PMRT Justification and Approval Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8

I. Contracting Activity.

The is the procuring agency for this acquisition.

This J&A is for Other than Full and Open Competition (F&OC).

II. Nature and/or description of the action being processed.

The purpose of this Justification and Approval is to seek approval for a sole source award of PMRT's follow-on enhancement and sustainment contract to the incumbent contractor, The contract type selected for this follow-on contract is a mix of Firm-Fixed Price (FFP)/Cost Plus Fixed Fee (CPFF)/Cost Reimbursable Contract Line Item Numbers. The estimated Period of Performance (PoP)will include a base period of one (1) year with four (4) one (1)-year options and a six (6) month Extension of Services (EoS).

III. Description of supplies/services required to meet agency needs.

PMRT is a suite of Air Force (AF) Enterprise applications designed to support a number of key facets of program and financial management, acquisition reporting and supervisory oversight. The primary PMRT applications are Comprehensive Cost and Requirement (CCaR), Data Access Program Reporting (DAPR), Resource Identification Tool (RIT), Strategic Management Tool (SMT), Monthly Acquisition Report (MAR) and PMRT Enterprise Analytics (PMRT EA).

CCaR is an enterprise program and financial management system that provides organizations with a common sense, hierarchical approach to managing requirements, budgets and execution data. DAPR offers the necessary structure to capture the Acquisition Master List (AML), Investment Master List (IML) and Workload Master List (WML) program data in order to provide a single list of all programs that utilize investment funds. RIT is utilized by to identify and track personnel, funding and other resources required to support the Center's Acquisition Programs, Projects and Activities. SMT allows the services community to accurately track all of their service programs and associated contracts. MAR is a periodic program assessment generated by program offices and submitted to Program executive Officers (PEOs) for approval and review. PMRT EA supports a full spectrum of business intelligence use cases, including self-service visualization, guided analytics apps and dashboards, embedded analytics and reporting. PMRT EA consumes acquisition programmatic data from the MAR and budget/execution information from CCaR to provide users with timely and accurate information.

PMRT also has recently developed an Acquisition Data Services Broker (ADSB) capability that enables near real-time federation of acquisition information across the AF acquisition enterprise by brokering data requests via robust, scalable infrastructure. The ADSB capability utilizes Commercial off the Shelf (COTS) products Talend and Apigee for data brokerage management/application programming interface management. The Common Portal Environment (CPE) is the most recent development component of PMRT. It provides a consolidated collaboration experience for Acquisition program offices, functional support offices, and senior leaders within the AF and Department of Defense.

The total estimated value of this follow-on acquisition, including options, is and the estimated PoP for the base year and options are as follows:

Base Year: One (1) year

Option Year 1: One (1) year

Option Year 2: One (1) year

Option Year 3: One (1) year

Option Year 4: One (1) year

Extension of Services: Six (6) months

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Below is the estimated contract cost breakdown:

FY$M (3600) FY20 FY21 FY22 FY23 FY24 FY25 TOTAL

PMRT

FY$M (3400) FY20 FY21 FY22 FY23 FY24 FY25 TOTAL

PMRT

IV. Statutory authority permitting other than full and open competition.

All contracting actions covered by this Individual J&A fall within the authority found at 10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1 (a)(2)(iii) - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The current PMRT enhancement and sustainment contract was awarded sole source as a Small Business set aside to by

The PoP of the contract is 1 Feb 2016 through 31 Jan 2020 with a total contract value of $ . A sole source J&A was originally approved in Jan 2016 and an amended J&A was approved in Oct 2018. The amended J&A increased the estimated contract value by $ . It was submitted after performed an architectural assessment of the platform capabilities across their portfolio of systems and determined a technically superior, as well as a more cost effective way forward, was to consolidate needed capabilities within the PMRT system.

After thorough analysis via Market Research, the Government has determined the incumbent contractor, , is the only qualified source capable of performing the work required for this acquisition. Additionally, there are no other vendors currently with the ability to properly sustain PMRT due to limited technical data available to the Government.

CONTRACTOR'S UNIQUE/HIGHLY SPECIALIZED CAPABILITIES

This requirement for the PMRT program is for a follow-on contract for services that requires unique qualifications. The current contract was awarded sole source to by and the program and contract were officially transferred to via a PEO Portfolio Assignment memo in Jan 2018. The existing contract contains minimal requirements for the delivery of technical data to the Government. The deliverables on the current contract lack architecture and configuration details critical to the enhancement and sustainment of the PMRT interfaces. ' unique qualifications and knowledge as the incumbent, allow the vendor to provide a zero risk solution, including a highly detailed Rough Order of Magnitude (ROM) listing FTEs, labor categories and associated rates. Government technical SMEs were interviewed and provided unanimous feedback that the technical data currently available is insufficient for a vendor other than to meet the requirements.

As mentioned in Section III, the PMRT suite includes seven (7) native applications, of which six (6) were developed under the current contract and are Government off-the-shelf (GOTS) tools. One of the tools in the PMRT Suite is Commercial off-the-shelf (COTS) product. Prior to the development of PMRT, developed the COTS tool, CCaR, which has been selected by the AF to function as the enterprise program and financial management system for requirements, budgets and execution data across organizations. The use of CCaR is mandated by AF Instruction 63-101/20-101 and the USG purchases annual use licenses for this tool. CCaR is one of the primary applications housed within PMRT and CCaR supports an extensive number of interfaces which transfer program and financial data to the other PMRT tools. Linking applications to CCaR and associating the necessary data elements requires expertise and knowledge of the data, including architecture and configurations critical to the enhancement and sustainment of the PMRT interfaces. This extensive knowledge is also needed to refactor the

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 applications in support of moving PMRT to Cloud One. Additionally, the financial nature of the CCaR component of PMRT requires compliance with Financial Improvement and Audit Readiness (FIAR) and is subject to financial audits requiring contractor support. As a COTS tool, owns all proprietary rights to the CCaR source code and safeguards it from modification, preventing the customization of the product by any vendor other than

At this time, there are no authorized resellers able to provide the CCaR enterprise software license and associated support to the AF Acquisition Domain. The proprietary nature of CCaR, coupled with the aforementioned lack of data documentation available to the Government and by extension other potential offerors, an alternate vendor with little or no past performance with PMRT or the CCaR product would in all likelihood need to partner with in order to successfully deliver all contract requirements. If a vendor teams with the contract is likely to be a "pass through," which would almost certainly result in a higher cost to the Government.

Specifically, if a vendor other than the incumbent were selected the PMO's technical and financial teams calculated that an award to any other source at this time would increase the current effort by approximately $ above the total Independent Government Cost Estimate (IGCE) and generate an unacceptable delay of approximately 9 months, with a significant break in service.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought (SS) for PMRT enhancement and sustainment services was posted to FedBizOps in both January 2019 and June 2019. The purpose of both SS was to identify and document capable sources of supply so that an appropriate acquisition strategy decision could be accomplished (i.e. Full and Open, Small Business set-aside, Sole Source, etc.). A total of four vendors submitted formal responses to the SS, including the incumbent.

The first SS posted on 17 January 2019 remained open for a total of 30 calendar days and received responses from a total of two vendors: and the incumbent contractor, A thorough review of both responses identified as the only responsible source able to meet all acquisition requirements. Though demonstrated they were able to perform and meet some of the requirements, their response noted specific challenges managing interdependencies/interfaces between the various PMRT applications. demonstrated they are able to meet all of the requirements and the detailed Rough Order of Magnitude (ROM) they submitted demonstrated they fully understand the effort. In response to these market research results, the PMO recommended a Sole Source Acquisition Strategy to the Milestone Decision Authority during the Early Strategy and Issues Session (ESIS) conducted on 4 June 2019. To solidify this strategy, leadership proposed a second SS be posted for a two-week period to solicit any further responses before going forward.

A second SS was posted to FedBizOps on 11 June 2019 for a total of 15 calendar days and responses were received from two additional vendors: Based on their responses, both were considered able to perform some of the requirements, but neither were deemed able to meet all requirements. The Government review of the response indicated they were unqualified due to a lack of access to proprietary licensing rights, documented system development/sustainment experience, and the absence of a detailed ROM showing they fully understand the effort. In addition to the aforementioned reasons for did not submit a ROM.

During the period in which both SS were posted to FedBizOpps, as well as after the postings closed, several companies expressed interest in the new acquisition. All companies were informed, if interested, they should submit a formal response to the SS. Based on this, any company that did not respond to the SS were not considered as serious candidates for the subject acquisition/contract.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will determine the cost to be fair and reasonable in accordance with FAR 15.402, Pricing Policy.

Certified cost or pricing data or data other than certified cost or pricing data will be obtained when required or necessary to determine whether costs are fair and reasonable.

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VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As stated in section VI above, a SS for PMRT enhancement and sustainment services was posted to FedBizOps in both January and June 2019. A total of four vendors submitted formal responses to the SS. The incumbent, , and one other vendor, , responded to the January 2019 posting and two additional vendors, , responded to the June 2019 posting. As explained in both sections V and VI above, a thorough analysis of the Market Research identified the incumbent contractor, , as the only responsible source to satisfy all contract requirements.

In addition to posting a SS on FebBizOpps, numerous other methods of Market Research was conducted. The methods used were as follows:

• Internet Searches

• Government Database Searches (CPAR and PPIRS)

• Contacted Small Business Office

• Interviews of Government SMEs

• Contacting Known Source of Products or Services

• Reviewed Results of Recent Market Research on Similar Requirements

IX. Any other facts supporting the use of Other Than Full and Open Competition.

SUBSTANTIAL DUPLICATION OF COST NOT RECOVERABLE THROUGH COMPETITION

While the technical documentation is anticipated to be delivered within the upcoming contract, awarding to an alternative source at this point would necessitate pursuing exploratory means of understanding the current data, database structures, system architecture, software platforms, PMRT interfaces and application functionality and logic.

The PMO's technical and financial teams calculated that an award to any other source at this time would increase the current effort by approximately $ above the total Independent Government Cost Estimate (IGCE).

Awarding to a contractor other than the incumbent would cause the Government to experience inefficiencies and result in duplicative effort for minimum of 9 months for the development labor that will be required for a new contractor to `ramp up' without the technical documentation associated with sustainment and enhancement of the PMRT system. In addition to the ramp up period, a contractor other than the incumbent would require additional recurring hours for Developers, Maintenance Programmers, Designers, Business Analyst, QA Staff, Testing Staff (Systems Engineer), DBAs over the life of the contract due to the complexity of the PMRT development and sustainment activities. Awarding to a contractor other than the incumbent escalates program risk and creates unacceptable cost increases and service delays.

Based on the above information, by competing the PMRT contract, the Government would be projected to incur a substantial duplication of costs that would not be recoverable through competition.

UNACCEPTABLE DELAYS

In conjunction with the cost duplication, inefficiencies in performance and the lengthy ramp up period required for a new contractor begin development and sustainment of the PMRT suite would cause the Government to incur an unacceptable delay leading to a break in service to the PMRT user community.

The complex nature and interaction of the PMRT application suite, application logic, technology stack, program interfaces, deficiencies in technical documentation artifacts, and other complexity factors, create high risk that a non-incumbent provider would have difficulty providing the current level of PMRT development and sustainment support services. Given a delay of at least 9 months, the automated financial management, requirements management, tracking, and reporting capabilities provided by PMRT to the user community would be significantly negatively impacted. Delays and potential system unavailability will divert a significant amount of already scarce organic financial management and program management resources from other critical activities to manually complete reporting related to management and execution of program funds.

In order to determine the amount of time required to match the capabilities of a team of Subject Matter Experts

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8 estimated the number of hours to develop the necessary technical documentation based on their experience working in BES software engineering. If work began immediately, the team has estimated the required time would be a minimum of 9 months. Required ramp-up efforts for optimal maturity level services would include phases in areas such as PMRT discovery and definition, scope and planning, COTs/GOTs product stacks, data and database architecture understanding, system architecture understanding, application flow and logic understanding, middleware architecture design and the creation of technical documentation and diagrams.

From this minimal learning curve, and the current PMRT program's need for quick execution, a 9 month delay that would be experienced by a new contractor due to the inefficiencies discussed above is unacceptable to the Government.

Accordingly, is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition with a total cost of and unacceptable delays of a minimum of 9 months in fulfilling its requirements.

X. List of any sources that expressed, in writing, an interest in the acquisition.

is a Woman Owned Small Business (WOSB) headquartered in Herndon, VA. They proposed an approach in which they would be the prime contractor and would team with two subcontractors. As the prime contractor, would provide expertise in designing custom desktop, web and mobile applications tailored to user, data, product, and service needs. is a WOSB and is listed as a subcontractor that would team with

. They would provide expertise in cybersecurity, maintenance/sustainment, and help desk support.

is a WOSB and Service-Disabled Veteran Owned Small Business (SDVOSB) and is listed as the other subcontractor that would team with . They would provide expertise in business solutions, project/program management, and Information Technology (IT) services.

indicated they could meet all technical performance requirements listed in the SS. However, based on the teaming approach, there was no delineation indicating which company would be responsible for which requirements.

The SS also specifically requested vendor's list any recent and relevant experience supporting AF business systems and the response listed no such experience. The response indicated one challenge to meeting requirements was managing the interdependencies/interfaces between the various PMRT applications. A ROM was submitted with an estimated annual cost of . The ROM had very limited detail explaining the calculation but appeared to focus on sustainment of the current system.

indicated past work with a number of federal government agencies, to include the Office of the Secretary of Defense for Sustainment, Internal Revenue Service, and the Office of Foreign Disaster Assistance. However, no indication was given as to which company completed the work. does not have any past performance with PMRT or the CCaR product. A review of the Contractor Performance Assessment Report (CPAR) system found no records for or . One record was found for with ratings ranging for Satisfactory to Exceptional.

is a company headquartered in Dayton, OH. They proposed an approach in which a contract would be awarded direct to a Small Business on a GSA Schedule 70 or competitive 8(a) via GSA 8(a) STARS II. Use of the STARS II contract vehicle would require a change in NAICS code for the effort. indicated they could meet all technical performance requirements listed in the SS. However, no specific details were given indicating they had sufficient experience to meet a number of the requirements, including development and sustainment that is pivotal to enhancing/maintaining the PMRT system. The SS response indicated they needed more information to determine if there were any challenges to meeting system requirements. A ROM was submitted with an estimated annual cost of $ . The ROM provided no details explaining the calculation but appeared to be based on an assumption that PMRT is similar in size/scope to other systems in the portfolio.

indicated past work for the federal government, to include the Department of Justice, Department of Energy and the Environmental Protection Agency. They also indicated completing work for AFLCMC/ HIB but did not cite this as part of their past performance to be considered in the SS response. Overall, past

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8 performance was heavily focused on Help Desk and Cybersecurity support but nothing indicated they had relevant experience in the enhancement or sustainment of a business system like PMRT. A review of the CPAR system resulted in finding numerous records, with ratings ranging from Satisfactory to Exceptional.

is an Economically Disadvantaged Woman Owned Small Business (EDWOSB) headquartered in Cincinnati, OH. They proposed an approach in which they would be the prime contractor and would team with a subcontractor. As the prime contractor, would provide expertise in security services, network services and maintenance services. is a small business and is listed as a subcontractor that would team with

They would provide expertise in managerial and technical services. indicated they could meet all technical performance requirements listed in the SS but no specific details were given indicating they had sufficient experience to meet a number of the requirements. No ROM was submitted with the SS response.

indicated they are currently performing work for the Air Force. However, most of the past performance cited was actually work completed by . There was a heavy focus on security and network services in the past performance of work actually performed by Nothing indicated they had relevant experience in the enhancement or sustainment of a business system like PMRT. A review of the CPAR system found two records for with ratings of Satisfactory for both efforts.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

Thorough Market Research analysis indicated that there is only one viable source to fulfill requirements and meet the immediate need. Insufficient requirements for delivery of data in the current contract limited the technical documentation available to the Government to sustain the system by a vendor other than the incumbent.

This contract effort requires significant detailed technical knowledge of the system configuration and interactions with other systems via interface. Attempting to operate or modify (as needed) PMRT without this detailed knowledge and understanding would result in an unacceptable level of risk to the program. Additionally, if a vendor other than the incumbent is selected, that vendor will have to team with the incumbent and the contract is likely to be a "pass through" which would almost certainly result in a higher cost to the Government.

The Government intends to secure the technical data necessary to ensure future competitive acquisition options. The proposed follow-on contract will incorporate requirements designed to capture the PMRT technical baseline and require delivery of technical documentation, artifacts, and source code at reasonable or no cost with sufficient data rights to allow for competition of future effort.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.