EFOJ_ERP_ BI_26 JUNE 2023_Redacted.pdf

JUSTIFICATION for an Exception to Fair Opportunity (EFOJ) Under FAR 16.505(b)(2)

1. Contracting Activity: Department of the Army, Army Contracting Command - Redstone Arsenal (ACC-RSA), Division N, Branch A (CCAM-CAB-A), 350 Vandenberg Street, Building 3, Peterson SFB, 80914.

2. Description of Action: Request approval to issue a bilateral modification to increase the ceiling of the current option period. This is a Cost-Plus-Fixed-Fee Task Order (TO), W91260-19-F-0029, which has a one-year and four-month base period, one two-year, eight-month Option. Currently we are in the Option Period, from 1 September 2021 through 12 May 2024. The overall requirements have unexpectedly increased, and the current ceiling will only get the period of performance (PoP) out to 30 June 2023. Therefore, we need to increase the current ceiling. Based on current requirements, increasing the ceiling by will push the TO PoP to 22 February 2024, allowing the Government time to re-compete the effort.

a. The TO currently supports financial systems for nineteen unique customers including the Program Executive Office (PEO Missile and Space and PEO Aviation, US Army Financial Management Command, Training and Doctrine Command (TRADOC), DHA, FM and FM&C, and others. All mission requirements are important. Most notably, the support requirements of financial management customers are complex, evolving, and are particularly sensitive to mission failure. The projects require expertise and experience, combined with significant institutional knowledge, to be successful. These efforts are in mid-project execution with project task burn-down, deliverable development, and specific outputs already scheduled into Fiscal Year (FY)

24. With the complexity inherent in enterprise resource planning activities, cessation of these efforts will result in unacceptable mission failure.

b. Three primary drivers have impacted the exponential increased use of the task order and the earlier than forecasted consumption of the currently awarded ceiling:

1. Mission requirements and operational tempo have been significantly higher than expected by the Assistant Secretary of the Army (ASA) (FM&C) (Contract proponent), DHA, the PEOs, and other requiring customers;

2. An additional user, United States Army Financial Management Command (USAFMCOM) SSO, TD29, requested to use the ERP BI Contract after award;

3. COVID related acquisition timeline impacts

c. The consumption of ceiling and the need for this justification to award additional ceiling is specifically a result of contract demand. It is not a result of increased cost by the contractor team. Ceiling use velocity has increased such that more than eight months of the task order PoP remain beyond the available ceiling.

3. Description of Supplies/Services: TO W91260-19-F-0029 maintains and improves health, commerce and economic growth by supporting the GFEBS family of system requirements definitions, analyzing proposed solutions of the system integrator (SI)/developer, recommending solutions for process improvements, supporting end users with technical support, training requests, and providing support to governance body and management for ASA-FM&C leadership. The objective of this service TO is to support the lifecycle of the financial system requirements to include (but not limited

to) GFEBS family of systems (e.g., GFEBS, GFEBS-SA, baseline systems, system enhancements, sustainment transition, U.S Army FM optimization (AFMO), enterprise architecture, innovation and supporting DHA move to GFEBS). These efforts directly and indirectly support functions required by Commanding General USASMDC/ARSTRAT as USASMDC interacts with the Army Staff, PEOs, ASA- FM&C, and other agencies by providing relevant, current support tailored to mission needs. This TO will provide technical, analytical and functional support to the Future Warfare Center (FWC) to include all aspects of the GFEBS/GFEBS-SA to include, but not limited to, ensuring the Army FM systems and processes are modernized and integrated to provide a complete range of financial and cost information needed for the Army to conduct business transactions, provide accountability to the public, and to support performance reporting and decision making.

4. Authority Cited: The statutory authority for an exception to fair opportunity is 10

U.S.C. 3406(c)(2) as implemented by FAR Part 16.505(b)(2)(i)(B) – only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

a. The increase in ceiling to Option Period One of this TO is required to meet the unanticipated growth across the breadth of active requirements and addition of significant new requirements, to include:

(1) Headquarters Department of the Army (HQDA) ASA FMC, has increased the demand for resources over the life of the contract from per month in 2019 to approximately M per month with the implementation of the Multi-Functional Capabilities Team (MFCT);

(2) Defense Health Agency (DHA), and the Bureau of Medicine & Surgery, U.S.

Navy (BUMED) has increased to each year; and,

(3) USAFMCOM has increased to per year.

b. Due to a surge in external agency requirements in Spring/Summer 2021, it was clear that that the first option period’s ceiling would not be adequate to sustain the current requirements. Thus, an EFOJ to increase the ceiling by was approved on 27 June 2022. It was anticipated that a re-competition for a new TO could be accomplished by June 2023. However, because the SMDC Center of Excellence (CoE) re-compete team had to deal with increased daily requirements, continuing COVID impacts and OASIS ceiling issues, the Government could not execute the re-compete of these critical requirements in a timely manner.

The greatest barrier to a timely re-compete of the ERP BI requirements was CoE’s lack of resources committed to complete all the required inputs and support for the acquisition process. To overcome this barrier, CoE leadership has added additional experienced personnel to their team to specifically provide ACC the needed inputs for the re-competition process. In addition, CoE and ACC-RSA SMD/SP leadership have added processes to ensure completion of re-compete milestones. These include weekly meetings between the CoE team and ACC contracting team, overseen by CoE and ACC leadership. The recompete is on schedule for award of a new task order by February 2024 (see schedule in para 7 below). The Contracting Officer Representative (COR) has completed market research and the requirements package. Once the requirements package is received, the draft Task Order Request for Proposal (TORP) will be issued.

5. Reason for Authority Cited: This justification is to increase the ceiling for the TO Option Period for continued service support from Intrepid, as it is the only responsible source for these unique and highly specialized services under these time constraints. (Note: The market research [para 8 below] also confirms that Intrepid is the only source with the specialized knowledge of these financial systems and expertise to modernize these systems to meet the breadth and complexity of required services for this eight-month period of performance.)

a. Mission requirements and operational tempo of the supported customer missions have increased substantially. In addition to the matters mentioned in para 4.a above, the Office of the Secretary of Defense has directed that the separate Army Enterprise Resource Planning (ERP) systems, including GFEBS, are analyzed, requirements generated, and plans implemented to converge upon a single Army ERP, as well as other significant modernization efforts. Such efforts require Intrepid’s highly specialized subject matter experts (SMEs) to apply the unique transactional knowledge of all the legacy financial systems to develop and validate requirement; and then apply today’s technology to design and develop solutions;

while at the same time coordinating with an overall Enterprise Strategic perspective to meet the Office of the Secretary of Defense’s OSD’s directed timelines. Intrepid’s team brings a unique skill set to develop these new financial systems. Their team uses the special knowledge they have of the legacy financial systems, develops software and integrates it to modernize those systems and then provides the expertise to train the number of Government users of the systems. These modernization projects include the IRMIS 2.0-completed in third quarter FY23, the

U. S. Treasury mandated G-Invoicing to be fully enacted by March 2024, business process reengineering initiatives which will be tested, validated, and adjusted via the recently initiated Continuous Monitoring Program, and the Enterprise Business Systems – Convergence, a coalition established to drive ERP readiness and modernization by 2027. Intrepid’s team has the unique expertise to support a broad effort of a specialized cross-functional and matrixed organization that will not only address the imminent end-of-service life for the current Enterprise Resource Planning (ERP) Systems (Global Combat Support System - Army (GCSS-Army), Army Enterprise Systems Integration Program (AESIP), Logistics Modernization Program (LMP), and General Fund Enterprise Business System (GFEBS), but also capitalize on this timing to converge the disparate systems into a common, modernized platform that will more effectively enable Large Scale Combat Operations (LSCO), Multi-Domain Operations (MDO), and other critical Army mission sets. These modernization efforts have required much more resourcing than was anticipated when the TDs were originally forecasted and have fully used the ceiling authorized under the initial EFOJ.

b. In addition, Intrepid’s highly specialized and experienced SME’s developed the EBS-C Governance Strategy, incorporating current governance structures within an Agile Framework that can handle the increased load of decisions expected to come as business process reengineering (BPR) and Acquisition activities ramp up. Intrepid’s specialized training team trained and prepared 198 personnel for their role within eight product teams using a robust BPR tactical execution plan.

c. Another example of Intrepid’s highly specialized skills is in the area of robotics.

ASA (FM&C) projects range from small teams of 5 to 10 resources to large teams of more than fifty contractor personnel to support the mission requirements. Current ASA (FM&C) initiatives focus on Government Invoicing (G-Invoice), Robotics Process Automation (RPA), the Army Financial Information (AFI) Guidance, Continuous Monitoring Program (CMP), and the Knowledge Management (KM) Effort. ASA (FM&C) contract demand alone is consuming approximately per year. Other primary contract users, such as the DHA (TD 16), have also seen increased mission demand and contract use. While a relatively smaller contract customer than ASA (FM&C), DHA has similar requirements and maintains multiple project teams currently. DHA contract demand is now consuming approximately per year. This team transitioned the Navy Bureau of Medicine and Surgery (BUMED) from their legacy STARS-FL into GFEBS and is currently training FORSCOM (750,000 Soldiers) to implement GFEBS-SA. The current ERP BI TO is supporting 19 active TDs.

Additional unanticipated users:

(1) USAFMCOM SSO TO demand is currently consuming approximately per year. USAFMCOM initiatives and priorities have continued to evolve. Intrepid brings specialized knowledge and experience in coordination and integration with other government agencies, to include DFAS, to drive new process and execute requirements. Specifically, Intrepid’s highly skilled Reimbursables (RM) team developed new software, new tools and streamlining procedures to perform previous tedious hands-on YEC functions saving a significant amount of time. In addition, the RM team software engineers created a YEC Refund process ensuring over in funds will be properly returned to customers. Intrepid’s highly experienced training support is integral to GFEBS-SA users worldwide. DoD and government agencies recognize Intrepid’s unique abilities to increase automation, decrease processing time, and incorporate robust auditability functions.

(2) U.S. Marine Corps (USMC) requested to join ERP BI to support Defense Agencies Initiative (DAI)—a critical DoD effort to modernize the Defense Agencies’ financial management capabilities. USMC, especially Headquarters (HQMC), require Intrepid’s unique expertise to assist in the organizations deliberate shift from legacy FM systems to the new Oracle based DAI system, a highly specialized process that Intrepid’s team has led. This is a Service-wide change, from schoolhouse academic development to real-time daily operational support. The Intrepid team is currently supporting both the Administration and Resource Management Division in the Pentagon as well as Marine Corps Forces Europe/Africa established in Germany. The DoD, as well as other Government agencies, are directed to migrate FM operations to DAI in the coming years, which indicates an even greater requirement from all DoD Services to support the DAI migration effort.

6. Efforts to Obtain Competition: Given the time constraints described above and the highly specialized nature of the requirements, it is not feasible to consider other contractors to perform this effort. TO W91260-19-F-0029 is exempt from the requirement to synopsize the proposed contract action under FAR 5.202(a)(6), because the proposed action is an order under FAR Subpart 16.5, Indefinite Delivery Contracts. The Government will post the redacted EFOJ within 10 days of the execution of the modification.

7. Actions to Increase Competition: As indicated above, it would be ineffective to consider other contractors under this compressed time period to perform these highly skilled and unique tasks. The most effective method to increase competition is to have a viable re-competition for a new TO award. On-going re-competition steps have been initiated and the proper personnel and leadership oversight has ensured an effective re-compete and award of a new TO within eight months. The plan is to award a new task order under OASIS, with the following milestones:

Event Schedule Issue Draft TORP 30 June 2023

Review Industry Inputs 15 July 2023 Issue Final TORP 19 July 2023 Receive Initial Proposals 15 August 2023 Initial Evaluation Complete 1 October 2023 Conduct Interchanges 1 November 2023 Receive Final Proposal Revisions 1 December 2023 Final Evaluations Complete 1 February 2024 Review Board Complete 10 February 2024 Award Date 11 February 2024 GAO Protest Period ends 21 January 2024 Task Order Award Effective Date 21 February 2024

Another alternative considered was to attempt to transition some of these requirements to existing task orders, but it was determined unfeasible due to the additional administrative burden and extreme learning curve for both the contracting team and the requiring activity. The learning curve could exceed the performance period. This entire process would be very disruptive to mission performance and unnecessarily burdensome with the competitive recompete effort already underway.

8. Market Research: In accordance with FAR Part 10, market research was conducted by both the COR and the Ordering Contracting Officer (OCO) (Reference PCF I. Pre-Award, A.

Requirements Development, 02. Requirements Package, Market Research) between January of 2022 and May of 2022 as well as February of 2023. The market research also included:

1) Discussion with knowledgeable persons in Government and/or industry regarding the commercial nature of this requirement and/or standard industry practice in this area of supplies/services. The COR, conducted TEAMS meetings and phone calls with Deputy Assistant Secretary of the Army Financial Operations and Information to HQDA ASA FMC to discuss PWS requirements from September 2021 to current. of HQDA ASA FMC also participated in discussion of TO requirements. Regularly spoke with , Director of USARMY Financial Management Command to discuss requirements from January 2022 to present.

2) Contact with knowledgeable persons in Government and industry regarding the commercial nature of this requirement and standard industry practices in this area of services. A commercial item/service is not being used to satisfy this requirement.

The requirement to perform market research at the TO level was completed as recommended by GSA OASIS ordering guide through use of the GSA Discovery as discussed in the previous paragraphs. Additional market research was requested through the GSA “Market Research As a Service” (MRAS) which was completed by the OCO and at gsa.gov. A request for information (RFI) was initiated to identify the capabilities and qualifications of vendors who could support this requirement as a prime contractor for OASIS SB Pool 4, NAICS 541715. RFI was posted on WEBSITE on 17 February 2023 with a response date of 10 March 2023. The Government received two responses, one from Intrepid and the other from . Intrepid confirmed supporting this requirement, while stated that they do not have the experience and expertise in enterprise resource planning to, nor the knowledge and understanding of customer-unique requirements to prepare a compliant and compelling proposal for this opportunity. In addition, their resources are currently committed to other more strategically important projects, and they don't have personnel available to support this opportunity.

Since the response under Pool 4 is low, the acquisition team will consider using GSA’s eBuy (GSA's Electronic RFQ/RFP System) to notify all vendors on the Multiple Award Schedule (MAS) about the requirement and satisfies the competition requirements of FAR 8.405-1 and -2, even if fewer than three quotes are received.

As previously mentioned, a transition to another vendor in such a short timeframe would not be feasible and would cause service gaps for USASMDC, the Army Staff, Program Executive Offices, ASA-FM&C, United States Army Financial Management Command, TRADOC, DHA, and Army Financial Management and Comptroller (ASA (FM&C)). It is in the best interest of the Government to immediately increase the ceiling on the Option Period for the ERP BI TO, W91260-19-F-0029. The current contractor, Intrepid L.L.C, is the only source capable of providing the required highly specialized and unique services during the immediate time period until the effort is re-competed.

9. Interested Sources: In accordance with FAR 5.202(a)(6) and 16.505(a)(1), a Request for Information was posted on GSA’s Symphony system on 17 February 2023 with responses due on 10 March 2023. As result there were two responses received, one from Intrepid and the other from . Intrepid confirmed supporting this requirement, while stated that they do not have the experience and expertise to perform the work.

10. Other Facts:

None

APPROVAL

Based on the foregoing justification, I hereby approve the procurement for services on W91260-19-F-0029-P00103 for the U.S. Army Space and Missile Defense Command CoE;

the Office of the Assistant Secretary of the Army (ASA) Financial Management (FM) and Comptroller (FM&C); the Defense Health Agency (DHA), and the Bureau of Medicine & Surgery, U.S. Navy (BUMED), and ASA-FM&C, the functional proponent for the GFEBS family of systems, from Intrepid LLC, 990 Explorer BLVD. NW, Huntsville, AL 35806, , on other than full and open competition basis, pursuant to the 10 U.S.C. 10 USC 3406(c)(2)as implemented by FAR Part 16.505(b)(2)(i)(B) – only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. This approval is subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The maximum estimated value of the TO as a result of this modification will increase by from to

Date:

Senior Contracting Official (SCO)