EFO Redacted.pdf

CUI

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

Controlled by: DLA DCSO – Philadelphia (DCSO-P) CUI Category: PROCURE / SSEL Distribution/Dissemination Controls: FED ONLY POC: Charles.Fitzsimmons@dla.mil/(267) 693-6308

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

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

UNDER FEDERAL ACQUISITION REGULATION (FAR) SUBPART 16.5

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Requiring Activity:

Contracting Activity:

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

Pursuant to FAR 16.507-6, the action being approved is an exception to the fair opportunity process. This justification authorizes increasing the task order ceiling to support the sole-source procurement and expand the scope of contract SP4709-24-D- 0065 / task order SP4709-26-F-0033 with CACI, Inc.

This action procures critical application development, data engineering, migration, and modernization services to transition Defense Agencies Initiative (DAI) enterprise reporting and analytics into the War Data Platform (WDP) Advana Financial

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

Management (FM) environment, optimize source-to-target data pipelines, and execute Oracle Federal Fusion Software-as-a-Service (SaaS) General Ledger (GL) modernization.

The current DAI Enterprise Application Support Task Order (SP4709-26-F-0033) was solicited as unrestricted (JETS Group A) and competitively awarded to CACI, Inc. for a total of . This task order consisted of a 12-month base period with four

(4) 12-month option periods. The Period of Performance (PoP) for the entirety of the subject task order, if exercised, extends through April 2, 2031.

The work to be performed under this action must be issued on a sole-source basis to CACI, Inc. in the interest of economy and efficiency as a logical follow-on and direct expansion of the core DAI application development, sustainment, and architectural support efforts currently executed under the base task order.

As the incumbent lead systems integrator and application support provider for DAI, CACI possesses unmatched, highly specialized institutional and architectural knowledge of DAI’s single global enterprise model, including the complex Oracle E-Business Suite (EBS) 12.2 core architecture, database schemas, and custom RICE-FW objects, the extensive legacy reporting landscape consisting of approximately 4,500 global reports, 166 custom report views, and underlying Oracle Analytics Server (OAS) / Noetix data structures, and the intricate transactional accounting configurations governed by the Federal Financial Management Improvement Act (FFMIA), DoD Standard Financial Information Structure (SFIS), and Standard Line of Accounting (SLOA).

Awarding this requirement to any other vendor is technically unfeasible and would introduce unacceptable schedule delays, substantial duplicate onboarding and learning-curve costs, and extreme operational risk to ongoing DoD financial audit assertions. Any other source would require an extensive discovery period to learn the DAI ecosystem, decode complex custom data views, and establish baseline operational competencies that CACI already possesses and actively maintains.

Executing this work through CACI ensures immediate operational velocity, preserves system stability, and provides seamless continuity across ongoing DAI development, Advana FM reporting integration, and future SaaS Fusion GL deployments.

All eligible JETS IDIQ contract holders were provided with a fair opportunity to be considered for all Task Orders cited within.

3. A DESCRIPTION OF THE SUPPLIES AND/OR SERVICES REQUIRED TO

MEET THE AGENCY’S NEEDS, INCLUDING THE ESTIMATED VALUE:

The Defense Agencies Initiative (DAI) is a critical Department of War (DoW) Enterprise Resource Planning (ERP) system that standardizes financial management processes across 27 defense agencies and military components, serving over 80,000 active users.

Currently, the DAI system operates on a standardized, single-instance global deployment leveraging Oracle E-Business Suite (EBS) Release 12.2.x hosted within Oracle Cloud Infrastructure (OCI). While the existing EBS architecture has enabled multiple DoD/DoW agencies to achieve and sustain historic unmodified (clean) financial audit opinions, the system must continuously modernize to meet the Department's long-term agility, analytics, and auditability mandates.

To comply with the DoW Fiscal Year (FY 2028–2032) Capability Planning Guide in establishing a modern digital financial management (FM) core, the Government is executing two interrelated modernization initiatives:

1. Reporting & Analytics Modernization (War Data Platform Advana FM): In July 2026, the Office of the Under Secretary of Defense (Comptroller) (OUSD-C) directed the migration of DAI enterprise reporting from legacy Oracle Analytics Server (OAS) and Noetix views into the War Data Platform (WDP) Advana FM environment. This transition delivers near-real-time data pipelines, automated business logic curation (Bronze-to-Gold in Databricks/Foundry), and modern self-service dashboards to support the Department-wide clean audit mandate by FY28.

2. Core General Ledger SaaS Modernization (Oracle Federal Fusion Cloud):

Upgrading the core DAI accounting and General Ledger (GL) infrastructure to Oracle SaaS Fusion Cloud ERP to automate workflows, implement agentic AI/ML, and establish a cloud-native financial foundation.

To execute these mandates without disrupting ongoing operational support, the DAI Program Management Office (PMO) requires an expansion of scope and ceiling on the CACI Enterprise Application Support Contract (SP4709-24-D-0065 / SP4709-26-F-0033) by adding three optional Contract Line-Item Numbers (CLINs):

1. Path A: WDP Advana FM Enterprise Reporting Implementation (Optional CLIN 0001 / PWS Task 2): CACI designs, builds, migrates, validates, and sustains DAI’s reporting and analytics platform within WDP Advana FM. This includes pipeline optimization, platform implementation, rationalizing ~4,500 legacy reports and ~166 custom views, engineering the Bronze-to-Gold data transformation lifecycle, onboarding ~10,000 customers, and supporting 27 agencies.

2. Path B: CACI-Led SaaS Fusion GL Modernization (Optional CLIN 0002 / PWS Task 3): CACI serves as Lead Systems Integrator (LSI) to design, configure, test, migrate, and deploy an Oracle Federal Fusion SaaS GL solution for all 27 participating defense agencies, ensuring full compliance with FFMIA, SFIS, and SLOA standards.

3. Path C: Oracle-Led, CACI-Supported SaaS GL Modernization (Optional CLIN 0003 / PWS Task 4): If the Government utilizes a direct-from-vendor Oracle-led implementation, CACI acts as the dedicated "DAI Custodian", leveraging deep institutional knowledge of the DAI Global Model to execute legacy schema extraction, validate integration endpoints, adapt interface wrappers, and coordinate multi-agency User Acceptance Testing (UAT).

By establishing these optional CLINs, the Government maintains the flexibility to execute the optimal technical path based on platform readiness, risk profile, and cost.

Impact of Inaction

Failure to authorize this sole-source modification and expand contract ceiling will directly compromise the DAI program's ability to support Department-wide audit readiness and operational continuity. Specific consequences include:

Jeopardizing the FY28 Clean Financial Audit Mandate: Disrupting or delaying the transition of DAI reporting to WDP Advana FM will leave 27 defense agencies dependent on legacy reporting tools that lack required transaction-level drill-down capabilities, risking non-compliance with OUSD(C) audit timelines.

Severe Operational Reporting Blackout: Inability to execute the phased replication of legacy Noetix views and OAS reports will sever critical daily operational reporting, funds execution tracking, and month-end close visibility for 80,000+ warfighter financial users.

Technical Stagnation & Increased Security Risk: Delaying the Oracle SaaS Fusion transition prevents the DAI enterprise from adopting cloud-native zero-trust security controls, automated continuous monitoring, and mandated DoW cyber resilience standards.

Massive Schedule Slips: Procuring an alternate vendor would introduce an estimated 4–6 month onboarding delay, during which technical progress would stall while the new vendor attempts to learn the DAI Global Model.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY (SEE

PARAGRAPH (b)) AND THE SUPPORTING RATIONALE, INCLUDING A

DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE EXCEPTION CITED:

In accordance with FAR 16.507-6(b)(3), the proposed modification must be issued on a sole-source basis in the interest of economy and efficiency because the work to be performed is a logical follow-on to Task Order SP4709-24-D-0065 / SP4709-26-F-0033.

The proposed modification will be made under the terms of the existing JETS IDIQ contract SP4709-24-D-0065 / SP4709-26-F-0033. As stated in Section 2, all eligible JETS IDIQ contract holders were provided with a fair opportunity to be considered for the initial Task Order award.

CACI International Inc. currently serves as the lead systems integrator and application support contractor for DAI. As defined under the base contract, CACI is responsible for the baseline engineering, development, custom application sustainment, and operational maintenance of the DAI single-instance Oracle EBS 12.2 global footprint. While the baseline contract sustains the steady-state environment, it is not scoped or resourced to concurrently execute the massive, multi-tiered migration to WDP Advana FM and Oracle Cloud SaaS Fusion.

Technical Continuity & Unique Vendor Qualifications

CACI is the only contractor possessing the prerequisite technical capability, specialized system architecture expertise, and operational familiarity required to perform these tasks immediately:

Intimate Knowledge of the DAI Global Model: CACI developed and maintains the complex custom configurations, extensions, and RICE-FW objects that govern financial transactions across 27 Defense Agencies. No other vendor understands the downstream impacts that data restructuring will have on active accounting operations.

Legacy Reporting Architecture Familiarity: CACI possesses complete institutional knowledge of the legacy reporting catalog, including the underlying logic of the 166 custom Noetix report views and the execution history of approximately 4,500 OAS global customer reports slated for rationalization.

Simultaneous Dual-Platform Execution: Migrating to Advana FM requires maintaining uninterrupted legacy reporting operations while concurrently designing, configuring, and testing the new Advana environment. CACI’s integrated team structure ensures seamless cross-functional alignment between legacy sustainment and modern development without operational silos.

Duplication of Cost and Unacceptable Transition Delays

Attempting to onboard a second vendor to execute these modernization tasks outside the incumbent contract would introduce extreme inefficiency, cost duplication, and schedule risk:

Duplicate Labor and Management Overhead: A separate contractor would require its own redundant project management structure, system administrators, and infrastructure engineers. The Government estimates that coordinating across two separate contract teams would require an additional 6 to 8 full-time equivalents (FTEs), generating an unnecessary and unrecoverable cost of $1.9M to $2.5M.

Lengthy Learning Curve: An outside vendor would require a minimum of 4 to 6 months simply to conduct technical discovery, review legacy codebases, and understand DAI database schemas. This delay would directly cause the program to miss OUSD(C) FY28 audit milestone gates.

Security and System Access Latency: Onboarding an external vendor requires obtaining elevated privileged access (IT-I/IT-II), background investigations, and system interconnect authorizations, creating additional administrative bottlenecks that CACI’s cleared, onboarded staff bypass completely.

The table below details the technical drivers and risks demonstrating why CACI is uniquely equipped to execute the expanded scope:

Technical Driver Incumbent Proprietary Advantage & Necessity

Impact / Risk of Alternative Vendor

Advana Data Ingestion & Pipeline Optimization (Task 2)

CACI currently manages the DAI Oracle EBS database infrastructure and understands table relationships, transaction volume peaks, and database triggers. CACI can immediately optimize extract pipelines to achieve the <60 minute latency threshold.

A new vendor would require months of trial-and-error discovery to map source tables, risking database locking, performance degradation on production EBS, and pipeline latency failures.

Noetix & Custom View Re-engineering (Task 2)

CACI built and maintains the 166 custom Noetix views and understands the underlying PL/SQL logic. CACI can immediately perform gap analysis against Orbit Analytics / Advana models without reverse engineering.

A second vendor would lack authorized write-access to the code repository, requiring manual, duplicate hand-offs that would introduce severe configuration errors and jeopardize system stability.

Global Report Rationalization (~4,500 Reports) (Task 2)

CACI has direct access to historical metadata, audit trails, and customer usage patterns across all 27 Defense Agencies to instantly filter and consolidate legacy reports into master dashboards.

A new vendor lacks context regarding agency-specific reporting requirements, resulting in either migrating thousands of obsolete reports (wasting funding) or retiring critical audit reports.

Oracle SaaS Fusion GL Fit- Gap & Data Extraction (Tasks 3 & 4)

CACI possesses authoritative knowledge of DAI’s Chart of Accounts, Subledger Accounting (SLA) rules, and custom interfaces (GEX, WAWF, SPS). CACI can immediately author ETL scripts to extract and map legacy balances to Fusion.

An alternative vendor would lack deep familiarity with DAI’s customized transaction flows, risking corrupt balance conversions, interface breakage, and audit assertion failure across participating defense agencies.

5. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

The Contracting Officer will determine that the price is fair and reasonable prior to task order award. Price will be analyzed in accordance with FAR 15.404-1 procedures, and the Government will use various price analysis techniques, as needed, including but not limited to: (1) Comparison with competitive price lists in accordance with FAR 15.404- 1(b)(4); (2) Comparison of proposed price with the Independent Government Cost Estimate in accordance with FAR 15.404-1(b)(5); and (3) Comparison of proposed prices obtained through market research for the same or similar items in order to obtain a fair and reasonable price in accordance with FAR 15.404-1(b)(6).

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

N/A

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 OPPORUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR

THE SUPPLIES OR SERVICES IS MADE:

DLA will conduct market research and will continue its practice of ensuring that full and open competition is exercised to the maximum extent practicable.

8. CERTIFICATIONS

Requirements/Technical Certification:

I hereby certify that the supporting data provided for which I am responsible, and which form a basis for this justification are complete and accurate.

Contracting Officer Certification:

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

Per FAR 16.507-6(d)(2)(x), I have determined that FAR 16.507-6(b)(3) applies and I hereby approve this justification.