E200548_MNIS_JA.doc

Justification & Approval (FAR Part 16)

CENTRIXS OCO Support for US ARCENT, ENCORE II

JUSTIFICATION & APPROVALS FOR FAR SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

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: DCCMZ34062 (E200548.00) Contract Number: ENCORE II Contract HC1028-08-D-2024 Task/Delivery Order Number: TBD Procurement Title: Combined Enterprise Regional Information Exchange System (CENTRIXS) Overseas Contingency Operations (OCO) Support for United States (US) Army Central Command (ARCENT) Contracting Office: Defense Information Technology Contracting Organization (DITCO) / Information Technology (IT) Contracting Division - PL83 Six-month base period with six one-month option periods.

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA13-070 Upon the basis of the following justification, I, as the Head of the Contracting Activity (HCA), hereby approve this exception to fair opportunity pursuant to the authority FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

DISA Multinational Information Sharing (MNIS) Program Management Office (PMO), 6910 Cooper Avenue Fort Meade, MD, 20755-0549 Contracting Office:

DISA/DITCO Scott, PL83 Building 3600 2300 East Drive Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The purpose of this action is to issue a new Task Order (TO) award to Raytheon under ENCORE II. The TO will be issued as Cost-Plus-Fixed-Fee (CPFF) for a six-month base period with six one-month options to continue the CENTRIXS OCO IT support services for US ARCENT during the drawdown of US and Coalition Forces from the Afghanistan Area of Responsibility (AOR). Funding will be provided via FY 13 O&M funds for the six-month base and FY14 O&M funds for the six one-month options.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This task order will provide on-site support in the Southwest Asia (SWA) AOR to ensure the full operational capability and availability of the CENTRIXS network at US ARCENT locations and associated forward sites in the SWA AOR. CENTRIXS is an umbrella term used to describe a set of independent and discrete networks or products that are separated by Communities of Interest (COI). CENTRIXS is the US global, secure, information system to support multinational operations with shared, combined command, control and intelligence information up to SECRET Releasable (REL) level. The basic mission of CENTRIXS is to support the secure sharing and exchange of intelligence and operational information through reliable communications connectivity, data manipulation, and automated process to provide Combatant Commands (COCOMS) with an array of network capabilities. The contractor will provide systems administration to support and maintain CENTRIXS assets, including server hardware and software, network operations, systems engineering, information management, and web master services. The contractor will provide systems integration to include design and engineering for the CENTRIXS network, and information and security management assistance. The contractor will provide web master services/information management services to US ARCENT designated locations. The contractor will assist US ARCENT in information sharing duties to include publishing of near real-time intelligence products in support of ongoing operations. (The contractor shall not make decisions on releasability or on products to publish.) The contractor will support US ARCENT and the MNIS PMO with requirements analysis, design, development, integration and testing, implementation and sustainment activities for US ARCENT utilization of CENTRIXS capabilities. The contractor will support regular operations and maintenance of CENTRIXS at ARCENT designated locations, including, but not limited to, Afghanistan, Kuwait and Bahrain.

The Period of Performance (PoP) for this sole source task order is:

Six-month base period: 16 August 2013 – 15 February 2014 1st one-month option period: 16 February 2014 – 15 March 2014

2nd one-month option period: 16 March 2014 – 15 April 2014

3rd one-month option period: 16 April 2014 – 15 May 2014

4th one-month option period: 16 May 2014 – 15 June 2014

5th one-month option period: 16 June 2014 – 15 July 2014

6th one-month option period: 16 Jul 2014 – 15 August 2014

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:

(a) Exception to Fair Opportunity.

IAW FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

(b) Justification:

(1) Minimum Government requirements.

The verified minimum Government requirement is one year of CENTRIXS OCO services in the SWA AOR from 16 August 2013 to 15 August 2014 (if all options are exercised). By the end of that period, responsibility for CENTRIXS OCO in the SWA AOR will be transferred to the US Army 160th Signal Brigade in Kuwait for peacetime operations.

(2) Proposed sole-source contractor.

The proposed sole-source contractor is Raytheon Company, 7700 Arlington Boulevard, Falls Church, Virginia 22042-2902. Raytheon is already established and delivering the services in a difficult wartime environment, which requires unique and time-consuming preparations that include obtaining the necessary in-theater authorizations and training in specialized operating procedures. Transitioning to another contractor will result in up to two months of schedule delays to obtain the necessary in-theater authorization documentation, housing, and transportation (vehicle leases).

This requirement for a sole-source J&A is driven by the substantial duplication of cost to the Government that will not be recovered by a competition for one year’s worth of services in a war zone. Since Raytheon is already on site in the SWA AOR, the Government has already incurred cost elements 1) through 3), and has a liability for cost element 4). Raytheon has an experienced, cleared and qualified staff that has been on-the-ground in the SWA AOR for three years. They need no formal training to ensure they operate safely and efficiently in a war zone.

Table 2 – Substantial Duplication of Cost

Basis of Estimate (BOE) = US ARCENT

(3) Discussion regarding cause of the sole-source situation.

The cause of this sole-source situation stems from the transition of the CENTRIXS OCO requirement from US ARCENT to the 160th Signal Brigade during CY 2014. This change in the requirement is due to top-level Governmental policy decisions regarding the speed of US and Coalition combat forces’ withdrawal from the Afghanistan AOR. The decision of US and Coalition political leadership to accelerate the withdrawal from Afghanistan has eliminated the US ARCENT CENTRIXS OCO requirement altogether after the one year ending 15 August 2014, due to the transfer of CENTRIXS SWA AOR for peacetime operations to the 160th.

(4) Demonstration of unique source.

Raytheon possesses the specialized expertise related to legacy technical institutional knowledge and established staff in-theater to sustain CENTRIXS activities and the Afghanistan troop drawdown requirements. Raytheon currently has staff at theatre locations with certified visa and security documentation. Another contractor would need significant time (approximately one to two months) and additional funding to ramp up over 50 personnel, and would require extensive travel and logistical efforts and duplicate costs to deploy Full Time Equivalent (FTE) support to a combat zone. Based on history, it is estimated to cost over $.9M for travel, housing, and transition; and staffing times have been up to one month to hire new people, have them go through Conus Replacement Center (CRC) (for which there is often a wait list) and deploy to theater. Also, the contractor must find logistical accommodations in-theater and that is not always easy. If there were to be any reduction in FTE support during the time period it would take to recompete, the warfighter would be adversely impacted as US allies and Coalition partners rely on these IT services and capabilities 24/7/365 for the ongoing war efforts.

(5) Procurement discussion.

This service is currently provided under a TO placed against the ENCORE II contract vehicle, HC1028-08-D-2024, TO VC02. The original requirement for these services was competed under the ENCORE II suite of contracts; however, only one proposal was received. TO VC02 was awarded 13 Feb 2009 and expires 15 August 2013.

(6) Impact.

Award to any other source would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Competing this six-month base (plus six one-month options) effort would cost US ARCENT an estimated $3M (see Table 2 above) in transition costs and a one to two month contractor transition time. The cost of transition and the time delay to on-board a new contractor in the AOR would not be in the best interest of the Government.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The Contracting Officer will obtain certified cost or pricing data, IAW FAR 15.403-4 and will use this information to determine fair and reasonableness. After completion of negotiations, a Certificate of Current Cost or pricing Data will be obtained.

6. ANY OTHER SUPPORTING FACTS:

None.

7. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

No action required, as the CENTRIXS OCO requirement which is impacted by withdrawal of US and Coalition forces from the Afghanistan AOR should not be needed once it is turned over to the US Army 160th Signal Brigade in Kuwait for peacetime operations in August 2014.

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JA# 13-070