Exception to Fair Opportunity Justification_IBS2_Redacted.pdf

SOURCE SELECTION INFORMATION � SEE FAR 2.101 and 3.104

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

FOR A MULTIPLE AWARD CONTRACT ORDER (MAC)

Above the Simplified Acquisition Threshold

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

This is a Limited Source Justification. The requiring activity is the Shore Information Technology Operations Branch (N6); the contracting activity is Department of the Navy (DON), Military Sealift Command (MSC), Norfolk, VA, Ship Support and Services Division (N102).

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

This justification is for the award of one-year bridge task order, utilizing National Institute of Health (NIH) Chief Information Officer-Solutions and Partners 3 (CIO-SP3) Government wide acquisition contract (GWAC) Indefinite Delivery Indefinite Quantity (IDIQ) contract vehicle.

This requirement is for Military Sealift Command�s (MSC�s) Integrated Business Systems (IBS) contract for period of performance from 01 January 2025 through 31 December 2025, with an option to extend services for 6-months, (through 30 June 2026) in accordance with FAR clause 52.217-8. This action is being executed under the authority of 10 USC 3204(a) (Use of Procedures Other than Competitive Procedures) as a limited source action to be awarded as a new task order to large business CACI Enterprise Solutions, LLC. (CACI). The award of a hybrid task order, with both firm-fixed-price and cost-plus-fixed-fee CLINs is anticipated.

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

AGENGY�S NEEDS:

The current contract is titled �Integrated Business Systems (IBS),� which is a task order (TO) issued off of NIH�s CIO SP3, GWAC IDIQ (HHSN316201200009W). CIO-SP3 Unrestricted is a 10-year, multi-award IDIQ contract with a $20 billion ceiling. It is administered by the NIH Information Technology Acquisition and Assessment Center (NITAAC) under authorization of the Office of Management and Budget (OMB).

Within MSC, the Command, Control, Communication and Computer Systems (C4S) Directorate�s (Code N6) purpose is to manage the maintenance and sustainment of all MSC-approved ashore and afloat systems and applications for the entire MSC enterprise. The Business Systems Branch (Code N611) is responsible for working with existing and new MSC systems requirements from MSC Automated Information System (MSC-AIS) systems development and implementation support services.

The IBS contract provides seven critical �standalone� software intensive systems designed to provide business activity and operational support to both ashore and afloat MSC personnel and the fleet. The seven systems are: Human Resource Management System (HRMS), Core Services, Logistic Engineering Systems (LES): Engineering Systems, Logistic Engineering Systems (LES): Logistics Systems, Data Analytics Environment (DAE), MSC Hyperion, MSC Standard Procurement System (SPS). These systems support numerous service activities that are enabled by MSC core service tools and capabilities. Each business system has been developed to align with a specific functional code and operational mission. The four task areas under this contract include: Program Management (PM) Support, Information Technology (IT) Operations and Maintenance, Integration Services, and Software Development.

The total estimated dollar value for this action is which will be funded by both Navy Working Capital Funds (NWCF) and Transportation Working Capital Funds (TWCF). The total estimated dollar value for this sole source award is derived from the established labor rates and reimbursable costs within the CIO-SP3 contract vehicle.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY 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:

The statutory authority which permits not providing each awardee a fair opportunity to be considered for each order exceeding $10,000 issued under a multiple award contract is 10 U.S.C.

3406, as implemented by Federal Acquisition Regulation (FAR) 16.505(b)(2)(G) and, for orders exceeding $250,000, Defense FAR (DFARS) 216.505(b)(2).

The IBS contract provides seven critical �standalone� software intensive systems designed to provide business activity and operational support to both ashore and afloat MSC personnel and the fleet. The seven systems are: Human Resource Management System (HRMS), Core Services, Logistic Engineering Systems (LES): Engineering Systems, Logistic Engineering Systems (LES): Logistics Systems, Data Analytics Environment (DAE), MSC Hyperion, MSC Standard Procurement System (SPS). These systems support numerous service activities that are enabled by MSC core service tools and capabilities. Each business system has been developed to align with a specific functional code and operational mission. The four task areas under this contract include: Program Management (PM) Support, Information Technology (IT) Operations and Maintenance, Integration Services, and Software Development.

This contract provides very distinct and specialized support to ensure the safety and security of U.S. government vessels at sea, as well as, ashore. Therefore, MSC must award a bridge contract to ensure the continuity of service necessary for the critical national security missions. MSC meets the requirements to limit full and open competition of this bridge contract by way of FAR 6.302-1 (Only one responsible source and no other supplies or services will satisfy agency requirements). As stated, the incumbent Contractor, CACI, is the only source that can perform the mission without unacceptable delays in fulfilling the agency�s requirements. Therefore, limiting competition is the only way to ensure the IBS contract enables MSC to continually accomplish its national security directed missions.

(a) Reasons for purchasing and why it is beneficial to the Navy:

Military Sealift Command (MSC) Business Systems Branch (Code N611) requires Contractor expertise to provide support for MSC Defense Business Systems to support MSC mission and functional areas across the globe. The mission of MSC is to provide ocean transportation of equipment, fuel, supplies and ammunition to sustain U.S. Forces worldwide during peacetime and in war for as long as operational requirements dictate. MSC is a Program Management organization that operates ships worldwide to provide combat logistics support to United States

Navy (USN) ships at sea; special mission support to U.S. Government agencies; prepositioning of U.S. military supplies and equipment at sea; and ocean transportation of DoD and other U.S.

Government agencies� cargo in both peacetime and war. MSC operates an average of 100 non-combatant, civilian-crewed ships worldwide. MSC augments its sealift assets by executing its own contracts in support of its missions for contracted ships and commercial services. In addition, the command has access to over fifty (50) other ships that are kept in reduced operating status, ready to be activated if needed.

The Contractor will be required to work with existing, currently operational systems and fulfill new MSC requirements for MyMSC systems development and implementation support services.

MyMSC is the new Human Resources (HR) business system, currently under development by ABS Wavesight. Sustainment of these efforts is required across the entire life cycle responsibilities to include (but not limited to) software development, deployment and release, break fix, infrastructure, help desk and training.

(b) Reasons for not providing a fair opportunity to all awardees:

(i) need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays;

This J&A uses FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. The use of FAR Subpart 6.302-1 is appropriate for use when:

�When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.�

In accordance with FAR 6.302-1 (a)(2)(iii): For DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in; (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition; or (B) Unacceptable delays in fulfilling the agency�s requirements.

In order to reduce the risk of transitioning to a new Contractor during a major system implementation, a contract bridge is necessary to complete MyMSC�s configuration and implementation for MSC. Data preparation and software configuration has been conducted by CACI since 2022 to support implementation of the ABS Wavesight software for MSC. This requires detailed understanding of MSC Human Resources processes, the integration of systems and an understanding of ABS Wavesight software to complete. Transitioning to a new Contractor during the final phases of integration of the software would extend implementation timelines and would negatively impact MSC�s ability to effectively manage civilian mariner HR actions during Risk Reduction. Risk Reduction is MSC�s plan to temporarily decommission several ships and disperse crews to other locations. This action allows time for the implementation of MyMSC and then the follow-on contract�s solicitation, already in preparation, which will result in a competitive award.

A MSC Commander�s Decision Brief was held on 13 June 2024 to obtain a command decision on the timeline and funding of MyMSC implementation at which time six (6) courses of action (COA) were presented. During user testing there were 51 findings identified as high impact and critical for deployment of MyMSC with twenty-eight (28) of these items currently being incorporated during the current bridge action. During this meeting, the command decided that Option 6, a hybrid COA of options 4 and 5, would be pursued and a 12-month bridge, with 6-month option would be necessary to execute the timeline. Option 4 incorporates the remaining critical items into one release and Option 5 has a go live of the current software version in October 2024. The hybrid option provides the most value for the anticipated cost. COA 6 was the only option that MSC could utilize to fulfill the needs of MSC and meet its mission for this urgent requirement. Currently, MyMSC is planned for Go Live Ashore release March 2025, Go Live Afloat release begins April 2025 and additional enhancements will be included in Post-Go Live Release during Summer 2025.

5. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

The CIO-SP3 GWAC vehicle provides competitive, established labor rates that were determined fair and reasonable at time of award. The proposed rates will be will also be evaluated to confirm they are in-line with established rates and are fair and reasonable using price analysis techniques described in FAR 15.404-1(b).

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

Meetings amongst N6 and N10 leadership were held to discuss the scope of work required, the need of continuity of the Contractor, and the timeline for development and release of MyMSC.

Evaluation of all potential COAs, the amount of time needed to award the follow-on contract, potential risks and the possible costs to accelerate award were discussed.

Market research techniques utilized were: contacting knowledgeable individuals in Government, to include N6 technical team which are the subject matter experts and have in-depth knowledge of the requirement, specifications, development, implementation and timeline of events as well as a full understanding of MSC�s mission requirements. Additionally, research was conducted to determine industry capabilities to meet requirements and possible cost.

An analysis of all potential COAs by N6 and N10 management indicates that the anticipated bridge task order awarded to the current incumbent CACI, is the best solution to meet MSC mission requirements. It is the most cost-effective option and is in the best interest of MSC and the Government. There has been no significant change in the market situation, or to MSC�s requirement that would cause a significant change in the prices awarded under the task order.

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 ACQUISTION FOR THE

SUPPLIES OR SERVICES IS l\rIADE:

A competitive follow-on solicitation will be completed allowing foll and open competition amongst the GSA's Alliant 2 Contractor pool which will result in a competitive award.

GSA's Alliant 2 contract vehicle cunently has a Contractor pool of thi1iy-eight large businesses with an ordering period that is valid through 30 June 2028. Of the thi11y-eight large businesses, tln·ee have expressed interest in the follow-on IBS requirement by responding to MSC's draft RFP that was issued on 21 May 2024. Significant competition is anticipated amongst these businesses, as well as receipt of competitive proposals.

SOURCE SELECTION INFORMATION - SEE FAR 2.101 and 3.104