Limited_Sources_JA_FIAR_and_MICP_for_posting.pdf

Limited Sources Justification JA-15-0003

FAR 8.405-6

Program/Equipment: Professional Consulting Management Support for financial and audit improvement Analysis Support

Authority: 41 U.S.C. 251 et seq Amount: Approx $250,000

Prepared by:

Typed Name: Woodrow Bell DSN: 329-1464 Title: Contract Specialist Date:

Typed Name: Patrick E. Fox DSN:

Title: Contracting Officer’s Representative Date:

Reviewed by:

Typed Name: Janet D’ Angelo DSN: 329-3728 Title: Contracting Officer Date:

Requirements Certification:

Typed Name: J. Aaron Harding DSN: 664-6549 Title: Comptroller Date:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

DSCA Business Deputy Typed Name: James E. Washington, Jr. DSN: 664-6566 Signature: Date:

JUSTIFICATION AND APPROVAL LIMITED SOURCES

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Justification for other than full open competition.” The Defense Cooperation and Security Agency, Arlington, VA

2. The nature and/or description of action being approved. This Justification and Approval for Limited Sources (J&A) is to execute a bridge order from a Federal Supply Schedule GSA Contract for non-personal services to provide consulting management support services. FY 15 Foreign Military Sales administrative funds will be used for the one month bridge.

FAR Clause 52.217-8, Option to Extend Services, will be incorporated. This option to extend will only be utilized in increments minimally necessary to maintain services until the new award is made.

The purpose of this action is to provide continuity of support for financial integrity and audit readiness currently being performed without a break-in-service.

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

Achieving DSCA’s mission goals requires effective governance, including internal controls, and targeting focus areas for process and financial improvement that align with DSCA’s strategic goals. In order to strengthen internal controls and financial management practices, DSCA is working to institute sustainable business processes, develop guidance as required, and drive effective change throughout the Security Cooperation community. DSCA is working to improve and align its existing Managers’ Internal Control Program (MICP) and Financial Improvement and Audit Readiness (FIAR) programs. Building upon a strong MICP will allow DSCA to assess and control the organization’s mission-facing and mission-enabling risks.

The contractor currently assists with the MICP developing control testing procedures and plans and risk assessment protocols specific to DSCA organizational structure, data systems, business lines, conducting interviews with assessable unit managers, providing training, and supporting the dissemination and communication of program objectives.

The contractor is fully engaged in ongoing financial readiness and audit readiness efforts, to include quarterly audit simulations, preparations for full audit of civilian pay (across all Agency organizations), development of documentation for each audit assessable unit, development and maintenance of information sharing through SharePoint, and review of audit readiness roadblocks.

The estimated value for this one month bridge order is $250,000.

4. The statutory authority permitting other than full and open competition. The statutory authority permitting other than full and open competition is: 41 U.S.C. 251 et seq , as implemented by FAR 8.405-6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. Award to any other source would result in substantial duplication in cost to the Government that is not expected to be recovered through a follow-on contract.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited. These services are currently being performed under contract HQ0034-12-D-0023, Task Order 0003 with Deloitte Consulting, LLC under a delivery order that expires 16 December, 2014 currently funded in the amount of $3,151,716.46. The Government had previously issued a sources sought notice through FedBizOps to measure the capabilities of sources.

It is imperative the Government continue to provide consulting management support for the FIAR and MICP initiatives. The amount of duplicative time and resources for a new contractor to become trained and familiar with DSCA unique accounting and finance policies and procedures, as well as, the overall tailored history, content, and Agency specific strategic planning supporting the assertion program is significant. It is estimated to take a minimum of 120-180 days to become conversant with the history of work already transpired, which would cause unacceptable delays in meeting Department and Congressional deadlines.

It is not in the Government’s best interest to compete this short term requirement. The solicitation preparation and evaluation would also result in a duplication of effort and costs on the part of Government personnel, as well as proposal preparation effort on the part of the competing vendors for this short contract term.

The following additional information supports the cited authority:

a. Alternative:

Use of In-House Resources: Using Government personnel (military or civilian) to replace contractor personnel in the execution of duties under contract is no realistic. The human resources are not available to provide these services using Government personnel.

b. Justification:

(1) The current contractor has the experience and resources necessary to provide the consulting management services required. It is essential that this support be sustained without disruption because any other source would cause unacceptable delay that could negatively impact the mission. The unacceptable delays will occur if this procurement action is delayed while other contractor attempt to mobilize, staff and familiarize themselves adequately to support the mission.

(2) Competition of this requirement would result in the duplication of costs for this one month bridge period which would not be recovered through a competition.

Deloitte Consulting has the necessary experience and resources and has been performing satisfactorily. Therefore, if the J&A is not approved, services will cease and it would take a substantial amount of time to re-procure and the impact of not having a contract in place will prove to be detrimental to the operation of DSCA’s overall audit readiness.

c. Impact:

The impact of missing milestones and timelines would be detrimental to the Agency.

Specifically, the Agency would be in non-compliance of regulatory (OUSD(C) FIAR Guidance, 2013) and statutory (National Defense Authorization Act of Fiscal Year 2010, Section 1003) assertion requirements for the Department of Defense. DSCA financials are a component of the overall Department of Defense audit assertion and statutory compliance. Without an assertion by DSCA, the Department of Defense would be unable to fully assert its overall financials, thereby placing the Department as whole in noncompliance with the aforementioned statute and OSD(C) guidance.

This contractor support has been providing key strategic planning, program management, financial analysis and assessments and recommendations to in support of MICP and FIAR. Each Agency within the Department of Defense is responsible to obtain an audit opinion of their financials, which is then consolidated as the Department of Defense assertion. The Agency's ability to control and manage its finances would be called in to question, which would create an immediate mission work stoppage, requiring the reprioritization and refocus of resources dedicated to other operational requirements.

If contract support is allowed to lapse, the FY 15 mock audit process will also be impacted as programs that should have been accomplished were not.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

Efforts to obtain competition for this action are not feasible nor is it in the Government’s best interest. The proposed contract action will not be publicized, under exception 5.202(a)11, the proposed action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of 5.207.

7. Action to Increase Competition. Although the rationale above provides for a sole source there may be opportunities to increase competition during post-assertion support that may occur in future years.

8. A description of the market research conducted (per FAR Part 10) and the results or a statement of the reason market research was not conducted.

The Government reviewed the services available through the General Services Administration (GSA) Management, Organizational and Business Improvement Services (MOBIS), Financial and Business Solutions (FABS), Performance

Management/Continuous Process Improvement (PM/CPI) BPA, and One Acquisition Solution for Integrated Services (OASIS) Multiple Award Contract (MAC).

Additionally, DSCA received 18 replies in response to the Agency’s Sources Sought – ten (10) small business and seven (7) large business firms.

9. Interested Sources. At present time, no firms have expressed interest in this bridge contract.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history. Reasonable efforts to retrieve the following items from computer records, contract files, competition advocate office files or other sources are expected:

(1) Contract numbers and dates of the last awards: HQ0034-12-D-0023, Task Order 0003, awarded June 2013. The current period of performance expires December 16, 2014.

(2) Competitive status of these actions: Competed through an IDIQ.

(3) Authority previously used for less than full and open competition: N/A

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of Section 7 of the justification for that procurement and an explanation of the results: N/A

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances: DSCA utilized an existing competitive Department of Defense IDIQ contract as a way to obtain required support. This contract is no longer available for DSCA use.

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys: N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes: N/A

b. Acquisition data availability. Explain why technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed or are not available. Describe actions taken or planned to remedy this situation: N/A

c. Unusual and compelling urgency. N/A

d. Subcontracting competition. In single source situations, address efforts to be taken by the Government to assure that the prime contractor obtains as much competition as possible in its subcontracting:

In accordance with FAR 19.702, the contractor will be required to submit a subcontracting plan.

11. Technical Certification.

“I certify that supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

Typed Name: Patrick E. Fox Date:

Title: Contracting Officer’s Representative Signature:

12. Requirements Certification.

“I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

Typed Name: J. Aaron Harding Date:

Title: Comptroller Signature:

13. Fair and Reasonable Cost Determination.

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The cost will be compared with the cost currently negotiated and approved on the current Federal Supply Schedule and the independent government cost estimate. This contract is exempt from certified cost and pricing data under FAR 15.403-1 (b)(1) and 15.403-1(c)(1)(iii).

Typed Name: DSN:

Signature: Date:

14. Contracting Officer Certification.

“I certify that this justification is accurate and complete to the best of my knowledge and belief.”

Typed Name: DSN:

Signature: Date:

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of Financial Improvement and Audit Readiness (FIAR), Managers’ Internal Control Program (MICP) on other than competitive basis pursuant to the authority of FAR 8.405-6(a)(1)(i)(B), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Date:

Signature: ____________