Justification_and_Approval.pdf

JUSTIFICATION & APPROVAL (J&A) FOR FEDERAL ACQUISITION

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, Department of Defense FAR Supplement (DFARS) 216.505-70, Procedures, Guidance and Information (PGI) 216.505-70

Purchase Request Number: To Be Determined (TBD) Contract Number: HC1028-08-D-2024 Task/Delivery Order Number: VC03 Procurement Title: Coalition Federated Battle Laboratories Network (CFBLNet) Support

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate (PACA), 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:

Requesting Agency:

Contracting Activity:

2. NATURE/DESCRIPTION OF ACTION(S):

a. Type of Action: Cost-Plus-Fixed-Fee (CPFF)

b. Nature of Action: Approves exercise of clause 52.217-8 -- Option to Extend Services for

Six Months. This clause was not priced as part of the original competition; therefore, this J&A is required.

c. Current Period of Performance (PoP): 26 November 2015 to 25 November 2016

d. Period of Performance for clause 52.217-8: 26 November 2016 to 25 May 2017 e

f. Type of Funding: Operations and Maintenance (O&M) and Research Development Test

& Evaluation (RDT&E) appropriations

g. Year of Funding: Fiscal Year 2017 (FY17) O&M and RDT&E

3. DESCRIPTION OF SUPPLIES/SERVICES: The purpose of this action is to authorize the exercise of contract #HC1028-08-D-2024, task order #VC03, clause 52.217-8 -- Option to

Coalition Federated Battle Laboratories Network (CFBLNet) Support

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Extend Services. This clause was not priced as part of the original competition and therefore this J&A is required to exercise the clause. It will provide an additional six-month PoP (four month base and two one month option periods) enabling the MNIS Division (IE8) and the newly established Coalition Capabilities and Services Division (SD7) to complete a delineation of task breakout for the CFBLNet Support Services recompete Performance Work Statement (PWS) and other solicitation documents; DISA contracting to conduct a recompetition of task order #VC03;

and, the VC03 incumbent to conduct a transition with the successful offeror should the incumbent not win award of the recompete. The recompetition of VC03 is planned to occur from November 2016 through March 2017. The transition of appropriate documents and knowledge from the incumbent to the recompetition successful offeror is expected to occur from March 2017 through May 2017 should the incumbent not win. If the incumbent were to win, the last two months may not be required, and these two one-month option periods would not be exercised.

The stand-up of SD7, essentially from within the MNIS Division, was only recently approved and is still in process. Resources, including contracts and task orders, are still being allocated among the two organizations. It was determined the CFBLNet Support Services task order is a key resource for both, as all sustainment tasks are to be supported and funded through the MNIS sustainment office, and that optional taskings will be included to support potential new efforts for SD7 within the CFBLNet recompete documentation. DISA leadership determined that due to the reorganization, MNIS and SD7 should reexamine and modify the forthcoming solicitation to the extent necessary to ensure it meets the needs of both organizations, but especially SD7 and its emergent development functions. The reordering and revision of the recompete documentation also required a review of the Report (MRR) to determine if it was still valid. It was determined the changes to the CFBLNet recompete documentation were significant enough to warrant issuing a new Sources Sought on Federal Business Opportunities (FBO). The Sources Sought was posted on FedBizOpps (FBO) on 26 September 2016 and closed on 10 October 2016. The responses have been analyzed and incorporated into the MRR.

Task Order #VC03 provides a full range of CFBLNet design, transition, and operation (DTO) capabilities to United States (US), North Atlantic Treaty Organization (NATO), coalition, and other mission partner (MP) initiatives. Specific services include CFBLNet network and systems management, operations and maintenance support; security and certification and accreditation (C&A); help desk; testing; implementation engineering, especially in support of existing and emergent CFBLNet initiatives; administrative support to the CFBLNet secretariat and other CFBLNet organizational entities; and, CFBLNet status reporting and analytics.

In the planned recompetition of this task order, the scope will be expanded to explicitly identify SD7 development efforts and new capabilities, most significantly those related to Coalition Interoperability Assurance and Validation (CIAV) and its two distinct assurance and validation (A&V) environments: the Coalition Test and Evaluation Environment (CTE2) and the Coalition Verification and Validation Environment (CV2E).

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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 all awardees were given a fair opportunity to be considered for the original order.

(b) Description of the Requirement and Justification. The current task order #VC03 was competed on an unrestricted basis on the ENCORE II multiple award contract (MAC) vehicle in 2011 and awarded to Raytheon Company for a base year and four option years.

The fourth option year ends on 25 November 2016. The task order contains FAR clause 52.217-8 -- Option to Extend Services, but this was not priced as part of the original competition. This J&A provides the authority to: exercise 52.217-8 in order to complete the CFBLNet recompete solicitation documentation to incorporate emergent SD7 requirements; conduct a recompetition for a base year and four option year task order; and, provide a transition, if needed, between the incumbent and successful offeror. The exercise of 52.217-8 is considered a logical follow-on that is the only choice in terms of economy and efficiency because: 1) The clause holds the incumbent to “continued performance of any services within the limits and at the rates specified in the contract.”

These rates were previously found to be fair and reasonable which suggests that if the rates are proposed in accordance with 52.217-8, they will also be fair and reasonable.

2) The Government is in the process of preparing solicitation documents for a recompetition of the current CFBLNet task order, which is planned for the period of November 2016 through March 2016. It would be costly and not acceptable to stop the current task order without a replacement available. The incumbent would not have time to conduct a transition with the six-month contractor who would then have to transition the work to the successful offeror of the five-year CFBLNet contract/task order recompetition.

If the incumbent were not to win award of the recompete, this would seriously disadvantage the winner, who would not have direct access to the knowledge and insight of the five-year incumbent. Moreover, the time remaining before the expiration of the current task order is not sufficient to conduct an adequate competition; this is due to the unexpected emergence in 4QFY16 of SD7 reorganization to be incorporated into the CFBLNet task order recompetition.

(c) Justification.

(1) Minimum Government requirements. The minimum Government requirement is a four month base period and two month option period (six months) of continued performance of CFBLNet support, to include the transfer of knowledge and appropriate documentation from the incumbent to the successor CFBLNet contractor, if the successful offeror for the recompetition is not the incumbent.

(2) Proposed sole source contractor. The proposed sole source contractor is the incumbent Raytheon Company, 2260 Pacific Boulevard, Dulles, VA 20166-6916.

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The exercise of the incumbent’s FAR 52.217-8 six-month extension is the only logical follow-on for reasons of economy and efficiency. As time is very limited, it would be impossible to award an interim contract to continue services beyond November 25 2016 without the award of the FAR 52.217-8 six-month extension. Failure to award an interim contract or the six-month extension would result in a gap in services for this critical NATO/coalition system and the loss of CFBLNet capabilities such as Tier III support; service desk; operational and exercise support; and loss of system functionality if normal operation and maintenance activities are not conducted on the network. Even if time allowed for an interim contract instead of a six-month extension, it would be inefficient and impractical to transfer the incumbent’s extensive five-year knowledge of CFBLNet operation, should they not win award of the recompete to an interim contractor who would then attempt to fully relay that information to the successful offeror in the CFBLNet recompetition. Beyond impractical, this will likely involve a substantial degradation in the operational knowledge the CFBLNet recompetition successful offeror receives. As a result, if an extension is not granted and the incumbent does not win award of the recompete, there will be operational impacts to CFBLNet Network performance during the period the recompetition contractor is mapping and gaining mastery of network operations, which is an unacceptable condition for this critical NATO/coalition system.

(3) Discussion regarding cause of the sole source situation. This sole source situation arises from the very recent establishment of the Coalition Capabilities and Services Division (SD7) in Q3FY16, and the top-level DISA decision that the new organization would leverage MNIS Division contract vehicles, to include CFBLNet.

At the time of this decision, the CFBLNet final solicitation for recompetition of the current task order was pending release, but was withdrawn for reevaluation and it was rewritten to ensure it incorporated SD7 requirements. This action has almost been completed but the additional six months provided by this J&A are required to actually perform the recompetition and permit a transition between the incumbent and the successful offeror.

(4) Demonstration of unique source. As the incumbent CFBLNet contractor, Raytheon Company is the only source because it is currently performing the work and can continue to do so without disrupting CFBLNet operations and without the Government incurring additional substantial costs and inefficiencies and unnecessary risks to CFBLNet operations for end users worldwide.

(5) Procurement discussion. In early December 2016, the Government intends to release a solicitation for recompetition of the current CFBLNet task order. The contracting vehicle to be used by the Government is CIO-SP3. The new CFBLNet task order/contract is planned to be a one-year base and four one-year options. Other elements of the recompetition have yet to be approved as part of the CFBLNet Acquisition Plan. This is due to the aforementioned reorganization that Split MNIS into two groups and increased the complexity of defining shared versus unique requirements. Had this reorganization not occurred, it is likely that MNIS would have completed the source selection in time to avoid the need for the six-month extension.

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The projected award date for the task order/contract is March 2017. The Government intends to provide a 60-day transition period between the incumbent and the new contractor. This J&A is necessary to permit time for the recompetition and the transition period.

(6) Impact. The continuity and security of CFBLNet operations would be at high risk and likely result in a gap in service. If the incumbent were not to win award of the recompete, this lack of continuity would make it unlikely that any attempt to transfer support from the incumbent to a six-month interim contractor who would then quickly hand it off to the recompetition successful offeror would succeed. Therefore, the risk is unmanageable, immitigable, and unacceptable.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: The Contracting Officer will determine whether the proposed price of the extension is fair and reasonable based on the limits and at the rates specified in the task order.

6. MARKET RESEARCH: A MRR on the recompetition of the current CFBLNet ENCORE II task order has been prepared and is in DISA staffing for final review and approval. This research was also used to inform this J&A. The MRR highlighted the complexity of the international interoperability testing at the core of the CFBLNet support requirement. This resulted in the judgment the Government could not rapidly solicit an interim contractor nor expect such a contractor to securely and effectively support CFBLNet in accordance with key parameters and service levels. Moreover, it was deemed essential the incumbent contractor be the entity to transfer knowledge of CFBLNet operations to the recompetition successful offeror. The idea of the incumbent transferring knowledge to an interim contractor who would in turn pass the knowledge after six months to another contractor was considered reckless, if not completely unworkable. Expediting the recompetition was also considered in order to obviate the need for a six-month extension, but a 60-day transition was deemed an absolute minimum and the complexity of the requirement demanded a reasonable time for solicitation and source selection;

therefore, a minimum six-month period is required to complete all actions.

7. ANY OTHER SUPPORTING FACTS: None.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History.

Table 1 shows the procurement history of CFBLNet. Between the current task order and the preceding Indefinite Delivery/ Indefinite Quantity (IDIQ) contract, there is an 18-month gap (25 May 2010 to 26 November 2011), during which support to CFBLNet continued but through what vehicle or means cannot be determined.

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Company Company Size

Contract/Task Order #/ Sources

Total Value Period of Performance

Raytheon Company Large Business

ENCORE II #HC1028-08-D-

2024/Task Order # VC03/ Fair Opportunity/

$27.7M 26 November 2011 to

25 November 2016 Houston Associates, Inc.

Small Business (however, acquired by Raytheon in 2006)

IDIQ contract #HC1047-07- D-0003/Full and Open/

$69.4M – Contract Value (CFBLNet task orders approximately $5.5M)

25 May 2007 to

24 May2010

Table 1 – CFBLNet Procurement History

(b) As described in section 4(c)(5), the Government intends to release a solicitation for recompetition of the current task order in December 2016. Specifics on the recompetition are contained in the CFBLNet Acquisition Plan, which is awaiting final approval.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): The CFBLNet Acquisition Plan is in final, formal staffing for concurrence and approval.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE: Separate Signature Page

TITLE/ORGANIZATION:

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE: Separate Signature Page

TITLE/ORGANIZATION:

PHONE DATE:

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE: Separate Signature Page

TITLE/ORGANIZATION: Services and Services Development

Contracting Branch

PHONE: DATE:

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: SIGNATURE: Separate Signature Page

TITLE/ORGANIZATION: PACA/DISA

PHONE: DATE: November 16, 2016