EFO- SP4709-26-Q-1017_Redacted.pdf

CUI

Source Selection Sensitive Information - See FAR 2.101 & 3.104

DDEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

(SAP Platform) WMS Controlled Execution, Change Control, Capability Management, and

Knowledge Management Support Services

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 ACTIVITY:

Requesting Agency:

Defense Logistics Agency HQ Information Operations, SAP Platform (J62X) 8725 John J. Kingman Road Fort Belvoir, VA 22060-6221

Contracting Activity:

DLA Contracting Service Office – Philadelphia (DCSO-P) 700 Robbins Avenue 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 opportunity process. This justification authorizes the use of other than full and open competition to award a firm-fixed-price task order for the SAP Platform requirement.

This acquisition will be a sole source award in accordance with the terms of the SAP Platform 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 process engineering, execution authorization control, Change Control Board (CCB) operationalization, capability traceability, audit readiness verification, and operational knowledge transfer to execute controlled release governance and maintain operational continuity across the DLA Warehouse Management System (WMS) portfolio.

With the award of this task order, the J62X WMS program will retain essential subject matter expertise and deep institutional knowledge of the existing DLA production baseline. This expertise is required to execute controlled execution authorization workflows, operationalize Change Control Boards, remediate 100% of assigned documentation and process backlogs, maintain audit-ready records in approved DLA repositories, and execute a structured transition to organic government personnel via role-based SOP Desk Guides without causing catastrophic disruption to active warfighter distribution missions or financial audit compliance across the Department of War (DoW) enterprise.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS, INCLUDING THE ESTIMATED VALUE:

DLA relies on the Warehouse Management System (WMS) portfolio as the enterprise platform for worldwide inventory accountability, warehouse execution, material tracking, and transportation coordination across the DoW enterprise. DLA Information Operations J62XD has a critical, ongoing requirement for specialized process engineering, execution authorization control, Change Control Board (CCB) operationalization, capability management traceability, audit readiness verification, and workforce knowledge transfer support for the WMS portfolio.

The scope encompasses process and execution authorization support across the WMS portfolio technology stack, including SAP S/4HANA (EWM/TM) platform software, time-phased release calendars, cutover checklists, configuration request packages, capability placemats, and metadata-tagged document repositories. Work is performed on a Firm-Fixed-Price (FFP) Monthly basis tied to monthly deliverable acceptance.

Required Supplies/Services:

Task 1: Process, Execution Authorization, and Operational Support Services Task 2: Task Order Project Management, Contract Administration, and Required

Reporting Task 3 (OPTIONAL): CLIN 0002 Controlled Execution, Release Management, and Change Management Maturation Support Task 4 (OPTIONAL): CLIN 0003 Capability Management and Stakeholder

Communication Maturation Support Task 5 (OPTIONAL): CLIN 0004 Knowledge Management, Quality

Management, and Lessons Learned Implementation Support Task 6 (OPTIONAL): Transition Support Reimbursable Official Travel

Estimated Total Value:

The total estimated value for this requirement is $30,941,083.05 across a 36-month Period of Performance (30 September 2026 – 29 September 2029, consisting of a 12- Month Base Period and two 12-Month Option Periods):

Total Direct Labor Ceiling: $28,091,083.05 representing 221,579 total direct labor hours across Core and Optional Tasks.

Total Reimbursable Travel Ceiling: $2,850,000.00.

The initial FY26 Base Period obligation is $4,000,000.23 (20,281 total Base direct labor hours), consisting of Base Core Direct Labor ($1,500,000.00 / 12,170 hours), exercised Optional Task 3 Subtask 1 ($1,000,000.23 / 8,111 hours), and Base Reimbursable Official Travel ($1,500,000.00).

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 WMS support task order and this follow-on is logical in terms of scope, technical architecture, and continuity of effort. The active WMS portfolio baseline currently managed by the incumbent contractor team serves as the direct structural prerequisite for executing controlled release management, Change Control Board (CCB) operationalization, capability traceability, audit readiness verification, and workforce knowledge transfer across DLA Information Operations

J62XD.

The incumbent contractor team possesses preexisting institutional, hands-on knowledge of the as-built WMS portfolio technical architecture, including:

Specific execution authorization workflows, ChaRM transport management, configuration item intake pathways, and release gate decision criteria;

Customized capability management artifacts, functional traceability matrices, capability placemats, and stakeholder communication pathways; and

DLA document control standards, repository metadata tagging structures, historical audit logs, and SOP/SEP process manuals across active WMS repositories.

Awarding this requirement to an outside contractor lacking this system-specific context would require a lengthy and costly onboarding/discovery phase (estimated at 3 to 6 months), creating unacceptable risks of desynchronizing time-phased release schedules, disrupting Change Control Board cadence, invalidating audit-ready records, and causing operational delays across active WMS portfolio activities supporting the warfighter worldwide.

Because the underlying JETS 2.0 SAP Platform contracts were competitively awarded, rigorous source selection procedures have already been conducted. Transitioning this requirement to an outside contractor would require a substantial and unacceptable outlay of Government resources to duplicate this baseline knowledge and would directly impede the execution of Executive Order 14222 knowledge transfer objectives to organic Government personnel.

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 FAR 15.404. 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:

1. Independent Government Cost Estimate (IGCE): The Government developed a comprehensive IGCE total package ceiling of (221,579 total labor hours across 36 months, plus in reimbursable official travel). The FY26 Base Period initial obligation is estimated at (20,281 direct labor hours covering Core Tasks 1 and 2, exercised Optional Task 3 Subtask 1, and official travel). Labor rates were calculated using the exact arithmetic mean of pre-negotiated Contractor Team Arrangement (CTA) Lead and Partner rates under the JETS 2.0 IDIQ vehicle.

2. Labor Mix Cost Realism Analysis: To ensure fiscal efficiency and prevent staff augmentation creep, the proposed level of effort was evaluated to verify a cost-realistic 80/20 Basic-to-Senior labor mix (2,440 Senior Lead Hours / 9,730 Basic & Mid Hours for Base Core). This ensures senior subject matter expertise is reserved for critical Change Control Board (CCB) governance and release gate reviews, while lower-cost technical staff execute routine documentation inspection, metadata tagging, and backlog remediation.

3. Proposal Rate Verification: Proposed labor rates will be verified against pre-negotiated JETS 2.0 contract rate caps and historical labor rate data. Official travel expenses will be evaluated against GSA per diem allowances pursuant to FAR 31.205-46 and the Joint Travel Regulations (JTR).

This combination of pre-negotiated competitive IDIQ labor rates, a cost-realistic 80/20 labor mix, a planned 10% annual LOE step-down, and a Firm-Fixed-Price (FFP) Monthly invoice disbursement structure tied to monthly deliverable acceptance ensures the final price is fair and reasonable.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

The DLA Information Operations J62XD WMS portfolio executes highly complex technical operations to support worldwide inventory accountability, warehouse execution, material tracking, and transportation coordination for warfighter logistics across the DoW enterprise.

Attempting to bring in an outside contractor to execute WMS portfolio-controlled execution authorization, Change Control Board (CCB) governance, capability traceability, and audit readiness verification would result in an unacceptable duplication of cost and severe schedule delays:

Disruption to Release Discipline and Governance Velocity: A new vendor would require an estimated three to six months of technical discovery just to understand DLA J62XD's custom execution authorization pathways, ChaRM transport structures, and repository metadata standards. This onboarding lag would halt ongoing release management cadences and delay critical governance reviews needed to sustain portfolio momentum.

Operational and Audit Compliance Risks: Managing execution authorization workflows, capability placemats, and document repository cataloging without deep institutional system knowledge introduces an unacceptably high risk of release desynchronization, unvetted configuration changes, and non-compliant records management. Errors in configuration item tracking or audit log cataloging could result in financial audit non-compliance or operational standstills at DLA Distribution Depots globally.

Duplication of Costs: Bringing in a new contractor would require the Government to pay for a redundant onboarding and discovery phase (estimated at 3 to 6 months of non-productive LOE) while simultaneously delaying required governance deliverables and impeding Executive Order 14222 knowledge transfer milestones to organic Government personnel.

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 highly specialized 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: The contractor is explicitly mandated to author step-by-step, role-based Standard Operating Procedure (SOP) Desk Guides (Deliverables 4, 20, 25, 30) and execute structured coaching sessions with organic DLA personnel. This ensures primary operational ownership of routine Change Control Board (CCB) governance, capability tracking, and records management is transitioned to organic Government FTEs, enabling a planned 10% annual contractor Level of Effort (LOE) step-down.

2. Complete Repository Documentation and Metadata Standards: The contractor is required to update all authorization flow diagrams, CCB charters, capability placemats, and metadata-tagged records in DLA's official approved repositories, demystifying the environment for future support staff and Government personnel.

3. Retention of Government Data Rights: The Government retains sole, unencumbered ownership of all technical artifacts, process flow diagrams, decision logs, release calendars, and configuration request packages generated under Tasks 1 through 6, ensuring a complete, audit-ready 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

8. CERTIFICATIONS:

TECHNICAL/REQUIREMENTS CERTIFICATION

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

CONTRACTING OFFICER CERTIFICATION

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

Pursuant to FAR 16.507-6(d)(2)(x), and FAR 16.507-6(e)(3)(i), I have determined that FAR 16.507-6(b)(3) applies to this procurement and I approve this justification.