HSCG84-17-F-BB5107_J&A_.pdf

Limited Source Justification Multiple Award Schedule Program

In The Interest of Economy and Efficiency, The New Work is a Logical Follow-On

FAR S ubpa1't 8.4

This acquisition is conducted under the authority of Section 201 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.501) Multiple Award Schedule Program (Federal Acquisition Regulation (FAR) Subpart 8.4) and is supported by the following facts and rationale required under FAR 8.405-6(a)(l)(i)(C):

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Shore Infrastructure Logistics Center (SILC) proposes to enter into a task order under a Federal Supply Schedule Contract on a limited sources basis, ·

2. Nature and/or Description of the Action Being Approved.

The USCG SILC has a requirement on a limited source basis to continue the development of the Asset Line Integration Initiative (synonymously known as "Modernization Initiative") to assist the Shore Infrastructure Logistics. Center (SILC) with full implementation of the Coast Guard Mission Support Business Model. The initial effort was awarded as Task Order HSCG84-13-F BB5047 to Jacob's Engineering Group on September 25, 2013 in the amount of $2,263,847,20.

The estimated cost of the follow-on work is as follows:

Base Year (Phase IV):

Option Item 1:

Total:

It is anticipated to post this J&A and follow proper guidelines IAW FAR 8.405-6 Limited Sources. The justification will be made publicly 'available within 14 days after contract award. An award is anticipated to be made by early October 2016. Performance is anticipated to begin on or before November 11, 2016, Proposed Co.ntractor: Jacobs Engineering Group, Inc. (GS-OOF-0025M) Contractor Address: 1100 N. Glebe Road, Suite 500, Arlington, VA 22201 Point of Contact: Eric Dillinger, Vice President, (817) 735-6794

3. Description of Supplies/Services, The purpose of this effort is to support the United States Coast Guard Shore Infrastructure Logistics Center (SILC) with the Modernization Initiative to fully implement the Coast Guard Mission Support Business Model of 5 Product Lines (composed of 14 Asset Lines) and 6 Shared Services Divisions. The initial order was to fully implement 4 Product Line:;i (composed of 12 Asset Lines). The scope of work specifically supports the Asset Line Managers and Product Line Managers that were stood up in the initial contract as follow: ·

a. Development of a Management Review process. The Management Review is the final step in the Mission Support Business Model whereby the SILC evaluates the effectiveness and efficiency of the Asset Lines, Product Lines and the integrated business processes that were developed during the initial contract period. Examples include a Management Effectiveness Visit (MEV) and Facilities Engineering Effectiveness Visit

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(FEEV) program, and production of the Annual Report to reflect updated measures and strategies.

b. Integrating legacy work practices into Mission Support Business Model. The original contract focused on the integration (stand up) of Asset Lilles. At this juncture, the SILC needs to· re-engineer the business processes of regional field offices into the Asset Line/Product Line processes that were developed under the original contract. Examples include re-engineering the design and construction project processes to the asset management and financial processes of the Asset Lines .

. c. · Strategic Planning. The SILC Strategic Plan remains dynamic due to factors external to the SILC including personnel reductions, targeted budget reductions, software capabilities and threats, and an overhaul of Coast Guard financial systems. Finding and documenting a strategy that coordinates the SILC response to all of these complex and interrelated areas requires a significant revisiting of the Strategic Plan with a contractor who possess the insights of the past 30 months to inch:ide the initial contract period, and the projected future state of each of these areas.

d. Asset Line Support. During Phase IV Asset Line support, the following products and activities will be accomplished as a logical follow-on to Phase I (Phase II and III were also a follow on tasks of Phase I) work in support of continued Asset Line maturity:

The Contractor shall further support ALMs through tactical assistance as a force multiplier by analyzing data, recommending industry best practices and drafting required documentation for the designated Asset Lines.

The asset line component also i).lcludes updating the portfolio reports, cost profiles and asset investment strategies for the six asset lines involved in the Phase I contract.

4. Identification oftbe Authority and Supporting Rationale.

This acquisition is being conducted under the authority of the Multiple Award Schedule Program in accordance with FAR 8.405-6, Limiting Sources. In accordance with FAR 8.405-6(a)(l)(i)(C), the circumstance restricting competitiqn for this acquisition is that the work is a logical follow-on to an original Federal Supply Schedule acquisition. The original order was not issued under sole source or limited-sources procedures, but was awarded after a trade-off analysis of three competitive quotes. The statement of work in the original order stated that there would be potential for logical follow-on work to the incumbent contractor if their performance was acceptable during the period of performance of the task order.

Jacobs Engineering Group is the only consultant company positioned to provide a seamless execution of this task order because of their involvenieht during Phase I, task order HSCG84-l 3- F-BB5047, and under the current order HSCG84-15-F-BB5067 where Jacobs Engineering has developed the strategy, technical orders and strategi.c requirements for the Coast Guard's enterprise Modernization Initiative effort. Jacobs has developed a unique understanding of the Coast Guard management strategy, financial policies, and supporting software capabilities including the computerized maintenance management system (CMMS), as it relates to all aspects of asset management. These are highly integrated (intertwined, interrelated) subsystems which typically require a decade or more of' government management experience to comprehend.

Jacobs Engineering has spent hundreds of man-hours to understand the data and is developing & documenting methods to produce repeatable asset performance measures, supporting business processes, initial and recurring training materials, documenting information systems

Page2 of5 requirements, and benchmarking against industry and international standards. Any .other firm would face a steep learning curve in order to continue the strategic dialogue and project momentum. By necessity, this learning curve would require extensive engagement of Coast Guard experts to bring the new vendor up to speed. Moreover, this would result in an inordinate amount of rework and expose the civil engineering program to unacceptable risk of poor performance. Because this new task order is such a logical follow-on to the initial task order, the primary risk for a different contractor would be learning the new strategy, learning the Coast Guard software capabilities and gaps, the SILC Strategic Plan and undedying philosophy, Technical order Format and performance measures.

Jacobs Engineering has also developed a detailed understanding of the U.S. Coast Guard Civil Engineering Program's new organizational structure and customer operating constraints. The daily interactions· with the Coast Guard Shore Infrastructure Logistics Center and Operational partners are essential to successfully completing this follow-on Modernization Initiative. Any other contractor would be required to duplicate advances already achieved, expend resources to understand the details of the newly devel<~ped SILC Strategic Plan and underlying philosophy and strategy, establish the same working contacts which will further burden Coast Guard personnel, duplicate developmental work on required policy and standards, and expend additional resources to perform appropriate collaboration. This "catch up'' effort would require additional work by all parties resulting in delayed progress, additional cost, complicated coordination, and ultimately put

·the Asset Line Integration effort for the Coast Guard Shore Infrastructure Logistics Center at greater risk afoot achieving required missfon support goals.

5. Determination by the Ordering Activity Contracting Officer that the Anticipated Order Represents the Best Value Consistent with FAR 8.404( d).

A price evaluation, through comparison of competitive quotes with the independent government estimate, was conducted on the initial award to determine if the total price represented the best value to the government. Jacob's quote for the initial award was determined to be the best overall value and price was considered fair and reasonable and in the best interest of the government.

Jacob's initial quote did offer a price discount from the GSA rates and there is an expectation that the discount rates will be extended to the new Task Order.' The Contracting Officer anticipates that issuing the proposed follow-on task order to Jacobs Engineering, pursuant to their Federal Supply Schedule Contract, represents the best value and will result in the lowest overall cost alternative, considering price and administrative costs, to meet the Government's needs. This order will be placed 1n accordance with FAR 8.404 - Use of Federal Supply Schedules. The General Services Administration (GSA) has already negotiated fair and reasonable pricing. The contracting services provided by GSA assist other government agencies by reducing the amount of time and effort required, since they have competed, evaluated, and awarded contracts as governed by the Federal Acquisition Regulations and have also deemed the prices fair and reasonable at the time of award. Additionally, Jacobs Engineering will be requested to provide price reductions on their published GSA price schedule in accordance with FAR 8.405-4. Prior to issuance of the task order, the ordering activity will consider the level of effort and the mix of labor proposed to perform the specific task being ordered in determining reasonableness of the total price.

6. A Description of the Market Research Conducted Among Schedule Holders and the Results or a Statement of the Reason Market Research was not Conducted.

The Task Order will be issued on a limited sources basis in the interest of economy and efficiency as it is a logical follow-on to an order previously solicited under GSA. A disruption in the service, by changing contractors, would require additional work by all parties and increase costs resulting in delayed progress, complicated coordination, and uHimately put the Modernization Initiative

Page 3 ofS effort for the Coast Guard Shore Infrastructure Logistics Center at greater risk of not achieving required· mission support goals within the appropriate time frame. In accordance with FAR 8.404(d), GSA has determined the· prices of the services offered at hourly rates to be fair and reasonable. The Government has checked Jacobs Engineering's hourly rates listed on their GSA contract (GS-OOF-002SM) against those of the other offerors from the previous ·competition and Jacob's rates still compare favorably. ·

7. Any Other Facts Supporting the Justification

NIA

8. A Statement of Actions, if any, the Agency May Take to Remove or Overcome Any Barriers that Preclude the Agency from meeting the requirements of FAR 8.405-1 and 8.405-2 Before any Subsequent Acquisition for the Supplies or Services is Made.

The Modernization Initiative is a multi-year effort that evolves. Put another way, it is understood· tlie work would likely take more than a y((ar to complete, however deliverables are not well enough understood to articulate and quantify them beyond a one year horizon. The SILC has been learning as it develops the Asset Lines, business practices, integrate.cl information systems solutions, and policies of the Modernization Initiative.

The goal at the end of phase 3 was to have all work associated with this contract completed. We · did not reach the goal for several reasons on the current task order:

• After implementation of testing of deliverables received as a result of Phase 3, it became

· apparent that additional work was necessary to allow the final goal associated with the asset line integration. ·

• Financial modernization of the Coast Guard. The financial modernization was scheduled to be completed in FY16, however, it has been delayed to FY18. As a resltlt, several critical decisions that were expected to be made have been delayed. '.Those decisions (basic accounting structure, what information can be tracked in the financial system) directly affect the work that could complete Asset Line Integration.

e Unforeseen complexity. The very nature of modernizing the organization and business

· practices leads to unforeseen complications. A simple example includes: under the mission support business model, the product line manager should control all funds supporting the produ.ct line; however, the Coast Guard information technology systems dci not provide the manager with sufficient information to make good decisions, thus a hybrid funding model had to be developed. Nearly· every business practice examination has uncovered added complexity and inter-relationships that have take considerable time to resolve.

With this in U?-ind, the Modernization Initiative has reached a point where much of the work is complete, and the level of contract support is diminishing. Yet, the Modernization Initiative needs to be ·completed. This logical follow on task js a significantly smaller scope than the original order. It is forecast this trend of a smaller scope would continue, if additional support is tequired beyond this specific procurement. The SILC will transition from development of an entirely new program (Modernization Initiative) to one of sustaining and updating.

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9. Contrncting Officer's Certification.

In accordance with FAR 8.405-6(c)(2)(ix), I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my lmowledge and belief.

1-- 19 - ciD ) to Date

10. Technical/Requirements Personnel Certification.

I certify this requirement meets the Government's minimum need and that the supporting data, tion, is complete and accurate.

0r:t> Cit)~ M6 Teclmical Representative Date

11. Legal Review and Concurrence:

I have reviewed this limited source justification and deem it legally sufficient.

APPROVAL:

SILC Command Procuring Activity Competition Advocate (CPACA)

Date/ f

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