FBO_Post_JA_Exception.pdf

General Services Administration Federal Supply Schedule Limited Source Justification

1. Identification of the agency and contracting activity:

a. Federal agency and contracting activity.

HHS/Office of the Commissioner/Office of Operations/Office of Finance, Budget and Acquisitions

b. Sponsoring organization.

Office of Finance, Budget and Acquisitions (OFBA)

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

i. Name: John Johnson

ii. Mailing address: 4041 Powder Mill Road, Calverton Maryland

iii. E-mail address: john.johnson1@fda.hhs.gov

iv. Telephone number: 301-796-4698

2. Nature and/or description of the action being approved.

a. Acquisition purpose and objectives.

The purpose of this effort is to develop, present, implement, and maintain a cost allocation process, method and governance structure for the direct and the indirect costs associated with the Office of the Commissioner and Office of Operations for FDA. This order will also provide cost allocation related services, WCF development, presentation and implementation, and Project Management including change management and communication services to allow the FDA to support, enhance and expand its ongoing Cost Allocation efforts to be more responsive and effective in its support of mission-based services.

The objectives of the Cost Allocation Initiative are:

• Deliver, enhance and expand the current catalog of cost allocation and cost recovery models (including assisting the FDA in developing and implementing fee-based rates where applicable) in order to support transformational change in FDA’s financial business processes and systems,

• Provide effective communication to the FDA employee and Contractor population to promote awareness of current and planned Cost Allocation related transformational activities,

• Provide structured organizational change management implementation to enable FDA to put into place and maintain the appropriate cost allocation and charge-back governance and administration with benchmarked level of resources and capabilities for cost allocation and cost recovery management,

• Enable FDA’s communication components to ensure that the cost allocation transformational initiatives are supported through financial management transitional training, SharePoint or similar site management, publishing, processes tracking and innovative and cutting edge communication techniques and events, and

• Ensure effective alignment of Cost allocation across all business transformation initiatives and services provided to effect measurable changes in FDA’s ability to provide mission critical services.

The objective of this action is to issue a sole source order to the current contractor, Deloitte Consulting, from 12/18/2020 to 06/17/2021 with a six month option from 6/18/2021 to 12/17/2021 to ensure no lapse in services as the Business Transformation Team (BTT) BPA awards were issued stop work orders due to a recently dismissed protest. This acquisition will allow continuity of critically needed services when order HHSF223201510010B-HHSF22315002 ends on 12/17/2020.

b. Project background.

The U.S. Food and Drug Administration (FDA) is responsible for assuring the protection of the public health through regulating the safety of food and the safety and effectiveness of medical products. Order HHSF223201510010B/HHSF22315002, which expires on December 17, 2020, was awarded to the current contractor, Deloitte Consulting, on September 11, 2015 in the amount of $8,262,076.56 with a period of performance of 9/18/2015-9/17/2019. This order was competed among the three Business Transformation Team (BTT) BPAs. On April 22, 2016, the order amount was increased to $8,515,251.22 to provide a continuation of work. On December 19, 2016, the order amount was increased to $9,025,226.10 to provide further tasks in the statement of work. On August 19, 2019, the period of performance was extended until 9/17/2020 and the order amount was increased to $11,719,439.10. On August 5, 2020, the period of performance was extended until 12/17/2020 and the order amount was increased to $12,519,439.10.

The acquisition competition is complete for the new BTT BPAs. However, a protest was recently dismissed and stop work orders were issued to the 5 awarded vendors. Therefore, the Government anticipates to issue a sole source award to the current contractor, Deloitte Consulting, in order to prevent 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 for FDA Centrally Administered Services

b. Project Description.

The Contractor provides consulting support for FDA’s Office of Finance Budget and Acquisitions.

OFBA leads budget, acquisitions, and financial management functions while ensuring the financial integrity of FDA’s resources in support of FDA’s mission. This order is used for general support for budget process improvement, strategic planning and integration and communication. The Contractor is responsible for standard operating procedures, analysis, and planning and support services. Support during this evaluation period included development of

14 service provider budgets, communications plans, marketing materials and standard operating procedures.

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: Labor Hours

Completion Form

Term Form

Acquisition identification number.

OO-21-C-0040

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

Base Period of Performance: 12/18/2020-06/17/2021, estimated value $1,347,106.50 Option I Period of Performance: 06/18/2021-12/17/2021, estimated value $1,347,106.50

Total estimated value: $2,694,213.00

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).

Deloitte Consulting LLP Professional Services Schedule (PSS) - 00CORP 47QRAA18D001P

DUNS# 019121586

Cage# 1TTG5

POP: 11/21/2017 – 11/20/2022

Address: 1725 Duke Street, Alexandria, VA 22314

• Nature of the acquisition and proposed contractor(s) unique qualifications.

This previous requirement was solicited and competed amongst the three multiple-award Business Transformation Team (BTT) BPAs HHSF223201510010B (Deloitte Consulting), HHSF223201510011B (KPMG) and HHSF223201510012B (Guidehouse) which have now expired. This new requirement is not being competed amongst the newly awarded five BTT BPA holders as a protest was recently dismissed. The current contractor, Deloitte Consulting, is the most economical and efficient vendor with the requisite technical knowledge and unique expertise to support the immediate need for continued OFBA services.

The vendor is uniquely qualified to provide the necessary detailed information for building the Agency-wide cost allocation and recovery model needed to maintain and operate the over $600 million FDA Working Capital Fund for centrally administered programs through the Office of Operations. The vendor created and uses a cost model that leverages data from between 9 and 15 Office of Operation service providers and the entire FDA Center and Office structure to generate an overview of services and activities, highlight data sources and relationships, identify unique FDA related calculation mechanics, analyze framework methodology considerations and provide consumption driven cost assessments.

The incumbent has developed an efficient process to collect financial and activity-based consumption data using a unique Level of Effort model developed by the contractor specifically for FDA. There would be significant time lost restarting data collection, governance, and model creation for multiple systems without the incumbent and critical additional Federal staff hours to re-develop the knowledge base and expertise to provide seamless calculation and response times for deliverables.

Without the execution of a sole source order to the current contractor, the agency is at risk of mission-critical improper cost recovery and allocation for the Office of Operations that would jeopardize the implementation of central administrative efforts at FDA. Awarding a sole source order would mitigate operational risks and provide a seamless and efficient delivery of essential services without any decreased operational efficiency and increased Agency expenditures. The current Cost Allocation contractor is uniquely qualified and best positioned to provide the most economical and efficient FDA-specific cost allocation and recovery technical services and accomplish the work activities in the most cost-efficient manner until the BTT BPA stop work orders are lifted.

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

FDA will evaluate the level of effort and skill mix required to support the work in scope of the order and will determine the price of the order to be fair and reasonable prior to issuance by performing a price analysis of the offeror’s proposal.

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

Given that the BTT BPA awards were already existing, no additional market research was conducted.

The BTT BPA was awarded to five vendors. Given the immediate continued need of the BTT requirements, it is not in the best interest of the Government to solicit vendors via formal market research actions (e.g. sources sought and requests for information). The resultant time lapse of any related market research efforts, would cause a disruption in the required No-Year Post Production Support Contract.

7. Any other facts supporting the justification

If a sole source sole order is not awarded to Deloitte Consulting (given the recently dismissed BPA protest and the current order expires on December 17, 2020), FDA would entail restarting the acquisition planning process. Moreover, a new acquisition action entails the incoming vendor to complete a transition-in period, which would include recruiting the necessary staff; completing the FDA badging process; learning FDA systems and procedures and understanding the current needs of the Agency. These activities would lead to a greater unnecessary timing delay.

8. 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.

a) Removal of barriers to competition.

Stop work orders were issued for the new BTT BPA awards due to a recently dismissed protest.

Therefore, a sole source order is in the best interest of the Government to avoid any lapse in service.

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

Deloitte Consulting LLP Professional Services Schedule (PSS) - 00CORP 47QRAA18D001P

DUNS# 019121586

Cage# 1TTG5

POP: 11/21/2017 – 11/20/2022

Address: 1725 Duke Street, Alexandria, VA 22314

9. 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

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.

Contracting Officer

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

Division Director

Head of the Contracting Activity

12. Competition Advocate signature.

Competition Advocate