Atch_1_-_Amended_CRIS_JA_191008__Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 9

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

> $93M

Contracting Activity: AFLCMC/HIK

Purchase Request / Local ID Number: FA8770-19-C-0500/AFLCMC/HIK-19 -J003

Program / Project (and PE, if applicable): Commanders' Resource Integration Systems (CRIS)

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

25 Sep 2019

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I. Contracting Activity.

The Air Force Life Cycle Management Center (AFLCMC), Contract Management Division (AFLCMC/HIK), 4225 Logistics Avenue, Building 266, Room A212, Wright-Patterson Air Force Base, Ohio 45433-5006 is the procuring agency for the Commanders' Resource Integration System (CRIS) program.

II. Nature and/or description of the action being processed.

The purpose of this Justification and Approval for other than full and open competition is to amend the J&A for the Commanders' Resource Integration System (CRIS). The contract includes several Cost Reimbursable Contract Line Item Numbers (CLINs) for change requests, travel and other direct costs (ODCs). The contract includes a one-year base Period of Performance (PoP), one-year option PoP and one Extension of Services (EOS) option for up to 6 months, with a total amended estimated contract value of system consisting of the activities required to keep a system in operational status and to optimize the system or provide system updates..."

III. Description of supplies/services required to meet agency needs.

CRIS is a read-only, multi-tier relational data warehouse providing execution visibility on Financial Management (FM) data across the AF. The CRIS warehouse receives data from multiple legacy systems: Budget, Accounting, Supply, Fuels, Flying Hours, Civilian Pay and Personnel. The breadth and depth of data in CRIS reduces data collection efforts and provides business intelligence tools for users, managers, and leaders to analyze, track, and report on financial execution status. Over 11,000 users utilize the CRIS warehouse through a business intelligence tool or web application, executing over 20M queries a year. The CRIS program's mission is to deliver reliable, accurate, and timely execution status of FM data to AF users, managers, and decision makers. The required service is for the continued operation and sustainment (O&S) of the CRIS program.

The Firm Fixed Price services contract for O&S, with some cost reimbursable ancillary requirements, includes a base year PoP from 21 March 2019 - 20 March 2020 with a financial obligation of 3400 funds, and one (1) year option PoP and up to six months option for EOS:

Year PoP New Estimate. Funds Base: 21 March 2019 - 20 March 2020 3400 OY1 : 21 March 2020 - 20 March 2021 3400 6mo: 21 March 2021 - 20 September 2021 3400

The following Contract Line items (CLIN's)/ancillary requirements are needed to support CRIS:

CLIN Structure:

Base: O&S CLIN 0001, Data CLIN 0002, Change Requests CLIN 0003, Travel CLIN 0004, and ODCs CLIN 0005 OY1: O&S CLIN 1001, Data CLIN 1002, Change Requests CLIN 1003, Travel CLIN 1004, and ODCs CLIN 1005 EOS: O&S CLIN 2001, Data CLIN 2002, Change Requests CLIN 2003, Travel CLIN 2004, and ODCs CLIN 2005

IV. Statutory authority permitting other than full and open competition.

All contracting actions covered by this Individual J&A fall within the authority found at 10 U.S.C.

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2304 (c)(1), as implemented by FAR 6.302-1 (a)(2)(iii) - only one responsible source and no other supplies or services will satisfy agency requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

As mentioned above, CRIS is a read-only, multi-tier relational data warehouse providing execution visibility on Financial

CRIS is a BCAT Designated III, Business and Enterprise Systems, Program Executive Officer program. The past contract, FA8770-16-C-0504, was awarded to Teksouth on 21 Mar 2016 through a sole source acquisition. It was a Firm Fixed Price contract with a PoP of 21 March 2016 - 20 March 2019, with no extension of services available.

Teksouth has maintained the system as the prime contractor. The company has extensive technical knowledge of the system, as well as detailed functional knowledge of the CRIS processes and data. Teksouth's current tasks include:

operations and sustainment (O&S) of CRIS, help desk support, and if needed, software/hardware changes. Teksouth's knowledge includes:

1. Detailed knowledge of the unique design and architecture of the system

2. Detailed knowledge of all changes to the system

3. Detailed knowledge of how the current application is integrated with COTS products and Microsoft SQL \ Database

The prior J&A, with the purchase request/local ID number of FA8770-16-R-0504, discussed that the incumbent provider has asserted that a substantial amount of the CRIS architecture utilized their proprietary software. As outlined in section IX of this document, the Government is negotiating to secure rights to and delivery of the necessary software and software documentation to permit competing the operations and sustainment of CRIS, as currently configured.

CRIS is designated as the Authoritative Data Source for AF FM unclassified data. It is used by managers and decision makers at multiple organizational levels to analyze, track, and report on financial data execution. Financial managers use CRIS to identify disconnects in the execution of dollars, and decision makers use CRIS to meet AF and Department of Defense (DoD) financial execution goals. CRIS is used to conduct financial analysis during fiscal year end closeout.

Defense Finance Accounting Service (DFAS) technicians use CRIS to reconcile discrepancies in the DoD General Ledger.

CRIS also plays a key role in helping the AF meet legal requirements to achieve full audit readiness of AF financial statements, and it tracks dollars executed in support of current worldwide operations.

I

As discussed in Section VIII of this document, the Government performed Market research that included a Sources Sought. The Government considered the solutions offered. For those respondents that proposed a complete or partial re-write of the CRIS program, no sound ROMs were provided. However, based on recent IT programs rewritten within Business Enterprise Systems, utilizing a medium size development team, an estimate of 2 - 4 years would be needed to develop, test, and deploy the program into production. During those years of development, the AF would need to continue to operate the current CRIS system in production until that architecture can be phased out to prevent a break in service while the new solution was phased in. The Sources Sought specifically requested that contractor's identify any obstacles to obtaining appropriate hardware, software or other items for their proposed solution. While none of the respondents identified any obstacles to obtaining appropriate hardware, software or other items for their proposed solution, the Government does not currently have possession of all of the current CRIS software or the necessary software documentation.

A break in service will occur if the proposed contract is not awarded to TekSouth on or before 21 March 2019. Based on the Market Research that was completed in May 2018, and the Government's present lack of computer software and software documentation, no other vendor is capable of providing the necessary O&S services to operate and sustain CRIS and awarding to any other vendor than TekSouth would result in unacceptable delay and a substantial duplication of costs to the Air Force.

Assuming the Government reaches agreement with TekSouth on the noncommercial computer software and software documentation and technical data rights issues and receives timely delivery of all items, the Government anticipates, at a

March 2018 FOR OFFICIAL USE ONLY Page 4 of 9 minimum, requiring one year from delivery of an adequate data/software package to be able to fully compete the O&S services, and incurring the following duplicative costs:

(Assumptions include 1 year effort which includes the following)

• Finalize agreement with the incumbent on the data rights in question and receive timely delivery

• Finalize program requirements

• Market research, to include a Sources Sought

• Development and release of solicitation

• Evaluation of proposals

• Clearance approval and award of contract

In the event that an adequate data/software package cannot be secured from TekSouth, the Air Force plans to fully investigate the costs and feasibility of using an alternate architecture or approach to meet its needs.

While individual approaches to updating the system can vary, utilization of commercial software such as an Oracle based system was the approach most often discussed internally and via the Market Research that has been conducted, to date. Based upon this information, the Government estimates at least 2 ½ years will be needed to research, analyze, solicit and compete a new contract, and for the awardee of that contract to implement its proposed solution to enable the Air Force to meet or exceed the functions that CRIS currently performs while continuing to sustain the current CRIS program until such time as the new solution can be implemented. The substantial duplication of costs to fulfill the US Air Force requirements if such a contract is competed, are as follows:

i) The Air Force will be required to conduct a competitive source selection. The source selection costs to select a new vendor to redevelop CRIS in a new architecture/ approach utilizing commercial software

(Assumptions include 1 year effort which includes the following)

• Development and finalization of and Analysis of Alternatives (AoA)

• Finalize program requirements

• Market research, to include a Sources Sought

• Development and release of solicitation

• Evaluation of proposals

• Clearance approval and award of contract

ii) Formal redevelopment of CRIS architecture in an Oracle environment will require hiring ORACLE SMEs to accomplish the task as quickly as possible.

M

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iii) Purchase of commercial Data Base (DB) software licenses for 11,000 users. Named user plus price list from Oracle Database Global Price list dated January 2019. (Pricing based upon existing commercial practices)

iv) Maintenance of DB software licenses. After purchase of the Oracle software, maintenance charges of 20% of annual purchase price plus inflation is assumed. (Pricing based upon existing commercial practices)

v) Hosting Charges - The new CRIS product will need to have development and production environments.

These environments will necessitate purchase of basic services, database administration and storage costs through DISA.

vi) Other Software (Ancillary software associated with the system such as cybersecurity / support software as required by policy/regulation )

vii) Sustainment of New CRIS

viii) New contractor will need to provide training to support the developed system. A "train-the- trainer" approach will be the most efficient way of accomplishing this task. Once these trainers are fully up to speed, they can be available to assist the new system. With the help of the trainers mentioned above, we estimated it will take each user at least 6 hours of computer based training to become familiar with the new CRIS system. This Loss of Productivity:

Based on the above, the total expected duplication of costs the US Air Force would incur is $24.61M if it were to hold a competition for this alternate architecture/approach. The table below summarizes the costs outlined above.

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*Redevelopment of CRIS would require 3600 (RDT&E) funding which is not currently programmed on CRIS and would need to be sourced taking 6-24 months.

**Purchase of software would require 3080 (Procurement) funding which is not currently programmed on CRIS and would need to be sourced taking 6-24 months.

***In addition, while the new CRIS platform/solution is developed, the current CRIS contract will need to be maintained until the new CRIS is put into production. This will include time for both systems to operate in parallel before migrating completely over to the new CRIS.

If this sole source contract is not implemented by 21 March 2019, all sustainment and maintenance to the existing system would halt. The system would be unavailable to users since it cannot operate without required security monitoring. Organic resources are unavailable to monitor the system at DISA DECC Ogden.

The loss of CRIS would severely impact the AF's ability to analyze data and make critical financial decisions. Without CRIS, users would be forced to find alternative, manual means to gather data. Decision makers would lose the ability to view current business day transactions, validate that corrections are input accurately, and confirm the AF is meeting its financial execution goals. All outbound interface partners would have to establish new interfaces with a variety of DFAS and financial reporting systems, as well as build internal analytical tools to receive/manage financial execution data, thus increasing total costs of ownership for many AF systems.

Accordingly, Teksouth is the only firm capable of providing the supplies and services described above without the AF experiencing unacceptable delays in fulfilling requirements or a substantial cost that could not be expected to be recovered through competition.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Market Research was conducted IAW FAR part 10. As a part of the Market Research, a Source Sought was posted to the public on FedBizOpps on 15 Dec 17 to request information as it relates to vendor interest in the CRIS contract and to perform market research of applicable vendor capabilities. The CRIS PMO received responses from six interested vendors, two of which were large businesses and four of which were small businesses. The Sources Sought specifically requested that respondents address any existing agreements or obstacles in obtaining appropriate hardware, software or other items for their proposed solution. The Sources Sought also specifically requested a Rough order of Magnitude (ROM) cost estimate of their solution. No respondent identified any existing agreements or obstacles. ROM's were not received by all respondents as outlined below in Section VIII herein.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Government will evaluate the contractor proposal in accordance with (IAW) FAR 15.404, Proposal Analysis. A technical evaluation will be conducted by the AF Technical Team, comprised of personnel with specialized knowledge, skills, experience, and capability to perform a technical analysis of the proposed types and quantities needed and the

March 2018 FOR OFFICIAL USE ONLY Page 7 of 9 reasonableness of the proposed resources, assuming reasonable economy and efficiency. The technical analysis will also examine the types and quantities of material proposed and materials, labor, processes, equipment, and other associated factors set forth in the proposal. This analysis will determine the need for the types and quantities of labor hours and the labor mix. Any other data that may be pertinent to an assessment of the offeror's ability to accomplish the technical requirements or to the cost or price analysis of the service or product being proposed will also be included in the analysis.

The CO, along with support from AFLCMC/HIGQ, will evaluate the proposed level of effort and mix of labor. The contract will require certified Cost or Pricing Data IAW FAR 15.403-4. The CO will make the final determination that the anticipated cost is fair and reasonable.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

A sources sought was posted to the public on FedBizOpps on 15 Dec 17 to request information as it relates to vendor interest in the CRIS contract and to perform market research of applicable vendor capabilities. The CRIS PMO received responses from six interested vendors, two of which were large businesses, and four of which were small businesses.

The following summarizes the findings from the Sources Sought:

1. Both of the 2 large business companies' proposal would result in a complete rewrite of the CRIS program. Neither company provided a ROM and both companies would require licensing agreements for proprietary software No implementation time frame was identified.

2. One of the small business company's approach would also be a complete rewrite of CRIS and would utilize Oracle as the basis for re-architecture of the CRIS program. Discussions directly with Oracle determined this to be a multi-million dollar effort that would take 2-4 years to implement. The CRIS program would have to be maintained during the development effort. No ROM was provided.

3. Another small business also proposed two options: 1) redeveloping CRIS or 2) keeping the system as is and implement small/medium enhancements and subcontract with the current vendor. The business did not provide any information as to how they were planning on re-engineering CRIS. The ROM provided was significantly lower than the current sustainment cost. The lack of detail associated with their approach demonstrated that the company did not understand the requirements.

4. A woman owned small business proposed to replace portions of the CRIS program and to re-write a large part of CRIS in order to utilize the proposed software. The proposed software changes did not support the current performance requirements of CRIS. The ROM provided allocated a large portion of the budget toward thirty-one (31) Tier 1 Help Desk Agents, however, CRIS does not have a Tier 1 help desk requirement. Also, when calculated out as a full time employee, the hourly rate provided was well below the current Federal minimum wage rate requirement. The ROM provided was significantly lower than the current sustainment cost. This approach demonstrated that the company did not understand the requirements.

5. The current small business provider, , described how it has supported the CRIS data warehouse since its inception. The capability to meet all technical requirements was demonstrated through their ongoing CRIS support.

Subsequently, this vendor is capable of providing the required support for CRIS.

After thorough analysis of the Sources Sought responses, the Government has determined there are no vendors other than Teksouth Corporation with the ability to sustain CRIS. Competition of the contract would result in several significant risks to the Government, unacceptable delays, as well as significant costs to develop a new system while at the same time continuing to pay for the current production system.

First, the CRIS system architecture utilizes software in a highly specialized configuration of servers. Successful operation and support of CRIS requires a high level of understanding of the interconnection of these components/software and how they are designed to interact that is not obvious in the documentation. Therefore, attempting to operate CRIS without this detailed knowledge and understanding would result in an unacceptable level of risk to the program.

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Subsequently, a vendor that lacks experience with the software and related architecture would introduce an unacceptable level of risk into the system.

Due to the nature of the CRIS architecture, the Government entered into discussions with Oracle in order to determine the feasibility of re-architecting the system to an Oracle-based solution (other than an OBIEE solution). After eliminating OBIEE as a viable alternative, discussions with Oracle indicated that re-architecting the system would be a multi-million dollar effort in order to perform a technical evaluation of the solution, new development, and implementation of additional hardware and software. Further, the solution was expected to significantly increase the cost of sustaining the system compared to current contract sustainment costs. Subsequently, the Government considered this approach cost prohibitive.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

As outlined in Section V above, TekSouth is the only vendor capable of providing the services described in Section III above without the US Air Force experiencing unacceptable delays in fulfilling its requirements and incurring a substantial duplication of cost that could not be expected to be recovered through competition. A new vendor would substantially increase the Governments risk and potentially inhibit the ability for over 11,000 users to utilize the CRIS warehouse for analyzing, tracking, and reporting on financial execution status in a reliable, accurate and timely manner. Prior contracts have failed to require delivery of the necessary software, software documentation and any other technical data needed to provide a complete data/software package that will allow the Air Force to compete the O&S services for CRIS. As outlined in the prior J&A, with the purchase request/local ID number of FA8770-16-R-0504, the incumbent provider

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VI above.

XI. A statement of the 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.

The prior J&A, with the purchase request/local ID number of FA8770-16-R-0504 with a PoP from 21 March 2016 to 20 March 2019, states that in order to facilitate competition in the future, efforts were being made to eliminate the Government dependence on proprietary software products by way of assessing the feasibility of utilizing the DEAMS Oracle Business Intelligence Enterprise Edition (OBIEE) functionality to replace CRIS. The Government has tested the OBIEE functionality within its current environment and, in consultation with Government engineering group, determined that the solution is not robust enough to manage the CRIS requirements in regards to the high speed query performance demanded by CRIS given the size of the database. Further supporting this determination, the DEAMS program has not successfully implemented OBIEE to date.

As a part of the CRIS program plan, in order to facilitate competition in the future, the contract will include delivery of a software/technical data package to support future competition. Further, the Government is working to modernize the CRIS architecture IAW DOD modernization guidance. As a part of this modernization, the CRIS program will work to move the system from its current environment to the commercial cloud IAW Air Force guidance. The current CRIS environment consists of an integrated suite of hardware and software utilizing TekSouth's branded technologies to obtain its performance standards. The Cloud environment will allow CRIS to be a standardized offering to help facilitate competition. Migration to the cloud environment is currently in work, however a milestone schedule is pending as the technical solution is still being finalized. The PMO will work with the Functional Management Office (FMO) to develop and finalize an analysis of alternatives (AoA) documenting the future of the program that will include the following:

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• Purpose / Scope / Background, which includes a baseline description of the requirement.

• Stakeholders

• Identification of Alternatives

• Description of Alternatives.

• Risk Methodology

• Risk Comparison.

• Data Consideration

• Summary and Considerations

The analysis of alternatives is anticipated to be completed no later than Following the completion of the AoA the PMO will work to implement the changes outlined and begin a follow-on strategy that will include the following milestones:

• Market research, to include a Sources Sought

• Development and release of solicitation

* Evaluation of proposals

• Clearance approval and award of contract

The award of a contract for an alternative system/approach, if cost effective and feasible, is anticipated to be completed by March of 2020. However, full implementation of such an alternate architecture/approach is not anticipated for at least 18-24 months after contract award.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.