JA_HC1028-08-D-2016-0011_Redacted.pdf

Justification & Approval (FAR Part 16) Extend the Period of Performance

HC1028-08-D-2016, Task Order 0011

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JUSTIFICATION & APPROVALS FOR FAR SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule (MAS)/ Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, DFARS 216.505-70, PGI 216.505-70

Purchase Request Number: TBD Contract Number: HC1028-08-D-2016 Task/Delivery Order Number: 0011 Procurement Title: Defense Logistics Agency (DLA) - Defense Agencies Initiative (DAI) Implementation Support Contracting Office: Defense Information Technology Contracting Organization (DITCO)/Information Technology (IT) Contracting Division – PL83 Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA13-082

Upon the basis of the following justification, I, as the Procurement Agency Competition Advocate, hereby approve this exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

DLA

DAI

2221 South Clark Street – 3rd Floor CP6 Arlington, VA 22240

Contracting Office:

DITCO, PL8313

2300 East Drive, Building 3600 Scott AFB IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The purpose of this action is to issue a modification to ENCORE II Task Order (TO) HC1028- 08-D-2016/0011, which is being performed by CACI. The Cost-Plus-Award-Fee (CPAF) modification will be issued to extend the period of performance for a six-month base period with four, one-month options to continue the critical DAI implementation. Funds will be provided via FY13 RDT&E funds for the six-month base and FY14 RDT&E funds for the four one-month options.

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3. DESCRIPTION OF SUPPLIES/SERVICES:

The Defense Agencies have a need to replace their existing financial management and accounting systems to comply with statutory and regulatory requirements and meet the mandated schedule to be audit-ready by the year 2015. To address this need, the DAI was formed to modernize and transform the financial management capabilities of the Defense Agencies.

DAI is not an update of legacy systems, but an implementation of integrated financial management capabilities that will subsume many systems and standardize business processes.

The resulting system, once implemented, will provide a real time (providing immediate viewing of data), web based system (accessed from anywhere) of integrated business processes that can be used by Defense Agency financial managers, auditors, and the Defense Finance and Accounting Service (DFAS) to make sound business decisions to support the warfighter.

This request is to extend the period of performance to allow for continuation of the critical DAI implementation. The Period of Performance (PoP) for this modification is:

Six-month base period: June, 21 2013 – December 20, 2013 1st one-month option period: December 21, 2013 – January 20, 2014 2nd one-month option period: January 21, 2014 – February 20, 2014 3rd one-month option period: February 21, 2014 – March 20, 2014 4th one-month option period: March 21, 2014 – April 20, 2014

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF

THE ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity.

FAR 16.505(b)(2)(i)(C) The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

(b) Description of the Justification.

The re-compete acquisition package for task order 0011 was sent to DLA Philadelphia contracting for review in November 2012. The DAI PMO was informed on October 15, 2012 that they were suffering a shortage of resources to handle contract procurements as a result of the former Business Transformation Agency’s (BTA) contractual workload being transferred to the DLA. A schedule was established to meet with DLA- Philadelphia contracting personnel on a bi-monthly basis to discuss the next steps in the procurement process. During the initial meeting, DAI PMO requested permission to continue using the current contracting office, DISA/DITCO, for the follow-on

Page 3 of 5 Pages procurement. DLA-Philadelphia stated that the DAI would not be allowed to use an outside procurement office due to DLA policy that all contracting actions would stay within the agency to the maximum extent practicable. On May 14, 2013, DLA- Philadelphia contracting granted DAI permission to continue using DISA/DITCO for the re-compete action. DAI PMO anticipates providing the re-compete acquisition package to DITCO by May 31, 2013. It is not anticipated that the follow-on requirement can be processed before the current contract expires on June 20, 2013 as the typical Procurement Acquisition Lead Time (PALT) for a fair opportunity, Cost-Plus-Award-Fee, ENCORE II Task Order is 121 days. To allow enough time for DITCO to conduct a fair opportunity acquisition, the period of performance for the current task order will be extended six months, with four additional one-month option periods available, if needed.

(c) Justification:

(1) Minimum Government requirements.

The verified minimum Government requirement is for a six month base period, with four, one-month options to continue the critical DAI implementation. This task order also includes Implementation Management Support, Integrated Master Schedule (IMS) Development Support, DAI Global Model Implementation Support, Workforce Preparation Support, Infrastructure Preparation Support, Data Conversion Support, Post Production Support, and Requirements Management. This support is critical to sustain the upgrade to oracle version R12 and planning for new agency deployments. A lapse of service would leave DAI without the critical support needed to continue and develop DAI as a single application for (DoD) agencies.

Interruption would result in a severe degradation or mission failure by negatively impacting daily business and mission critical activities. Failure to continue the vital DAI Global model support would require a halt to the current implementation schedule. The consequences of these delays would be the inability to meet the mandated schedule to be audit-ready by the year 2015 and result in mission failure.

(2) Proposed sole source contractor.

The proposed sole-source contractor is CACI, Inc-Federal, 14151 Park Meadow Drive, Chantilly, VA 20151. CACI has been determined to be the contractor that can provide the specialized Implementation Management Support, IMS Development Support, DAI Global Model Implementation Support, Workforce Preparation Support, Infrastructure Preparation Support, Data Conversion Support, Post Production Support, and Requirements Management function and technical services necessary under the required timeframe. CACI possesses specialized knowledge and experience with the infrastructure support and the operational processes/procedures to maintain these multiple and complex environments to allow the DAI program office to continue operating with no service interruptions for the user community.

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The cost to ramp-up support due to the oracle R12 upgrade and the lost opportunity to plan for upcoming deployments to new government agencies would be incalculable. The duplicative estimated cost would be in excess of $20,000,000.00, which includes the cost of $5,737,785.00 in lost productivity, plus the cost to procure these same services as well as an additional six months to a year to bring the new contractor up to speed. These costs would not be recoverable.

(3) Discussion regarding cause of the sole source situation.

The reasons stated in paragraphs 4(b) and (c), above, apply to this section. It is not anticipated that the re-compete requirement can be processed before the current contract expires on June 20, 2013. Due to the late approval allowing DAI to utilize an outside agency for this competitive procurement, DAI has less than one month to get a contract award in place. DLA anticipates submitting the re-compete acquisition package to DISA/DITCO by May 31, 2013. It is not feasible to conduct a fair opportunity acquisition using the ENCORE II suite of contracts in less than 30 days.

(4) Demonstration of unique source.

CACI is the only contractor who can perform the services at the level of expertise required within the timeframe needed. The Government does not possess the expertise to perform the services required in the current schedule without CACI support. Continuation of the DAI Implementation support, without interruption, provides the means for the Government to achieve the required FY13 agency rollout schedule, the critical Implementation Management Support and DAI Global support which is essential to the warfighter.

(5) Procurement discussion.

As discussed in 4(b) and (c) above, CACI was competitively awarded this task order and has been determined to be qualified to continue performance.

(6) Impact:

It is anticipated that the DAI application will be deployed to at least three additional agencies within the next ten months. Failure to continue the vital DAI Global model support would require a halt to the current implementation schedule. The consequences of these delays would be the inability to meet the mandated DoD wide schedule and result in mission failure.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

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The Contracting Officer will obtain certified cost and pricing data in accordance with FAR 15.403-4 and will use this information to determine fair and reasonableness. After completion of negotiations a Certificate of Current Cost or Pricing data will be obtained.