GSQ0016AJ0014_E3_STAFF_II_Updated_LSJ_CO_Approved_12.21.17_Fully_Executed.pdf

General Services Administration Federal Systems Integration and Management Center

LIMITED SOURCES JUSTIFICATION

DESCRIPTION OF ACTION: TASK ORDER CEILING INCREASE NEEDED FOR CRITICAL

FEDSIM STAFF SUPPORT

CONTRACT # GS-35F-214CA

TASK ORDER GSQ0016AJ0014

The General Services Administration (GSA) makes this Limited Sources Justification (LSJ) for orders pursuant to Federal Acquisition Regulation (FAR) 8.405-6.

i.) Identification of Agency and Contracting Activity:

Agency:

General Services Administration (GSA) Federal Systems Integration and Management Center (FEDSIM) Acting in support of: FEDSIM (this order is for internal support)

Contracting Activity:

GSA FEDSIM Contracting Office 1800 F Street, NW Suite 3100 (QF0B) Washington, D.C. 20405 ii.) Nature and/or Description of Action Being Approved:

The proposed contract action detailed in this Limited Sources Justification (LSJ) is for a ceiling increase to FEDSIM internal acquisition Task Order GSQ0016AJ0014 under GSA’s Professional Services Schedule (PSS) Contract # GS-35F-214CA with E3 Federal Solutions, LLC. This order is a hybrid of Firm Fixed Price and Labor Hour tasks. The order is structured with a one-year base period and four, one-year option periods.

The objective of this E3 STAFF II task order is to provide support to FEDSIM’s growing workforce to ensure acquisition, financial, and service quality to client projects; ensure that quality is consistently maintained across all FEDSIM projects;

ensure activities among acquisitions are coordinated at the program level and that acquisitions have the logistical support necessary to meet scheduled milestones; and support the growth of FEDSIM’s portfolio of large, complex IT and professional services projects.

With FAS Leadership support, FEDSIM is actively growing its portfolio of client projects and scaling the size of its workforce to meet the challenges of managing these projects. FEDSIM has several billions of dollars of new work in our pipeline, directly tied to DoD and Homeland mission support, including protection from threats to the nation, intelligence, cybersecurity, and readiness. FEDSIM’s pipeline is at an all-time high and is likely to continue to increase, especially given the administration’s prioritization of Defense and Homeland Security. FEDSIM forecasted a 20% growth year over year between FY2018 through FY2022.

Furthermore, FEDSIM’s growth aligns with agency goals of increasing product and service utilization, delivering savings to our customers, ensuring strong service for agency customers and driving revenue.

There is no change to the scope of work. The Government will require additional E3 resources to support our abundant pipeline for the period of performance of Option Period 1, 2 and 3 under the following CLINs:

● Option Period 1: CLIN 1002 (PPM Surge Labor (Task 4)), CLIN 1004 (Acquisition Management, TW, Quality Control, Training Dev & Marketing, Data Analysis Support Labor (Tasks 6, 7, 8, 9, and 10)) and CLIN 1006 (Long Distance Travel).

● Option Period 2: CLIN 2002 (PPM Surge Labor (Task 4)), CLIN 2004 (Acquisition Management, TW, Quality Control, Training Dev & Marketing, Data Analysis Support Labor (Tasks 6, 7, 8, 9, and 10)) and CLIN 2006 (Long Distance Travel).

● Option Period 3: CLIN 3002 (PPM Surge Labor (Task 4)), CLIN 3004 (Acquisition Management, TW, Quality Control, Training Dev & Marketing, Data Analysis Support Labor (Tasks 6, 7, 8, 9, and 10)) and CLIN 3006 (Long Distance Travel).

Without the additional E3 resources and support, FEDSIM will have a difficult time in meeting its financial goals as projects/business volumes are turned away.

Additionally, Client/FEDSIM relationships can be jeopardized for future business volume. The originally awarded total task order ceiling value (including all options) was $50,256,440. The proposed ceiling increase amount is $12,713,860, which will bring the new total estimated value of the task order to $62,970,300. This increase constitutes an approximately 25 percent increase to the total estimated value of the task order.

iii.) A Complete Description of Supplies/Services Required to Meet Agency’s Need:

The E3 STAFF II task order includes:

● Task 1 – Provide Program Management Support: This includes the management and oversight of all activities performed by contractor personnel, including subcontractors, to satisfy the requirements identified in this Statement of Work (SOW).

● Task 2 – Provide Office Management and Operational Support: Provide office management and operational and program support assistance to

FEDSIM.

● Task 3 – Provide Project Performance Management (PPM) Support:

Ensure that project cost, schedule, and performance measures are standardized, monitored, tracked, and administered across FEDSIM’s portfolio of client projects according to FEDSIM guidelines.

● Task 4 – Provide Project Performance Management (PPM) Surge Support (OPTIONAL): Support FEDSIM’s portfolio of client projects in post-award execution grows in size and/or financial complexity.

● Task 5 – Provide Technical Evaluation Management Support (Contractor Site): Provide FEDSIM technical evaluation management support in a contractor-provided space, temporary duty (TDY) client locations, and regional locations will occur on an as needed basis; schedule space and assist with managing evaluation resources.

● Task 6 – Provide Acquisition Management Support: Assist FEDSIM in procuring and managing large and complex DoD and Civilian acquisitions in pre-award environment.

● Task 7 – Provide Technical Writing Support: Provide FEDSIM with technical writing support services and expertise.

● Task 8 – Provide Contract Quality Control Support: Establish and maintain contract quality control across all FEDSIM projects.

● Task 9 – Provide Training Development and Marketing and Media Support: Development of innovative courses, templates, presentations, videos, interactives, case studies, and additional assets that center on FEDSIM’s standard operating procedures and acquisition philosophy.

● Task 10 – Provide Data Analysis and Automation Support: Data analysis and automation support for a variety of data-driven programs in FEDSIM for pre-award and post-award activities throughout the acquisition lifecycle.

● Task 11 – Provide Contract Specialist Support (OPTIONAL): Assistance to FEDSIM in closing out TOs, Contracts, and IAs in accordance with established FEDSIM close-out procedures.

● Task 12 – Provide Business Development Support (OPTIONAL):

Business development support by identifying, gathering, and sharing market intelligence and needs with FEDSIM to help facilitate and track opportunities in the FEDSIM business development pipeline.

iv.) The Authority and Supporting Rationale:

The acquisition is conducted under the authority of the Multiple-Award Schedule Program. Consideration of schedule contractors will be restricted in accordance with:

● FAR 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.

Under task order GSQ0016AJ0014, E3 has provided effective support for training, acquisition and financial reporting. The disciplined program management processes and techniques being used by E3 have assisted in controlling costs and managing schedules. Through E3’s successful alignment of schedules and detailed analyses of cost estimates and financial reports, the Government has realized significant cost avoidance.

E3 has proven highly specialized experience and success with various tasks and projects outlined below:

In support of FEDSIM training, E3 has trained its staff to adapt to the unique FEDSIM culture and its dynamic environment. E3 training resources such as the Instructional System Developers (ISDs) have extensive expertise in developing custom training materials for the AAS University Program to ensure AAS’ high quality acquisition process. E3 has created level 100-300 courses, interactive job aids, case studied, and custom short videos. From storyboarding, to consensus building and facilitation, to graphics design and programming development were all successfully completed.

All courses are uploaded and available on GSA's online university. These highly customized courses with different levels of interactivity are used by AAS and other GSA organizations to learn everything about the acquisition process from the earliest stages of acquisition planning through post-award contract administration and closeout. E3’s in-depth knowledge of GSA and FEDSIM regulations, policies and standard procedures is essential in the rapid development of training material that keeps FEDSIM’s work force highly informed and well equipped to navigate the challenging and ever-evolving landscape of federal procurement. These E3 resources have gained extensive knowledge and unique insight into a vast range of acquisition topics by working closely with highly trained, skilled and seasoned FEDSIM Subject Matter Experts who possess countless years of combined experience. This has honed their ability to craft training material that meets the unique needs of FEDSIM at an unparalleled level of quality.

As a premier provider of assisted acquisition services, FEDSIM manages a vast array of large, complex projects for its clients, the majority of which are structured using cost-reimbursement contract types. These cost-reimbursement contracts are flexible and highly effective in meeting the dynamic needs of FEDSIM’s clients, however they require no small degree of knowledge and skill to be properly administered. With a portfolio that includes $9.42 Billion in active contract awards and $2.02 Billion in annual contract obligations, a highly skilled workforce of project and financial management resources is of paramount importance. This need is met via the services provided by E3’s corps of Project Performance Managers (PPMs) who are are highly experienced in managing project cost, schedule, and performance measures across FEDSIM’s portfolio of client projects. E3 PPMs are a critical function to effectively monitor and maintain the financial health of each individual project, and they have developed a unique ability to perform to the exacting requirements of FEDSIM’s client departments and agencies, each of whom have different needs according to their mission and nature of appropriated funding.

The E3 team uses a JIRA development tool to manage workflow and keep schedules on track for all projects. Additionally, E3 provides highly specialized and trained pool of Acquisition Project Managers to work on individual client projects in concert with FEDSIM’s internal acquisition groups. Acquisition Project Managers help and tailor processes to accommodate client’s requirements and needs. Acquisition Project Managers are a niche function within the Federal Government and even more so in FEDSIM, and the E3 APM resources supporting FEDSIM and its clients have a focused set of skills and capabilities which have been developed through extensive training and experience to specifically align with FEDSIM’s unique and rigorous acquisition processes. If a new contractor were to assume this function, there would be a massive learning curve. This would be inefficient and have an immediate adverse impact to FEDSIM’s ability to award contracts within FEDSIM’s average procurement administrative lead time of 6.5 months, which is a tenet of FEDSIM’s value proposition.

E3’s highly specialized capabilities are evident in its involvement with improving FEDSIM financial processes, procedures. E3’s breadth and depth of knowledge and experience with the FEDSIM business model has resulted in improved templates and standard operating procedures for future use. E3 has been central to the financial evolution of our organization. This is both at the granular project level, managing project finances and working with our PM community, as well as at the organizational level, aggregating and reporting data to management to ensure informed decision-making.

In order to avoid risks and impacts associated with putting a new task order in place, the Government requires the continued critical support provided byE3. Disruption of the services provided by E3 would result in unnecessary delays to our current operation because a new contractor would have to take time to ramp up and would face a large learning curve. The processes and knowledge of FEDSIM that the E3 team has is crucial to the continued success of the program as it continues to grow.

As FEDSIM positions itself for additional growth that was not foreseen in FY2018 and beyond, it is imperative that FEDSIM ensure the highest levels of financial & contractual compliance. Civilian has a pipeline with a total est. of $2.9B; Homeland has a pipeline with a total est. of $3.6B; Army/Navy has a pipeline with a total est. of $4.5B; as well as DoD/AF pipeline with a total est. of $3.0B. In anticipation for the aggressive pipeline for projects such as TARCES, TACOM, CTMP/25th DIA Cyber, CRIC/NCR, I2WD/CODEC, EPA Lanes/CDX and ODNI, FEDSIM requires immediate additional PPM and Acquisition Management support under CLINs X002 and X004 for Option Years 1, 2 and 3. PPMs provide quality improvements to both internal and external FEDSIM project audits by increasing compliance and proper upkeep of the Electronic Contract File (ECF). E3 Acquisition Management resources assist in the FEDSIM acquisitions process, both in the pre- and post-award environment. These resources include highly effective cost/price teams, which are crucial in supporting the acquisition groups. Both PPMs and Acquisition Management support resources will bring in additional revenue and gross margin for FEDSIM.

Due to these additional resources, all of whom are needed for project support;

additional travel is anticipated under CLIN X006 for Option Years 1, 2 and 3.

Additional travel requirements will be needed in order to handle the efforts of meeting with prospective client agencies. The travel mission for these efforts will be critical in setting FEDSIM up for success in the beginning stages of developing new client relationships. It is necessary to accommodate the need for these resources to execute the plan in person.

The E3 STAFF II task order was competed among the GSA Schedule holders. The RFQ was issued on March 2, 2016 to all Veteran-Owned Small Businesses (VOSB) under GSA’s Professional Services Schedule (PSS) with Special Item Number(s) 874-1, 874-4, 874-6, and/or 874-7 via eBuy. Only two quotes were received from Technatomy Corporation and E3 Federal Solutions, LLC. This order was awarded as a one-year base period and four, one-year option periods. FEDSIM exercised Option Period 1 on June 14, 2017. Due to the circumstances and current growth of FEDSIM’s portfolios of projects, the Government has determined that a modification utilizing FAR 8.405-6 (a)(1)(i)(B) is the only viable alternative for this action. It would be in the best interest of the Government to continue E3’s support on the current task order.

v.) Determination by the Ordering Activity Contracting Officer that the Order

Represents the Best Value Consistent with FAR 8.404(d):

The Government will evaluate the E3 Federal Solutions, LLC proposal to ensure that the proposed level of effort, labor mix, and labor rates are consistent with its technical and staffing approach. Services offered on the schedule are priced either at hourly rates, or at a fixed price for performance of a specific task (e.g. Program Management Support and Technical Evaluation Management Support).

In accordance with FAR 8.404, GSA has already determined the rates to be fair and reasonable. In addition, the Government has prepared an Independent Government Cost Estimate (IGCE). The IGCE is based on historical information and the anticipated level of effort (LOE). As such, to ensure that the order represents the best value to the Government, the Contracting Officer will conduct a rate check on E3 rates for compliance and price analysis on E3 price quote against the IGCE to make an overall best value determination.

vi.) Description of the Market Research Conducted Among Schedule Holders and the Results of the Research:

Since this action is being performed as a sole source action, the Government reviewed past performance for E3 Federal Solutions, LLC. Under the current task order, E3 has received positive past performance reviews. The Past Performance Information Retrieval System (PPIRS) was reviewed on December 4, 2017. The Government found that E3 has a satisfactory past performance history for related requirements.

vii.) Any Other Facts Supporting the Justification:

None.

viii.) Statement of the Actions 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:

External influences precipitated the need for restricted consideration, as documented in this justification. Any subsequent acquisition for the services defined in the task order shall be conducted on a competitive basis.

ix.) Contracting Officer Certification that the Justification is Accurate and

Complete to the Best of the Contracting Officer’s Knowledge and Belief:

I hereby certify that this justification is accurate and complete to the best of my knowledge, and determine on the basis of the findings above that the limited sources approach is in accordance with the requirements and is in the best interest of the Government.

Brendan McDonough and Date Contracting Officer FEDSIM Acquisition, Contracting Officer, Civilian Sector x.) Evidence that any Supporting Data that is the Responsibility of Technical or

Requirements Personnel and Which Form a Basis for the Justification Have Been Certified as Complete and Accurate by the Technical and Requirements Personnel (If Any):

None.

xi.) Written Determination by Approving Official Identifying the Circumstance that Applies

I hereby certify that this justification is accurate and complete to the best of my knowledge, and determine on the basis of the findings above that the ceiling increase is in accordance with the requirements and is in the best interest of the Government.

Tom Howder and Date Head of Contracting Activity (HCA) General Services Administration, Assisted Acquisition Services