EFO_Redacted.pdf

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

The Task Order period of performance (PoP) extends through 3 May 2028.

The work to be performed under the proposed modification to the Task Order must be issued on a sole-source basis to Information Technology Strategies, Inc. 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 the order already issued under the current contract; all awardees were given a fair opportunity to be considered for the original order. In 2025, the DAI Program Office was approved for in funding under the One Big Beautiful Bill Act (Pub. L. 119-21) and authorized contractual support for CIP/WIP/ATM/AI/ML support services.

There are economies of scale benefits and efficiencies to the development timeline that DLA is uniquely poised to reap by having this contractor continue this work. No other vendor can come into this work at this juncture and harness the unique institutional knowledge that this vendor has;

recreating this knowledge would take time and additional resources and not be in the best interests of the Government. Any other vendor would have to learn the J62A DAI application, learn the problems, and reinvent solutions when this vendor already possesses this knowledge.

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:

As the Department of War (DoW) and the Defense Logistics Agency (DLA) continue to modernize and apply artificial intelligence, DLA J6 has an obligation to continue expanding these capabilities to accommodate the exponentially growing data utilized by artificial intelligence applications and services.

DLA requires an increase to the ceiling for Task 2 – USSGL (ATM) Support Services. The Agency requires robust oversight and fully realized compliance mechanisms to satisfy strict federal audit standards and mitigate regulatory risk; the selected contractor is uniquely positioned to seamlessly integrate these critical oversight mechanisms immediately, delivering the necessary regulatory compliance in the most economical and timely manner possible.

Failure to revise the ceiling will directly jeopardize the initiatives listed below and constrain our mission's growth. Specific consequences include: halting the USSGL/ATM and Acquire-to-Retire (A2R) infrastructure enhancements and, most critically, failing to support our Stakeholder/Partners and stagnating the development of mission-critical AI capabilities and remediate systemic posting logic errors and accounting anomalies as part of the USSGL effort.

a) USSGL Compliance and Accounting Treatment Remediation - The Contractor shall provide the necessary capabilities to continuously identify, analyze, and remediate systemic posting logic errors and accounting anomalies as part of the USSGL effort.

a. Ensure all system posting logic and financial transactions align with the applicable Accounting Treatment Manual.

b. Meet United States Standard General Ledger (USSGL), SFIS, DoD Transaction Codes, and TFX Account Transactions requirements.

c. Includes but not limited to understanding DAI customers’ business process, Oracle pre-seeded accounting entries, Auto accounting pairs, configured transaction types, subledger accounting, custom coded accounting logic, etc.

b) Employ iterative analysis and remediation strategies to address both known historical discrepancies and emergent accounting issues discovered during execution of Artificial Intelligence and Machine Learning (AI/ML) Integration for Audit Readiness -The primary objectives of these ML/AI implementations are to facilitate comprehensive audit readiness, significantly reduce massive manual data-processing workloads, and improve predictive and historical budgetary accuracy.

a. Evaluate, design, and implement scalable Machine Learning (ML) and Artificial Intelligence (AI) capabilities optimized for financial operations.

b. Maintain the flexibility to pilot, refine, and deploy automated solutions across various financial workflows as prioritized by the Government.

c) Advanced Dashboarding and Analytics

a. Design, develop, deploy, and maintain dynamic reporting dashboards and analytical tools

b. Provide stakeholders with near real-time, actionable visibility into USSGL compliance metrics

c. Dashboards shall be designed for scalability and user configurability, ensuring they can be adapted to meet future oversight, auditing, and reporting requirements without requiring extensive redevelopment.

The estimated dollar value for the ceiling increase to CLIN 0002/Task 2 is for the remainder of the Base Year period of performance. This modification will increase the CIP/WIP/ATM task order ceiling from to .

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-0059/SP4709-26-F-0042.

The proposed modification will be made under the terms of the existing JETS IDIQ contract SP4709-24- D-0059/SP4709-26-F-0042. 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.

The work to be performed under the proposed modification is a logical follow-on to the initial Task Order because it will be a continuation of the application enhancements. This modification will enable efficiency and consistency for further DAI application development and sustainment services.

Adding additional vendors to provide this support outside of the current contract would add additional scope and complexities to the Government’s audit requirements, which would drive additional cost and create inefficiencies.

Additionally, a second vendor providing these development services would duplicate efforts and cost, creating inefficiencies with operations. As an example, there are software developers and systems engineers resources on the current contract. If a second vendor were added, the Government would have to fund additional software developers and system administrators on the second contract to ensure workload is properly implemented. This would unnecessarily duplicate resources, preventing the Government from achieving operational efficiencies. The Government estimates that coordinating the efforts of two contractors would require an additional 6-8 full time resources, creating an unnecessary expense to the Government of to above and beyond the estimates of this contract modification.

Aside from the time required to train a new vendor, which would place DLA at risk of not delivering the requisite system performance to the warfighter for J62A, choosing a new vendor would also put the schedule for CIP/WIP/ATM and additional artificial intelligence services and resources in severe risk. There are economies of scale benefits and efficiencies to the development timeline that DLA is uniquely poised to reap by having this specific contractor continue this work. No other vendor can enter at this juncture and harness the unique institutional knowledge that this vendor has; recreating this knowledge would take time and additional resources and not be in the best interests of the Government. Any other vendor would have to learn the J62A DAI application, learn the problems, and reinvent solutions when these vendors already possess this knowledge.

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.