Final- EFO - DPAS (AF AFERMS AFSFC Redacted.pdf

CUI |Source Selection Information See FAR 2.101 and 3.104

CUI

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using an exception to fair opportunity, pursuant to the authority cited herein.

1. REQUIRING AGENCY AND CONTRACTING ACTIVITY:

Agency Requiring Activity:

Defense Logistics Agency (DLA) Information Operations Logistics Catalog & Data Solutions Portfolio Defense Property Accountability System 74 Washington Avenue North Battle Creek, Michigan 49037-3084 POC: Joseph Stossel Phone: 571-363-8744 Email: joseph.stossel@dla.mil

Contracting Activity:

Defense Logistics Agency Contracting Services Office- Philadelphia 700 Robbins Avenue Philadelphia, PA 19111-5092 POC: Randy Kim Phone: 215-737-4539 Email: randy.kim@dla.mil

2. NATURE AND DESCRIPTION OF THE ACTION BEING APPROVED:

Pursuant to FAR 16.505(b)(2), the action being approved is an exception to the fair opportunity process. This justification authorizes the procurement of support services by virtue of a firm-fixed price (FFP) modification to a task order under the Defense Property Accountability System (DPAS) support services portfolio. This modification must be issued on a sole source basis to Leidos, Inc.

(“Leidos”) and its Contractor Teaming Arrangement (CTA) partners in the interest of economy and efficiency because it is a logical follow-on to Leidos’ initial task order issued via the J6 Enterprise Technology Services (JETS) IDIQ contract vehicle.

Controlled by: Defense Logistics Agency (DLA) CUI Category: FED ONLY Distribution Statement F POC: Joseph Stossel, 571.363.8744 mailto:joseph.stossel@dla.mil mailto:randy.kim@dla.mil

CUI | Source Selection Information See FAR 2.101 and 3.104

Task Order SP4709-20-F-0078 (“DPAS Task Order” or “task order”) was competitively awarded to Leidos on August 28, 2020. All eligible JETS IDIQ contract holders were provided a fair opportunity to be considered for the initial task order award.

3. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S

NEED, INCLUDING AN ESTIMATED DOLLAR AMOUNT:

The DPAS portfolio provides the Department of Defense (DoD) with support for DPAS, which is the Accountable Property System of Record (APSR) for 36 Defense Agencies and the 4 Defense Services. The DPAS Task Order currently provides contractor support for requirements analysis and documentation, systems engineering, data migration, and testing and deployment of DPAS software releases. The task order also provides customer support, consisting of a 24/7 help desk, classroom training and development of electronic course material, and assistance with the implementation of the system, to include system setup, establishing user accounts, and data migration. This requirement is for additional support under Task 4 (Customer-Funded Software Feature Enhancement) and Task 21 (Implementation of Air Force Security Forces Center (AFSFC)) of the DPAS Task Order, and to add Task 24 (Implementation of Army’s Project Management Office for the Unmanned Aircraft Systems) to the existing order.

Task 4 of DPAS Task Order, Customer-Funded Software Feature Enhancement, identifies the need for future System Change Requests (SCRs). DoD organizations regularly go through budget cuts, audits, and must replace legacy systems, which has led a number of DoD organizations to implement DPAS. Task 4, Customer Funded Software Enhancements, was created due to the possibility of unknown, future requirements such as this. When customers migrate to DPAS, they may ask for system changes to satisfy their audit/accountability requirements. The DPAS Task Order solicitation identified the “First Release” (i.e., SCRs known prior to award) and required all offerors to provide a system, design, schedule, and pricing for the known SCRs at the time of proposal. Due to the unique nature and vast range of DoD customers and operating environments (36 Defense Agencies and the 4 Defense Services), subsequent SCRs could not be identified at the time of solicitation and award.

The original award included $1.32M of customer funds for software enhancements in the Base Period. A total of $3,098,895.34 of additional funding for Task 4 has since been added to the DPAS Task Order through modifications. This modification to the current task order is a subsequent SCR release under Task 4 that requires SCRs for the Air Force (AF), as well as implementation support for the AFSFC and Army.

The Air Force requires SRCs identified under Task 4 of DPAS Task Order to facilitate their audit program. The SCRs for the AF will provide functionality to create reports to show unit readiness status and separate bulk assets into serially managed assets to meet their financial reporting requirements.

AF (Task 4):

The Contractor will develop the following SCRs:

• SCR 01691 - DRRS report file. The Air Force needs a file to report the unit readiness status to DRRS based on the data in PA and FSM

• SCR 01273 - NSNs in DRRS. The Air Force needs to report status of certain NSNs in DRRS.

• SCR 00896 - Service Shelf Life - Adjust Expiration Dates of Service and Shelf Life to the last day of the month.

• SCR 00830 - Receiving Accept Button - Add an Accept button on the expansion grid at the

Receiving home screen

• SCR 00825 - SKO Assembly Inventory Manager - Make kitted items visible in inventory and material management; add a "kitted" column to add clarity and allow filtering; add a "parent kit" column with the Serial Number of the parent kit.

The Contractor will also support the AF by developing a project to remove their bulk assets for 200 stock numbers and insert serial numbers. The Air Force Support Equipment (A4/HAF) will provide a spreadsheet of 200 stock numbers. The bulk assets associated with these stock numbers are to be removed (disposed of) in DPAS. Once complete, the Catalog Stock Number, Management Code will be changed from Bulk managed to Serial Managed. The A4/HAF will provide a DPAS conversion spreadsheet with the Serial Numbered assets that will then be inserted into DPAS using the standard data conversion process. The contractor will also create reports/dashboards for data transmitted to Advana from DPAS. The reports will consist of total assets by asset type, total dollars by asset type, assets with past due last inventory dates, and assets meeting financial reporting requirements that are not setup for depreciation. The estimated dollar value for this additional support under Task 4 is $877,411.37.

Additionally, the AFSFC has requested to continue DPAS support throughout Option Year 2 (OY2).

The required support under Task 21 includes: assisting in planning, reviewing, analyzing, developing, and delivering a wide spectrum of AFSFC data management, training, and business processes using existing and future AF information technology resources; collaborating with the necessary AF Major Commands (MAJCOMs), including participating in Integrated Product Team (IPT) meetings and working groups to research, discuss, analyze, and document current policies, business processes, training materials, and IT requirements for AFSFC support equipment and government property; implementing DPAS to effectively manage and account for AFSFC property;

establishing initial system set up populated with all AFSFC inventory data and information required to ensure AFSFC property is properly cataloged, inventoried, and managed utilizing DPAS Warehouse Module in accordance with established policy; providing full operational support of DPAS and processing all system transactions IAW established policy to maintain accurate inventory records; and maintaining paperwork and other documentation as required to ensure complete audit trail of transactions affecting balance of records. The estimated dollar value for this additional support under Task 21 is $387,652.63.

Lastly, this modification will add Task 24, Implementation for Army’s Project Management Office for the Unmanned Aircraft Systems (PM UMS), to the DPAS Task Order. Task 24 requires the contractor to validate, correct, and verify parts data to support the transition to the production database within DPAS warehouse for the PM UMS systems. The Army PM UMS is implementing DPAS and requires contractor support to assist with receiving parts data from their existing supply chain management webservice, analyzing the data, and inputting the data into DPAS. The estimated dollar value for the support required under Task 24 is $75,000.00. Therefore, the total estimated dollar value to support all three tasks under this modification (Task 4, 21, and 24) is $1,340,064.00.

The DPAS Task Order was competitively awarded on August 28, 2020. Award was made to Leidos (Contract SP4709-17-D-0018, Task Order SP4709-20-F-0078) and its CTA partners, McKinney & McKinney Technical Services, Inc. (Contract SP4709-17-D-0076, Task Order SP4709-20-F-0074), Object CTalk (Contract SP4709-17-D-0079, Task Order SP4709-20-F-0075), and TekSynap (Contract SP4709-17-D-0017, Task Order SP4709-20-F-0076). The dollar value of Leidos’ Task Order SP4709-20-F-0078 at the time of award was $44,043,034.03, and the combined total dollar value for Leidos and its three CTA partners was $55,657,334.64. Through additional support provided for Task Order SP4709-20-F-0078 via modifications P00005, P00008, P00011, P00012, P00013, P00016, P00020, P00025 and P00026, the total dollar value of task order SP4709-20-F- 0078 has increased by $13,268,451.24 to $57,311,485.27. As a result, the combined total dollar value for Leidos and the 3 CTAs has increased to $68,905,071.26.

As stated, the estimated dollar value of this modification is $1,340,064.00. With this additional support, Leidos’ Task Order SP4709-20-F-0078 will increase to an estimated $58,651,549.27, and the combined total dollar value of Leidos’ and its 3 CTA partners’ task orders will increase to an estimated $70,245,135.26.

The additional support to be provided under this FFP modification is required during Option Period

2. The period of performance for Option Period 2 is September 30, 2022, through August 31, 2023.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY 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:

Pursuant to FAR 16.505(b)(2)(i)(C), this exception to the fair opportunity process is justified because this modification must be issued on a sole-source basis to Leidos and its CTA partners in the interest of economy and efficiency because it is a logical follow-on to the DPAS Task Order. All JETS IDIQ vendors were provided fair opportunity to be considered for the original task order award.

The work to be performed under Task 4 is a logical follow-on the initial task order. At the time of solicitation and award, the Program Management Office (PMO) was unable to identify all of the system functions required by the DPAS user community – such as system enhancements under Task 4 of the task order – due to the wide range of operating environments DPAS supports. It was unknown which customers would require which system enhancements until gap analyses were performed. The additional support required under Task 4 has now been identified after audits were conducted, gap analyses were performed, and decisions were made to sunset legacy systems. The additional Task 4 support that will be provided under this modification includes new system enhancements for an existing customer – the Air Force. The work to be performed under Task 4 is a logical follow-on to the initial task order because it will provide additional support to modify the system functionality the incumbent contractor is currently modifying and sustaining.

The work to be performed under Task 21 and 24 is also a logical follow-on to the initial task order.

Task 21 is a continuation of the work currently being performed under the DPAS Task Order and aligns with Task 12 (Implementation and Data Conversion). The contractor fulfilled the contract requirements for Option Period 1, but as that work was being conducted, it exposed additional areas that require implementation and support. AFSFC has a need for continued support to complete their implementation and requires the contractor to provide operational support of DPAS to complete their data conversion/cleanup and process all system transactions to maintain accurate inventory records.

Similarly, Task 24 is for DPAS implementation for the Army PM UMS and also aligns with Task

12. The efforts identified in Task 21 and 24 do not represent a change in the nature of the work being performed under the original task order. The nature of the work to be performed under Tasks 21 and 24 is the same as work being performed under Task 12.

Under Task 12, Implementation and Data Conversion, the contractor currently supports implementation for the current customer by assisting with the completion of security forms, role assignment, training, data migration and performing an analysis on gaps in functionality. Data conversion activities include all necessary elements to convert property data from the legacy DoD system into the accepted DPAS format. These implementation and data conversion efforts are the same as the current work under Task 21 for AFSFC, and what will be completed under Task 24 for Army PM UMS. The contractor will support the Army PM UMS by reviewing the current records, performing a data cleanse, and converting the data into DPAS. Therefore, this work is a logical follow-on because the implementation and data conversion efforts are the same as those described in Task 12. Identifying the work as separate tasks in the task order is only necessary to separate the funding from each customer and maintain separate project plans.

As previously stated, the additional support under Task 4 is a logical follow-on to the initial task order because the efforts specified in Task 4 will modify the system functionality the incumbent contractor is currently modifying and sustaining. It would not benefit the Government to have another contractor modify the system code at the same time the incumbent contractor is modifying the same code. If a task order was awarded to a second vendor to implement the new software enhancements, this could cause conflicts. Having two developers could result in additional work to coordinate efforts during development and resolve conflicts during testing. Thus, if an alternate contractor were to provide this additional support for Task 4, it would greatly increase the complexity and cost of Program-funded enhancements and customer-funded SCRs, which are deployed about 3-4 times a year in a system release.

Additionally, the SCRs need to be completed by the end of FY23 to be in compliance for the next audit. The incumbent DPAS contractor is the only skilled contractor capable of providing the DPAS resources required by the Government to satisfy this requirement in a timely fashion and negate the possibility of mission failure. Training a new contractor on DPAS would require additional time and resources and would cause unacceptable delays. Furthermore, the incumbent contractor, with its CTA partners, has implemented DPAS for numerous Air Force organizations and has the requisite knowledge of Air Force policies to ensure this requirement is met in accordance with those policies.

The incumbent contractor also has the necessary expertise in DPAS Implementation and Data Conversion as a result of the work they have performed thus far, which will result in greater efficiencies for the customer. The intellectual capital the incumbent contractor has gained through performance of the DPAS Task Order cannot be transferred to a new contractor without a substantial duplication of efforts, resulting in a duplication of costs and delays in obtaining efficiencies for the customer. Therefore, it is in the interest of economy and efficiency to award this task order on a sole-source basis because it is a logical follow-on to an order already issued under the contract, and all awardees were given a fair opportunity to be considered for the original order.

5. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable. It is anticipated that the Government will use various price analysis techniques including, but not limited to: (1) Comparison of proposed prices to historical prices paid; (2) Comparison of proposed prices with independent Government cost estimates; and (3)

Comparison of proposed prices obtained through market research for the same or similar items, to obtain a fair and reasonable price.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

N/A

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 OPPORUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE:

The initial DPAS Task Order was competed among all eligible JETS contract holders using fair opportunity procedures. As demonstrated above, the requirements described in Section 3 are a logical follow-on to the services currently being provided under the task order and must be awarded to the incumbent contractor in the interest of economy and efficiency.

At the conclusion of the current task order, DLA plans to compete the follow-on requirement and all eligible JETS IDIQ contract holders will have fair opportunity to compete for the DPAS Portfolio follow-on award. At that time, DLA will award to a JETS IDIQ contract holder that demonstrates capability to support requirements and represents the best value to the Government.

DLA has exercised and continues to exercise competition as often as possible and is required to conduct ongoing reviews of technology and corresponding services, both in private industry and in the Government. DLA uses a variety of vendors, manufacturers, and contracts/orders to fulfill its requirements and will continue its practice of surveying the market to ensure full and open competition to the maximum extent practicable.

8. CERTIFICATIONS.

Technical Certification: I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Rosana Heraud DATE DLA J62 LCDS Portfolio Deputy PM, DPAS

Requirements Certification: I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Victoria Navazio DATE J62H Deputy Portfolio Manager

Contracting Certification: I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

Randy Kim DATE Contracting Officer DLA Contracting Services Office - Philadelphia

In accordance with FAR 16.505(b)(2)(ii)(C)(2), I have determined that FAR 16.505(b)(2)(i)(C) applies and I approve this justification.

Matthew S. Ryan DATE Competition Advocate DLA Contracting Services Office