JA_HC102808D20240009.doc

Justification & Approval (FAR Part 16)

CENTRIXS OCO Support for US ARCENT, ENCORE II

JUSTIFICATION & APPROVALS (J&A)

FOR FEDERAL ACQUISTION REGULATION FAR SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule / Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, DFARS 216.505-70, PGI 216.505-70 Purchase Request Number: (E200548.00) Contract Number: ENCORE II Contract HC1028-08-D-2024 Task/Delivery Order Number: 0009 Procurement Title: Combined Enterprise Regional Information Exchange System (CENTRIXS) Overseas Contingency Operations (OCO) Support for United States (US) Army Central Command (ARCENT) 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: ___________ Upon the basis of the following justification, I, as the Head of the Contracting Activity, hereby approve this exception to fair opportunity pursuant to the authority FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Defense Information Systems Agency (DISA) Multinational Information Sharing (MNIS) Program Management Office (PMO), 6910 Cooper Avenue Fort Meade, MD, 20755-0549 Contracting Office:

DISA/DITCO Scott, PL83 Building 3600 2300 East Drive Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The purpose of this action is to issue a modification to task order (TO) HC1028-08-D-2024/0009 to extend the period of performance (POP) for six months (August 16, 2014 – February 15, 2014) in accordance with (IAW) FAR 52.217-8, OPTION TO EXTEND SERVICES (NOV 1999), in order to continue CENTRIXS OCO IT support services for US ARCENT during the delayed drawdown of US and Coalition Forces from the Afghanistan Area of Responsibility (AOR). Funding will be provided via fiscal year (FY) 14 O&M funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This TO will provide on-site support in the Southwest Asia (SWA) AOR to ensure the full operational capability and availability of the CENTRIXS network at US ARCENT locations and associated forward sites in the SWA AOR. The contractor will provide CENTRIXS information assurance (IA), configuration management, network and systems engineering and installation services, as well as intelligence analysis. As assigned by the US ARCENT Designated Approval Authority in theater, the contractor will provide the Deputy IA Manager support as well as furnish key technical capabilities to prevent network intrusion. The contractor will implement the US ARCENT Change and Configuration Management for the ARCENT AOR. The contractor will also support several in-theater projects of the 335th Signal Command (Theater). The contractor will support regular operations and maintenance of CENTRIXS at ARCENT designated locations, including, but not limited to, Afghanistan, Kuwait and Bahrain.

The Period of Performance (PoP) for this TO is:

Six-month base period: August 16, 2013 – February 15, 2014

Six-month option period: February 16, 2014 – August 15, 2014

Six-month extension period: August 16, 2014 – February 15, 2015

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.

IAW 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.

A logical follow-on, sole source ENCORE II TO was awarded to Raytheon Company on August 8, 2013, with a base PoP of August 16, 2013 - February 15, 2014, and a 6-month option period of February 16, 2014 to August 15, 2014. At the time of the award, the base period was considered sufficient to provide CENTRIXS OCO services during the withdrawal of US and Coalition forces from Afghanistan. Also, the option period was available to provide assistance, if needed, in the transition of CENTRIXS OCO responsibilities from US ARCENT for wartime operations to the US Army 160th Signal Brigade in Kuwait for peacetime operations. However, plans for the Afghanistan draw down changed and were delayed necessitating the continuation of CENTRIXS OCO services beyond the six-month option, which has been exercised and will end on August 15, 2014. US ARCENT is currently considering a limited competition, among other acquisition approaches, to continuing these services beyond the expiration of the MNIS PMO Raytheon TO.

(b) Justification:

(1) Minimum Government requirements.

The verified minimum Government requirement is one and a half years of CENTRIXS OCO services in the SWA AOR from August 16, 2013 to February 15, 2015. By the end of that period, responsibility for CENTRIXS OCO in the SWA AOR will be transferred to the US Army 160th Signal Brigade in Kuwait for peacetime operations.

(2) Proposed sole-source contractor.

The proposed sole-source contractor is Raytheon Company, 7700 Arlington Boulevard, Falls Church, Virginia 22042-2902. Raytheon is already established and delivering the services in a difficult wartime environment, which requires unique and time-consuming preparations that include obtaining the necessary in-theatre authorizations and training in specialized operating procedures. Preparing another contractor will require a significant transition period of up to one to two months of schedule delay in obtaining the necessary in-theater authorization documentation, housing, transportation (vehicle leases), and staffing transition issues.

This requirement for a sole-source J&A is not driven by the lack of time to do a competitive procurement, but by the substantial duplication of cost to the Government that will not be recovered by a competition for one year’s worth of services in a war zone. Since Raytheon is already on site in the SWA AOR, the Government has already incurred cost elements 1) through 3), and has a liability for cost element 4). Raytheon has an experienced, cleared and qualified staff that has been on-the-ground in the SWA AOR for three years. They need no formal training to ensure they operate safely and efficiently in a war zone.

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

The cause of this sole-source situation stems from the transition of the CENTRIXS OCO requirement from US ARCENT to the 160th Signal Brigade during calendar year 2014. This change in the requirement is due to top-level Governmental policy decisions regarding the speed of US and Coalition combat forces’ withdrawal from the Afghanistan AOR. The decision of US and Coalition political leadership to accelerate the withdrawal from Afghanistan has eliminated the US ARCENT CENTRIXS OCO requirement altogether after February 15, 2015, due to the transfer of CENTRIXS SWA AOR for peacetime operations to the 160th.

(4) Demonstration of unique source.

Raytheon possesses the specialized expertise related to legacy technical institutional knowledge and established staff in-theater to sustain CENTRIXS activities and the Afghanistan troop drawdown requirements. Raytheon currently has staff at theatre locations with certified visa and security documentation. Another contractor would need significant time (approximately one to two months) and additional funding to ramp up over 50 personnel, and would require extensive travel and logistical efforts and duplicate costs to deploy full time equivalent (FTE) support to a combat zone. Historical other direct costs (ODC) values are over $.9M combined for travel, housing, and transition; and staffing times have been up to one month for location placement of personnel, which the Government would incur should another contractor be selected. If there were to be any reduction in FTE support during the time period it would take to recompete, the warfighter would be adversely impacted as US allies and Coalition partners rely on these IT services and capabilities 24/7/365 for the ongoing war efforts.

(5) Procurement discussion.

This service was previously provided via a TO placed against the ENCORE II contract vehicle, HC1028-08-D-2024, TO VC02. ENCORE II contract was issued to Raytheon in May of 2008. The original requirement for these services was competed under the ENCORE II suite of contracts; however, only one proposal was received. TO VC02 was issued February 13, 2009 and expires August 15, 2013. A follow-on, sole source TO was awarded to Raytheon on August 8, 2013 with a base period PoP of August 16, 2013 - February 15, 2014, and a six-month option PoP of February 16, 2014 - August 15, 2014.

(6) Impact.

Award to any other source would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Competing this 6-month extension would cost US ARCENT an estimated $3M in transition costs and a one to two month contractor transition time. The cost of transition and the time delay to on-board a new contractor in the AOR would not be in the best interest of the Government, and would not be feasible in light of the brief, 6-month duration of this action.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

The contracting officer will obtain certified cost or pricing data, IAW 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.

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