ID05120102 Limited Source Justification 2012-08-15 signed AA EG.pdf

Solicitation ID05120102

Limited Source Justification

FOR THE PURCHASE OF

Equipment Repair Systems Data Migration Preparation Services

ITSS SOLICITATION NUMBER: ID05120102

A procurement by the U.S. General Services Administration on behalf of The United States Air Force

Logistics Transformation Office (LTO) and the ECSS Program Management Office (PMO)

(HQ USAF/A4IT & HQ ESC/HGB)

This requirement is being fulfilled through a Task Order Under the Federal Supply Schedule Logistics Worldwide contract, Solicitation No.: TFTP-MB008745-B (Refresh 11), Special Item

Number (SIN) 874-501 NAICS 541614 – Process, Physical Distribution, and Logistics Consulting Services

Product Service Code R408 – Program Management/Support Services

1. Agency and Contracting Activity

Requiring Agency: Logistics Transformation Office (LTO) (HQ USAF/A4IT) and the ECSS Program Management Office (PMO)(HQ ESC/HGB) Wright Patterson Air Force Base, Ohio

Contracting Activity: General Services Administration, Region 5 Federal Acquisition Service Acquisition Operations Division 230 South Dearborn Room 3800 Chicago, IL 60604

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

The requiring agency is in the process of implementing the Expeditionary Combat Support System (ECSS). This effort was initiated several years ago and has defined goals. The Government competitively awarded several contracts to support this effort including one entitle “Equipment Repair Systems Data Migration Preparation Services”, which GSA awarded to Northrop Grumman Space & Mission Systems Corporation, MAS contract GS-10F-0162L, Task Order GST0509BM0028 (ITSS # 5TP57080353).

The Government has experience numerous program adjustments and delays during the ECSS implementation cycle. These delays have not changed the original implementation goals but they have required program adjustments and changes to the milestone schedule. Target dates for completion of the ECSS implementation continue to change, therefore, the Government can only estimate the actual completion date as being between 6 and 24 months from this time.

This justification is for a follow-on task order to continue the “Equipment Repair Systems Data Migration Preparation Services” effort using Northrop Grumman Space & Mission Systems Corporation. It is proposed that using a reimbursable labor hour type task order with a base and one option will provide the required flexibility to conform the contractor’s effort with the continually changing implementation completion schedule.

This effort is necessary to maintain functional support for the Expeditionary Combat Support System (ECSS) Release 1.0 in the areas of data readiness, release support, and fielding & production support, as well as trading partner liaison support through Pilot C, Pilot D, IOT&E, and Fielding. Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Re-competing this effort would not provide material cost savings and introduce significant schedule and fielded system performance risk.

3. Description of the Supplies/Services Required to Meet the Agency’s Need

Under the proposed follow-on task order the Government will purchase a continuation of the “Equipment Repair Systems Data Migration Preparation Services”, currently furnished by Northrop Grumman Space & Mission Systems Corporation, under MAS contract GS-10F-0162L, Task Order GST0509BM0028. This justification seeks authorization for only those supplemental support activities that have a direct impact on the fielding and operational functionality of the Expeditionary Combat Support System (ECSS) solution. The services to be performed are performance-based. The estimated cost for this follow-on effort is as follows:

Base Period: 18 August, 2012 through 17 August, 2013 Estimated Cost: $7,325,492.03 Option Period 1: 18 August, 2013 through 17 August, 2014 Estimated Cost: $3,662,746.02

Total estimated Cost: $10,988,238.05

4. Authority and Rationale for Limiting Sources and a Demonstration of the Contractor’s Unique Qualifications

This acquisition is being conducted under the authority of the Multiple-Award Schedule Program pursuant to the statutory authority found in Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services for Executive Agencies. [ref.: FAR 8-401, FAR 8-402, and FAR 8.405-6(c)].

This Justification is prepared in compliance with The Federal Acquisition Regulation (FAR), Subpart 8.405-6(a)(1)(i)(C) which authorizes the limiting of sources when “In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order, provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.”

The contents of this Justification are prescribed in FAR 8.405-6(a)(1)(ii) and FAR 8.405-6(c).

This requirement, including this Limited Source Justification, will be published within 14 days after awarding this task order, as prescribed in FAR 8.405-6(a)(2).

This justification is approved by the Competition Advocate, Federal Acquisition Service, GSA Region 5 as prescribed in 8.405-6(d)(2), for orders not exceeding $12.5 million.

DISCUSSION

FAR 8.405-6 requires an ordering activity to justify its actions when restricting consideration of schedule contractors to fewer than required in FAR 8.405-1 or 8.405-2. In addition, DFARS

208.405.70 (c) requires that all orders exceeding $100,000 be placed on a competitive basis (by providing a fair notice of the intent to make the purchase) unless a written determination is justified and approved. The specific circumstance that justifies restriction for this acquisition is FAR 8.405-6(A)(1)(I)(C), “The new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.”

The original order was not issued under a sole source or limited source procedures. The original order was competed in response to the ITSS Solicitation Number: 5TP57080353 dated 22 August 2008. The solicitation requested quotes from current Logistics Worldwide (LOGWORLD) schedule holders. Several proposals were received. An award was made to Northrop Grumman Space & Mission Systems Corporation based on a determination that this vendor offered the best value to the Government. The Northrop Grumman MAS contract number is GS-10F-0162L, awarded on 18 Feb 2009. The period of performance of the original task order was one base year and two one-year option periods.

This effort is for the completion of work originally contemplated under the original task order, but which needs protracted effort due to delays caused by the Government. The Government proposes to continue using the original contractor for this effort to provide needed continuity.

Additionally, the Government wished to retain Northrop Grumman’s demonstrated capability and expertise with the data requirements for the Air Force ECSS program. A need exists for the continuous performance of these services beyond the basic contract period of performance to support ECSS fielding. This extension contract will have one twelve (12) month base period and one twelve (12) month option period, which will allow for continuity of services and eliminate the fielding risk that would result from disrupted services at this point in the ECSS program’s lifecycle.

Northrop Grumman was awarded this contract to provide the Air Force with Data Migration Preparation Services. These services provide data planning, data preparation, data management, and related fielding expertise to transfer information from approximately 400 legacy supply chain systems to the new Business Process modules of the Expeditionary Combat Support System (ECSS) Enterprise Resource Planning (ERP) tool in support of Air Force Logistics business process modernization.

Northrop Grumman has detailed working knowledge of and experience with the ECSS program and the critical data requirements needed to support the system and its use in the field. They also have the extensive Oracle ERP knowledge needed to assist the Government in verifying the System Integrator’s ERP solution. In addition they have expertise in working with the ECSS

Trading Partners, supporting the various ECSS releases, as well as assisting users in the field with the ECSS application. This level of expertise cannot be easily or economically duplicated.

Changing contractors for the follow-on period introduces significant program development and fielding risk and is not a viable alternative.

ECSS is a critical ACAT I Program that will modernize Air Force Logistics. Throughout Pilots A and B, Northrop Grumman has established and maintained strong working relationships ECSS stakeholders. These continued working relationships through ECSS Release 1.0 are critical to the success of the ECSS project. Accordingly, Northrop Grumman is the only firm capable of providing the critical data services described in Section III above without the Air Force experiencing unacceptable delays in fulfilling its requirements with corresponding impacts to the ECSS program’s development and fielding schedule and adverse impacts to system performance once fielded.

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

According to FAR 8.404(d), supplies offered on the schedule are listed at fixed prices. Services offered on the schedule are priced either at hourly rates, or at a fixed price for performance of a specific task (e.g., installation, maintenance, and repair). GSA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d). By placing an order against a schedule contract using the procedures in 8.405, the ordering activity has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.

In addition to the above pricing determination, the original task order was solicited on a competitive basis and the original prices are considered fair and reasonable as a result of adequate competition.

As further prescribed by FAR 8.404(d), GSA sought additional discounts during initial negotiations for this follow-on effort and has received a commitment from the vendor to discount its labor rates 9% from its original MAS pricing.

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

The work to be performed under this follow-on task order was originally part of the previously competed and negotiated effort which included ECSS Release support, Trading Partner support, Data Management support, Fielding support, and Production Support. Extensive market research was completed in support of the initial competitive source selection that chose Northrop Grumman Space & Mission Systems Corporation as the Government support contractor. No additional market research has been conducted for this follow-one task order which continues the original effort, other than to verify that the prices are still considered to be fair and reasonable.

CONCURRENCES:

Micky Mayes Date Director, Acquisition Operations Division

GSA, FAS 5QZA

Assistant Regional Counsel Date General Services Administration, 5L

Anne Mesch Date Assistant Regional Commissioner, Federal Acquisition Service, 5Q

Approved.

Kim Brown Date Regional Commissioner, Federal Acquisition Service, 5Q (Competition Advocate)