HQ0034-11-A-0001-0001__LSJ_for_DASD_SE.pdf

ACQUISITION

DIRECTORATE

DEPARTMENT OF DEFENSE WASHINGTON

HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

LIMITED SOURCES JUSTIFICATION

Upon the basis of the following justification, I hereby approve the use of restricting consideration of the proposed contractual action pursuant to the authority of FAR 8.405-6.

JUSTIFICATION

1. AGENCY AND CONTRACTING ACTIVITY: [FAR 8.405-6 (c) (2) (i)]

Agency:

Department of Defense Office of the Deputy Assistant Secretary of Defense, Systems Engineering 3010 Defense Pentagon Washington, DC 20301-1155

Contracting Activity:

Department of Defense Washington Headquarters Services Acquisition Directorate 1225 S. Clarke Street Arlington, VA 22202

2. NATURE/DESCRIPTION OF ACTION(S): [FAR 8.405-6 (c) (2) (ii)]

This justification approves exercising a four month option, with the option to extend the contract for two additional months, in accordance with 52.217-8, Option to Extend the Services. The contractor, Decisive Analytics Corporation (DAC) is currently using the Professional Engineering Schedule SIN 871-3, contract number GS-23F-0382K. The Period of Performance sought is 01 December 2015 to 31 March 2016. This extension will avoid disruptions to mission critical analysis, technical guidance, and program administration taskings that are currently underway at the Office of the Deputy Assistant Secretary of Defense, Systems Engineering (DASD(SE)). The services are currently being provided under contract HQ0034-11-A-0001- 0001, awarded on 01 December 2010 and will expire on 30 November 2015.

3. DESCRIPTION OF SUPPLIES/SERVICES: [FAR 8.405-6 (c) (2) (iii)]

DAC shall provide professional engineering services to assist DASD(SE) in execution of the statutory and regulatory Policy, Guidance, Specialty Engineering, and Human Capital functions in accordance with the Performance Work Statement (PWS). A segment of these efforts are required to be conducted in a classified environment with access up to TS/SCI. The estimated dollar value for this period of performance is $6,088,500

4. AUTHORITY AND SUPPORTING RATIONALE: [FAR 8.405-6 (c) (2) (iv)]

DAC is currently, as defined by FAR 8.405-6(a)(1)(i)(B), the “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”. DAC has the unique knowledge and background working with DASD(SE) on-going tasks and operations that are conducted on a daily basis, has the required staff, the specific technical expertise, and TS/SCI eligible clearances. Only continued, uninterrupted support from the incumbent contractor after 30 November 2015 can prevent a disruption to the current studies, projects, and budget formulation.

Acquisition planning for the new DASD(SE) requirement began in 2014 with a projected award of July 2015. Delays have occurred in the process of gathering information for the new descriptions of the work. The delays are the result of DASD(SE) work restructuring efforts and the complexities of changing to a cost type contract from the previous firm fixed contract.

Handling the complications of a cost type contract and restructuring the work packages significantly delayed completion of the revised PWS. A draft solicitation was posted to FedBizOpps on 03 October 2015 and the comment period closed on 23 October 2015. Staffing the 289 questions and comments received from industry was completed on 17 November 2015.

On 17 November 2015 the PWS were completed to include support to the DASD(SE) Director of Major Program Support (D,MPS), Support to the Principal Deputy / ODASD(SE) Front Office (PD/FO) and Support to the DASD(SE) Director of Engineering Enterprise (D,EE).

Ongoing DASD(SE) projects risk delay or unsuccessful completion without the technical support offered by the incumbent contractor personnel. The contractor has supported DASD(SE) since the current class of BPAs was awarded in 2010 and has the institutional knowledge and technical qualifications to continue support to DASD(SE) operations to meet critical schedule milestones.

Ongoing efforts, such as the Defense Acquisition Guidebook and Better Buying Power guidance, require expertise derived from lessons learned, industrial interaction, and knowledge of unique requirements and emerging technologies. If DASD(SE) support is suspended or if the support is provided by a contractor without the institutional knowledge and technical qualifications of the incumbent contractor it is expected that DASD(SE) guidance would be delayed. Delayed guidance delays adoption of systems engineering methodologies, delays sharing information that can prevent cost overruns, increases developmental and operational risks to each major program, and increases risk that warfighter requirements are incorrectly translated into DoD systems.

Additionally, a four month extension should provide sufficient time to allow for the open market competition of the updated DASD(SE) requirement since DASD(SE) requires a cost plus fixed fee contract and no strategic sourcing vehicles deemed suitable or available at this time that offers cost plus fixed fee. The interim Firm Fixed Price (FFP) contract under HQ0034-11-A- 0001-0001 will be a four (4) month contract extension using a Firm Fixed Price contract. There is insufficient time to issue an order against One Acquisition Solution for Integrated Services (OASIS), considering the additional time required of a new contractor to recruit the necessary employees with the necessary security levels. AD Acquisition Policy paragraph 7.102-90 (S-90) Policy – Predictive Milestone Tool (PMT) applies to the pending procurement of services because the estimated value is between the Simplified Acquisition Threshold and $100,000,000.

On 07 October 2015 the PMT was updated to show March 2016 is the earliest that an award can be made competitively.

5. REPRESENTATION OF THE BEST VALUE: [FAR 8.405-6 (c) (2) (v)]

The Contracting Officer will ensure that the final negotiated price is fair and reasonable in accordance with the techniques described in FAR 8.404(d), FAR I 5.404-l, and DPAP Deviation 2014-O00I 1 dated March 13, 2014.

6. DESCRIPTION OF MARKET RESEARCH: FAR 8.405-6 (c)

A Sources Sought notice was posted to FedBizOpps on May 12, 2015, requesting responses no later than May 27, 2015. Five capability statements from companies listed in the chart below.

The three large businesses were able to meet the requirements of the PWS.

Contractor Business Size Booz Allen Hamilton Inc. Large Millenium Engineering Small Decisive Analytics Large Chitra Productions Small Engility Large

A listing of firms holding contracts under the GSA PES Schedule 871, SIN 871-3 System design, Engineering and Integration was generated as this SIN covers the work for SE. The list contains 559 contractors. A number of contractors that possibly could perform the work were identified by the Contracting Officer using the technique in FAR 10.002(b)(2)(i) and they are listed in the table below. The NAICS code that represents the majority of the work for DASD(SE) is 541330 Engineering Services. All GSA schedules listed below were awarded under the NAICS code 541330.

The following companies were identified by either submitting a capability statement or via search on GSA.

Vendor Name

SIN/GSA

Schedule

CAGE

Business Size

Source

Booz Allen Hamilton Inc.

SIN 871-3/

GS-23F-

0025K

17038

Large

Submitted Capability Statement

Boeing Service Company

0183K

54669

GSA Search

Lockheed

78TG1/3JYS2

Martin Services Inc

0113N

Modern Technology Solutions

0033L

0X988

Raytheon Technical Services

0263K

8Z992

Decisive Analytics

0382K

06CT8

Statement

Engility Corporation

N/A

02NP8

Chitra Productions

GS-10F-

098BA

57QP4

8(a), WOSB, SDB

American Systems Corporation

GS-00F-

089CA

61443

Other than small business

Millennium Engineering & Integration Company

PES (SINs 1,2,3,4 and 6);

OASIS SB

Pools 4, 5B, and 6

1B5V4

Veteran Owned Small Business

After review of all capabilities, the large firms were determined to have the knowledge to do the work required. Chitra Productions provided enough detail to show they could do the work, but Millennium did not provide enough detail to make a final determination. Based upon this review, it was determined that this requirement cannot be specifically set aside for small business. The two small businesses depend heavily on recruiting existing personnel from the current contracts, which could cause senior experts (whom the contract relies on) to lose benefits, which would increase direct labor costs.

http://www.gsaelibrary.gsa.gov/ElibMain/contractorInfo.do?contractNumber=GS-00F-089CA&contractorName=AMERICAN%2BSYSTEMS%2BCORPORATION&executeQuery=NO http://www.gsaelibrary.gsa.gov/ElibMain/contractorInfo.do?contractNumber=GS-00F-089CA&contractorName=AMERICAN%2BSYSTEMS%2BCORPORATION&executeQuery=NO

7. ANY SUPPORTING FACTS: [FAR 8.405-6 (c) (2) (vii)]

Alternate BPA(s) were researched for SE, but the specific technical expertise, TS/SCI eligible clearances, and access to intelligence systems and networks exceed standard classifications. A disruption in services would cause serious injury to DASD(SE)’s program with significant negative impact to matters of national security for the Department of Defense. This drop in service would be avoided by exercising a four month contract extension to DAC. A disruption in services would be costly and unmanageable.

8. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION: [FAR 8.405-6 (c)

(2) (viii)]

Based on the market research that has been completed the solicitation for the new requirement will be unrestricted full and open competition. The government expects there to be adequate competition for this acquisition, as shown by the market research results discussed above.

Requirements have been written to maximize competition. The Contracting Activity plans to release a solicitation by 18 December 2015.

9. TECHNICAL/REQUIREMENTS CERTIFICATION: [FAR 8.405-6 (c) (2) (x)]

I certify that the facts and representation under my cognizance which are included in this justification and which form the basis for this justification are complete and accurate.

Signature:

Robert A. Gold Date DASD(SE), Director, Enterprise Engineering

10. CONTRACTING OFFICER CERTIFICATION: [FAR 8.405-6 (c) (2) (ix)]

I have reviewed this Limited Sources Justification and find it to be accurate and complete to the best of my knowledge and belief.

Michael J. Murtha Date Contracting Officer

11. COMPETITION ADVOCATE: [FAR 8.405-6 (d) (2)]

I have reviewed this Limited Sources Justification and find it to be in accordance with FAR

8.405. I hereby approve this acquisition to be conducted on the basis of other than full and open competition.

David D. Sanders Competition Advocate

Date