ESSBridgeExt JA Final REDACTED.pdf

CUI

Control Number: FY27-1009

Source Selection Information - See FAR 2.101 and 3.104-4

4. Statutory Authority Permitting Other Than Full and Open Competition 10 U.S.C. 3204(a)(1), as implemented by RFO 6.103-1, Only One Responsible Source.

5. Rationale Justifying Use of Authority Cited Only one responsible source can perform this requirement within the required timeframe. ASC currently operates the accredited, running ESS test environment, and no other source can assume that operation on day one without a break in service.

There is no other place to do the work during the bridge period. The accredited environment sits in space the incumbent holds under lease. That lease has been renewed for a six-year term cannot be assigned, and the incumbent does not intend to sublease. No other source has an approved facility from which to run this environment during the bridge and standing up and accrediting a replacement facility takes substantially longer than the bridge period.

Additionally, a new operator must earn its own authorization before it may lawfully operate the environment. The environment holds a Zone-B Authorization to Operate on TI.MIL under seven Risk Management Framework packages in eMASS. Market research estimates for a nonincumbent to reach full operational status, including facility standup and accreditation, ranged from six to nine months or longer.

This is not a proprietary barrier. The Government owns the hardware, software, and custom automation, and no other party holds intellectual property that would prevent a successor from performing. The constraint is facility availability and time.

A break in service would stop mission work immediately. The environment is not idle between test events; it hosts the SDLCNext system of record and the Jira and Confluence tooling that MHS GENESIS engineering and product management use daily. A break would halt testing, engineering, product management, and associated tooling, and delay fielding of new capabilities, primarily JOMIS and potentially DHMSM. Stopping testing would force a choice between two unacceptable outcomes: fielding without adequate testing, which risks defects reaching production and undermines user trust and patient safety, or holding deployments for lack of testing and accepting resulting schedule and readiness risk.

Testing during this period is continuous and not tied to a single named event. The bridge period supports ongoing developmental and integration testing across the JOMIS release pipeline, and to a lesser extent DHMSM. Because testing is continuous, no break interval avoids the harm described above. Any lapse either allows defects to flow forward or stalls deployments, the harm compounds each day, and a contractor change mid-test would compromise the integrity of in-flight results.

The action is held to the minimum necessary. It is limited to continuity of the current environment only and is structured as a short-duration bridge consisting of a four-month base period. The Government is competing the follow-on requirement on a firm schedule, has released a Current State Analysis to speed offeror transition, retains the test hardware and Government-furnished equipment so the equipment baseline transfers, and has structured a Transition Out Plan under CDRL A009.

This action follows a change in acquisition approach, not Government inaction. In June 2025, the PEO directed a cost reduction target for the follow-on, and requirements were finalized with the program offices in July 2025 against a program-validated minimum set. The requirement was developed on a Performance Work Statement basis through 2025. In December 2025, the approach was revised to outcome-based objectives under a Statement of Objectives, and the Performance Work Statement was shelved. Market research into the revised approach was conducted in April 2026. The solicitation instrument was set as a Commercial Solutions Opening under the DFARS. Phase 1 source selection completed at the end of September, and Phase 2 source selection is underway. Award was targeted for late September to early October 2026. That sequence established the original follow-on timeline. Currently, due to unexpected administrative evaluation delays, the award cannot be completed prior to the current operational expiration date of October 26, 2027. An immediate 3-month operational extension is required.

Without this bilateral modification, an immediate and highly detrimental capability gap in enterprise systems operations will occur on October 27, 2027

Consistent with the original bridge J&A, American Systems is the only source capable of satisfying this requirement without causing a catastrophic capability gap. They possess the fully cleared, trained, and credentialed personnel who are integrated into the active systems environment. Introducing any other contractor for this short, 3-month interim period is technically and legally impossible because:

Credentials & Trust Boundaries: New contractor staff would require a minimum of 45 60 days to process Common Access Cards (CACs), system administrator credentials, background validations, and specific environment privileges under MESC regulations.

Redundant Transition Expenses: Onboarding a new contractor for a 90-day period would force the Government to pay double transition fees (Transition-In for a temporary vendor, followed immediately by Transition-Out for the incoming ESSNext winner), which represents an unacceptable waste of taxpayer funds.

Authority to Operate (ATO) Vulnerabilities: Managing continuous cybersecurity monitoring and patch management requires continuous on-site security engineers. A handover to an un-onboarded vendor would breach continuous monitoring controls and trigger an immediate suspension of the system's ATO.

Technical data packages, specifications, engineering descriptions, and statements of work suitable for future competition are not the barrier to competition for this bridge action. The

Government owns the hardware, software, and custom automation. The barrier to competition for this bridge is the time required for a non-incumbent to provide an approved facility, obtain accreditation, and achieve operational status without a break in service.

6. Efforts to Obtain Competition A Notice of Intent to sole source was posted on SAM.gov on 3 December 2025. A Request for Information (RFI) regarding the follow-on action was posted in April 2026 and closed on 9 April 2026, drawing responses from 15 sources. No respondent demonstrated the ability to assume the accredited, running environment within the bridge window without a break in service, for the reasons described in paragraph 5. Responding to the RFI does not establish eligibility to compete for the follow-on requirement. Eligibility is determined under the ESS Next solicitation, and at least one respondent performs scope contemplated for the follow-on and is the subject of a pending organizational conflict of interest determination by the Contracting Officer.

7. Actions to Increase Competition/Remove or Overcome any Barriers to Competition The Government continues to actively execute the competitive procurement process for ESSNext. This bilateral modification is the minimum necessary action to prevent a critical mission support gap pending the formal award and execution of that competitive vehicle. No long-term barriers to competition are created by this near-term bridging modification.

8. Market Research Market research was conducted in conjunction with the initial bridge contract and the primary ESSNext acquisition. While multiple capable firms exist in the broader market for enterprise systems operations, no other contractor can step in and assume these specific duties on October 27, 2026, without causing a critical operational gap, making the incumbent the only responsible source for this modification.

9. Other Facts

a. Procurement History

(1) Is this a new requirement?

No.

b. Additional Information As stated in the original J&A for this contract, the current ESS running environment supports METIC and DHMS Data Center operations, the hybrid test infrastructure including the TI.MIL Zone-B enclave and MedCOI connectivity, SaaS offerings, and operations and maintenance of the SDLCNext platform. The Government owns the hardware, software, and custom automation, so the barrier to immediate competition is not proprietary data or intellectual property, but rather facility availability, accreditation, and transition timing. The Government reviewed the most recent prior justification dated 15 January 2025 and determined that the planned actions identified therein were completed or are being executed as planned. The competitive follow-on requirement, ESS Next, is currently being competed as a Commercial Solutions Opening under the DFARS, with Phase 1 source selection kickoffs underway and award targeted for early November 2026. This bridge action is limited to the minimum period necessary to maintain continuity of the accredited running environment pending award and transition of the competitive follow-on. Relevant prior awards for this requirement area include:

HT003819F0020, American Systems Corporation, Firm Fixed Price, Test Infrastructure & Facility, , Sole Source HT003820F0018, American Systems Corporation, Firm Fixed Price, Test Infrastructure & Facility, Sole Source HT003821C0006, American Systems Corporation, Firm Fixed Price, Test Infrastructure & Facility, Sole Source HT003825C0005, American Systems Corporation, Firm Fixed Price, Test Infrastructure & Facility, Sole Source HT003825F0015, BCG Federal Corporation, Firm Fixed Price, Testing Services, Competitive

10. Interested Sources The Request for Information posted in April 2026 received responses from 15 sources. At least one respondent performs scope contemplated for the follow-on and is the subject of a pending organizational conflict of interest determination by the Contracting Officer.

No respondent demonstrated the ability to assume the accredited, running environment within the bridge window without a break in service, due to the facility and accreditation constraints described in paragraph 5.

11. Technical Certification I certify the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Architecture and Service Excellence

PAE MDS

12. Requirements Certification I certify the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Technical Director

PAE MDS

13. Legal Review I have reviewed this justification and have found it to be legally sufficient.

Attorney

DHA OGC

14. Contracting Officer Determination of Fair and Reasonable Pricing and Certification of Accuracy and Completion

Fair and Reasonable Cost Determination I hereby determine the anticipated cost to the Government for this contract action will be fair and reasonable.

Basis for Determination This determination supports the approval of a sole-source, bilateral contract modification (P00002) to the existing ESS Bridge Contract (HT003826CE005) with American Systems Corporation. This modification is necessary to extend critical operational capabilities for three

(3) months, from October 27, 2026, to January 26, 2027, and shifts the Transition-Out Period, thereby preventing a catastrophic capability gap in enterprise systems operations.

American Systems Corporation is the only responsible source capable of performing this requirement within the necessary timeframe without a break in service. This modification is necessitated by unexpected administrative evaluation delays in the competitive follow-on procurement (ESSNext). While Phase 1 source selection is complete and Phase 2 is underway, the award cannot be finalized prior to the current operational expiration date of October 26, 2026. This three-month operational extension is the minimum necessary action to maintain continuity until the competitive award and subsequent transition can occur.

The Government has actively pursued competition for the follow-on requirement. A Notice of Intent to sole source was posted on SAM.gov on December 3, 2025, and a Request for

Information (RFI) for the follow-on action was posted in April 2026, drawing responses from 15 sources. However, no respondent demonstrated the ability to assume the accredited, running environment within the bridge window without a break in service, for the reasons detailed above.

The competitive ESSNext procurement is actively being executed as a Commercial Solutions Opening under the DFARS.

The modification value of represents a three-month operational extension. The base is priced at . As the successor stands up and assumes services, the effort sustained by the incumbent decreases, and the attached Performance Work Statement limits the requirement to services not yet assumed at each stage of transition.

Price reasonableness will be established by price analysis against the current contract under FAR 15.404-1(b)(2). As a commercial service, the action is exempt from certified cost or pricing data under FAR 15.403-1(b)(3). The total conformed contract value, including this modification, is

This bilateral modification is limited to the minimum period necessary to maintain continuity of the accredited running environment pending award and transition of the competitive follow-on, and it creates no long-term barriers to competition.

Contracting Officer Certification I certify this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer Defense Health Management Systems Contracting Division (DHMS-CD)

Acting Chief of the Contracting Office Defense Health Management Systems Contracting Division (DHMS-CD)