JA_to_Increase_NTE_Ceiling_for_Task_Order_GSQ0216CJ0006_Redacted.pdf

J&A – Limited Source – ITSS ID:ID02160001 (T.O GSQ0216CJ0006) – Dept. of Army, Project

Management Office for Tactical Radios (PM TR), Systems Engineering and Technical Assistance

(SETA) Integrated Logistics Support (ILS) Services

U.S. GENERAL SERVICES ADMINISTRATION, REGION 2

FEDERAL ACQUISITION SERVICE

ASSISTED ACQUISITION SERVICES DIVISION

JUSTIFICATION AND APPROVALS

LIMITED SOURCES JUSTIFICATION

WAIVER TO SECTION 803

The following justification is prepared in accordance with FAR Part 8.405-6(a)(1)(i)(C)

1. IDENTIFICATION AND DESCRIPTION OF ACTION BEING APPROVED

The purpose of this memorandum is to request an increase to the Option Period One (OP1) Labor

CLIN Not-to-Exceed (NTE) ceiling in the amount $693,350.40 and Option Period Two (OP2)

Labor CLIN Not-to-Exceed (NTE) (If exercised by the Government) ceiling in the amount

$700,281.60 for the Task Order GSQ0216CJ0006 in support of the Department of Army, Project

Manager (PM) Tactical Radio (TR). The total increase in the amount of $1,393,632.00 for the

NTE ceiling will apply to both the current OP1 Period expiring on 03/13/2018 and the OP2

Period that expires on 3/13/2019. This ceiling price increase does not constitute additional work or additional scope.

The incumbent Contractor is ESP, Inc.

2. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY'S NEED

The Project Management Office for Tactical Radios (PM TR) is the Army’s provider of tactical combat networking radios to the Warfighter. PM TR employs state of the art technologies and waveforms to extend the Department of Defense (DOD) digital voice and data network from the command post down to the individual Soldier. At the same time, the Project Management Office

(PMO) is responsible for maintaining a wide range of terrestrial and single channel Satellite

Communication (SATCOM) radios that are part of the legacy architecture but continue to be supported throughout their life-cycle: from acquisition to disposal. PM TR’s fielded products are used extensively and successfully in combat today

The Performance Based Statement of Work (PBSOW) specifies requirements for non-personal

Integrated Logistics Support (ILS) services the Contractor shall perform in support of PM TR programs. These services include expertise not readily available within the Project Management

Office or supporting CECOM Life Cycle Management Center (LCMC) matrices and other US

Government offices. These services provide the flexibility required for tasks, which cannot be accomplished by the US Government organization within the available time. The efforts under this PBSOW comprise a broad range of ILS efforts. This support includes assisting PM TR, its

Product Managers (PdMs), project teams, and PM TR functional divisions.

The PBSOW consists of 11 main tasks:

TASK 1. Total Package Fielding (TPF)

TASK 2. New Equipment Training (NET)

TASK 3. Integrated Logistics Support (ILS)

TASK 4. Vehicle Maintenance

TASK 5. Technical Field Services

TASK 6. Provisioning Parts List (PPL) Requirements

TASK 7. Logistics Information Systems

TASK 8. Supply Support

TASK 9. Logistics Documentation

TASK 10. Platform Integrations/Installation

TASK 11. Fielding & readiness Equipping Database (FRED)

3. IDENTIFICATION OF STATUTORY & REGULATORY AUTHORITY

Statute(s) cited: FAR Part 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.

4. DEMONSTRATION THAT THE ACQUISITION REQUIRES THE USE OF

AUTHORITY CITED

This Task Order was competed under fair opportunity procedures. The Request for Quote was offered to all GSA PSS vendors- Schedule 00CORP under Federal Supply Classification 874 when released in GSA e-Buy. In response to the RFQ, seven (7) responses were received out of

190 GSA PSS vendors. The Task Order was awarded to ESP, LLC on 03/11/2016, for a term of one Base Year with 2 one-year Option Periods. Currently the Task Order is in the Option Period

1. The Task Order is a hybrid Firm Fixed Price (FFP) and Time & Materials (T&M) type.

The client, US Army, PMTR, submitted a supporting “Justification to Increase the Not-To-

Exceed” memorandum which is incorporated in this document. The IGCE was prepared by the

(SETA) Integrated Logistics Support (ILS) Services task order COR, Melissa Jones. A copy of the IGCE to increase the Not-To-Exceed ceiling is on file.

This Justification addresses the need to increase the NTE due to the reasons which impacted programs as described below:

Based on the PEO C3T Overarching Property Accountability and General Equipment Audit

Standard Operating Procedure (SOP), PM TR has been directed to transfer all GFE to contractors by PEO C3T Property Standown initiatives. PM TR is chartered with the life cycle acquisition management and support responsibility for all of the systems and products it is assigned. A critical attribute of the service provider for this effort is in-depth knowledge and experience implementing the requirements of DoDI 5000.02. This is essential to the timing, program

Milestone approvals and success of its programs and the overall mission of PM TR. Included as part of PM TR’s responsibility are three (3) designated ACAT ID programs: the Handheld, Manpack, and Small Form Fit (HMS), the Mid-Tier Networking Vehicular Radios (MNVR), and the Airborne, Maritime/Fixed Station (AMF) programs. Other assigned systems and products include the Multifunctional Information Distribution System (MIDS), Single Channel Ground and Airborne Radio System (SINCGARS), Enhanced Position Location and Reporting System

(EPLRS), and a variety of legacy Commercial Off-the Shelf/Non-Development Item

(COTS/NDI) including the PRC-148 Multi-Band Interim Terrestrial Radio (MBTR and JEM), PRC-152 multi-band hand held radio, PRC-150 High frequency radios, PSC-5D multi-band, multi-mode radio, as well as the PRC-117F and PRC-117G multi-band radios. Additionally, PM

TR will welcome the addition of the Joint Tactical Network (JTN) Waveforms organization which has branched off from Joint Tactical Networking Center (JTNC) in June 2015.

PM TR is responsible for integrated and effective system support for the planning, analysis and technical requirements needed to support assigned programs as well as the development of technical recommendations and solutions to assure that these programs will satisfy mission needs, are logistically supportable and are compliant with customer requirements.

The following existing tasks from the Task Order that require additional level-of-effort (LOE) are as described below:

Task 8: Supply Support

While this task is already on contract, currently all GFE is maintained by Government Personnel.

PM TR anticipated the changes to government property accountability of GFE during the term of this contract PM TR has now officially been given directive from PEO C3T Headquarters to begin transferring all

GFE property to the Contract to be managed/maintained by the Incumbent – Engineering

Solutions & Products LLC (ESP). This directive is supported by the PEO C3T Overarching

Property Accountability and General Audit Standard Operating Procedure (SOP) signed by Karl

H. Gingrich, BG, US on 6 March 2017 and mandated to all PM’s . Failure to hire personnel to support these requirements would cause the contract to be in non-compliance with the PEO C3T directive and FAR contractual requirements regarding Government Property.

Task 10: Platform Integration/Installation

(SETA) Integrated Logistics Support (ILS) Services

PM TR has been directed to enact measures to realize cost savings in platform integration.

Analysis of alternatives and a subsequent decision from PM TR leadership has directed the hiring of additional personnel to assume work historically outsourced. This strategic initiative will realize a cost savings to the PM measured in millions of dollars while retaining skill and experience within the PM. PM TR foresaw the potential to increase the platform integration team when generating the original statement of work but required an informed decision by PM leadership before augmenting personnel. Failure to assume this mission will violate PM TR strategic vision and continue to burden the PM with significant loss of funding to external organizations.

Timeline: The aforementioned requirements were anticipated but the number of personnel required was not available at the time of Independent Government Cost Estimate (IGCE) preparation. Receipt of directives to transfer all GFE to contractors by PEO C3T Property

Standown initiatives, as well as the expansion of the platform integration mission, translates to an increased level of effort from the original CLIN requirement.

The additional LOE’s are considered to be of crucial nature and the Incumbent vendor can start work immediately. The additional LOE’s described in this memorandum are scheduled for completion within the Task Order Option Year 1 POP. Any unacceptable delay to the

Government and failure to execute these requirements will cause significant impact to Army units being equipped with PM TR radios and the ability of the PM to meet Army property accountability and audit requirements.

Delays would impact current missions by failing to deliver product required, and further impact the strategic planning to assume responsibilities which are currently outsourced at great cost.

Within Scope Determination: The NTE ceiling increase requested are within the scope of the

PBSOW as originally published with the RFQ. The PBSOW was written with the knowledge that programs would be added, modified or scaled to respond to the changing needs of the Army

User.

This ceiling NTE increase does not constitute additional work or additional scope.

5. DESCRIPTION OF EFFORTS TO SOLICIT AS MANY OFFERS AS IS

PRACTICABLE

Not Applicable – FAR Part 8.405-6(a)(1)(i)(C)

6. DEMONSTRATION THAT THE ANTICIPATED COST WILL BE FAIR AND

REASONABLE

All proposed Task Order labor rates for both Government and Contractor Site are discounted from ESP’s GSA Schedule Logworld Contract No. GS-10F-0008V.

Furthermore, a market research was conducted as part of the evaluation process for award of this

Task Order. OP1 Labor rates for the labor categories employed during the evaluation process for award were compared against 3 other GSA Schedule Logworld contractors on 02/27/2017 for price reasonableness determination. ESP’s prices were determined to be fair and reasonable.

OP2 rates will also be evaluated for fair and reasonable determination prior to exercising the option period.

7. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED

Market research was conducted to assist in the fair and reasonable determination. Results of the market research are discussed in Section 6 of this Justification and Approvals and shown on the spreadsheet entitled “Price Analysis”.

8. OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION

None.

9. LIST OF SOURCES THAT EXPRESSED INTEREST IN THE ACQUISITION

No additional sources were sought and no other sources expressed interest.

10. STATEMENT OF ACTIONS TO OVERCOME BARRIERS TO COMPETITION

None.

Determination

Based on the above, it is determined that it is justified and is in the Government’s best interest to award on a limited sources basis under FAR Part 8.405-6(a)(1)(i)(C), to increase the Not-to-

Exceed (NTE) ceiling for the Task Order Option Period 1 and Option Period 2 (in the amount of

$1,393,632.00) under ESP, LLC’s Task Order No. GSQ0216CJ0006 (ITSS Task ID02160001).