Justification_for_an_Exception_to_Fair_Opportunity_redacted.pdf

JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

I. AGENCY AND CONTRACTING ACTIVITY.

Agency: United States Department of Agriculture (USDA)

Farm Service Agency (FSA)

Architecture and Management Center (AMC)

Contracting Activity: General Services Administration (GSA)/Region 5

Federal Acquisition Service

Acquisition Operations Division

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED.

a. This Justification for an Exception to Fair Opportunity is being requested to implement a bridge Time and Material1 task order to provide Information Technology (IT) support services to the USDA’s Farm Service Agency (FSA) Architecture and Management

Center (AMC) for twelve months. The total period is 12 months (September 1, 2014 through August 31, 2015). The timeframe was determined in order to provide the length of support equal to the funding provided for this Fiscal Year (FY) 2014 bona fide need.

A shortened period of performance would result in a significant break in service for

USDA FSA AMC, hereafter referred to as AMC.

b. AMC’s original Time and Material task order (GSA Task ID 5TS12100254A) was a competitive award under the 8(a) Streamlined Technology Application Resources for

Services (STARS) Government-wide Acquisition Contract (GWAC). The task order was awarded to JMA Chartered (DBA JMA Information Technology, Inc.) contract GS-06F-

0451Z. The period of performance was for one base period (09/01/11 – 08/31/12), two, one-year option periods (09/01/12 – 08/31/13, 09/01/13 – 08/31/14) and a shortened third option period (09/01/14 – 12/22/14). Option year two of AMC’s current task order ends

August 31, 2014. The shortened third optional period September 1, 2014 through

December 22, 2014 is available to be exercised. The third option period cannot be extended or extension of services utilized because the 8(a) STARS GWAC expired on

November 30, 2011 and all existing task orders under the STARS GWAC must end by

May 31, 2014. The previous contracting officer was unable to obtain approval for this option period to go beyond December 22, 2014.

The contract type for the follow-on effort will be the same as FSA’s current contract type (T&M) on the expiring

STARS task order. The GSA Contracting Officer will accomplish a Time and Material Determination and Findings to support the contract type.

Since the third option period does not provide continuity of services beyond December

22, 2014, without a follow-on contract, the client will experience an extensive break of service for needed efforts December 22nd and beyond. Additionally, should the third option period of the existing contract be exercised, upon its ultimate expiration on

December 22nd, the client will lose any remaining FY14 funding obligated because it cannot be transferred to another contract action that begins in FY15. Therefore, the client is also limited to a contract effort that begins in late FY14 and extends through the majority of FY15 due to the type of funding available for obligation. Since this requirement is for severable services, it is appropriate to cross fiscal year lines for a

Period of Performance of up to 12 months using FY14 funds available for obligation in

September 2014.

c. A competitive BPA task is underway that will eventually support the services requested under this Acquisition Plan; however, award of the BPA is not anticipated until FY15, and at this time we cannot guarantee that the BPA will be established with orders executed in time to prevent a break in service. Because of the client’s funding needs, a follow-on contract with limited duration is requested to provide continuity of services and to obligate the client’s funding situation.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEED

a. The AMC has established an Architecture and Management Center (AMC) Program

Management Office (PMO) to provide coordinated planning, prioritization, and project management support for the execution of projects within the Division. The PMO, and the services required by this task order, is responsible for the definition and execution of

Information Technology (IT) project management methodology, processes, templates, and tools; and interacting with business customers, internal and external AMC service providers to manage the full project lifecycle.

The AMC develops and maintains a portfolio of custom developed and COTS applications supporting FSA program delivery for the Farm Loan, Farm Program, Commodity Operations, Budget & Finance, and Management Services (e.g., Human

Resources, Acquisitions, etc.) program areas within the Farm Services Agency. As new programs or modifications to existing programs are identified, AMC engages with the impacted program areas to define, develop, and deliver IT solutions. Cross-functional project teams may form and include resources from the program area(s), field office, acquisition, hosting providers, and AMC (e.g., architects, developers, data base administrators, security, and testers).

b. The total ceiling value of the task order will not exceed $4 million, the 8(a) direct order threshold. The task order will provide Information Technology and Program

Management Support. The Performance Work Statement (PWS) scope fits into the 8(a)

STARS II GWAC, Functional Area 2 - North American Industry Classification System

(NAICS) 541512 Computer Systems Design Services. The PWS scope of work for the new task order is the same as AMC current task order under the STARS GWAC. The

8(a) STARS II GWAC provides Information Technology solutions and the contract period of performance is August 31, 2011 to August 30, 2016, with one five-year option from August 31, 2016 to August 30, 2021.

Under the contemplated task order, Heartland Technology Group will provide the essential Information Technology Support services to USDA AMC. The incumbent contractor (JMA Information Technology) is not a prime on the STARS II GWAC.

However, Heartland Technology Group is a prime on STARS II, Contract GS-06-

F1249Z. The Heartland Technology Group is a SBA approved Joint Venture Agreement between Sherman Consulting (certified 8a firm) and JMA Information Technology. JMA provided GSA with a Small Business Administration (SBA) approval letter of the Joint

Venture – Heartland Technology Group.

IV. AUTHORITY PERMITTING A FAIR OPPORTUNITY EXCEPTION AND

DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE

USE OF THE AUTHORITY CITED

a. FAR 16.505(b)(1)(i) requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding

$3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for the proposed effort is 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.

b. The services provided under the existing task order enable the AMC to execute critical programs for the Farm Loan, Farm Program, Commodity Operations, Budget and

Finance, and Management Services within the FSA. Based upon Farm Bill appropriations, funding to provide IT PMO services under this effort and to support the various FSA organizations is not provided until the end of each Fiscal Year. Failure to obligate and execute FY14 funding for the FY14/FY15 bona fide need presents extensive risks to the functionality of the aforementioned USDA programs. Without the ability to support the services defined above, AMC is unable to perform their mission. AMC has a very small staff and does not have the expertise within their Government employee resource pool to fully support their mission requirements, which is the key reason this

T&M task order is so critical to the operational success of USDA FSA. The services performed by the incumbent contractor are critical to supporting the accurate, high quality, time and compliant execution of the USDA programs.

c. As mentioned previously, the existing task is currently in the second option period, which expires on August 31, 2014. The third option year, which is exercisable, does not provide continuity of services beyond December 22, 2014, thus resulting in an extensive break of service and loss of funding. The labor intensive recompetition of the requested services is not anticipated to be awarded until early FY15, a milestone too late to obligate and execute FY14 funds prior to their expiration. It is important to note that this exception to fair opportunity is not the result of lack of advance planning, but rather is the result of events beyond the control of the Contracting Officer. The planned direct order is necessary to ensure services continue and are funded with the correct appropriations and provides enough time for future efforts to be place under the pending competitive task order.

d. The existing task order was competitively awarded using the STARS GWAC. The period of performance was a base year, two optional years, and a shortened three and a half month third optional period. The lifecycle contract value of the existing task order is

. The proposed task order will have only one year of performance and will have a value of approximately . The scope of the proposed task order is the same as the existing order. The continuity of same/similar services, combined with the decreased period of performance and value attests to the logical nature of the requested exception. In order to maintain continuity of support for the client until FY15 funding can be obtained and a new task order awarded, the need to issue a follow-on direct task order is found to be the most logical and cost effective alternative to the

Government.

V. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST WILL BE FAIR AND REASONABLE

The Contracting Officer has determined that adequate technical and pricing information is available to determine that the anticipated cost to the Government of the services covered by this task order will be fair and reasonable. The Government will utilize the

STARS II pricing tool to compare the competitive basic contracts rates. The Government will also analyze Heartland’s proposed labor rates, labor mix and labor hours with the expiring STARS task order. Adequate information is available to determine the cost for the follow-on order will be fair and reasonable. This Exception to Fair Opportunity will be posted within 14 days of award of the task order, and shall remain posted for a period of 30 days.

VI. ANY OTHER FACTS SUPPORTING THE USE OF EXCEPTION TO FAIR

OPPORTNITY

The follow-on task order will be under the STARS II GWAC, which is a Multiple Award

(MA), Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract to provide Information

Technology (IT) and IT service and IT services-based solutions. STARS II is reserved for qualifying Small Business Administration (SBA) certified 8(a) prime contractors with competitive prices. The total ceiling for this bridge effort will not exceed $4 million. In accordance with FAR 16.505(b)(2)(ii)(C)(2), the approval threshold for this justification is the competition advocate.

VII. STATEMENT OF ACTIONS TO REMOVE OR OVERCOME BARRIERS

BEFORE ANY SUBSEQUENT ACQUISITION IS MADE

The Government has identified this procurement as a sole source, direct order issued under the STARS II ordering procedures. Justification as to why competition among all awardees is not possible is in paragraph IV above. The bridge task order will be a sole source direct order award to Heartland Technology Group, 8(a) joint venture. The follow-on order will provide only the necessary time required to obtain FY15 Farm Bill funding and award a follow-on competitive task order. Therefore, there are no barriers to competition for subsequent actions.