FY24 Deloitte LSJ bridge contract SAM Posting.pdf

OFFICE OF ACQUISITION MANAGEMENT

ICE Acquisition Manual 3006.301-90

LIMITED-SOURCES JUSTIFICATION

ORDERS OR BPAS EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD

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J&A-24-0020

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Immigration and Customs Enforcement (ICE), Office of Acquisition Management (OAQ), on behalf of the Office of Asset and Facilities Management (OAFM), proposes to award a bridge contract pursuant to FAR 8.405- 6(a), Limiting Sources.

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

a) Type of action: Hybrid Bridge Contract with Firm-Fixed-Price (FFP) and Time and

Material (T&M) CLINs

b) Amount the current J&A is justifying: $7,888,406.40

c) Brief Description:

ICE/OAQ intends to procure, on a sole source basis, additional contractor support from Deloitte to assist with program management requirements to include facilities project management, real property portfolio management/planning, financial management and administrative support. These requirements are currently being supported under ICE Blanket Purchase Agreement (BPA) Call 70CMSW18FR0000103 and the awardee is detailed below:

Deloitte Consulting, LLP

1919 N. Lynn Street, Suite 900 Arlington, VA 22209-1742

3. Description of Supplies/Services.

In 2018, ICE awarded a competitive BPA Call 70CMSW18FR0000103 to Deloitte to provide facilities project management, real property portfolio management, real property program planning and financial management support to OAFM at ICE facility locations across the United States (US). Specifically, OAFM’s Facilities Management Division (FMD) partners with ICE Programs to develop, validate, and execute facilities projects and actions to shape the real property inventory so it efficiently and cost effectively supports current agency mission requirements. It also is the lead for all facilities project management, execution, sustainability, energy and environmental programs and facilities lifecycle management.

Under this BPA Call, Deloitte provides critical work products to include Portfolio Planning Support, Reporting and Analytics of Process Automation Support, and Project Management.

Under Portfolio Planning Support, Deloitte creates a spend plan valued at over $419M to include all active projects, the DHS FY26-30 Resource Allocation Plan (RAP), the DHS

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FY26-30 Resource Decision Plan (RAD), Exhibit 54 which is the annual reporting requirement for GSA and DHS detailing the ICE leased portfolio growth/reduction for current FY and projected 5-year outyears and the Real Property Data Warehouse (RPDW) quarterly and annual submissions (includes all owned, leased portfolios for ICE that include land, building and structures).

Under Reporting and Analytics and Process Automation Support, Deloitte provides the Monthly Rent Verification and Validation (V&V) report showing the monthly consolidation of full GSA lease portfolio (>578 active agreements) planned and actual rent amounts.

Under the Quarterly LHI (Leasehold Improvement) report, Deloitte develops, validates and produces the quarterly LHI report for all projects meeting the capitalization threshold. This manually intensive validation often requires outreach to specific Project Managers in the creation of the report as well as the need to rapidly respond to OAFM on any questions that result.

Under the Direct Lease Invoice Process Automation, Deloitte provides system support for the ongoing Direct Lease automation that is critical to the timely processing of monthly direct lease rent bills. Failure to accurately and timely payment could result in direct impact to the ICE mission as many direct leases are for wireless antenna usage and capability.

Under Project Management, Deloitte PMs currently support 223 active and ongoing facility projects to deliver mission capability for program offices, across the country and valued at over $419M supporting all major ICE program offices. Deloitte PMs are advising and developing design documents to align with ICE space standards while coordinating, reviewing and validating construction documents with ICE program offices, GSA, and other entities as needed.

The current BPA Call, 70CMSW18FR0000103, is set to expire on March 29, 2024. ICE proposes to award a bridge contract utilizing Deloitte’s GSA Schedule rates with a twelve (12) month period of performance and no optional periods. Below is a chart showing the monthly price and total price for the bridge contract:

Requirement POP Monthly Price Total Price Facilities project management, real property portfolio management, real property program planning and financial management support to OAFM

MONTHS

$654,867.20 $7,858,406.40

Travel Costs for Site Visits/Training (Not to Exceed)

MONTHS

NTE $2,500.00 NTE $30,000.00

Total $7,888,406.40

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4. Authority and supporting rationale and a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

Authority:

Select only one of the following circumstances justifying limiting sources pursuant to FAR 8.405-6(a)(1)(i) below and demonstrate the proposed contractor’s unique qualifications to provide the required supply or service.

☐ 8.405-6(a)(1)(i)(A) An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.

☐ 8.405-6(a)(1)(i)(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.

☒ 8.405-6(a)(1)(i)(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.

Rationale:

BPA Call 70CMSW18FR0000103 was awarded under the incumbent’s GSA FSS through the BAPSLE vehicle after a competitive award selection process. The award of this bridge contract is in the interest of economy and efficiency based on the following: (1) The current BPA Call expires on March 29, 2024 and a break in service would disrupt the mission of OAFM in these specific programmatic deliverables and (2) The total time to vet and clear new contractor personnel, if another contractor was selected other than the incumbent, would not be the best interest of the Government as OAFM would be paying for services without cleared FTE’s for upwards of 4-5 months versus using in-house cleared Deloitte personnel with no break in service.

The bridge contract is connected logically as the Government has a continuing need for these services and Deloitte is uniquely positioned and able to provide the facility support services and strategic capitol/real estate expertise on an uninterrupted basis. The need for the bridge task order is due to OAFM going through a reorganization, which occurred during Option Period 4 (OP4) POP of the current BPA Call, thus causing a shift in Agency priorities, and decreased Federal personnel positions.

Early in the FY23 and during OP4 of the existing BPA Call, OAFM underwent a significant organizational restructure to better support the ICE mission by establishing a new unit for Planning, Programming and Budgeting. This unit is responsible for providing critical support and structure to establish new processes, procedures, and work products for the following areas: Budget, project execution and agency reporting needs. These areas of support align directly with the 2024 DHS Priority Agenda, more specifically #8, Build a fair, orderly, and humane immigration system and #9, Secure and modernize our borders and ports of entry.

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Since the border is now a major priority in DHS, OAFM is responsible for supporting ICE program offices to forecast costs surrounding the border.

In addition, OAFM strategically coordinates its Five-Year plan with OBPP’s budget formulation, establishing a cohesive framework that aligns financial goals with overarching organizational objectives throughout the fiscal year. Through an integration of long-term planning and budgetary considerations, OAFM, with Deloitte direct support, aligns the financial resources to the broader organizational vision. The annual fiscal year milestones and deliverables are meticulously reviewed through a collaborative effort, with OAFM and OBPP engaging in regular consultations to assess progress, evaluate financial performance indicators, and make informed decisions regarding resource allocation. This coordinated approach not only enhances financial stewardship but also facilitates the seamless execution of the organization's strategic plan, fostering a dynamic and responsive environment that adapts to evolving priorities over the course of the Five-Year plan.

The pending upgrade of enterprise financial system will require OAFM to update future PWS requirements to properly adapt asset and facilities processes to the new financial system. The ability to create a revised PWS will have a direct impact on well OAFM integrates with the new financial system (e.g., how OAFM identifies, tracks, and executes funding for project and other direct mission support functions (service-wide contracts, overtime utilities, etc.). These functions align directly with the DHS Strategic Goal #3, Advance cohesion across the Department to improve mission execution and drive greater efficiency.

Based on the above rationale, issuing this bridge task order is in the interest of economy and efficiency and is a logical follow-on to the original BPA Call.

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

This bridge contract will be placed against Deloitte’s GSA Schedule in accordance with FAR 8.404, “Use of Federal Supply Schedules.” The GSA has already negotiated fair and reasonable pricing rates and the CO will request any additional discounts from Deloitte prior to evaluation of their proposal. The CO has determined that issuing a bridge contract represents the best value based on the compelling need for continued mission critical program management services in support of OAFM. This is in direct support of Goal 4 of the FY 23 Department priorities (Organizational Advancement). The hybrid bridge contract includes a fixed monthly price for the program management support services comprised of the following labor categories (Senior Project Manager, Senior Portfolio Manager, Financial Planning and Analysis- Project Manager and Administrative Assistant) along with a Time and Materials (T&M) Not-To-Exceed (NTE) ceiling CLIN for travel to various ICE facilities for site visits/additional training.

The CO conducted a price analysis of Deloitte’s’ GSA Schedule rates and proposed labor mix for the additional 12 months of support and found the total hours and hourly rates to be fair and reasonable. The labor categories and rates were similar to the prices OAFM is currently paying under the current BAPSLE BPA Call 70CMSW18FR0000103.

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6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

At the time of the BPA Call award in 2018, the requirement was competed among Federal Supply Schedule (FSS) vendors who were BPA Holders under the ICE Business and Program Solutions for Law Enforcement (BAPSLE) vehicle capable of delivering these program/facility management services to OAFM. Following the evaluation by OAFM and OAQ, Deloitte was selected for award.

IAW FAR 10.001(a)(2)(ii), OAFM and the CO did conduct market research appropriate to the circumstances; however, they were unable to locate sources capable of satisfying the agency’s requirement with vetted contractor staff without causing a break in service for OAFM. The proposed 12-month bridge effort with the current awardee provides the OAFM with immediate access to contractor support that is already “fully vetted and cleared” thru the ICE Personnel Security Unit (PSU). If a new contractor is introduced, the inevitable delays in vetting new contractor personnel thru PSU could be as long as 4-5 months which would cause a break in service. Consequently, a break in service is not possible as these program and facility management tasks are directly attached to ICE/OAFM’s mission and could cause damage to the program and various ICE facilities as follows:

1. Inconsistent and/or inaccurate budget reporting for current and future FY needs which may result in losing future budgetary funding for ICE expansion projects across the US.

2. Untimely mandatory financial reports to DHS and Congress which could trigger additional audits and scrutiny of ICE projects requesting additional funding.

3. Missed lease payments for field office workspace across ICE which may disrupt the wireless communications for ICE.

In summary, Deloitte already has personnel cleared and ready to support the OAFM mission thus eliminating the need for an additional transitional period or further delays in receiving critical work products required by the Government (outlined in Section 3).

7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

ICE/OAFM has a continuing need for program support services offered under the existing BPA Call continue on an uninterrupted basis. This type of work is vital for the program office due to aging ICE owned infrastructure, changes in emerging threats within the world that threaten law enforcement which make traditional approaches to facility projects, facility funding, and Capital investment planning unsustainable. This is directly tied to goal six of the FY 23 Departments priorities (Organizational Advancement). OAFM oversees more than 200 owned buildings comprising 1.8 million square feet (SF) at 18 sites across the U.S. In addition, OAFM manages a leased inventory totaling 8.8 million square feet of more than 540 Occupancy Agreements, 16,450 parking spaces through the U.S. General Services Administration (GSA) and roughly 350 direct leases. The real property management lifecycle involves planning, programming, construction, sustainment, recapitalization, and disposal of these assets.

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There are several external to OAFM factors that have a direct impact on OAFM’s ability to support the mission and provide reliable and accurate data reporting and forecasting. In September 2023, GSA transitioned to new lease system of record, OASIS, which has caused ICE to lose access to portfolio level lease data and payment (rent) detail. Deloitte has developed a temporary solution to remediate this new data gap and will be very hard to replicate and continue to meet ongoing and recurring reporting requirements such as RPDW and Exhibit 54 which rely on current lease data. Deloitte has a comprehensive understanding of ICE’s existing lease inventory data records to ensure accurate rent forecasts are made to include future FY’s.

Another critical piece is the Ongoing Audit Remediation on Leasehold Improvement process and reporting which OAFM is in the process of working closely with the Office of Financial Management (OFM) to review, update and improve the critical financial reporting related to leasehold improvement projects over $250,000 which are directly impacts OFMs ability to correctly and accurately conduct financial quarter close activities. The current audit remediation timeline requires the updated operating procedure and report to be completed by June with testing and full implementation by 9/30/2024.

Deloitte provides a unique and non-traditional combination of skills to include Certified Public Accountants (CPAs), architects, engineers, data scientists, data analysts, real property systems specialists, internal control specialists and space planners. Together, this diverse group of resources supports all aspects of the entire scope of the OAFM business and mission. This includes capital planning for current and future year facilities requirements to request and secure funding for OAFM to support the program offices. Project Execution and management capabilities with a current set of support 223 active facility construction projects that deliver mission capability for HSI, ERO, OPLA, M&A and OPR across the country and valued at over $419M. Disruption in the execution of these projects will have a direct impact to operator and ICE’s ability to execute the mission. Projects at stake include forensic labs, court room expansions, detention center improvements, holding cells and interview rooms, security system upgrades, expansion of the center for countering human trafficking, among others.

Deloitte drives project progress through a unique personnel mix including architects, space planning specialists and engineers that bring industry capability, aligned to the ICE Mission.

In addition to supporting project execution Deloitte manages and monitors these projects through auditable processes as OAFM is under constant audit readiness scrutiny, any audit finding can derail execution, a unique skillset that is unmatched in the industry.

Finally, Project Manager turnover is a major operational challenge for OAFM to overcome due to the complexity of stakeholders, the complexity of project requirements specific to each ICE program, the historical complexity of projects, and the level of effort each project requires. A rapid transition would require these 223 projects would be transferred to new personnel, either Federal staff or new contractor, and would either stall or stop completely depending on the availability of resources. This impact to operations would affect and risk $419M in ICE investment including several new projects as follows: (1) New Co-location office combining ERO/HSI and CBP personnel in Boston, MA, (2) New Forensics Laboratory at HSI Fresno valued at $1.03M to conduct forensic analyses and investigations alongside state and local task force officers that assist in investigations and legal proceedings at the state and federal level, LIMITED-SOURCES JUSTIFICATION

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(3) New ERO Field Office in Milwaukee, WI to address an overflow for border release cases from Blue Ash, OH, Indianapolis, IN and Ft. Wayne, IN, (4) Expansion of an OPLA Field Office in Annandale, VA adding additional polygraph interview rooms and expanded courtroom space

In addition to supporting project execution, Deloitte supports the reporting and modernization goals of OAFM by providing data scientists and specialists, coupled with CPAs to help improve, streamline and strengthen OAFM funds execution and reporting. The effective tracking of funding is critical to projects remaining on schedule, timely lease payments for both locations and direct leases for wireless towers and other mission focused functions.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited sources) before any subsequent acquisition for the supplies or services is made.

Prior to the expiration of the 12-month bridge contract, ICE OAQ plans to award a contract to an 8a Alaskan Native Corporation (ANC) under FAR Part 19. OAQ will issue a Request for Information (RFI) to seek capable 8a ANC contractors for consideration and evaluation by

OAFM.

9. DHS intends to post this requirement on www.SAM.Gov pursuant to FAR 8.405-6(a)(2).

IAW with FAR 8.405-6(a)(2)(i)(B), the ICE Contracting Officer (CO) will post the LSJ within 14 days of awarding the bridge contract to www.SAM.GOV.