26AUGJ-n-A_SCS_ExtofServices.pdf

Coordination and Approval Document

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: AFLCMC/HIK Program Name: Stock Control System (SCS) Estimated Contract Cost: $3.13M Type Program: PEO Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii)(B) Type J&A: Individual

COORDINATION DATE

_____SEE ATTACHED__________________________________ 2/18/2014

, Program Manager

COMM: , DSN

_____SEE ATTACHED__________________________________ 2/14/2014

, Contracting Officer

_____SEE ATTACHED__________________________________ 2/24/2014

, Legal

, Deputy Chief of Contracts

APPROVED:

Contracting Technical Director AF Life Cycle Management Center

Communications and Information Systems Officer's (CSO) Certification

I certify that the data supporting the recommended use of other than full and open competition for the acquisition of these information technology resources is complete and accurate.

CSO Signature: ____________________________________________ ________

Date Signed Communications and Information Systems Officer

DSN:

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Contracting Organization

The Air Force Life Cycle Logistics Management Center (AFLCMC), Contract Management Division (AFLCMC/HIAK), 4225 Logistics Avenue, Building 266, Room A212, Wright- Patterson Air Force Base, Ohio 45433-5006. The Contracting Officer is , DSN and the Program Manager is , AFLCMC/HIAR, DSN

. The Purchase Request Number is forthcoming. The J&A local control number is

AFLCMC/HIK-14-J007.

II. Nature and/or Description of Action Being Processed

The purpose of this Justification and Approval (J&A) for other than Full and Open Competition (F&OC) is to implement FAR 52.217-8 Option to Extend Services on the current Stock Control System (SCS) sustainment and maintenance contract (FA8770-09-C-0009) for a period of performance of six months at an estimated value of $3.13M. The contract is a combination firm fixed price and labor hour contract with cost reimbursable Contract Line Item Numbers (CLINs) for travel and other direct costs. Currently the SCS prime contractor, Computer Sciences Corporation (CSC), provides the managerial, functional, and technical support for the program.

The SCS Program Management Office (PMO) is asking for the entire six month extension of services in five options: one two-month option and four one-month options. The period of performance will be from 30 Sep 14 to 29 Nov 14 for the first option at an estimated cost of and 30 Nov 14 to 30 Dec 14, 31 Dec 14 to 30 Jan 15, 31 Jan 15 to 27 Feb 15, and 28 Feb 15 to 30 Mar 15, respectively, for the one-month options at an estimated cost of for each option. The follow on effort will be competed on the NETCENTS-2 Small Business Companion Application Services Contract.

III. Description of Supplies/Services Required to Meet the Agency’s Needs

The objective is to provide system maintenance, sustainment, modification, testing, documentation, project planning, configuration management along with user support for the system using FY14 and FY15 Air Force and Marine Corps Working Capital Funds (WCF). In addition, transition to a new contractor will be required. System maintenance ensures SCS fully supports baseline system/program requirements. These requirements are the same as what is on the current contract, FA8770-09-C-0009. The estimated value of this effort is $3.13M.

Air Force Materiel Command (AFMC), Air Logistics Centers, the United States Marine Corps, and other services/agencies have a continuing requirement to process stock control transactions and related management information. Sustainment and maintenance of SCS by the incumbent contractor (CSC) ensures worldwide combat readiness and sustainability for the warfighter through allocation, custody, and distribution of supply and equipment items.

Services to be contracted include:

• Maintaining, sustaining, and modifying (as specified in Communications- Computer Systems Requirements Documents (CSRDs)) the SCS software applications using documented software engineering practices.

• Providing Help Desk support and problem analysis and resolution for SCS users.

• Performing the technical and functional activities at the contract level needed for the program management of this Contract.

• Providing support to Integrated Process Teams (IPTs), the Functional Review

Board (FRB), Component Validation and Integration testing, Test Readiness Reviews (TRRs), Qualification Test & Evaluations (QT&Es), Field Readiness Reviews (FRRs), and Technical Interchange Meetings (TIMs).

• Conducting Program Management Reviews and other status presentations as necessary to keep the PMO and other stakeholders apprised of system status.

• Delivering all documentation necessary to obtain the required data from system interfaces.

• Delivering all documentation in a final format for Government review, coordination, and approval.

• 60-day transition period for the orderly transfer of all items related to the maintenance of the SCS to a new maintainer.

Note: These are estimated values

IV. Statutory Authority Permitting Other than Full and Open Competition

10 U.S.C 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(B)

V. Demonstration That the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (Applicability of Authority)

FAR 6.302-1(a)(2)(iii) states that “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”

CLIN TYPE

MONTHLY

COST

TWO-MO

COST

ONE-MO

COST

TOTAL COST

(30 Sep 14 - 30 Mar 15) X001 (Sust & Maint) LH X003 (Help Desk Level 1) FFP X007 (ODCs) Cost X008 (Travel) Cost 5009 (Transition) FFP

TOTAL 3,130,118

A six-month contract extension will provide the Government sufficient time to put in place a new NETCENTS-2 competitively awarded task order. If a six-month extension is not approved, a break in service will occur (current period of performance ends 29 September 2014).

The incumbent has already been performing services required to support SCS and is qualified to continue to provide the same level of support during the six month extension. Additionally, modifying for the six-month extension would preclude any unacceptable delays in maintaining the current support pending the completion of a competive award under NETCENTS-2.

The system performs the following functions:

• Wholesale and depot retail asset managementcapability using a combination of web-based and mainframe architecture.

• Enhanced processing of stock control transactions and management information for Air Force and Marine Corps operations.

• Directly supports USAF, USMC, and other service/agency customers.

• Provides worldwide combat readiness and sustainability for the warfighter through allocation, custody, and distribution of supply and equipment items.

The work that will be performed under this extension of services is identical to the work that is currently being performed under the current contract FA8770-09-C-0009. This contract was a competitive acquisition awarded 30 Septmber 2009. Therefore, this acquisition is for continued performance of the functions listed above.

AFLCMC/HIAR believes that award to any other source would result in unacceptable delays in fulfilling the Air Force’s requirements. If an extension of services is not granted the following impacts will occur:

• The Air Force will be unable to implement software changes needed for real-time total asset visibility/positive inventory control of critical Nuclear War-Related Materiel (NWRM) causing insufficient, inadequate asset visibility and inventory control of NWRM.

• The Air Force will not be able to provide essential items needed by the war fighter, maintain world-wide readiness/sustainability, provide enterprise asset visibility, provide parts needed for repair work done by organic and contract maintainers resulting in reduced weapon system availability, and maintain and control aggregation accounts used by weapon system managers to issue materiel.

• The Air Force will have degraded and/or lack of uniform item management capability for world-wide property accounting, inventory control, and distribution/redistribution of material at the wholesale level; and degraded and/or loss of transaction history for USAF-managed material.

• The Air Force will not be able to fix system deficiencies causing non-availability of materiel needed to repair items and preventing items needing repair from being inducted for repair, resulting in degraded support to the war fighter.

• The Air Force will not implement Time Compliance Network Orders (TCNOs) and Information Assurance Vulnerability Alerts (IAVAs) in a timely manner.

For the purposes of this extension of services modification, CSC is the only firm capable of providing the supplies and services described in section III above without the US Air Force experiencing unacceptable delays in fulfilling its requirements.

VI. Description of Efforts Made to Ensure that Offers Are Solicited from as Many Potential Sources as Deemed Practicable

Following the six month extension of services period of performance (or a part thereof), a task order will be awarded on the mandatory use NETCENTS-2 contract vehicle. In accordance with FAR 5.202, a synopsis will not be required.

On the original contract, a sources sought synopsis was issued and vendors showed interest. The vendors were CSC, Due to the number of interested vendors, it was determined that the contract would be competed. The SCS follow-on acquisition to be competed on the NETCENTS-2 Small Business Companion Application Services Contract is in progress.

VII. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable

The Government’s cost proposal evaluation will be based upon historic cost information from the incumbent’s ongoing contract performance. Labor rates proposed will be the rates currently negotiated on the contract and included in the B-Table. AFLCMC/HIAK will utilize price and/or cost analysis and AFLCMC/HIAR will evalutate the proposed level of effort and mix of labor to determine the proposed solution for this effort is both fair and reasonable. In accordance with FAR 52.217-8, the Government will require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor.

VIII. Description of the Market Research Conducted and the Results

The original market research for the current contract is referenced above in section VI.

Additional market research for the extension of services was not conducted.

For the follow-on effort, a Request for Information (RFI) was issued on AFWAY for the NETCENTS 2 Small Business Companion Application Services Contract awardees in September 2013. The RFI requested the companies review the documents attached to the RFI to determine if the information in the documents was sufficient to build a competitive proposal.

The RFI also asked the companies to identify any recommendations, additional information, or clarifications they would require to build a competitive proposal. vendors submitted responses that they were interested in proposing once final RFP w ed of the vendors submitted numerous questions and recommendations.

The SCS Program Management Office (PMO) experienced delays in completing activities associated with the SCS follow-on NETCENTS-2 competition, which resulted in the need for an extension of services on the existing contract with LH CLINs. The descriptions of these delays are:

a. The first delay was associated with determining the SCS Financial Improvement and Audit Readiness (FIAR) requirements that would require a material solution. The Financial Information System Controls Audit Manual (FISCAM) and Defense Finance and Accounting Service (DFAS) Blue Book analysis were completed and requirements documentation written for each of the requirements. The team comprised of the PMO, AFSC, AFMC/FM, SAF/FM FIAR Information Technology (IT) Team and AFMC/A4N spent several months and met multiple times to discuss priorities, impacts to the financial statement, and potential work-arounds in order to determine which requirements required a material solution. SCS was the first system going through such a complex requirements review with multiple stakeholders, and took several months to complete. The way forward was determined on 20 December 2013.

b. A secondary delay was associated with obtaining independent government cost estimates

(IGCEs) for the CSRDs, as well as the IGCE for the acquisition of a new NETCENTS-2 task order. This delay was exacerbated by the mandated furloughs in 2013 and the unexpected loss of a cost estimator. The second delay was associated with gathering more market research. As a result of the Vendor Industry Day the PMO participated in last summer, the PMO provided the SCS technical data package, Performance Work Statement (PWS) and other documents to the NETCENTS-2 Small Business vendors with the objective to improve the quality of the RFP and to increase competition. The PMO received valuable feedback, and is in the process of amending the RFP. However, this added step did cause delays in completing other planned activities.

c. The third delay was associated with the impacts of sequestration in FY13. The government furloughs and shutdown did delay the schedule. In October 2013, the PMO responded to sequestration impact suspenses identifying impacts to this acquisition schedule, in particular, that other acquisition schedules that were previously not in conflict were now conflicting (e.g.

). As a result some of the key team members (e.g., have been working those acquisitions, thus exacerbating the schedule delays for SCS.

This extension prevents a break in service while the follow-on effort is competed on the NETCENTS-2 Small Business Companion Contract.

IX. Any Other Facts Supporting the use of Other than Full and Open Competition

There are no other facts supporting other than full and open competition.

X. List of Sources that Expressed Interest in the Acquisition

See section VI above.

XI. A Statment Of Actions, If Any, The Agency May Take To Remove Or Overcome Any Barriers To Competition Before Making Subsequent Acquisitions For The Supplies Or Services Required

This J&A covers the period of performance 30 September 2014-30 March 2015. The follow-on effort will be obtained via a fair opportunity competition using the NETCENTS-2 Small Business Companion Application Services Contract. The planned award date for the follow-on effort is 30 September 2014 which provides 60 days for an orderly transition from CSC to the successful offeror. Section VIII describes in detail the actions that will be taken for the follow-on effort.

XII. Contracting Officer’s Certification

The Contracting Officer’s signature on the Justification Review Document evidences that he has determined this document to be both accurate and complete to the best of his knowledge and belief.

XIII. Technical/Requirements Personnel’s Certification

As evidenced by their signature on the Justification Review Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.