Limited_Sources_Justification_-_Hazmat_Field_Ops_Case_Mgmt_Sys_Dev_(FINAL).pdf

U.S. Department of Transportation (US DOT) DTPH56‐12‐Q‐000034 Pipeline and Hazardous Materials Safety Administration (PHMSA) Limited Sources Justification

LIMITED SOURCES JUSTIFICATION

RFQ #DTPH56‐12‐Q‐000034

“Field Operation Development Services for PHMSA’s PHH Program Offices”

This acquisition is being conducted under the authority of the Multiple Award Schedule Program.

Following the format prescribed at FAR Subpart 8.405‐6(c)(2), this document serves as the limited sources justification for the purchase of IT development support services from Deloitte Consulting, LLP for PHMSA’s IT Modernization initiative.

1. Agency & Contracting Activity:

This acquisition is for the U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration (PHMSA). The contracting activity is the Office of Acquisition Services, PHA‐30.

2. Nature/Description of Action Being Approved:

The action submitted for approval covers the acquisition of IT development support services from Deloitte Consulting, LLP to develop and implement the Office of Field Operation (OFO) Case Management component of the PHMSA IT Modernization initiative.

3. Description of Supplies or Services:

PHMSA requires IT services from Deloitte for the development and implementation of the formally designed Case Management component of PHMSA’s IT Modernization initiative. This task covers development and implementation of the Case Management system and subsystem components based on the existing Requirements and Design documents developed by Deloitte Consulting LLP under Delivery Order #DTPH56‐11‐F‐000051. This task will cover the development of the Inspection, Investigation and Adjudication modules as designed with web‐based and mobile capabilities.

Period of Performance and Government Cost Estimate: The period of performance for this Field Operation Case Management development task is 12 months, estimated to begin in September 2012. All work must be scheduled to be completed within this timeframe. The government cost estimate for this task is $1.5 million. The estimate was derived from past projects with similar scope and requirements/design as well as the Requirements and Design document delivered by Deloitte Consulting under Delivery Order #DTPH56‐11‐F‐000051. The chart below provides a detailed list of services required, along with estimated hours.

Services Required:

Work Description Estimated Hours

Workflow(s) Design 600

Web‐based Screens 3500

Database elements 350

Service Interfaces 450

Mobile Component 1800

Data Conversion 300

Data Interfaces 300

Functional/PM 2000

PDF Reports 500

Workflow Setup 400

Security 100

Mobile Env Configuration 100

Misc Web Services 250

Portal Integration 400

Training 400

Total hours 11,450

Mix Billing Rate $135.00 Hr $1.5 M

4. Authority and Supporting Rationale:

In accordance with FAR 8.405‐6(a)(1)(i)(C), PHMSA has determined that “in the interest of economy and efficiency, the new work is a logical follow‐on to an original Federal Supply Schedule order.” The original order (DTPH56‐11‐F‐000051) was placed in accordance with the applicable FSS ordering procedures, and was not previously issued under sole‐source or limited‐sources procedures.

Under the original order, PHMSA has over 38 weeks (17 weeks Requirements, 21 weeks Design) invested with Deloitte Consulting in the development of the Requirements and Design deliverables for the OFO Case Management System. In awarding this order to Deloitte, PHMSA will leverage the existing knowledge and skills acquired by the contractor’s staff who have gained in‐depth institutional knowledge of the OFO staff, business processes, and resources. The Deloitte staff has made site visits and participated in actual field investigative activities to acquire hands‐on knowledge and experience of OFO Investigators’ daily activities. This hands‐on experience with field investigation is invaluable to the development of the Case Management System and specifically to the mobile application component.

Additional expertise and knowledge acquired comes from in‐depth research and analysis, strategic planning, outreach, and a variety of additional activities completed during the Requirements and Design phase. The contractor’s demonstrated experience, skills, knowledge and rapport with OFO Field Investigators provide Deloitte with in‐depth mission critical experience and knowledge not available to other contractors without duplicating efforts achieved during Requirements and Design. Furthermore, PHMSA has determined that Deloitte is the only contractor capable of performing the services without interruption. PHMSA requires the development services to begin immediately and conducting a competition for them would result in substantial and unacceptable delays. This non‐competitive contract allows the Government to retain knowledge and skills gained under the original order, and to leverage its buying power to gain best value and receive high quality services.

Over the past year, PHMSA has invested significant resources in the Requirements and Design of the OFO Case Management system. This includes complex mobile application design which is critical to the success of this project. Switching contractors at this point would cause operational interruptions and inefficiencies, and would result in redundancies and unjustifiable costs.

For the aforementioned reasons, PHMSA determines that the circumstances cited at FAR 8.405‐ 6(a)(1)(i)(C) are applicable to this requirement, and that Deloitte represents the best value to the Government as a source for providing the required services.

5. Determination of Best Value:

The General Services Administration (GSA) has already determined the prices under schedule contracts to be fair and reasonable pursuant to FAR 8.404(d). Also, as alluded to in Section 4, the administrative costs of re‐competing the requirement and training a new contractor would be duplicative and result in inefficiencies. Based on these factors, the Contracting Officer has determined that this order represents the best value for the Government.

6. Market Research & Results:

Market research was conducted for this task during the IT Modernization roadmap developed in FY’11.

7. Other Facts Supporting the Justification:

Issuing a sole‐source delivery order is advantageous to the Government, as Deloitte has already gained and demonstrated a unique institutional knowledge of management expectations, preferences, and mechanisms for delivery, as well as technical expertise in understanding the complexity surrounding the topic of OFO Field Operations. Their understanding and demonstrated topical and contract execution is critical to the mission and could not be replaced in a reasonable time period by any other source without duplicating efforts achieved during the current task order. The activities cited above have engendered a trust that facilitates proactive assistance from OFO leadership and subject matter experts, which is critical to the success of this vital project.

8. Actions to Remove or Overcome Barriers:

PHMSA’s recently‐awarded Blanket Purchase Agreements (BPAs) for the IT Modernization initiative are designed to create a network of qualified and knowledgeable contractors able to perform development tasks such as these. In the future – as other BPA holders become more familiar with the IT Modernization effort and PHMSA’s business processes – PHMSA will compete new tasks among the existing BPA holders to ensure fair opportunity is given and best value is received.

9. Contracting Officer Certification:

The Contracting Officer’s signature below certifies that the justification is accurate and complete to the best of his/her knowledge and belief.

10. Technical Personnel Certification:

The signature below of the PHA‐50 technical representative certifies that the supporting data (including the Government’s minimum requirements and other rationale for limiting sources) specified in this document are complete and accurate, and justify the acquisition of IT development support services from Deloitte on a sole source basis.