HC1028-08-D-2018-0007 JA.doc

Purchase Request Number: HC1028-08-D-2018-0007

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Justification for OTFAOC Number: JA12-077 Upon the basis of the following justification, I, as Procuring Activity Competition Advocate (PACA) hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304c(b)(3) and FAR Part 16.505(b)(2)(i)(C).

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Defense Commissary Agency

1300 E Avenue

Fort Lee, VA 23801

Defense Information Systems Agency/Defense Information Technology Contracting Organization (DISA/DITCO) Scott Field Office

2300 East Drive, Building 3600

Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The Defense Commissary Agency (DeCA) requires an exception to the fair opportunity process to extend task order HC1028-08-D-2018-0007 by one (1) 3-month period and three (3) 1-month option periods. The following is a summary of the action:

Contractor: Hewlett Packard Enterprise Services (HPES) Contract Type: T&M Estimated Amount: $2,152,001.00

Current TO Ceiling amount: $14,073,642.15 Type of Funding: Defense Working Capital Funds (DWCF) Year of Funding: FY12

Type of Action: Modification

POP: 01 April 2012 - 30 June 2012. Estimated cost $1,076,000.00.

Option 1 POP: 01 July 2012 - 31 July 2012. Estimated cost $358,667.00.

Option 2 POP: 01 August 2012 - 31 August 2012. Estimated cost $358,667.00.

Option 3 POP: 01 September 2012 - 30 September 2012. Estimated cost $358,667.00.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The objective of this effort is to retain the resources necessary for Infrastructure Support Services (ISS) for the DeCA helpdesk and datacenter support. Current activities in both the customer support helpdesk and the server support helpdesk require continuity within the agency. Desktop client and server support require familiarization with existing production systems. Current infrastructure projects include: deployment of a new client operating system and production office suite; migration off legacy operating systems within the datacenter to virtualized enclosure based platforms; upgrades in the Database Management Systems; and enterprise backup software. Additionally, the agency is in the middle of a Capital Refresh for the Enterprise Storage Area Network of all three datacenter locations. DeCA Headquarters is undertaking a re-accreditation of the datacenter and continues new accreditation actions at the agency’s remote datacenter to be awarded Authorities to Operate (ATOs).

HPES was awarded this task order on September 30, 2008, and since that time has provided all necessary personnel, supervision, management, materials, non-personal technical services, and equipment to perform software and Infrastructure Support Services for DeCA’s Desktop Support, Operations and Help Desk. These services include, but are not limited to:

· Project Management

· Desktop and Server Hardware, Software & Operating System Support

· Desktop User Support (Level II and III)

· Help Desk Support

· Desktop User Training

4. IDENTIFICATION OF EXCEPTION TO FAIR OPPORTUNITY and DEMONSTRATION THAT NATURE OF ACQUISITION REQUIRES EXCEPTION:

This action is based on the following exception to the fair opportunity process:

-- 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. FAR 16.505(b)(2)(i)(C).

A contractor is already at work on site at DeCA and it would not be practical to allow another contractor to work on the same site for the extension period as requested. The current contract, HC1028-08-D-2018, was competitively solicited and awarded on September 30, 2008. DeCA most recently was granted a six-month extension under FAR Clause 52.217-8 Option to Extend Services. DeCA will continue to need contract support for helpdesk and server support from HPES until a new contract can be awarded. The additional time is also needed to allow for completion of current projects and provide for a phase-in period once the new contract is awarded.

This action is a logical follow-on in the interest of economy and efficiency for the following reasons: HPES has unique experience with all production systems and in-depth knowledge of DeCA’s current ATO. HPES has been the contract support for helpdesk and server support for over 10 years and is the only available integrator with the necessary intimate knowledge of and experience with DeCA’s ATO documentation.

HPES has established a unique relationship with DeCA and has a unique understanding of all open capital projects. HPES understands DeCA’s architectures, programs, standards and guidelines. HPES's experience also uniquely qualifies them to capture the necessary requirements and develop a solution that will allow DeCA to migrate to a virtualized infrastructure and maintain their current Department of Defense Information Assurance Certification and Accreditation Process (DIACAP).

(b) HPES is currently engaged with the following projects listed below, and DeCA requires a minimum 45-day phase-in period for each of the following projects:

(1) HPES is migrating/loading 5,500 new enterprise desktop environments that consist of 43 applications with DeCA-unique intricacy connections to the enterprise business servers. Each migration requires user acceptance testing and sign-off by certified HPES personnel. Project milestones are currently at 30% completion with approximately $123K in man-hours incurred at this time. This includes development of a desktop image and continuous deployment of desktop computers and printers. The project end-date is targeted for June 30, 2012. Transitioning to a new vendor at this time would slip the end-date, result in duplication of costs to complete this effort, and thus be counter to the interests of economy and efficiency.

(2) HPES is assigned and managing three enterprise architecture software projects by which dedicated contract individuals have been given hard-set milestones and overall completion dates that cannot slip. All three projects are highly complex due to the unique DeCA software associated and could not be redirected and still meet go-live dates. Assigned System and Database administrators have logged over 285 man-hours in development and testing at a rounded cost of $41K. Testing is at 42% on two projects and 28% on the third. Also, it is estimated to cost an additional $88K to maintain the existing embedded team members. Replacement and train-up of new administrators would likely push the project over $200K, and the resultant delay would jeopardize go-live dates, costing the agency an estimated $300K.

(3) HPES has been tasked to provide a budgeted new web application this quarter (80% completed). This task incorporated two months of F2F interviews with DeCA’s executive directorate, an independent web team and a customer beta group. System administrators and web development and testing staff have spent approximately 315 hours ($68K) and have developed a synergy with existing personnel. To phase in new administrators and web developers, deployment would cost an additional $100K. To initiate a knowledge transfer of this project to a new contractor would require more time then the go-live date can afford.

(4) HPES has two personnel working an Enterprise migration of OCONUS servers that require background checks and security and country clearances. Again, the project timeline is set and has been briefed to go-live in 50 days. Time and security activities range from $10K+ per person and overhead man hours to process. Time is the critical milestone. The selection of an individual who meets the skill set to migrate the system and who also holds an active clearance is hard to quantify, but would certainly not promote the interests of economy and efficiency.

(5) HPES is working a task order to upgrade a Database Management System running two unique DeCA schemas that hold 24/7 business application data. Said schemas have a minimal learning curve of 30+ days. Current HPES database administrators have years of working knowledge of DeCA’s schemas. New database administrators (no matter how good) would have to work hand in hand to phase over the critical DBMSs. The approximate man-hour cost of this would be $107K.

(c) DeCA has an estimated project investment of $298k in current activities by HPES and estimates that an additional $200k would be needed to have another contractor take over the existing projects listed at this point.

(d) HPES is the only firm capable of continuing this effort without a substantial economic and time impact to ongoing projects important to the DeCA mission. All the projects currently maintained by HPES cannot be handed over to a new contractor without a sufficient phase-in period. The estimated 45-day phase-in period would cost the Government approximately $548K.

(e) DeCA is in the process of re-competing the infrastructure requirements via the GSA Alliant GWAC. GSA Alliant offers a diverse pool of industry partners that provide customized IT solutions. The current contract HC1028-08-D-2018 TO 007 is in the final month of a six-month extension granted under FAR Clause 52.217-8 Option to Extend Services. DeCA requires this three-month extension and the three one-month options to enable completion of current projects as previously outlined and allow for a phase-in period once the new contract is awarded.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The Contracting Officer and program team will thoroughly analyze proposed labor rates, categories, hours and total costs along with ODC costs in order to determine whether they are fair and reasonable. This analysis will include: a comparison of proposed labor rates with the contractor’s pre-established labor rates and approved Forward Pricing Rate agreements; comparison of proposed pricing for hardware/software incidentals and material handling fees with the Independent Government Cost Estimate (IGCE); and historical costs and comparison. A determination will be made by the Contracting Officer concerning whether the order represents the best value to the Government by conducting both a technical review and fair and reasonable price determination.