Exception_to_Fair_Opportunity_-_HC1028-08-D-2017-W702.pdf

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE LOCATED AT PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111-5092

JUSTIFICATION

FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Identification of the agency and the contracting activity.

Requiring Activity:

Defense Agencies Initiative (DAI)

Contracting Activity:

DLA Contracting Services Office (CSO) located at Philadelphia

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

This acquisition is a 4 month contract with two 1 month option periods to obtain Oracle ERP technical and functional services to provide configuration, design and development expertise to support the evolution of the DAI global model. The contract will be awarded to Computer Sciences Corporation (CSC) under 10 U.S.C. 2304(c)(1) as implemented by FAR16.505(b)(2)(i)(C).

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The required services on this acquisition will be technical and functional services to provide configuration expertise and to develop, refine, and maintain the Reports, Interfaces, Conversion, Extensions, Workflow, and Forms Personalization (RICEF-W objects) identified by the DAI PMO and across all DAI modules by accomplishing the following task/sub-tasks:

• Task Area 1 – Customer Application Development o Subtask 1 – Oracle 11i Reports and Data Warehousing Services on current production platform o Subtask 2 – Oracle 12i Reports and Data Warehousing Services o Subtask 3 – Oracle 11i Interface Support Services o Subtask 4 – Oracle 12i Interface Support Services o Subtask 5 – Oracle Conversion Development for new Agency Deployment o Subtask 6 - Oracle 11i Extension, Workflow and Forms Personalization Services o Subtask 7 - Oracle 12i Extension, Workflow and Forms Personalization Services

The period of performance will consist of a 4 month base period and two1 month option periods.

The period of performance for the base period will be 10/20/2013 – 2/19/2014. The two 1 month option periods of performance will be 2/20/2014 – 3/19/2014 for Option 1 and 2/20/2014 – 3/19/2014 for Option 2.

4. Identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value).

Exception to the fair opportunity per 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.

This acquisition will be a logical follow-on to HC1028-08-D-2017-3A02 in terms of scope of work. The tasks within the PWS for this action are similar to the current tasks being performed under HC1028-08-D-2017-3A02. All 27 Encore II awardees were given fair opportunity to submit a proposal for HC1028-08-D-2017-3A02, and only 3 awardees submitted a proposal. The Defense Agencies Initiative (DAI) has modernized and transformed the financial management Capabilities of the defense agencies and field activities across the DoD. CSC continues to play a key role by providing Oracle software technical expertise necessary to analyze, build, and implement DAI as a single application specifically for skills sets to include Data Warehousing, Reports, Information Assurance and Interface Development Services Support. CSC has been providing this support since award of task order HC1028-08-D-2017-3A02 on January 21, 2011.

This support required DAI to address financial standards in effect for the Federal Government and DoD, as well as support standard processes using a single architecture to support multiple financial and diverse components. The contractor has developed a specialized experience that is unique to DAI and not readily available on a short notice from any other vendor.

The impact of not issuing a logical follow-on to CSC will severely and negatively impact the program in meeting the expectations of the DAI community since this knowledge is not currently available through any other source. A competitive acquisition for a 4 month contract with two 1 month options would not be economical or efficient because in order to follow all pre-award procedures for a requirement of this size and scope, award of a competitive acquisition would take 140 days. With the award process taking over 4 months, issuance of a competitive acquisition with a 4 month period of performance would be inefficient use of resources, because the acquisition process for a follow-on would already be behind schedule once award is made.

Also, a contract with a 4 month period of performance may not generate the interest of a long term contract that would most likely create competition and increase the likelihood of lower http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/16.htm#P464_78753 overall costs to the Government; therefore, issuance of a competitive award for 4 months would not be economical.

5. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The proposal will be analyzed in accordance with FAR 15.404-(b)(2)(ii). It is anticipated that the Government will use various price analysis techniques including, but not limited to (1) Comparison of proposed prices to historical prices paid; (2) Comparison with proposed prices with independent Government cost estimates; and (3) Comparison of proposed prices obtained through market research for the same or similar items such that the anticipated cost to the Government will be fair and reasonable.

6. Any other facts supporting the justification

CSC has been determined to be the only vendor that can provide the specialized Data Warehousing, Reports, Information Assurance and Interface Development Services Support under the required timeframe. Research was conducted IAW FAR Part 10-Market Research paragraph 10.002(b)(2)(i),(iii),(vii), and (viii).

Market research was performed jointly for three DAI long-term follow-on acquisitions:

DAI Help Desk Support DAI Global Model Development for Acquire to Retire, Cost Accounting, and Time and Labor DAI Global Model Development for Procure to Pay, Order to Cash, and Budget to Report

The services being performed by CSC will be included in the follow-on acquisitions for DAI Custom Application Development for RICEF-W. Market research performed by the DCSO Small Business Office and DCSO-P determined that is unlikely that at least two small businesses can provide DAI Custom Application Development for RICEF-W. For this reason, the follow-on acquisition that will include the required services will be issued on an unrestricted basis with a Socio-Economic Participation evaluation factor.

The DCSO-P will be issuing a solicitation to the Federal Business Opportunities (FedBizOpps) website for a long term follow-on acquisition with the expectation of receiving multiple offers for each of the follow-on acquisitions. In order to perform the pre-award procedures for the long term follow-on acquisitions, award to another contractor for the 4-6 month period of the proposed bridge contract will result in unacceptable delays. For this reason, market research has determined only CSC can perform the services for the proposed bridge contract, and a competitive follow-on acquisition will be issued when the source selection process is completed for the competitive follow-on acquisitions.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

The DLA CSO located at Philadelphia is currently preparing a competitive, long term, follow-on acquisition which will be synopsized in accordance with FAR 5.2.

8. The contracting officer’s certification that that justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

9. 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 or requirements personnel.

I hereby certify that the supporting data provided for which I’m responsible and which form a basis for this justification is complete and accurate.

10. A written determination by the approving official that one of the circumstances in (b)(2)(i)(A) through (E) of this section applies to this order.

In accordance with the provisions of FAR 16.505(b)(2)(i)(C) and as documented in paragraph 4 of this justification, I hereby determine that proposed modification to the current task order must be issued on a sole-source basis to CSC in the interest of economy and efficiency because the proposed modification to the current task order is a logical follow-on to an order already issued under CSC’s Indefinite Delivery / Indefinite Quantity contract; and approve this action.