Other than Full and Open JA Open Market Over 100K for USMC Lease ReDacted for Posting to FedBizOps.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION > SAT

Sole Source DFISS III USMC TSO/KC lease expense as an ODC

REFERENCES:

· (for SAP under FAR 13.5) In accordance with FAR 13.501(a)(1)(ii), for acquisitions over $100,000.00 using the authority of the test program for commercial items, the contracting agency is required to prepare a sole source (including brand name) justification using the format at FAR 6.303-2, as provided below.

DOCUMENTATION:

(1) Identification of the agency and the contracting activity.

Requiring Activity

Headquarters Marine Corps – Programs and Resources – Technology Services Organization 1500 E. 95th Street

Kansas City, Missouri

64131-3088

Contracting Activity

DFAS Columbus

Contract Services Directorate

Building 21, Room 2B218

3990 E. Broad St.

Columbus, Oh 43213-1152

(2) Nature and/or description of the action being approved.

In accordance with the references indicated above, DFAS is documenting the basis of a sole source acquisition under the authority of the test program for commercial items (Section 4202 of the Clinger-Cohen Act of 1996) or the Services Reform Act of 2003.

The nature of this acquisition is for the current DFAS FINANCIAL INTEGRATED SYSTEMS SERVICES (DFISS) III contractor to lease approximately 50,000 square feet of office space and minor maintenance required to house their employees working under DFISS III Blanket Purchase Agreement (BPA) CallHQ0425-07-A-0002-0008.

TSO-KC is required by the 2005 Base Realignment and Closure (BRAC) law to relocate to Indianapolis, Indiana by September 2011. Therefore, the Government is no longer capable of providing Government furnished space for the DFISS III support contractor to utilize in supporting the TSO-KC. The requiring activity has determined that it is in the best interest of the Government for the contractor to obtained office space for its employees working under DFISS III BPA HQ0425-07-A-0002-0008 and bill this leased space as an other direct cost. The prime contractor is to have a lease agreement in place by October 1, 2010. Prior to a signed agreement, the prime contractor (lessee) must submit terms and conditions, and all costs associated with the lease to the government for approval. Rent costs will be reimbursed to the contractor as costs are incurred.

The cost of minor maintenance shall be included as part of the lease costs. Cost of minor maintenance which excludes construction, alteration, or repairs, as defined in the FAR 22.401, may be reimbursed as lease costs. Such costs shall be pre-approved by the government. All costs will be reimbursed as incurred by the contractor.

Since these other direct costs are not part of the prime contractor’s GSA Schedule 70 contract, this acquisition is in conjunction with the BPA Call being awarded for the DFISS III support services. It has been determined that due to cost efficiencies and to mitigate unacceptable delays in fulfilling the agency’s requirements for contractor support under the DFISS III BPA that the current DFISS III contractor lease approximately 50,000 square feet of office space and minor maintenance required to house their employees working under DFISS III BPA HQ0425-07-A-0002-0008.

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

The prime contractor shall obtain office space (approximately 50,000 square feet) and minor maintenance required to house their employees working under DFISS III BPA Call HQ0425-07-A-0002-0008. Due to Information Technology Security requirements the leased office space must be an accredited, secure facility that meets Marine Corps World Wide Network requirements as defined by Marine Corps Bulletin 5239 “USMC Information Assurance Vulnerability Management (IAVM) Program. This requirement is necessary to enable the contractor to access the Marine Corps World Wide Network to perform the tasks and requirements specified in the Statement of Work for DFISS BPA Call HQ0425-07-A-0002-0008.

In accordance with USMC policy, an accredited, secure facility is a security requirement to protect the MCEN from the spread of malicious logic (viruses and Trojan Horse programs) and to protect Sensitive But Unclassified (SBU) information from being compromised. Contractors performing duties will be provided government furnished workstations and printers.

The current DFISS III contractor has entered into to negotiations to lease office space with GSA or other Governmental agencies prior to October 01, 2010. The lease terms and conditions, all associated costs [i.e. total cost of lease, square footage being leased (approx 50K sq ft), and all included items (i.e. amenities, utilities included, etc)] will be provided to the Government for approval, prior to a signed agreement being initiated. Rent costs will be reimbursed to the contractor as costs are incurred. The current DFISS III contractor understands the minor maintenance which excludes construction, alteration, or repairs, as defined in the FAR 22.401 may be reimbursed as lease costs (if pre-approved by the government).

The lease and minor maintenance cost is estimated at approximately $XXX,XXX.XX with an estimate for facility management fee at $XX,XXX.XX annually. The leased office space must be in place no later than October 1, 2010 and all costs must be pre-approved by the government.

(4) An identification of the statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) authorizes the Department of Defense (DoD) to contract without full and open competition under certain circumstances. For this acquisition, other than full and open competition is permitted per FAR 6.302-1 (a)(ii)(B) - Unacceptable delays in fulfilling the agency's requirements. (See 10 U.S.C. 2304(d)(1)(B).)

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The current DFISS III prime contractor will occupy the leased space for the duration of DFISS III BPA Call HQ0425-07-A-0002-0008 through 27 Jun 2011 once the lease has been approved by the Government. The facility must be secure and accredited by the government for connectivity to the Marine Corps World Wide Network (MCW). TSO-KC will incur unacceptable delays in fulfilling the agency’s requirements if other vendors’ were to compete for office space required for the DFISS III support contractor to house its employees. The anticipated delays would result in substantial duplication of costs to the Government that is not expected to be recovered through competition.

Furthermore, in order for a non-government agency to provide a unique lease of this magnitude, the leased space would need to be secure and accredited by the government or this would cause unacceptable delays in meeting BRAC requirements. TSO-KC would face substantial duplication of costs if the leased office space does not have connectivity to a secure Marine Corps World Wide Network. A competition for this leased office space would not recover that duplication of cost that would be incurred by Government. The current DFISS III support Contractor is very familiar with USMC network policies and regulations and has a clear understanding of how to mitigate the potential delays in acquiring the leased office space required to continue work under DFISS III BPA Call HQ0425-07-A-0002-0008.

Currently USMC has an accredited, secure building leased through GSA with Marine Corps World Wide Network already available. The USMC has a substantial investment in the current LAN infrastructure not including associated engineering and implementation costs. Market research indicates it would cost approximately $X,XXX,XXX.XX to install all existing LAN Server equipment in another building. This sole source justification is submitted for approval for the proposed issuance of an RFQ to the current DFISS III Support Contractor to acquire lease office space and minor maintenance from government agencies authorized to lease to private entities that meet the requirements of the Statement of Work.

It is in the Government’s best interest to leverage the current investment in the USMC network infrastructure already in place at a GSA accredited and Secure building in Kansas City, MO. Competing the office space requirement would result in substantial duplication of cost to the Government that is not expected to be recovered through Competition.

(6) A description of efforts made to ensure that offers are 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.

Synopsis of this requirement is necessary and required and will be accomplished. This Justification and Approval (J&A) will be posted to FedBizOpps within the timeframe required by the FAR and DFARS. Although this requirement is being processed as a sole source acquisition, all potential sources will have visibility of the J&A and be able to submit comments to the Government regarding this sole source acquisition.

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

Based on a Request for Quote (RFQ) issued against the DFISS III BPA’s, it is anticipated the pricing for the current requirement will be fair and reasonable. Through market research, the Government has determined that having the contractor provide a lease and minor maintenance as an other direct cost will result in an order that represents the best value to the Government at the lowest potential cost. The anticipated cost to the Government for the leased office space is considered fair and reasonable based on market research conducted in the Kansas City, MO Market.

Based on Market Research the contracting officer is confident that the anticipated cost of the leased office space and minor maintenance is the best value for the Government.

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

Market research was conducted for the purpose of seeking as many potential sources as possible. Although there are multiple contractors capable of providing leased office space and minor maintenance in Kansas City, Mo, not all of these providers are capable of meeting the USMC information security requirements. Market research has shown that a non-government building’s cost would be substantially more due to adding the required network and security. Also the average square foot rental rate in a commercial facility in KCMO ranges from $XX - $XX per square foot, while a government building offering leased space is considerably less.

(9) Any other facts supporting the use of other than full and open competition, such as:

This is an addition to an effort currently being processed by a DFISS III support Contractor, not a follow-on acquisition. The scope of the existing contract is not being changed with regard to type of effort or required tasks. The only change is the requirement for the current DFISS III support contractor to provide leased office space and minor maintenance for the period of performance of 01 Oct 2010 to 27 Jun 2011 under the current DFISS III BPA Call HQ0425-07-A-0002-0008.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

There is nothing to add to this section that has not already been articulated within this justification document.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

Not Applicable.

CERTIFICATION

Program Management Office Certification:

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

Contracting Officer Certification:

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE