I_4 RFQ 8436 SF 1014 - JEFO_Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1014 - JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

Prescribed by Treasury: DTAP 1016.505 Tracking No.

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the User Network Services (UNS) Enterprise Field Operations (EFO) Office. The contracting activity is Office of Procurement - Information Technology Acquisition

(OITA).

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

The purpose of this justification is to obtain approval to award a 6-month bridge task order with Epsilon Inc. for the continuing services of providing newly hired employees with technical service for Desktop hardware and software support. The period of performance will be for 9/30/24 – 3/29/25. The needs of this requirement are listed in the PWS entitled “New Hire Short Term Support”.

2.b Name of the vendor: Epsilon Inc.

2.c Requisition No.: 5000196848 2.d Bridge contract: ☒ Yes ☐ No 2.e Brand name: ☐ Yes ☒ No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition is to provide technical support to meet the demand for newly hired employees due to the IRA initiative. This contract will provide deskside support at all IRS locations, installing the most current operating system and other standardized applications on laptops and desktops for all new hires coming on board at the IRS. The Contractors shall be responsible for ensuring network availability is active for all new hires to access the IRS enterprise network at any specified IRS location. All of the IRS locations may require Deskside and Telecom Services under this task order.

3.b Includes IT: ☒ Yes ☐ No NAICS 541519 and PSC DA01 3.c IGCE/Estimated dollar value:

The IGCE is for 6 months. Refer to the IGCE for additional details.

4.a Identification of the exception to fair opportunity being used:

☒ FAR 16.505(b)(2)(i)(A) – The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

☐ FAR 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

☐ FAR 16.505(b)(2)(i)(C) – The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

☐ FAR 16.505(b)(2)(i)(D) – It is necessary to place an order to satisfy a minimum guarantee.

☐ FAR 16.505(b)(2)(i)(E) – For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

☐ FAR 16.505(a)(4) – The requirement is for an item peculiar to one manufacturer.

4.b Supporting rationale:

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

The Inflation Reduction Act (IRA) was signed into law in August 2022, giving the IRS a historic opportunity to transform tax administration and services provided to taxpayers and tax professionals. The funding provided by IRA will improve how IRS serves the public and tax professionals. The long-term funding will enable IRS to update technology capabilities and invest in our employees with new tools, skills and capabilities, and to effectively enforce the tax laws.

IRA funding is being used to fund the New Hire Workstation Support requirement.

Epsilon LLC under, task order number 2032H5-23-F-00225, supports this requirement by assisting with the increase in hiring at the Internal Revenue Service by setting up workstations and troubleshooting issues. Under this task order, FAR 52.217-8 Option to Extend Services has been fully exercised and is set to expire on September 30, 2024.

It is imperative that Enterprise Field Operations have a Contractor to provide additional IT technical resources to assist with the on-boarding of newly hired employees by installing and configuring new workstations, addressing any incident tickets, and providing end user training during orientation. This initiative directly impacts the IRS’ ability to manage plans under the Inflation Reduction Act (IRA) directive for expanding the workforce of the IRS. Any potential break in service would impact Enterprise Field Operation’s ability to provide timely delivery of end user equipment while onboarding employees at any of the IRS PODs across the country. These Contractor resources are vital to continuing to support all of the IRS’ Business Unit organizations hiring plans under IRA.

The requirement for New Hire Workstation Support, was planned to be recompeted under the User Network Services II (UNSII) BPA prior to the end of the existing task order’s (2032H5-23-F-00225) period of performance, September 30, 2024. Due to circumstances beyond our control, award of all future and current Orders under the UNSII BPA have been halted due to the UNSII BPA being currently under protest. While the protest created issues for that strategy, the Agency took corrective action in April 2024 to assure that this requirement does not experience a stoppage. A decision was made to procure the requirement via other means. The Program Office submitted a new acquisition package to procurement.

The assigned Contracting Specialist (CS) began working on the package at receipt to make sure that the requirement could get done as soon as possible. D u e t o unforeseen issues in the acquisition package review process, the received package could not be put out for solicitation immediately. The CS requested several revisions from the Program Office.

Due to the delay in their response, the award date had to be pushed further out to accommodate for all the time needed to revise the received package, conduct market research, solicit for a competitive action, and allow for a smooth transition. 6 months for the Bridge will assure a robust procurement is perform which will include the continuation of the extensive Pre-solicitation review process due to the value of this award being over $40 million, which can take up to 2-3 months due to senior management and MAR review and approvals. Once all proposals have been evaluated and an awardee has been selected, the Pre-award review and approval process must take place which can be up to 2 months.

Lastly, we need to allow time to transition to a new Contractor if the current Contractor is not the apparent winner. These 6 months will allow for a smooth transition and allow a buffer if there are any delays while the recompete is going through review.

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

With the unanticipated protest of the UNSII BPA, the requirement for New Hire Workstation Support is in jeopardy of a stoppage. This requirement cannot be put on hold until the Protest is resolved. There is an urgent need for this requirement due to the IRA initiative for the IRS to update technology capabilities and invest in our employees with new tools, skills and capabilities, and to effectively enforce the tax laws. Due to the current task order ending on September 30, 2024, it is imperative that a 6-month Bridge to March 2025 is awarded to allow time to conduct proper market research, perform a competitive action and a transition period while also ensuring there is not a lapse in these critical services for Enterprise Field Operations.

With the shift in direction of the acquisition from an Order under the UNSII BPA, market research was needed to identify the best vehicle to procure this requirement. As of today, market research has been performed and the revised package shifting from the BPA to another vehicle is in the Pre-Solicitation review and approval process. The market research consists of posting a source sought notice on GSA, SAM, and emailing a courtesy copy to the two small business Contractors that are being considered for the award of the UNSII BPA. 91 Contractors responded (43 VETS2, 32 MAS schedule, 2 STARS III and 14 misc.) with their capability statements. The capability statement were reviewed by the Program Office and the Contracting Specialist. There were over 20 VETS vendors, 5 MAS schedule, 0 STARS III and 2 misc. Contractors that were capable of meeting the agency’s needs. Based on the capability statements, VETS2 was determined to be the best vehicle to recompete this requirement. Procurement expects to receive competitive responses using VETS 2.

It is imperative that we award a Bridge to the current Contractor Epsilon Inc. to assure continuation of services while the recompeted acquisition is being performed.

Stopping the services will cost the IRS to be out of compliance with the IRA initiative and set the program behind schedule. Epsilon Inc. is familiar with the IRS technical workstation and telecom environment. This familiarity will assist with the increase in hiring under the IRA initiative of increase the staffing by 15,000 new contractors to be deliver to new workstations, provide training, address any incident tickets, and assist with backlog of work required by EFO. Utilizing the incumbent is critical in keeping continuity of operations in EFO to support this new increase of contractor hiring.

Due to uncontrollable circumstances of an acquisition having to take other directions due to a protest of the desired vehicle, awarding a Bridge will allow the current requirement to continue while the requirement is recompeted on a different vehicle from what was original projected.

5. A determination that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on applicable price analysis techniques outline in with FAR 15.4 and FAR 16.2.This will be a Firm Fixed Price task order utilizing the Incumbent’s VETS 2 rates. The CO will use proper evaluation skills to verify the pricing against previous acquisitions and commercial price list.

6.a Any other facts supporting this justification: No

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

6.b Attachments: ☐ Yes ☒ No

7. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies and services is made:

The Contracting Activity is actively working with the program office on the recompete package. The contracting office intends on issuing a competitive award for the recompete contract by March 2025. Approval of this sole source Bridge provides the Government the necessary time to complete the evaluation process and make a new award. The Requiring Activity will continue to attend industry trade shows and other forums for purposes of seeking potential sources of supply.

8. Certifications and Approvals:

8.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

Date: 2024.09.23 13:52:13 -04'00'

8.b Contracting Officer Certification and Approval. I certify this justification for an exception to fair opportunity is accurate and complete to the best of my knowledge and belief.

Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement based on the authority specified in 4.a above.

-04'00'

6. Additional Reviews and Approvals (As applicable):

9.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

9.b Advocate for Competition (if over $700,000, but not exceeding $13.5 million) (Contracting Activity). I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this justification based on the authority specified in 4.a above.

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

Signature: Date: 2024.09.24 09:32:24 -04'00'

9.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification based on the authority specified in 4.a above.

Name: Date:

Signature:

Treasury Standard Form – 1014 (Rev 5/18)

9.d Treasury Chief Information Officer (for IT requirements that are over $68 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

9.e Senior Procurement Executive (if over $68 million) (Contracting Activity). I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement executive, I hereby approve this justification based on the authority specified in 4.a above.

Name: Date:

Signature: