FBO_Post_JA_Exception_Attachment.pdf

TMPLT 2016.06-028

OAGS Template and Instruction for a General Services Administration Federal Supply Schedule Limited Source Justification

Identification of the agency and contracting activity:

Federal agency and contracting activity.

Sponsoring organization.

OIMT/Office of Enterprise Portfolio Management (OEPM)

Contracting Officer’s Representative (COR)/Requiring Activity Point of Contact (POC) information.

Name: Teresa Tran Mailing address: 11601 Landsdown Street, Rockville, MD 20852 E-mail address: Teresa.tran@fda.hhs.gov Telephone number: 240-402-1675

Nature and/or description of the action being approved.

Acquisition purpose and objectives.

The Office of Information Management and Technology (OIMT) is an office under FDA. OIMT is one of the FDA Service Providers in providing the Enterprise IT operations to maintain IT interoperability across the Agency while facilitating the development and maintenance of enterprise wide systems necessary to meet the FDA's mission. OIMT, in full support of FDA’s Working Capital Fund/Cost Allocation and Recovery Program to serve as a systematic and transparent method for identifying and distributing the IT costs across the FDA through the full-cost recovery charge-back structure for the FDA’s comprehensive portfolio of centrally administered services. The Cost Allocation effort was initiated in FY 2013 to provide full transparency into the costs of the services charged to FDA Centers and Offices and address recommendations from a Government Accountability Office (GAO) report detailing the need for more cost information for FDA’s Information Technology (IT) infrastructure and administrative processes.

Template

As OIMT Cost Model continue to mature, OIMT Financial Management and Cost Allocation are required assistance in maturing its surrounding processes, policies and procedures so the cost model can be effective, reliable, retrievable, repeatable, and adaptable with the FDA’s environment. Currently, OIMT Cost Model has an Enterprise Services Catalog with 113 TBM service names, 300+ Service Offering and o v e r 25 unique cost drivers that are required an ongoing support with multiple data input and provides ad hoc cost management support to the Director of OEPM and the Office of the Chief Technology Officer (OCTO) along with supporting the OIMT’s Budget initiative in improving the budget formulation and reporting process that are making positive impact to OIMT.

b. Project background.

On June 21, 2019, OIMT Cost Allocation awarded competitive task order 75F40119F19006 against FDA BPA, No. HHSF223201510010B with Deloitte Consulting LLP in the amount of $1,299,935.05 for one base year in supporting the Technology Business Management (TBM) for OIMT CA and TBM Support.

Base: 6/24/2019 - 6/23/2020

The order was modified on 5/21/2020 to extend services from 6/24/2020 to 12/23/2020, which increased the order by $855,378.90 to $2,155,313.95.

Since the three BTT BPAs have expired, five new BTT BPAs were awarded to Accenture Federal Services LLC (75F40121A00001), Atlas Research LLC (75F40121A00002), Deloitte Consulting LLP (75F40121A00003), Eagle Hill Consulting LLC (75F40121A00004), and Guidehouse LLP (75F40121A00005) with a period of performance of October 21, 2020 through October 20, 2025. However, due to a protest, each BPA awardee has been issued stop work orders. In order to continue these essential services, the Government intends to issue a sole source modification to the current order to ensure there is not a lapse in service.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title.

Cost Allocation TBM Support

b. Project Description.

The Office of Information Management and Technology (OIMT) is seeking a service to provide the solutions for the enterprise on transparency and visibility into their cost and improve performance through project management for Cost Allocation, Technology Business Management (TBM) Framework and Financial Management within the OIMT. The contractor support services shall include in assessing the current status of project management, change management, governance and communication work streams in maintaining and supporting the current OIMT Cost Model in identifying and assigning the costs of an OIMT service to Centers. At the same time, there are areas of improvement and specific suggestions to address the improvements; facilitating and/or conducting meetings; identifying communications to ensure stakeholders and participants are aware of the initiatives under OIMT Cost Allocation, and providing management status and reports. The service will provide support for Cost Allocation related services, align IT Spending with TBM Taxonomy, established FDA TBM Cost Model framework, Cost Drivers and Level of Effort data collection and analyses, updating and communicating the cost allocation model to both internal and external stakeholders along with financial workstream for decision making by the OIMT leadership.

Requirement type.

Support services (non-R&D)

Supplies/equipment

Information Technology (IT)

Other:

Type of action.

New requirement

Follow-on

Other:

Proposed contract/order type.

Firm-fixed-price

Time and materials

Indefinite delivery:

Other:

Completion Form

Term Form

Acquisition identification number.

OIMT-21-C-0074

Requisition # 1237011

c. Total estimated dollar value and performance/delivery period.

IGCE: $2,116,863.84

POP: 12/24/2020 – 12/23/2021

4. The authority and supporting rationale (see FAR 8.405-6(a)(1)(i); (b)(1)) and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

a. Acquisition authority.

This acquisition is conducted under the authority of the Multiple Award Schedule Program. In accordance with Federal Acquisition Regulation (FAR) 8.405-6(a), consideration of schedule contractors will be restricted to fewer than the number required at FAR 8.405-1, FAR 8.405-2, FAR 8.405-3 (i.e., fewer than three FSS contractors). FAR 8.405-6 (a)(1)(i), for a proposed order or BPA with an estimated value exceeding the micro-purchase threshold not placed or established in accordance with the procedures in FAR 8.405-1, FAR 8.405-2, or FAR 8.405-3, the only circumstances that may justify the actions are-

(A) An urgent and compelling need exists, and following the procedures would result in unacceptable delays;

(B) Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized;

(C) In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

This acquisition is conducted under the authority of the Multiple Award Schedule Program. In accordance with FAR 8.405-6(b), consideration of schedule contractors will be restricted only to the item peculiar to one manufacturer. An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

b. Demonstration of the proposed contractor(s) unique qualifications to provide the required supply or service.

• Name and address of the proposed contractor(s).

47QRAA18D001P

DELOITTE CONSULTING LLP

1919 N LYNN ST., ARLINGTON VA 22209-1742

• Nature of the acquisition and proposed contractor(s) unique qualifications. The incumbent, Deloitte Consulting, has supported the OIMT Cost Allocation Program from the start. The current supporting team is currently working with OIMT Divisions to ensure that Enterprise IT Costs are appropriately aligned to TBM Cost Pools, Towers, and Services, which is a requirement from OMB mandated related to TBM reporting. In absence of support personnel, the FDA runs the risk of improper alignment to the TBM Taxonomy thus skewing data being reported to OMB that may negatively impact the CIO, CFO, and CTO on the ability to make data driven decisions. Furthermore, this team is supporting the core OIMT Cost Allocation Program’s requirements in assembling, validating, and aggregating the data inputs required for the WCF budget and assessment. Without trained and knowledgeable staff, OIMT runs the risk of not being able to meet key Working Capital Fund (WCF) targets which will have a downstream impact to not only the FY2022 Center/Office assessments but may also delay involved, an untrained resource pool will be at a higher risk for calculation errors; these errors will have a direct and lasting impact on Center/Office assessments for the next two (2) fiscal years.

Presently there is no other group or team within OIMT that is responsible for the Cost Allocation support work. Not having this vendor in place with the potential of a lapse in federal funding will create significant delays in meeting the Agency’s budget formulation timelines.

There is also a risk that OIMT failed to meet key WCF related targets for data quality and timeliness.

Because this order was planned to be competed among the five new BTT BPAs, which

, there is not enough time to transition this work currently being performed by Deloitte Consulting to a new vendor. By the time a new order is awarded, the current award will have expired on December 23, 2020, which create a lapse in service due to the time it take to onboard new personnel. A new order would also require a new contractor to duplicate ongoing work, which would provide for a significant increase in cost and loss of work that is already in the stages of being completed.

etermination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d).

The current order, HHSF223201510010B/75F40119F19006, set to expire on December 23, 2020, was awarded under Deloitte Consulting’s GSA contract 47QRAA18D001P, the pricing for which has already been determined to be fair and reasonable. This logical follow-on sole source modification to extend the period of performance one year represents the best value and results in the lowest overall cost alternative to meet the Government’s needs.

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

OIMT Cost Allocation Program planned on competing this one-year requirement to vendors under the new FDA BTT BPA, awarded on 10/21/2020, but there a protest on these five BPA awards and stop work orders . The current Task Order will end 12/23/2020.

Any other facts supporting the justification.

The OIMT CA team supports OIMT in attributing over $320M in costs to FDA Centers and Offices. This amount represents 51% of the FDA’s WCF. Therefore, delays in processing OIMT’s share of the fund would certainly have downstream impact on the overall timelines of key WCF deliverables such as the FY2023 budget approval in April 2021, the completion of the HHS Budget Justification in May 2021, and the FY2022 assessments in June 2021. In terms of accuracy, if OIM is off by even 1% to a Center/Office in term of Assessments, this would result in a potential increase in cost of over $3M to an operation and undermine the credibility of OIMT. In terms of timing, the core Cost Allocation work will continue through the completion of the FY2020 assessments in June 2021.

Following this, the OIMT program moves into the critical step of refreshing the service catalog and prepares budget planning materials for the FY2023 and FY2024 cycle. In addition to year end closeout activities in Q4, the OIMT Cost Allocation team will begin work on the collection and validation of data inputs in Q1.

Therefore, the consistency of supporting from this vendor will minimize the risk of interruption of OIMT Cost Allocation Program and won’t delays in fulfilling the agency’s requirements.

Statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

Removal of barriers to competition. OIMT Cost Allocation Program planned on competing this one-year requirement to vendors under the new FDA BTT BPA, awarded on 10/21/2020, but there a protest on these five BPA awards and stop work orders The current Task Order will end 12/23/2020.

Listing of sources, if any, that expressed an interest, in writing, in the acquisition.

47QRAA18D001P

DELOITTE CONSULTING LLP

1919 N LYNN ST., ARLINGTON VA 22209-1742

Program office certification.

Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

Signature:

COR/Requiring Activity POC

COR/POC Immediate Supervisor

Signature:

Head of the Sponsoring Program Office

10. Contracting Officer Certification.

This is to certify that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

Signature:

Contracting Officer

11. Division Director and Head of the Contracting Activity signature(s).

Signature:

Division Director

Signature:

Head of the Contracting Activity

12. Competition Advocate signature.

Competition Advocate