DoD goals. Six potential small business vendors were identified (see the DHA Market Research Report) who each provides STARS III GWAC contracts socio economic solutions. A STARS III contract solution will provide a lower risk to the government and eliminate protest that could delay the award process. A direct award or limited competition set–aside using the STARS III Emerging Technology GWAC to SB or tribally-owned business concern has been found to support the requirements at a low risk.

c. The table below reflects information on the two prime and two critical sub-contracts feeding into the consolidation. The current number of FTEs in the feeder contracts (currently 25) remains the same in the consolidation contract (25) with consideration of optional CLINs.

Contract Number Vendor Contract Type / Service

Amount Contract Size and Previous Competition

HT001519F0039 Advantage Solutions, Inc.

Fixed Firm Price (FFP) –

SAP

Technical Engineering Services

$3.5M

(1) FTE

Small Business – Competitive

HT001123C0098

Irving Burton Associates

(IBA)

FFP –

Program and Technical Support Services

$6.5M (represents the PMO’s portion of a $200M contract) – (24 FTEs)

Large Business – Competitive

Critical Sub-contractors supporting IBA

Unique Entity Identifier (UEI)

MJYHP3TM12A7

DMANDA

Services, LLC

FFP $1.5M (3-FTEs included in the 24 above)

Certified Service- Disabled Veteran- Owned Small Business

(SDVOSB)

Critical Sub-contractors supporting IBA

Data Universal Numbering System (DUNS) number 080566996

Letterman Solutions, LLC

FFP $1.8M (4-FTEs included in the 24 above)

Certified

SDVOSB

d. The following North American Industry Classification System (NAICS) code applies to this effort:

541512 Computer Systems Design Services, planning and designing computer systems that integrate computer hardware, software, and communications technologies. The hardware and software components of the system may be provided by this establishment or company as part of integrated services or may be provided by third parties or vendors.

These establishments often install the system and train and support users of the system.