Final_Other_Than_Full_and_Open_Competition_Agile_signed.pdf

J&A Other than Full and Open Competition

J&A No.: FY15-0443

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Justification &Approval (J&A)

Justification For Other Than Full And Open Competition

41 U.S.C. 3304

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the

Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR

6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security, Office of Procurement Operations, proposes to enter into a contract on a basis other than full and open competition.

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

(a) Type of action: Firm Fixed price contract

(b) Amount: $364,000

(c) Type of funding: Working Capital Funds

(d) Year of funding: FY 2015

(e) Other brief descriptive words and phrases:

DHS intends to procure on a sole source basis research, targeted, tactical analysis and the resulting deliverables to be provided by a Subject Matter Expert (SME) from a Non-

Profit Organization. The Non-Profit Organization shall possess government Information

Technology (IT) experience and provide a proven, repeatable, measurable and standardized approach to accelerate Federal IT Acquisition Reform Act (FITARA) goals and apply an agile approach to reform the DHS Acquisition Lifecycle Framework (ALF) process. The proposed contractor is:

Interoperability ClearingHouse (ICH)

904 Clifton Drive

Alexandria VA 22308

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3. Description of Supplies/Services.

DHS seeks research, a targeted, tactical analysis and deliverables to be provided by a Subject

Matter Expert (SME) from a Non-Profit Organization with a proven, repeatable, measurable and standardized approach to accelerate FITARA goals and apply an agile approach to reform the ALF process. DHS requires a Non-Profit organization with a broad representation of government IT experience as well as specific expertise in the area of agile and FITARA.

The research tasks and deliverables associated with this requirement will ensure DHS receives a standardized suite of agile IT acquisition methods and a high level of process assurance to meet the IT acquisition needs of the department as well as comply with

FITARA. The proposed solution will result in a clearly defined framework for DHS to implement so the Department can determine the best course of action to change its business processes and to train its acquisition community. The total estimated cost is $364,000 for a 6 month period of performance.

Period Unit Price Total

Base Period 6 months $364,000 $364,000

Total $364,000

4. Identification of statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C.

3304(a)(1) pursuant to FAR 6.302-1, Only on responsible source and no other supplies or services will satisfy agency requirements.

5. Demonstration that the nature of the acquisition require use of the authority cited.

The Department of Homeland Security (DHS), Office of the Chief Information Officer

(OCIO) Enterprise Business Management Office (EBMO) requires a strategy to accelerate agency implementation of FITARA prior to the December 31, 2015 deadline. Developing a framework for this strategy requires subject matter expertise from a neutral, Non-Profit organization with a demonstrated process that can be immediately implemented upon award and executed in a short timeframe.

Currently, the ALF “Need” phase lacks consistency and does not have a clearly-defined initiation process across the DHS components. This is further exacerbated by the different stages of program readiness and complexities of the DHS acquisition environment. These shortcomings have resulted in acquisition programs that lacked department approved baselines that establish a program’s cost, schedule and performance goals and results in spending dollars in advance of program approval which leads to waste and an inefficient and inconsistent assessment of the various options available to DHS to fill the capability gap. To meet the needs of the Department, DHS’s key reform objectives are to increase understanding of agile principles, methods and benefits among acquisition professionals and create training approaches around agile development in the ALF.

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DHS OCIO seeks an independent Non-Profit Organization with a broad representation of government IT expertise, and expert level knowledge in agile and FITARA with no current or future ties to DHS to conduct an analysis of its acquisition lifecycle framework need process. The rationale for pursuing independent subject matter expertise is the requirement for a completely neutral assessment and perspective resulting from limited exposure to the

DHS acquisition process. The resulting contract will include Organizational Conflict of

Interest Clauses which would preclude the vendor from future contracting opportunities based on the information obtained during the analysis. Further, the results of the analysis will shape the future of DHS’s acquisition process, how acquisition decisions are made, and influence future training for the DHS Acquisition community.

ICH is an independent, nonprofit organization with subject matter expertise in government IT and both Agile and FITARA. ICH’s Acquisition Assurance Method (AAM) is an established methodology for analyzing IT and acquisition processes that is ready to be applied within an immediate compressed timeframe. While another firm may be able to do similar work, ICH has the capability to provide analysis and recommendations from an unbiased perspective in a required timeframe using its unique analytical framework and processes that currently exist. The readiness of their analytical approach precludes the need for any significant ramp up activities and will allow immediate support and the ability to provide deliverables to meet the FITARA deadlines approaching on December 31, 2015.

Extensive market research was conducted. Agency DWACs, FFRDCs and GSA Schedules were considered. After a review of the market information to include GSA MOBIS, Schedule

70, DHS’s FFRDCs and EAGLE II, it has been determined that the technical requirements for an independent subject matter expert in the areas of agile and FITARA and the unique exclusions that will result indicate that the best course of action is to pursue a sole source under FAR 6.302-3(a)(2)(ii) to engage the services of a technical subject matter expert to perform the analysis and assessment.

If this J&A is not approved, DHS OCIO would likely go to the FFRDCs as a neutral party is required. FFRDCs are not the best fit as they are intended for long term research efforts and have a cost type structure. At $364,000 with a 6 month period of performance, this study is targeted, tactical and has a low dollar value. Based on the nature of the work, which can be easily divided into discrete deliverables, it has been determined that contract type is firm fixed price. The FFRDCs operate on a cost type structure. The concern is that the cost type structure along with the associated 4% fee and additional 2% administrative fee on top of the project cost is that the overall costs are increased without additional benefits to the government. Cost type is more appropriate when the objectives are not firm. This requirement has firm deliverables and delivery dates. The cost type contract also disincentivizes the contractor to perform the discrete tasks in the timeframe required. OCIO wants to ensure timely delivery. The impact of using EAGLE or GSA Schedule is the inability to attract interested vendors due to the Organizational Conflict of Interest exclusions and creating unacceptable delays in program implementation. Substantiating this concern is that a special notice was published on FBO which resulted in no responses.

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6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

DHS intends to make this justification publically available pursuant to FAR 6.305 on

FedBizOpps within 14 days after award. A special notice was also issued on August 28, 2015.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

This is a new requirement. The contracting officer will use commercial pricelists to determine that the anticipated price(s) will be fair and reasonable.

8. Description of market research.

Extensive market research was conducted in support of this requirement. While there are many options for vendors with expertise in agile, such as the DHS EAGLE II vehicle, functional category 3, IV&V, GSA MOBIS and Schedule 70 and DHS FFRDCs, DHS OCIO seeks an independent expert with no current or future ties to DHS to conduct an analysis of its acquisition lifecycle management needs process. The rationale for pursuing an independent expert is that they would be completely neutral and have limited exposure to the

DHS acquisition process. A primary concern for this procurement is that conducting the analysis would preclude the vendor from future contracting opportunities based on the information obtained during the analysis. The implementation framework resulting from the vendor’s analysis may have future impacts to both DHS’s acquisition process as well as the acquisition decision making process.

9. Any other facts supporting the use of other than full and open competition.

None

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

A presolicitation notice was issued in the FedBizOpps on August 28, 2015 requesting that parties express their interest in writing to the contracting officer. No vendors have expressed an interest.

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 supplies or services required.

DHS OCIO/EBMO only intends to engage this subject matter expert for a one time analysis.

No future analyses of this type are planned. It is anticipated that the results of this analysis will improve the overall Acquisition process for DHS.

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12. Contracting Officer’s Certification. 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 knowledge and belief.

______________________________________ __10/8/15_________

Carrie Herndon, Contracting Officer Date

13. Technical/Requirements Personnel Certification. I certify this requirement meets the

Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

William Pratt, Program Manager

Technical Monitor

Date

APPROVAL:

Carrie Herndon, Contracting Officer Date