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This document summarizes a consolidation determination for a multiple award IDIQ contract to develop foreign language test items for the Defense Language Institute Foreign Language Center. The contract will be awarded by GSA FAS Region 6 Assisted Acquisition Services and involve services under NAICS code 611710 with a $15 million size standard. The incumbent contracts include two small business set asides and one full and open contract valued at a total of $14.2 million. The new IDIQ contract is expected to have a period of five years and involve test items in various languages at different proficiency levels to support Defense Language Proficiency Tests, with an annual quantity of 5,000-7,500 items. The consolidation determination finds substantial benefits of 8.19% from reduced procurement lead times, expanded contractor pool, and lower administrative costs. The contracting approach aims to maximize small business participation through three small business awards amongst five total contracts and language set asides at the task order level.

Exhibit 6 - Consolidation Determination

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DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

Procurement Title: Full Range Defense Language Proficiency Test (DLPT) Test Item Development Multiple Award IDIQ Contract

March 22, 2019

CONSOLIDATION DETERMINATION

Table of Contents

EXECUTIVE SUMMARY 2

ACQUISITION HISTORY 3

Description of Services 3

Customers 4

Existing or Recently Ended Contracts 4

New Requirements 5

MARKET RESEARCH OVERVIEW 5

Researching FPDS-NG 6

Request for Information (RFI) 7

Summary of Market Research Results 9

ALTERNATIVES INVOLVING A LESSER DEGREE OF CONSOLIDATION 10

CONTRACTING APPROACH SELECTED (ALTERNATIVE #3) 11

NEGATIVE IMPACT TO SMALL BUSINESS 12

STEPS TAKEN TO INCLUDE SMALL BUSINESS 12

SUBSTANTIAL BENEFITS EXPECTED 13

APPROVALS 17

APPENDIX A - Substantial Benefits Determination 21

Contract Cost Savings 21

Non-consolidated Estimate (with quantities split among 8 contracts) 22

Government Cost Estimate (IGCE) for Consolidated Effort 23

Government Administrative Savings 23

Pre-award Savings (PALT) 24

Post-award Savings 25

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

EXECUTIVE SUMMARY

The General Services Administration (GSA), Federal Acquisition Service (FAS), Region 6 Assisted Acquisition Services (AAS) is proposing the consolidation of three non-commercial separate contracts into a multiple award Indefinite Delivery Indefinite Quantity (IDIQ) contract (5 awardees are anticipated). The consolidated contract is for the development of reading and listening test item passages in support of the Department of Defense (DoD) warfigher mission.

Specifically, DoD’s Defense Language Institute Foreign Language Center (DLIFLC) uses these reading and listening passages in creating Defense Language Proficiency Tests (DLPT) to determine the foreign language proficiency level of DoD and other Federal personnel. GSA has determined the consolidation necessary and justified. Consolidation of the requirements will result in substantial benefits estimated at 8.19% (See Appendix A).

The consolidation does not meet the 10% cost savings threshold for substantial benefits outlined in FAR 7.107-2(d) and applicable to contracts below $94 million. This procurement is, however, mission critical and maximizes small business participation as per FAR 7.107-2(e)(1).

The current procurement strategy of two to three recurring stand-alone contracts for Test Item development is not well suited to meeting DLIFLC’s operational demands and their dynamic support of warfighters across the globe. DoD’s language strategy addresses the importance of identifying our language needs, acquiring and sustaining language skills, enhancing language careers, building partners, and increasing surge capacity. The importance of DLIFLC’s response to national strategic events in which DoD must respond with surge language capacity cannot be understated. The IDIQ approach will experience the qualitative benefits of an accelerated and simplified ordering process, shorter Procurement Administrative Lead Times (PALTs), reduced risk of delayed project completions, and increased customer satisfaction through expedited delivery. The consolidation into an IDIQ format provides a streamlined ordering process which can quickly react to unforeseen demand for DLPT Test Items (in the specific languages required) in response to world events.

The cost savings and other benefits that will be realized as a result of this consolidated contract(s) outweigh any potential negative impacts to small business. The consolidation reduces the impact on small businesses by first establishing a target of three small businesses amongst an expected pool of five base contract holders; and second, by setting aside for small business certain Test Item orders against the IDIQ based on language mix and the level of language proficiency required. The Government reserves the right to further set aside orders for specific small business socio-economic categories present within the multiple award pool.

GSA FAS Region 6 AAS makes this Determination for Consolidation of Contract Requirements pursuant to the Federal Acquisition Regulation (FAR) 7.107 and the GSA Acquisition Manual (GSAM) 507.107. The DoD Federal Acquisition Regulation Supplement (DFARS) Part 207 is silent with respect to Consolidation of contract requirements.

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

Table 1: Executive Summary

Project Title: Full Range Defense Language Proficiency Test (DLPT) Test Item Development Multiple Award IDIQ Contract

Contracting Office: GSA FAS Region 6 Assisted Acquisition Services

Total Estimated Contract Value:

At or Below $94 million

Contract Requirements: Services only

NAICS Code: 611710 Educational Support Services Size Standard: $15.0 Mil

Period of Performance: 5 Years (Base period and 4 options)

Deviations Applicable? DoD Class Deviation 2019-O00003 in lieu of FAR 52.219-14 “Limitations on Subcontracting”

Business Case Applicable? No

Program Initiative? N/A

Intended Contract Structure: - IDIQ

- Multiple Award (5 contracts anticipated)

- Non Commercial

- Fixed-price by task order

- Mix of small and other than small business base contract holders with potential for orders to be set-aside for small business or socioeconomic status

Previous Contract Structure: - 3 Definitive Contracts (as listed in Table 2)

- Fixed Price

- Non Commercial

- Mix of 2 unrestricted and 1 small business set-aside

Substantial Benefits Expected: 8.19%

ACQUISITION HISTORY

Description of Services

DLIFLC requires recurring contract support to create foreign language Test Items for Government use in developing reading and listening tests called DLPT. The purpose of DLPT is to assess the foreign language proficiency of military and Government linguists. These

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019 services are classified under NAICS code 611710 (Educational Support Services / Test Development and Evaluation Services, Educational) which has a small business size standard of $15.0 million.

A Test Item is the task for which an examinee provides a response, and the means for evaluating the response. Test Items are comprised of either Reading or Listening passages in a specific foreign language, each passage developed in and assigned an Interagency Language Roundtable (ILR) proficiency rating. ILR is specific to the Federal Government, and as a result, procurements for DLPT Test Items have been deemed non-commercial in nature. Currently, there are approximately 450 languages and dialects for which DLIFLC may have a demand for Test Items. ILR ratings range from 0 (No proficiency) to 5 (Native proficiency). DLIFLC is continuously developing and updating listening and reading proficiency tests in order to measure the foreign language proficiency of military and government personnel. Thus, the development of reading and listening language Test Items in various proficiency levels is a recurring requirement.

While the need for Test Items is constant in order to develop replacement tests as existing exams expire and become dated, the specific languages and desired ILRs required can be unpredictable and difficult to forecast more than six to twelve months in advance of demand.

World events typically drive the demand for specific foreign languages needed, with some languages being very obscure and not widely spoken.

Customers

The consolidated IDIQ contract, will be utilized by contracting officers in GSA FAS Region 6 AAS in support of DoD (e.g., DLIFLC). The Army is the DoD Executive Agent for DLIFLC and the development of Defense-wide foreign language testing pursuant to DoD Directive 5160.41E.

Existing or Recently Ended Contracts

There are three currently in place or recently ended Test Item Development contractsas indicated in Table 2 below. These three contracts represent DLIFLC’s recurring need for Test Items in quantities of up to 7,500 Test Items per year and provide the baseline for the Consolidation Determination.

The first contract was awarded and is currently administered by R6 AAS. The second two contracts were awarded/administered by the Army’s Mission and Installation Contracting Command.

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

Table 2: Existing or Recently Expired Contracts

Contract Number

Contract Type

Company Company Size

Period of Performance

Total Contract Value

GS06Q17BNC0004

- full & open competition (2 proposals received)

FFP University of Maryland

Other than Small – State Gov’t

Base Year + 1 Option Year (09/29/2017 – 09/28/2019)

$7,066,710.00

W9124N18C0002

- small business set aside (2 proposals received)

FFP CENTRL Small Base Year + 1 Option Year (04/22/2018 – 04/22/2020)

$6,509,520.00

W9124N17F0106

- full & open competition ((2 proposals received)

FFP ALTA Small Base Year only (09/25/2017 – 09/24/2018)

$586,772.40

Combined Total Contract Value

$14,163,002.40

New Requirements

There is no change in the scope of work. The current baseline quantity is 5,000 to 7,500 Test Items per year in a variety of foreign languages and ILR levels. However, the aggregate quantity of items per year will be met through competitive IDIQ task orders in lieu of separate definitized open market contracts. With the availability of streamlined ordering procedures under FAR Part 16, the Government will be in a position to issue orders for smaller quantities of Test Items and still meet aggregate demand. R6 AAS determined the requirement to be non-commercial based on instructions outlined in the DOD Commercial Guide Part A.

MARKET RESEARCH OVERVIEW

Market research was conducted to better understand the impact of consolidation and understand possible alternatives to the procurement approach. The results are provided below.

The following are the market research techniques used:

● Collecting data via Federal Procurement Data System – Next Generation (FPDS-NG)

● Releasing a Request for Information (RFI) on strategies for the services on both eBuy and FedBizOpps, as well as issuing targeted RFIs to firms with prior Test Item awards or who submitted proposals in response to prior Test Item solicitations.

● Reviewing of existing source for the services

● Researching existing contract vehicles

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

● Researching the SBA’s Dynamic Small Business Search (DSBS) Tool

Researching FPDS-NG

Contract Award Data was pulled from FPDS-NG to identify prior Federal procurements for foreign language Test Items and determine the degree of small business participation. The findings were:

● There are only a small number of contractors currently performing this service for the Federal Government. Over the last ten years, only six contracts were identified;

performed by three contractors.

● Only DLIFLC had contracts for this type of service.

● Prior Test Item procurements were coded non-commercial in FPDS.

● Research utilizing the DoD Guide to Commercial Item Determinations, dated January

2018 and the DCMA database for Commercial Item Determinations (CID) yielded the acquisition to be determined to be non-commercial. This research was consistent with historical results of the services being considered non-commercial.

● No Government-wide procurement vehicles exist for this requirement.

Using search parameters such as “test items”, “foreign language”, “Interagency Roundtable”, “ILR”, etc., research discovered the following six procurements dating back to 2010 in addition to the three identified in Table 2. All of the six projects in Table 3 are open market non-commercial procurements in support of DLIFLC that were awarded and administered by the Army’s Mission and Installation Contracting Command. These additional listings are provided for historical context. Per DLIFLC, these contracts are for the same services currently required.

Table 3: Other Contractual History for Same or Similar Services at DLIFLC

Contract Number

Contract Type**

Company Company Size

Period of Performance

Total Contract Value

W9124N10C0056

- full & open (no set aside)

FFP

Second Language Testing

Small at time of award – currently Other Than Small

Base Year + 2 Option Year (09/29/2010 – 09/28/2013)

$2,227,900.00

W9124N10C0102

- full & open (no set aside)

FFP

- full & open (no set aside)

Second Language Testing

Small at time of award – currently Other Than

Base Year + 1 Option Year (09/29/2010 – 09/28/2012)

$5,036,360.00

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

Small

W9124N10C0109

- full & open (no set

- full & open (no set aside)

Avant Assessment

Small Base Year (09/29/2010 – 09/28/2011)

$4,019,431.00

W9124N11C0015

- small business set aside

- small business set aside

Avant Assessment

Small Base Period (06/06/2011 – 03/14/2012)

$4,546,960.20

W9124N11C0040

- small business set aside

Avant Assessment

Small Base Year (09/30/2011 – 09/29/2012

$3,515,544.16

W9124N15C0003

- full & open (no set

University of Maryland

Other than Small

Base Year + 1 Option Year (09/08/2015 – 09/07/2017)

$5,438,650.00

Combined Total Contract Value

$24,784,845.36

** All contracts listed are open market, non-commercial definitized and separate contracts, not

IDIQ task orders

Request for Information (RFI)

The acquisition team posted two Requests for Information (RFI) in association with this procurement effort. Both RFIs were issued under NAICS 611710 Educational Support Services with a Size Standard: $15.0 million. The purposes of the RFI’s were to determine contractor interest and assist in the development of the acquisition strategy by learning more about small business capabilities.

● The first RFI was posted on 20 June 2017 (with a 30 June due date) during market research associated with the R6 AAS award of stand-alone open market contract GS06Q17BNC0004. This RFI was posted to FedBizOps under NAICS 611710, and eBuy under the following two Language Services SINs within 00CORP: 382-3 (Training & Educational Materials), and 382-4 (Comprehensive Linguistic Analytical Support Services). To encourage possible Schedule interest in this acquisition, our office coordinated with the PSS office for scope reviews and marketing support. Marketing support included emails by the PSS Army Customer Account Manager (CAM) to the Schedule holders requesting that they respond to our RFI and subsequent solicitation.

Five contractors responded (four to FedBizOpps and one to eBuy) – two “other than small business” and three “small business”. The acquisition team determined that of the

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

● Sufficient small business capability exists to offer certain small-business set-asides at the task order level.

ALTERNATIVES INVOLVING A LESSER DEGREE OF

CONSOLIDATION

Alternative #1: Maintain Status Quo - Continued to procure all requirements through stand-alone contracts

Description: In this contracting alternative, the Government continues to procure foreign language Test Items through stand-alone open market definitive contracts as demand becomes known.

Discussion: This alternative is favorable for small businesses in that each procurement offers the potential for a set-aside. However, the following will most likely continue to result:

● Procurement Administrative Lead Times (PALT) which are lengthy and non-responsive to change in demand for particular foreign languages and proficiency ratings:

Procurement timelines would be longer because each requirement would need to progress through the acquisition process of a stand-alone contract. The acquisition process of a stand-alone contract is substantially longer than an individual requirement under a multiple award IDIQ contract vehicle. An acquisition strategy entailing the award of one firm fixed-price contract vehicle set-aside for small-business is measured as 180 days of PALT, while a firm fixed-price task order against a multiple award IDIQ is measured as 45 days of PALT. The PALT effort to initially establish a consolidated Multiple Award, Full and Open, IDIQ contract is 225 days.

● Increased contract and administrative costs - Increased contract and administrative costs would result as stand-alone contracts are much more labor intensive than the five

(5) anticipated multiple award IDIQ contracts. In order to maintain the current level of recurring stand-alone contracts, the Government will need to award three stand-alone contracts every two years, or approximately eight over the next five years. Refer to Table 3 for estimated pre-award savings as a result of PALT reductions.

Rationale for Not Utilizing Alternative #1: Maintaining status quo will continue to result in lengthy procurement lead times. The typical lead times for open market stand-alone contracts cannot quickly react to unforeseen demand for DLPT Test Items in response to world events.

As a result, DLIFLC will continue to face an increased risk to mission accomplishment.

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

Alternative 2: Series of Indefinite Delivery “Requirements” Contracts segregated by Foreign Language and associated Interagency Roundtable Rating proficiency levels.

Description: In this contracting alternative, the Acquisition Team would establish a series of “Requirements” type contracts. Each “Requirements” contract would have a scope of work segregated by a pool of foreign languages and their associated ILR proficiency ratings that the Government anticipates a future demand. The holder of each “Requirements” contract would be assured of receiving orders for all requirements of the designated languages and ILR levels actually purchased by the Government.

Discussion: This alternative offers reduced PALT and expedited ordering procedures. As a result, it addresses the unpredictability of needed languages and provides the maximum flexibility in response to world events that drive mission requirements. The Government can order the languages and associated ILR levels as demand dictates in a short period of time.

Lead times would be even shorter when compared to a MA IDIQ since each order would not need to be competed.

However, this approach requires the Government to commit to the languages required. The solicitation would include a matrix of all projected languages and ILR levels with contractors providing pricing for each possible combination. It is possible that some combinations would draw little interest from contractors or receive no quotes. Additionally, this approach increases contractor risk in that the Government does not guarantee that any work will actually be purchased against a particular “Requirements” contract. Finally, depending on the outcome, the number of concurrent “Requirements” contracts ultimately could exceed the number of definitive contracts awarded in the status quo.

Rationale for Not Utilizing Alternative #2: Utilizing a series of “Requirements” contracts covering all expected possible language and ILR combinations is complex and non-responsive to the introduction of languages not originally projected by the Government. No cost savings would be realized (other than through a reduced PALT for individual orders) due to the number of separate “Requirements” contracts needed and the increased risk to contractors for not receiving sufficient work. Lastly, the sheer number of languages and the number of ILR levels result in a massive number of total possible combinations thereby increasing overall risk of support to DLI's mission.

CONTRACTING APPROACH SELECTED (ALTERNATIVE #3)

The acquisition team has decided with the support of the customer to procure these services through the use of a multiple award Indefinite Delivery Indefinite Quantity (IDIQ) contract

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019 vehicle. The acquisition team anticipates awarding five base contract awards with at least three going to small businesses. The Ordering Guide of the IDIQ will be structured to maximize small business opportunities by setting-aside exclusively for small business a representative pool of languages and associated ILR proficiency ratings. The acquisition team estimates that the set-aside languages will result in two out of every three orders set-aside for small businesses.

Additionally, the quantity of Test Items in each order will be managed so that three to four task orders are issued each year, in contrast to the status quo of three stand-alone contracts every two years.

Utilizing a multiple award IDIQ contract vehicle for foreign language Test Items:

● Maximizes small business opportunities to roughly twice that available under the status quo (15 task orders versus 8 stand-alone contracts over a 5 year period)

● Reduces PALT in order to be more responsive to variable demand for Test Items

● Mitigates performance and schedule risk to both the Government and Contractor by allowing for the issue of orders for smaller quantities of Test Items

● Increases competition through meaningful task order feedback and assurance that other task order opportunities will follow

● Addresses the unpredictability of needed languages and provides the maximum flexibility in response to world events that drive mission requirements

NEGATIVE IMPACT TO SMALL BUSINESS

The total dollar value of awards to small businesses under a multiple award format will likely remain consistent with the small business allocation of the current three stand-alone contracts.

Of the current $14,163,002 value, $7,096,292 has been awarded to small businesses. Ordering procedures with certain languages set-aside for small business base contract holders will preserve this 50% ratio. When compared to three stand-alone contracts, the primary negative to small business will be an increased number of task orders at lower dollar values spread over more contractors. For example, the current value to small business of $7,096,292 is split between two contractors in two different contracts. Under the IDIQ approach, that same value will be available through three or four task orders to an expected minimum of three small business base contract holders.

STEPS TAKEN TO INCLUDE SMALL BUSINESS

Several aspects of the acquisition strategy and the IDIQ ordering procedures will be advantageous to small business. The acquisition team has a goal of five base contract holders with the majority expected to be small business. This goal is supported by market research and the number of capable small business responses to the RFI. With this business mix, certain

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019 foreign languages and associated ILR proficiency levels will be exclusively set-aside for small business. Additionally, since one of the objectives of the IDIQ is to be more responsive to current demand for Test Items in response to changing world events, the quantities of Test Items in each task order will be much lower than the quantities found on the stand-alone contracts. These lower quantities reduce risk to the contractors for performance, reduce risk to DLI to meet mission requirements in a very fluid environment, and will encourage small business participation in the base award competition and subsequent task order request process.

A large business(s) will be required to submit a subcontracting plan that will emphasize the use of small business to support the acquisitions. Additionally, in accordance with DFARS 215-304, the solicitation will include a source selection evaluation factor for addressing the extent of small business participation. The evaluation factor will address not only commitments in the proposal’s Small Business Subcontracting Plan but also the past performance of offerors in complying with the requirements of prior subcontracting plans This will achieve two goals:

1. Involve small business to the maximum extent practical and capable

2. Develop small business capability in which they potentially in the future will be able to compete due to reduced risk of non-performance due to capability for the obscure languages and response to world events in which DLI must quickly react.

The proposed consolidation will take advantage of the December 3, 2018 DoD Class Deviation related to “Limitations on Subcontracting”, which was not available for previous and current contracts. Application of this deviation will enhance small business participation by encouraging small business to subcontract to other “similarly situated entities”. This Deviation allows a small business prime to subcontract to another similarly situated small business without the subcontracted value counting towards the 50% limitation outlined in the FAR clause 52.219-14.

The opportunity to subcontract with similar like entities without limitation will increase the use of small businesses able to perform these services as well as increase the opportunities for other small businesses in the future.

SUBSTANTIAL BENEFITS EXPECTED

The total estimated contract value for this procurement is below $94 million and the substantial benefits expected are 8.19%. Although the consolidation does not meet the 10% threshold for substantial benefits defined in FAR 7.107-2(d) the expected benefits are critical to the agency's mission success; and the procurement strategy provides for maximum practicable participation by small business per FAR 7.107-2(e)(1)(ii).

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

The acquisition team examined several areas for potential benefits including cost, quality, acquisition cycle, and terms and conditions based on historical data. The consolidation is anticipated to result in substantial benefits as follows:

Table 3: Total Substantial Benefits Expected

Substantial Benefits Expected Percent Savings

Contract Cost Savings: 7.50%

Government Administrative Savings: 0.69%

Pre-award Savings 0.47%

Post-award Savings 0.22%

Total 8.19%

Critical to the Agency’s Mission Success

DLIFLC’s mission “is to provide the highest quality culturally based foreign language education, training and evaluation to enhance the national security of the United States.” Critical to the success of DLIFLC in accomplishing its mission and protecting our nation is their ability to accurately assess the foreign language proficiency of DoD and Federal personnel in the right languages at the right time. The shift in real and perceived threats to national security and global stability from 1992 until the present resulted in an increase in the number of world languages that are essential to understanding and dealing with those threats. A sharp increase in DoD’s needs for skills in multiple languages has led to a shortfall in sufficiency and proficiency of the Agency’s workforce. The continued need to develop language proficient soldiers, sailors, airmen, and marines is paramount to strategic objectives. World events and where the latest “hot spots” are often drive the specific languages required and the timing of that demand.

The current approach of two to three recurring stand-alone contracts for Test Item development is not well suited to meeting DLIFLC’s operational demands; specifically their dynamic support of United States warfighters deployed in harm's way across the globe. Even forecasting for one year the specific languages involved is difficult. The current contracts have faced multiple modifications requiring scope determinations in order to update language lists. Additionally, the award of each stand-alone contract faces potential protests that can further delay the procurement process.

While this consolidation effort involves rather modest cost savings through reduced PALT, the primary benefit is a contract vehicle that meets the needs of DLIFLC to quickly acquire Test Items in the languages and proficiency levels required, and reduce the risk of mission failure.

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

Maximizes Small Business Participation

While the IDIQ will not be set-aside for small business, market research supports that the majority of the base contract holders will be small business. A set-aside for small business at the base contract level is too risky in that contractors with the most capability to recruit Target Language Experts for obscure languages operate within State university systems or non-profit organizations and are rated by the SBA as “Other Than Small” regardless of revenue.

Small business participation at the task order level will be managed through language pools reserved for small business performance, number of task orders to ensure fair opportunity, as well as lower quantities of Test Items (when compared to stand alone contracts) in order to reduce performance risk. These actions will maintain or exceed the current 50% ratio of contract awards received by small business.

Use of the DoD Class Deviation outlined above related to “Limitations on Subcontracting” will further enhance small business participation by encouraging small business to subcontract to other “similarly situated entities”. This subcontracting could be to other small business IDIQ base contract holders or to other small businesses outside the IDIQ umbrella. Large businesses will of course require subcontracting plans at the IDIQ level which will also contribute to small business participation.

Substantial Benefits Expected

● Reduced Procurement Administrative Lead Times (PALT).

● Expansion of the contractor base capable of providing Test Items thereby increasing future competition. The deviation by DoD applicable to “Limitations on Subcontracting” encourages sub-contracting of “like entities” within the small business community which also may increase the pool of “capable” contractors in the future.

● Reduce performance risk to the Government and contractor.

● Improved business relationships with the contractor base.

● Increased competition at the task order level resulting in initial contract cost savings from

5% to 10%.

The establishment of an IDIQ contract vehicle provides reduced PALT times since the issue of a competitive task order against an established IDIQ takes substantially less time than awarding a stand-alone contract. A reduction in PALT translates into quantifiable administrative savings by providing an ability to award more actions with the same amount of full-time equivalent (FTE) resources thereby reducing the administrative costs to federal agencies by 0.69%. Further contract cost savings in the amount of 7.5% due to competition are expected (Refer to Appendix A for further analysis).

DLPT Test Item IDIQ: Consolidation Determination v8 03.22.2019

The multiple award IDIQ approach will also expand the contractor base capable of developing Test Items by offering opportunities at the task order level in reasonable quantities.

A tangential benefit is the opportunity to develop business relationships with the contractors over a longer period of time when compared to short term stand-alone contracts.

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