A04_Limited_Sources_Justification.pdf

For Official Use Only

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

ACQUISITION DIRECTORATE

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 Under Secretary of Defense, Acquisition, Technology, and Logistics Assistant Secretary of Defense for Acquisition 1155 Defense Pentagon Washington, DC 20301-1155

Contracting Activity:

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

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

This justification approves a bridge sole source award to Modern Technology Solutions Inc.

(MTSI) for a three month period to provide sufficient time for the Contracting Activity to compete the award of new Indefinite Delivery / Indefinite Quantity (IDIQ) contracts that will include the future support of the Office of the Assistant Secretary of Defense for Acquisition as the first task orders. The Department of the Interior awarded the current task order, N09PD10100, against GSA Schedule GS-23F-0033L on 25 February 2009. This order expires on 24 August 2014 without any further possibility for an extension. The order was awarded competitively. A bridge sole source contract will support mission critical tasks since a competitive procurement cannot be completed in time to meet the required date of 24 August 2014.

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

The Office of the Assistant Secretary of Defense for Acquisition is responsible for technical and programmatic evaluation of the largest, most expensive weapons system programs in the Department of Defense (DoD). The Assistant Secretary of Defense for Acquisition advises the senior DoD official for all acquisition matters in the Department and is a key participant in the annual program review process to make strategic investment decisions for the Department. The Assistant Secretary of Defense for Acquisition evaluates and provides recommendations for

Limited Sources Justification MTSI

For Official Use Only 2 weapons system programs and develops program investment decisions for DoD acquisition programs at all levels of classification up to TS/SCI SAP. The Office of the Assistant Secretary of Defense for Acquisition provides critical and rapid-turn around DoD program information and reports in response to Congressional requests and statutes. Continuity of services is of the utmost concern as a disruption to the existing service in the Office of the Assistant Secretary of Defense for Acquisition could jeopardize matters of national security for the DoD and jeopardize the Department’s ability to comply with statute. This is a particularly critical period of performance due to the timing of the Department’s Fiscal Year 2016 Planning, Programming, and Budgeting cycle in the months of August through November 2014. The estimated dollar value for this bridge is: $530,652.80

MTSI currently supports the development of strategies, technical concepts and policy for areas such as major DoD systems acquisition, system of systems engineering, and unmanned aircraft systems acquisition and operations. Other areas of support include business and financial management for multiple Program Elements necessary to fund critical DoD studies, analysis, and operations, and support to prepare responses for Congressional reports and inquiries.

MTSI provides critical expertise in airspace integration of DoD Unmanned Aircraft Systems (UAS) in order to comply with Federal Aviation Agency requirements and enable continued world-wide operations of DoD unmanned aircraft in support of Combatant Command missions.

MTSI supports the development of the Department’s UAS Roadmap to guide DoD senior decision makers on UAS portfolio and capability choices to meet the current and projected threat. MTSI provides support to answer Congressional reporting requirements and inquiries directed by statute and required for the authorization and appropriation of funding for DoD weapons systems development and operations. MTSI provides technical and programmatic analysis of DoD weapons systems, including capabilities, acquisition, funding and operations.

MTSI provides critical expertise, program analysis, and issue resolution for DoD weapons systems to achieve and maintain robust and affordable warfighter capabilities in current and future DoD operations.

4. AUTHORITY AND SUPPORTING RATIONALE AND A DEMONSTRATION OF

THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE THE

REQUIRED SERVICE: [FAR 8.405-6 (c) (2) (iv)]

In accordance with FAR 8.405-6(a)(1)(i)(C), in the interest of economy and efficiency, MTSI is the logical follow-on contractor to support the operations of the Office of the Secretary of Defense for Acquisition.

The work included in this LSJ will be a part of the requirements for an enterprise IDIQ contract.

The acquisition planning for the new IDIQ contracts initially estimated an award date of 25 August 2014 to ensure the first task orders would encompass this work. However, an unplanned schedule delay occurred when it was discovered through market research some of the work being consolidated under the IDIQ was currently being performed by small business. The presence of small business therefore required a Bundling Justification. The drafting of this document is a lengthy process with many stakeholders needing to develop appropriate support documentation and requiring approval signatures up to the Senior Procurement Executive / Head of Agency level. Once approval of the Bundling Justification was given, an “Intent to Bundle” document was posted for 30 days before the solicitation was released. This unfoseen requirement caused

For Official Use Only 3 the solicitation to be released on 03 July 2014, proposals were received on 04 August 2014. Due to the complexity of the IDIQ source selection and award process, the best-case award date is 25 September 2014. As a result, the two seed task orders, that included this work currently being completed by MTSI, were also delayed and now have a Period of Performance start date of 25 November 2014. This date is indicated in the IDIQ solicitation and is necessary to give the offerors time to properly prepare to have staffing available for the task order and includes a risk factor in case the IDIQ awards are delayed further. The one month of remaining contract performance and the three month duration of the bridge contract provides sufficient time to properly conduct the IDIQ and seed task order competition that will result in competitively awarded IDIQs and a firm fixed-price task orders for the Office of the Assistant Secretary of Defense for Acquisition support.

MTSI has supported the Office of the Secretary of Defense for Acquisition since 2009. Stability and continuity of services are required until the competition of the new IDIQs provides a new suitable awardee. A break in service would cause serious injury to the Office of the Secretary of Defense for Acquisition with significant negative impact to matters of national security for the Department of Defense. Specifically, allowing a lapse would negatively affect the support MTSI is providing in Section 3: Description of Supplies/Services.

In the interest of economy and efficiency, MTSI should be the follow-on contractor because it is familiar with the Office of the Assistant Secretary of Defense for Acquisition operations that are conducted on a daily basis, has the required staff and has the proper security clearances to perform the work. To competitively award the bridge to a new contractor would result in unacceptable delays and mission risk due to issues in finding personnel with the specific technical expertise and TS/SCI eligible clearances. Given the short duration of the bridge, a sole source award to the incumbent MTSI is the most reasonable approach to prevent a disruption in service and ensure program continuity.

It is neither economic nor efficient to conduct a full competitive solicitation for only a three-month period of performance only to have another new competition to move the services onto the planned IDIQ task orders such a short time after.

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

The Contracting Officer will ensure that the final negotiated price for this bridge order is fair and reasonable in accordance with the techniques listed under FAR 15.404-1 and the DPAP Deviation 214-O0011 dated March 13, 2014.

6. DESCRIPTION OF MARKET RESEARCH: [FAR 8.405-6 (c) (2) (vi)]

The Government posted a Sources Sought Notice on FedBizOpps with 42 responses in March 2014 and is currently competing the multiple award IDIQs. These IDIQs will be for Office of the Under Secretary of Defense (Acquisition, Technology & Logistics) (OUSD(AT&L). The NAICS codes identified are 541990 “All Other Professional, Scientific, and Technical Services” and 541611 “Administrative Management and General Management Consulting Services”. The market research supported setting aside a portion of the PWS for small business.

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

For Official Use Only 4

The risk to the Government in terms of disruption of support in both the short- and long-terms, is too high to transition support to another contractor for such a limited time. The Government would incur a substantial duplication of costs due to multiple transitions from one contractor to the next. The new contractor would potentially only be on board for three months. As such, there would be a transition from the incumbent, MTSI, to the new contractor, and a transition from the new contractor to the successful contractor of the follow-on acquisition (i.e. the first task orders of the IDIQ). This duplication of costs would be mitigated by awarding a three month bridge to MTSI as there would only be one transition period from MTSI to the successful offeror for the first Task Order of the IDIQs for the Office of the Assistant Secretary of Defense for Acquisition.

Furthermore, the administrative challenges involving hiring, building passes and security clearances (up to TS/SCI) simply cannot be done in this timeframe, thus preventing a new contractor from working, which will cause a disruption in critical services. Managing two contractors during the recompete of the work would be inefficient, costly, and unmanageable.

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

(2) (viii)]

The contracting activity is in the process of competing a solicitation that will be awarded competitively and include the Office of the Assistant Secretary of Defense for Acquisition’s task order as the first task orders for these new IDIQs.

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

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

Signature:

Program Office Date

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.

Signature:

D. Wes Bennett Date Contracting Officer