EFO - EDC Cutover_Redacted.pdf

CUI

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE M PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111 M5092

(SAP Platfo1m) Eastern Distribution Center (EDC) Cutover and Technical Transition Support

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

UNDER FEDERAL ACQUISITION REGULATION {FAR) SUBPART 16.5

Multiple Award Schedule/Multiple Award Contract (MAC)

Orders under MAC/Fair Opportunity, FAR 16.507-6

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTMTY:

Requesting Agency:

Defense Logistics Agency HQ

Info1mation Operations, SAP Platfo1m (J62X)

8725 John J. Kingman Road

Fort Belvoir, VA 22060-6221

Contracting Activity:

DLA Contracting Service Office-Philadelphia (DCSO-P)

700 Robbins A venue

Philadelphia, PA 19111

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Pursuant to FAR 16.507-6(b)(3), the action being approved is an exception to the fair opp01tunity process. This justification authorizes the use of other than full and open competition to award a fmn-fixed-price task order for the SAP Platfonn requirement.

This acquisition will be a sole somce award in accordance with the tenns of the SAP Platfo1m Core Task Orders (SP4709-26-F-0019 / SP4709-26-F-0020), which were competitively awarded under the JETS 2.0 contract vehicle. This task order provides highly specialized systems architecture, SAP S/4HANA (EWM/TM) engineering, Warehouse Execution System (WES) automation integration, defect remediation, and operational knowledge transfer to execute the live cutover at DLA Distribution Susquehanna, PA (DDSP).

Controlled Unclassified Info1mation (CUI) Somce Selection Sensitive Info1mation - See FAR 2.101 & 3.104

Page 1 of7

DLA Contracting Services Office – Philadelphia (DCSO-P) SUBJECT: EFO (SAP Platform) Eastern Distribution Center (EDC) Cutover and Technical Transition Support

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

DAAS/EBS queue monitoring.

Processing Validation Report (Del 7)

Task 3: Optimization & Defect Remediation

Production queue monitoring, root-cause defect analysis, and 100% clearance of post-go-live critical incidents in ServiceNow.

100% Critical & High Defect Remediation Sign-Off Package (Del 9; requires 100% INC/CHG closure)

Task 4: Knowledge Transfer & Closeout

Role-based SOP Desk Guide authoring, over-the-shoulder coaching, and transition to organic DLA FTEs (EO 14222).

Final Approved SOP Desk Guides (Del 10) & Knowledge Transfer Sign-Off Package (Del 11)

Estimated Total Value:

The total estimated value for this firm-fixed-price (FFP) requirement is representing direct labor hours across a single 12-Month Period of Performance (September 28, 2026 – September 27, 2027).

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY AND

SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION OF THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THAT THE

NATURE OF THE ACQUISITION REQUIRES USE OF THE EXCEPTION

CITED:

Pursuant to FAR 16.507-6 (b) (3), an exception to the fair opportunity process is justified in the interest of economy and efficiency because this effort is a logical follow-on to orders already issued under the JETS 2.0 contract vehicle (SP4709-24-D- 0079/SP4709-26-F-0019 to Accenture Federal Services, and SP4709-24-D- 0039/SP4709-26-F-0020 to C5MI Insight LLC), where all awardees were given a fair opportunity to be considered for the original orders.

The relationship between the existing Core Task Orders and this follow-on is logical in terms of scope and continuity of effort. The active WMS/WES baseline currently managed and deployed by the core platform contractors serves as the direct structural prerequisite for executing live cutover, material handling robotics integration, and post-go-live defect remediation at DLA's largest distribution depot.

SUBJECT: EFO (SAP Platform) Eastern Distribution Center (EDC) Cutover and Technical Transition Support

Controlled Unclassified Information (CUI)

The core platform contractors possess preexisting institutional, hands-on knowledge of the as-built EDC technical architecture, including:

Specific warehouse execution workflows for high-volume automated stowage, picking, packing, and XPS shipping lines;

Customized messaging interfaces connecting SAP EWM to the Dematic WES robotics controller and DAAS/EBS DLMS queues (527R, 856S, 947I); and

Pre-cutover system configuration, ChaRM transport management, and hardware integration across Okta MFA RF scanners and MRO printers.

Awarding this requirement to an outside contractor lacking this system-specific context would require a lengthy and costly discovery phase (estimated at 3 to 6 months), creating unacceptable risks of desynchronizing the go-live schedule, misaligning MHE conveyor controls, and causing catastrophic disruptions to DLA's ability to process and ship material to the warfighter worldwide.

Because the underlying JETS 2.0 SAP Platform contracts were competitively awarded, source selection events have already been rigorously conducted. Transitioning this requirement to an outside contractor would require a substantial and unacceptable outlay of Government resources to duplicate this baseline knowledge.

5. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

The determination that the anticipated cost for this Task Order will be fair and reasonable will be made in accordance with FAR15.404. The primary basis for this determination is the use of the pre-negotiated labor rates established in the competitively awarded SAP Platform contract (SP4709-24-D-0079) with Accenture Federal Services and (SP4709- 24-D-0039) with C5MI Insight LLC, which have already been determined to be fair and reasonable.

The Contracting Officer will perform a price analysis using the following techniques:

SUBJECT: EFO (SAP Platform) Eastern Distribution Center (EDC) Cutover and Technical Transition Support

Controlled Unclassified Information (CUI) enterprise software releases.

7. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE EXCEPTION

TO FAIR OPPORTUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR

THE SUPPLIES OR SERVICES IS MADE:

The core JETS 2.0 SAP Platform contractors possess experiential insight into DLA's live production baseline, custom workflows, and system integrations. To actively remove these technical knowledge barriers and pave the way for open competition in future cycles, DLA is taking several concrete actions within this task order:

1. Mandated Knowledge Transfer and SOP Desk Guides (Task 4): Under Task 4, the contractor is explicitly mandated to author step-by-step role-based SOP Desk Guides (Deliverable 10) and execute over-the-shoulder coaching sessions with signed attendance rosters (Deliverable 11) to transition full post-go-live sustainment capability to organic DLA FTEs prior to contract closeout.

2. Complete Solution Documentation (SOLDOC): The contractor is required to update all technical design documents, system architecture diagrams, and ChaRM configuration records in DLA's official Solution Documentation repository, demystifying the environment for future sustainment staff.

3. Retention of Government Data Rights: The Government retains sole ownership of all technical artifacts, source code, and configuration playbooks generated under Tasks 1–4, ensuring a complete technical package is available for future competitive solicitations.

DLA has and continues to exercise competition as often as possible and conducts ongoing reviews to keep abreast of new technology. DLA will continue its practice of surveying the market to ensure full and open competition whenever practicable

CAI MEMORY…