HSOAC FFRDC RAND JA Final Signed 3.23.2022.pdf

FY22-027

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. 3304(a)(3)

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 (DHS), Office of Procurement Operations (OPO), Science and Technology Acquisition Division (S&TAD) on the behalf of the Science and Technology Directorate (S&T) proposes to enter a contract for the renewal of the Homeland Security Operational Analysis Center (HSOAC) Federally Funded Research Development Center (FFRDC) with the RAND Corporation (RAND) based on the rationale provided in this Justification for Other Than Full and Open Competition.

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

The Department has a continued need for studies and analysis services as provided from the Federally Funded Research and Development Center (FFRDC), Homeland Security Operational Analysis Center (HSOAC). For the past five years, HSOAC has provided mission level technical and integration expertise to DHS leadership and managers that is normally not available within the Government.

HSOAC provides special analytical expertise to Department program managers to transform program-level analysis requirements and performance metrics, constrained by cost and schedule, into a preferred documented configuration of sustainable deliverables.

(a) Nature of action: Under the authority implemented by FAR Subpart 6.302-3, OPO/S&TAD proposes to issue a sole-source five-year Indefinite Delivery Indefinite Quantity (IDIQ) Contract to RAND for the continued operation and management of the HSOAC FFRDC.

(b) Name and Address of the contractor:

The RAND Corporation 1776 Main Street Santa Monica, CA 90401-3208

(c) Contract type: Indefinite Delivery Indefinite Quantity (IDIQ), the Task Orders will be issued as Cost- Plus-Fixed-Fee (CPFF).

(d) Ceiling Value: The IDIQ will guarantee a minimum of $25,000 with a maximum ceiling value of $495,000,000.

(e) Type of funding: N/A

(f) Year of funding: N/A

(g) Solicitation number: 70RSAT22R00000006

(h) Background information about the requirement:

Under the authority of 6 U.S.C. 185, DHS established the HSOAC FFRDC through the competitive award of a five-year IDIQ contract with RAND in September 2016. The establishment of HSOAC enabled the transition of organizationally dispersed analytical research and development efforts provided by other FFRDCs performing for the Department (i.e., DoD, Treasury, FAA) to consolidate under a single DHS sponsored FFRDC, with its sole focus being on supporting the objective of the Department.

In 2020, in accordance with FAR subpart 35.017-4(a), S&T conducted a comprehensive review of the use and need for the HSOAC. The results of the review were submitted to the Senior Official performing the duties of the Under Secretary for Science and Technology for review and approval in accordance with FAR 35.017-4(b). The Senior Official performing the duties of the Under Secretary for Science and Technology approved the continuation of the HSOAC FFRDC sponsorship with RAND on May 04, 2021.

3. Description of Supplies/Services.

The HSOAC, with RAND as its operator, shall continue to provide specialized, independent, and objective analyses expertise and advise in core areas important to the Department in support of policy development, decision making, alternative approaches, and new ideas on issues of significance. The FFRDC operator shall perform work within focus areas to include operational; organizational;

research and development; and Regulatory, Doctrine, and Policy Studies.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

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

3304(a)(3) as implemented by FAR 6.302-3(a)(2)(ii) “To establish or maintain an essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally funded research and development center.”

5. Identification of Exception to the Buy American Statute.

The Buy American Statute is not applicable because this requirement is for Research and Development (R&D).

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

(a) Rationale for the authority cited: The authority cited above is used to justify the renewal and continuation of the HSOAC FFRDC contract with the RAND Corp., a non-profit entity. The Homeland Security Act of 2002 (Section 305 of PL 107-296, as codified in 6 U.S.C. 185, the “Act”) authorizes the Secretary, acting through the Under Secretary for Science and Technology, to establish one or more federally funded research and development centers to provide independent analysis of homeland security issues, or to carry out other responsibilities under the Act.

(b) Events leading to use of other than full and open competition: S&T’s comprehensive review evaluated the performance and cost-effectiveness of HSOAC, including an analysis of alternative sources to meet the Department’s needs. The report concludes that the specific services provided by HSOAC, with RAND as its operator, remain a capability that the Department needs. RAND has performed well in managing the HSOAC FFRDC and has maintained a consistent, reliable, and competitive cost to the Department. As an operator of HSOAC, RAND has established long-term relationships, acquired, and retained extensive institutional knowledge that is critical to HSAOC’s capabilities, and cannot be easily replaced. The long-term relationships between the Government and RAND, as the operator, provide continuity that attracts high-quality personnel to the HSOAC FFRDC. This relationship encourages HSOAC to maintain currency in its field(s) of expertise; maintain its objectivity and independence;

preserve its familiarity with the Department’s needs and provide a quick response capability. This all aligns to, and is consistent with, the guidance found in FAR 35.017 that “Long-term relationships between the Government and FFRDCs are encouraged in order to provide the continuity that will attract high-quality personnel to the FFRDC.

(c) Alternatives considered: The comprehensive review considered several other alternatives such as the use of Federal employees; competitive procurements; University-affiliated organizations; other Studies and Analysis Center (SAC) FFRDCs; and a new HSOAC Operator. However, these alternatives were not capable of providing DHS with the necessary specialized services to meet long term DHS needs as established by the HSOAC with RAND as the operator. HSOAC’s flexible organizational structure gives it greater ability to deploy diverse resources to address challenges and opportunities at short notice.

Additionally, since RAND is not underperforming, and there is no expectation of significant costs savings if a new operator is selected, RAND remains the best choice to continue as the FFRDC operator.

(d) Impact to the mission that would result if the J&A is not approved: If the J&A is not approved, the unique, specialized, and essential operational and analytical research and development capabilities provided by the RAND Corporation would cease and severely impact the DHS mission. The DHS mission will be impacted by adverse effects to high-quality objectives research analysis, actionable recommendations, and candid advice services that are delivered through full studies, rapid-response work, and embedded analysis which are work across nine focus area would cease, causing operational and analytical research to be delayed. This would specifically impact the Department’s ability to achieve the aspects of its mission that depend on these services to deliver effective mission capability.

(e) Rationale for use of the nonavailability exception to the Buy American statute: The exception to the Buy American statute is not applicable to this J&A since it does not include the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2).

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

This J&A will also be posted in accordance with FAR 6.305.

8. Description of Market Research.

In accordance with FAR Part 10 and Homeland Security Acquisition Manual (HSAM) 3010, DHS S&T performed extensive market research was conducted in June 2021 for this requirement. Based on the results of the market research, there is no reasonable expectation that competition would yield a meaningful improvement in technical or cost performance than what has been provided by RAND as the operator of the HSOAC FFRDC. Not only does HSOAC continue to meet the special long-term studies and analysis capabilities, with RAND as the operation of the FFRDC, HSOAC retains a tremendous amount of institutional knowledge that forms the basis for the development of new technical capabilities to refine operational processes within DHS.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

N/A

10. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

To date, no other sources have written to express an interest in the acquisition. However, pursuant to FAR Part 6.305, DHS will post this requirement on sam.gov

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.

As with previous reviews in accordance with FAR 35.017-4(a), a comprehensive review will be conducted by the Department in FY27 to determine if the relationship with RAND continues to be a benefit to the Government.

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.

SHELBY BUFORD JR Digitally signed by SHELBY BUFORD JR Date: 2022.03.22 08:17:52 -04'00'

Shelby Buford, Jr. Date Contracting Officer

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.

ROBERT E BELL Digitally signed by ROBERT E BELL Date: 2022.03.22 09:33:05 -04'00'

Robert Bell Date Technical Representative

APPROVAL:

Antoinette Clay Date Procuring Activity Advocate for Competition Office of Procurement Operations

Digitally signed by VICTORIA D SHORT Date: 2022.03.22 16:14:39 -04'00'

Victoria Short Date Head of Contracting Activity Office of Procurement Operations

Paul R. Courtney Date Chief Procurement Officer

VICTORIA D SHORT