FSH JA 2021_17_FMC IT Services_Redacted.pdf

Control No.: MICC 2021-17 Contractor: Team Logistics System Incorporated

Program/Equipment: ASA(FM&C) IT Services

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

Program/Equipment: Enterprise Systems Engineering and Computational Analytics Support Services.

Authority: 10 U.S.C. 2304c(b)(2) as implemented by FAR Part 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Amount: .56

Prepared by:

Contract Specialist

Contracting Officer:

Division Chief

Technical:

Deputy, Strategic Initiatives Group (SIG)

Requirements:

Director, Strategic Initiatives Group (SIG)

Reviews: I have reviewed this justification and find it adequate to support an exception to fair opportunity.

Program Manager:

Program/Equipment: ASA(FM&C) IT Services

Version – September 2018 FOR OFFICIAL USE ONLY

MICC Legal Counsel:

Date: See electronic signature rogram:

Date: See Digital Signature

Contracting Officer/Division Chief:

Director, MICC-Fort Sam Houston:

Assistant Director, Small Business Program:

FAR Part 16 Exception to Fair Opportunity Justification Under Multiple Award Indefinite Delivery Contracts

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command – Fort Sam Houston (MICC-FSH), 2205 Infantry Post Road, Fort Sam Houston, TX 78234.

2. Description of Action: The Assistant Secretary of the Army Financial Management & Comptroller (ASA(FM&C)) Strategic Initiatives Group (SIG) has a need to sole source a firm-fixed-price task order to Team Logistics System Incorporated (LSI) which is comprised of LSI and Value Creation, LLC by utilizing the contractor’s GSA VETS 2 IDIQ vehicle 47QTCH-18-D-0036. The Government projects award in December 2020 and fiscal year 2021, Operations and Maintenance, Army funds will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

3. Description of Supplies/Services: The ASA(FM&C) SIG has a need to acquire Enterprise Systems Engineering and Computational Analytics support services. The contactor shall provide critical and highly specialized senior subject matter expert (SME) experience in state-of-the-art enterprise systems engineering data analytics, innovative computational and visualization capabilities, and Army Financial Management & Comptroller domain expertise to establish, expand, and institutionalize the Army’s premier fiscal stewardship program, known as Command Accountability and Execution Review (CAER) IAW Secretary of the Army (SECARMY) Directive (2017-12). The contractor shall provide technical advice to senior leadership on state-of-the-art fiscal stewardship capabilities, and operationalize the Army’s financial stewardship vision and deliver accelerated high performance results aligned with the enterprise’s priorities.

Period of Performance:

Base Period: 01 JAN 2021 – 31 DEC 2021 Value:

Option Year 1: 01 JAN 2022 – 31 DEC 2022 Value:

Option Year 2: 01 JAN 2023 – 31 DEC 2023 Value:

Option Year 3: 01 JAN 2024 – 31 DEC 2024 Value:

Option Year 4: 01 JAN 2025 – 31 DEC 2025 Value:

52.217-8 Option: 01 JAN 2026 – 30 JUN 2026 Value:

Total Value:

4. Authority Cited: 10 U.S.C. 2304c(b)(2) as implemented by FAR 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Reason for Authority Cited:

a. This justification is provided to outline why the Government must issue a sole-source contract to maintain continuity with SECARMY Directive 2017-12 to establish and institutionalize the Army’s Premier Fiscal Stewardship Program, known as Command Accountability and Execution Review (CAER) to address decades of vulnerabilities in fiscal stewardship capabilities which have resulted in billions of dollars lost in purchasing power and risk. This program has state-of-the-art technological and analytical capabilities requirements.

b. Based on two recent sources sought notices released through Sam.gov and GSA

VETS 2, only one vendor, Team Logistics Systems Incorporated, demonstrated the capabilities and skills to offer the unique and highly specialized services being requested under ASA(FM&C) SIG performance work statement (PWS). Team LSI provided the best evidence of achieving the level of proficiency to immediately execute high conceptual problem solving and quantitative analytical aptitudes from day one of the contract, and demonstrated a deep and thorough understanding of the Army’s Command Accountability and Execution on Review (CAER) strategy and program to masterly connect the capabilities identified in Part 5 of the PWS. These capabilities consist of providing agile and rapid operational support to the ASA(FM&C) leadership priorities to improve fiscal stewardship using state-of-the-art visualization and analytical tools, data quality analytics, data automation, big data analytic methods and artificial intelligence, amongst other predictive models, in the design/deployment of resource-informed decision-making tools and solutions. Team LSI also identified substantial understanding and capability of using the following three key attributes that support the focus of financial stewardship using big data analytics: (1) widespread use of modeling and optimization, (2) enterprise systems engineering which includes the entire Army structure, from HQDA down to the field-level/installations worldwide, and (3) the enterprise model decision making tools for the Senior Executive/Commanding General advocates. Team LSI’s teaming approach also solidified the ability to construct a successful Army worldwide CAER program in MILPERS and R&D using the Army DOTMLPF-p framework while applying technological solutions to multiple business problems. Finally, Team LSI also demonstrated to have the quantitative techniques to make quick, accurate assessments and the capability to explain complex information in simple language at all levels of the echelon. Team LSI also has a clear understanding of the coordination and staff action process important to achieving the Army CAER mission at all echelons and Army worldwide.

c. Team LSI was the only vendor deemed fully capable of providing the qualifications and expertise required to successfully execute the part 5 tasks in the

PWS. While some of the vendors sources sought responses addressed standard capabilities to optimize operations using data analytics, the vendors did not possess proven and comprehensive expertise and understanding of the Army's state-of-the-art Command Accountability and Execution Review data analytics necessary to inform Army's top senior leaders on day one of the contract’s period of performance to enable readiness and continuity of mission. The sources sought responses focused solely on rolling out new business intelligence tools or providing data warehouses which would require a new start/overhaul to the Army CAER enterprise architecture at an added cost. ASA(FM&C)’s new work will focus on MILPERS and R&D appropriations embedded in the Army's readily scalable and cost-effective cloud computing solutions, which is where the expertise in CAER data analytics capability becomes crucial, a unique expertise that only Team LSI demonstrated to have.

d. Impact if justification not approved. If this justification is not approved, the

Secretary of the Army, Chief of Staff of the Army, Under Secretary of the Army and the Vice Chief of Staff of the Army will be at imminent risk of not having the readiness capabilities required to assess and collaborate on the Army’s overall budget decrease across 33 Army commands and 112 Army Materiel Command and Army National Guard subordinates pertaining to approximately $178 billion budget. Further, it will continue to delay ASA(FM&C) SIG from expanding and institutionalizing these new capabilities required across major appropriations in support of the Army’s budget formulation, President’s budget, and fiscal stewardship on an annual basis. The lack of transparency in command performance will affect the Army Commanding Generals abilities to reach a single vision of financial performance and determine the appropriate actions to increase purchasing power for readiness priorities.

6. Actions to Increase Competition: The highly specialize and unique services of this requirement limits competition, thus two sources sought notices were released in an effort to identify capable vendors. A sources sought notice was posted on the Government-Wide Point of Entry (GPE) from 09 November 2020 – 20 November 2020 through Sam.gov and a second sources sought notice was posted through GSA e-buy under the Veterans Technology Services (VETS 2) GWAC from 04 December 2020 – 08 December 2020. The sources sought notices received only one (1) capable source (Team Logistics Systems Incorporate) of having the capabilities required to execute the tasks in the PWS. The response determined capable demonstrated that it could meet all capabilities required under the PWS; the potentially capable would have demonstrated that it could meet most but not all the capabilities required under the PWS, and the responses found not capable did not meet most or none of the capabilities required under the PWS. Table 1 provides the sources sought overall results as below:

having the capabilities required to execute the

6. Actions to Increase Competition: The highly specialized and unique services of this requirement limits competition, thus two sources sought notices were released in an effort to identify capable vendors. A sources sought notice was posted on the Government-Wide Point of Entry (GPE) from 09 November 2020 - 20 November 2020 through Sam.gov and a second sources sought notice was posted through GSA e-buy under the Veterans Technology Services (VETS 2) GWAC from 04 December 2020 - 08 December 2020. The sources sought notices received only one (1) capable source (Team Logistics Systems Incorporate) having the capabilities required to execute the tasks in the PWS. A response determined capable, would have demonstrated that it could meet all capabilities required under the PWS; a potentially capable response would have demonstrated that it could meet most but not all the capabilities required under the PWS, and the responses found not capable did not meet most or none of the capabilities required under the PWS. Table 1 provides the sources sought overall results below:

Table 1: Sources Sought Overall Results

7. Market Research: Market research details are included below; however, full market research details are documented on the Market Research Report.

a. The Army’s Computer Hardware, Enterprise Software and Solutions (CHESS) program is the mandatory source for commercial information technology (IT) services IAW Headquarters, Department of the Army (HQDA) (Under Secretary of the Army) memorandum dated 01 December 2020 and AFARS 5139. However, IAW DFARS

212.102 the unique and highly specialized services under this requirement does not meet the commercial item definition under FAR 2.10; thus, these services are not considered commercial IT services. Additionally, the scope of work of this requirement is not within scope of the CHESS Information Technology Enterprise Solutions – 3 Services (ITES-3S) PWS scope of work.

b. The sources sought notices released through Sam.gov and GSA e-buy revealed no capable sources, other than Team Logistics System Incorporated (LSI) under its GSA VETS 2 contract vehicle capable of providing the highly specialized Enterprise Systems Engineering and Computational Analytics support services critically needed by ASA (FM&C). The use of a non-DoD contract vehicle has been determined to be in the best interest of the Government IAW DFARS 217.770.

c. An assessment report search through Contractor Performance Assessment Reporting System (CPARS) revealed sixty-seven (67) reports showing Team LSI as having very good, satisfactory and exceptional ratings throughout the years of 2012- 2020. This performance data is a very good indicator that the Government faces little to no performance risk of sole sourcing this requirement to Team LSI due to their extensive and proven history of delivering quality services on previous contracts. Team LSI also has an active System for Award Management record and shows no active exclusions, or any other adverse action record under Federal Awardee Performance and Integrity Information System (FAPIIS). Team LSI’s primary NAICS code is also 541512, Computer Systems Design Services which provides a very accurate description of the work required to meet the needs of this requirement. Based on the above information, it can be determined that Team LSI is a responsible and highly qualified contractor thus it is the Government’s intent to consider Team LSI for the contract award of this requirement.

Rating # of Responses (Sam.Gov)

# of Responses (GSA e-buy)

Capable 1 1 Potentially Capable 0 0 Not Capable 17 5 Total Responses 18 6 do not

d. The Government will procure this requirement using the procedures outlined in

FAR Part 16, Types of Contracts, and shall adhere to the provisions under FAR Part 19, Small Business Programs. The Government has determined to sole source this requirement to Team Logistics System Incorporated IAW FAR Part 16.505(b)(2)(i)(B), exception to the fair opportunity process. This acquisition shall result in a firm-fixed -price (FFP) task order placed under LSI’s VETS 2 GSA IDIQ contract vehicle.

8. Interested Sources: The two (2) released sources sought notices revealed twenty-four (24) interested sources however; only one source (Team LSI) was able to demonstrate the capabilities required and necessary to perform the highly specialized Enterprise Systems Engineering and Computational Analytics support services.

9. Other Facts: Procurement History: There is no procurement history for this requirement. This is a new requirement for ASA(FM&C) SIG.

10. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Deputy, Strategic Initiatives Group (SIG)

11. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Director, Strategic Initiatives Group (SIG)

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made using price analysis and comparison with the IGCE. As a part of this basis, certified cost or pricing data will be required.

Contracting Officer

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

Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the procurement of Enterprise Systems Engineering and Computational Analytics Support Services pursuant to the authority of Exception to the Fair Opportunity Process, Title 10 United States Code Section 2304c(b)(2) as implemented by Federal Acquisition Regulation (FAR) Subpart 16.505(b)(2)(i)(B) -- Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. The estimated value act is $3.6 million for a five year period of performance consisting of a base year and 4 option years plus FAR Clause 52.217-8 (6) month extension from 01 January 2021 to 30 June 2026. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Alternate Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX

Based on the foregoing justification, I hereby approve the procurement of Enterprise Systems Engineering and Computational Analytics Support Services using an exception to fair opportunity pursuant to the authority of Title 10 United States Code Section 2304c(b)(2) as implemented by Federal Acquisition Regulation (FAR) 16.505(b)(2)(i)(B) -- Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or se red are unique or highly specialized. The estimated value of the contract is for a five year period of performance consisting of a base year and 4 option years from 01 January 2021 to 31 December 2025, and FAR Clause 52.217-8 for up to an additional (6) months. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.