E07 LSJ_19F0004_P00009_SAM_20220812.pdf

Defense Counterintelligence and Security Agency

LIMITED SOURCES JUSTIFICATION

1. Identification of the agency and contracting activity.

Agency:

Defense Counterintelligence and Security Agency 27130 Telegraph Road Quantico, VA 22134

Contracting Activity:

Acquisition and Contracting Defense Counterintelligence and Security Agency 27130 Telegraph Road Quantico, VA 22134

2. The nature and/or description of the action being approved.

This document supports the modification of Defense Counterintelligence and Security Agency (DCSA) task order HS002119F0004 on General Services Administration (GSA) Federal Supply Schedule (FSS) indefinite-delivery/indefinite-quantity (IDIQ) contract number GS-00F-027CA to provide Industrial Security (IS) support services for four months (08/01/2002-11/30/2022) and add two one-month option periods (12/01/2022-12/31/2022 and 01/01/2023-01/31/2023).

Extension of this task order will prevent an imminent lapse in performance due to a post-award protest filed with the Government Accountability Office on 07/11/2022, which resulted in a stay of performance under DCSA task order HS002122F0040, awarded on 06/30/2022.

DCSA task order HS002119F0004, awarded with one 12-month base period (02/01/2019-01/31/2020) and four 12-month option periods (02/01/2020-01/31/2021, 02/01/2021-01/31/2022, 02/01/2022- 01/31/2023, and 02/01/2023-01/31/2024) includes the clause at Federal Acquisition Regulation (FAR) 52.217-8, Option to Extend Services, allowing for up to six additional months of performance. The Contracting Officer exercised the first two 12-month option periods, then—with award of the new IS support services contract pending—opted to exercise one four-month option period (02/01/2022- 05/31/2022) and one two-month option period (06/01/2022-07/31/2022) under the authority of FAR 52.217-8—vice exercising the third 12-month option period.

DCSA will award this modification on task order HS002119F0004 as a sole source extension with the incumbent contractor, Sayres and Associates, LLC (Sayres), in accordance with FAR 8.405-6(a)(1)(i)(C), which allows for a logical follow-on to an original FSS order. This extension will allow for continued performance until the protest is resolved. In accordance with Federal fiscal law, the total length of this task order for severable services will not exceed five years.

3. A description of the supplies or services required to meet the agency’s needs.

The Industrial Security Directorate (ISD)’s mission is to enable and enforce industry's exercise of its security obligations by providing critical security services and by identifying and mitigating security risks for Department of Defense (DoD) Components and 34 other Federal Executive Branch Agencies across the National Industrial Security Program (NISP). The ISD has a continuing need for Contractor services under task order HS002119F0004, which provides trained support and security professionals knowledgeable of Executive Orders, and DoD regulations and directives that govern NISP implementation. Contractor personnel assess a Contractor's dependency upon foreign interests and initial and continuing overall eligibility for a Facility Clearance, to include Knowledge Center development and support, and review security arrangements for the import and export of classified information transferred under the Direct Commercial Sales program. Contractor personnel understand the Cognizant Security Authorities associated with special program contracts and are able to analyze data related to security inspection reports associated with these programs. They manage Special Access Programs (SAP) databases and SAP report repositories as well as assist with the management of the Foreign Ownership Control or Influence database and report repositories. In addition, Contractor personnel assist in the preparation of various internal and external policies and directives concerning the safeguarding and protection of classified information and support the analysis and development of Risk Management processes and execution procedures.

The existing task order has a period of performance from 02/01/2019-07/31/2022. DCSA Acquisition and Contracting (AQ) awarded a new competitive task order, HS002122F0040 on GSA OASIS Small Business (SB) on 06/30/2022 to allow for a 30-day transition from the incumbent Contractor to the new Contractor;

however, the agency received a post-award protest on 07/11/2022, resulting in an automatic stay of performance under the new award.

A lapse in service would increase risk of IS operational failure thereby compromising a pillar of DCSA’s national security mission. In short, a Contractor staffing shortfall creates a significant performance gap, forcing Government leadership and personnel to divide their attentions between managerial and oversight functions and administrative support tasks typically supported by Contractor personnel.

To prevent a lapse in service during the protest response period, DCSA will issue a bilateral modification in accordance with FAR 8.405-6(a)(1)(i)(C) to extend the current task order for four months (08/01/2022- 11/30/2022) and provide two one-month option periods (12/01/2022-12/31/2022 and 01/01/2023- 01/31/2023) in the event performance has not resumed under the new contract. The total cost of this contract was increased by $3,688,493.54 from $33,547,965.60 to $37,236,459.14.

4. The statutory authority and supporting rationale.

The authority to support this action is found in FAR 8.405-6(a)(1)(i)(C): “In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures."

5. A determination by the Contracting Officer that the order represents the best value.

The anticipated total potential dollar value of this task order extension, to include one four-month period of performance and two one-month option periods (extending 08/01/2022-01/31/2023), is $5,532,740.30, which equates to a monthly unit price of $922,123.38 over six months. This represents a 3.5 percent discount off the current monthly pricing of $955,477.60—a cost savings of $33,354.22 per month, or $200,125.30 over six months. Based on this comparison of proposed pricing with recent historical prices paid, and consideration of the additional 3.5 percent discount offered at a time when the Consumer Price Index for All Urban Consumers increased 8.6 percent from May 2021 through May 2022, the Contracting Officer anticipates that this pricing represents the best value for the Government.

Comparison of Current Pricing with Pricing Proposed for Task Order Extension

Type CLIN Qty Unit Current Price per Unit

Discounted Price Per Unit

(3.5% Savings) Total Price

Labor X001 6 Months $ 489,712.00 $ 472,572.08 $ 2,835,432.48 Travel X002 6 Each $ 2,500.00 $ 2,500.00 $ 15,000.00 Labor X005* 6 Months $ 58,496.00 $ 56,448.64 $ 338,691.84 Labor X006 6 Months $ 260,472.00 $ 251,355.48 $ 1,508,132.88 Labor X007 6 Months $ 144,297.60 $ 139,247.18 $ 835,483.10

Total for One Month: $ 955,477.60 $ 922,123.38 Total for Six Months: $ 5,532,740.30

*CLIN series XXX3 and XXX4 represent deliverables and reporting requirements that are not separately priced.

6. A description of the market research conducted and the results.

Recent market research demonstrates that the IS Support Services requirement is commercially available from several small businesses through GSA OASIS. The Contracting Officer for the recompete effort determined that a small business set‐aside order against the OASIS SB Pool was the most appropriate contract for this requirement, which was procured through OASIS SB Pool 1 Management/Scientific/ Technical Services under NAICS Code 541611 ‐ Administrative Management and General Management Consulting Services.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted considerations before any subsequent acquisition for the services is made.

DCSA conducts extensive market research and engages with requiring activities early and often to ensure all stakeholders have an adequate understanding of marketplace capabilities in relation to agency requirements. Identification of available commercial sources promotes competition to the fullest extent, which benefits industry and results in prices that are fair, reasonable, and in the best interest of the Government. In addition, AQ collaborates with DCSA’s Office of Small Business Programs and Industry Engagement to meet agency needs and satisfy small business subcontracting goals by providing opportunities for competition among small businesses and small business subcontracting. In so doing, the agency regularly meets or exceeds its annual small business goals.