J A_-_HDEC05-14-21_Final.pdf

Control Number: HDEC05-14-21

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Change Management Train-the-Trainer, Sponsor Support/Program, course materials and associated travel from Prosci.

Statutory Authority: 10 U.S.C. 2304(c)(1); FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Estimated Contract Amount: $135,235.00

Performance Period: June 18, 2014 through June 17, 2019 (if all options exercised)

Prepared By: Jason Reedy Contract Specialist Phone: 804-734-8000 x49815 Date/Initials:_________

Requirements: Mark Simpson Change Management Officer Phone: 804-734-8000 x48637 Date/Initials: ________

PCO: Jill A. Craft Contracting Officer Phone: 804-734-8000 x86294 Date/Initials: ________

Required Review Signatures: We have reviewed this J&A and find the justification adequate to support other than full and open competition.

Program Manager: Mark Simpson (CMO) Phone: 804-734-8000 x48637

Signature: _____________________

Division Chief: Michael G. Shaffer Phone: 804-734-8000 x48681

Signature: _____________________

Legal Counsel: Ron Horn Phone: 804-734-8000 x48207

Signature: _____________________

Competition Melissa A. Rios Phone: 804-734-8000 x48680 Advocate:

Signature: _____________________

///S///

Digitally signed by

REEDY.JASON.MICHAEL.11875874

Date: 2014.06.11 13:14:44 -04'00'

SIMPSON.MARK.

L.1075896839

Digitally signed by SIMPSON.MARK.L.1075896839 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=SIMPSON.MARK.L.1075896839 Date: 2014.06.11 16:00:53 -04'00'

SIMPSON.MARK.L.107

5896839

Digitally signed by SIMPSON.MARK.L.1075896839 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=SIMPSON.MARK.L.1075896839 Date: 2014.06.11 16:01:14 -04'00'

CRAFT.JILL.ANN.1299005042

c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042

2014.06.12 10:55:08 -04'00'

SHAFFER.MICHA

EL.G.1044850571

Digitally signed by

SHAFFER.MICHAEL.G.1044850571

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=SHAFFER.MICHAEL.G.1044850571 Date: 2014.06.12 14:18:16 -04'00'

RIOS.MELISSA.AN

NE.1039282069

Digitally signed by

RIOS.MELISSA.ANNE.1039282069

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=RIOS.MELISSA.ANNE.1039282069 Date: 2014.06.16 08:44:46 -04'00'

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency (DeCA), Revenue, Supplies & HQ Support Branch, Enterprise Acquisition Division, 1300 E Avenue, Fort Lee, VA 23801

2. Type of Contract Action – This is a new requirement to obtain training materials in order to support DeCA’s current training program. The acquisition process will result in a fixed price, indefinite delivery, requirements type contract. DWCF funding will be used for all orders.

3. Description of Services and Supplies – The contract will contain the following items (estimated per year):

Base Year only:

Sponsor Program (Approximately 10 Executive Leaders) $8,000.00 Train-the-trainer (5 participants) $17,500.00 Shipping of Materials $500.00 Travel for the Trainers (2) $4,000.00

Total Base Year Estimate $30,000.00

Base Year and each Option Year:

Materials for Classes Unit Costs

# of Courses Attendees Estimated

Cost

3-day Practitioner program $715.00 1 10 $7,150.00

1-day Coaching program for managers and supervisors $330.00 1 20 $6,600.00

1-day Orientation program for front line employees $75.00 5 15 $5,625.00

4-6 Hour Sponsor program for executives $209.00 1 8 $1,672.00

Annual costs for training materials $21,047.00

Base Year: $51,047.00 1st Option Year: $21,047.00 2nd Option Year: $21,047.00 3rd Option Year: $21,047.00 4th Option Year: $21,047.00 Total Contract Value: $135,235.00 - Estimated

4. Authority Cited - 10 U.S.C. 2304(c)(1); FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited – The Defense Commissary Agency is seeking to develop various training opportunities for initiating a culture of agility that emphasizes a structured approach to change management (CM). This specific requirement will be for executive sponsor support/training and a train-the-trainer course for DeCA representatives. It also includes instructor travel and future course materials.

In order to minimize costs and remain flexible for future requirements, DeCA has chosen to be self-sufficient and build an internal capability for future training in the area of CM. We are seeking the ability to teach the following courses: 1) Change management coaching 2) Change management sponsor training 3) Change management certification program 4) Change management workshop for employees.

DeCA conducted an in-depth analysis of the various change management training courses available from several vendors. After conducting market research, Prosci's training and materials were found to be the only option that fulfills the government's requirement for two main reasons.

First, the featured component of Prosci's CM program is the ADKAR approach to managing change in a structured manner (Awareness, Desire, Knowledge, Ability, and Reinforcement).

The ADKAR method is a registered trademark and the intellectual property of Prosci. As the source provider of the ADKAR model, Prosci is the only company that offers ADKAR training model. Out of the Change Management training courses researched, this model is the only one available that meets the needs of DeCA since it alone provides a well-established, proven, benchmarked and structured approach to the managing the human side of change at multiple levels to include enterprise, program, initiative and project implementations. In addition, since DeCA is a world-wide defense/retail organization, there is a need to leverage change management across many different levels of the organization to include retail staff, headquarters personnel, and Agency executives. The only known approach to meeting this need is to implement a structured approach to change management that appeals to a diverse range of cultural, educational, and professional backgrounds. The ADKAR method accomplishes this goal as it is easy to implement and communicate, structured and systematic, and practical and logical. The other approaches to change discovered during research focus on executive level implementations only. The second reason is that the Defense Commissary Agency currently has six Change Managers certified in the Prosci Change Management methodology and tools.

Prosci's CM certification is a prerequisite for receiving the train-the-trainer instruction, and since DeCA Personnel are already certified, the overall cost will be greatly reduced by using the Prosci methodology and materials.

DeCA researched the option of sending our employees to a vendor instructed class, but this approach is not practicable or feasible with the current budget and travel restrictions. The cost of sending 5 or 6 people TDY, versus having the contractor provide staff on-site at the same travel rates, results in a better value for the government. Once DeCA employees are trained in the CM approach, they will be able to train additional employees in-house, thus saving the agency additional funds. Another alternative would be to create an internal train-the-trainer program that mimics the qualifications of the Prosci training. However, this approach would require approximately one year of work by an employee at the GS-12 to 15 level. With benefits, this would cost the government between $105,000 and $190,000. Prosci instruction material is research based and benchmarked with both private and public companies. Their best practice research is based on more than 3,500 organizations change management initiatives. There is no guarantee that a government developed change management course would be as effective as those already produced by Prosci.

In addition, DeCA is seeking a kick-off sponsor session with senior leadership that focuses on the Agency's existing change portfolio. This program is dependent on data collected prior to the session for a change portfolio analysis for the organization. The evaluation will include a review of major projects underway, how much is invested in each of them, the people risk and how well the projects are positioned for success. Executives topics will include: Personal and organizational risk assessment, phases of change, organizational self-assessment exercise, ADKAR self-assessment, ADKAR business assessment and a roadmap for executive sponsors.

As stated above, Prosci materials are copyrighted and are only available from Prosci. Prosci has created a holistic framework for delivering a structured approach to Change Management. While the principles of this framework are universal, the unique capabilities of Prosci's approach are not replicated elsewhere in the consulting or training industry. To deploy this program DeCA wide, the Agency will need to purchase participant manuals from Prosci.

6. Efforts to Obtain Competition – The material is copyrighted and, according to Prosci, is only available from them. A search of other contracts under PSC 7610 supported this claim, as no other company was found that sells the required materials. A sources sought notice for Change Management training programs was posted to FedBizOpps on May 27, 2014. Two firms replied to the sources sought. After reviewing the contractor provided documentation and capabilities statements, the program office has concluded the following:

Company A

The contractor’s material appears to be focused on providing customized consulting services to meet a variety of needs (which includes customizing a form of Change Management). However;

the Government is looking for an established out-of-the-box methodology for managing change at a variety of levels in the Agency to include retail staffs, headquarters personnel, and Agency executives.

Company B

The contractor’s capability and experience discusses training efforts for change management at the working level and not for the instructor or train-the-trainer level. The Government is seeking to develop the capability to train and conduct the training using its own resources. The contractor experience seems to reside at the training implementation level and their capabilities described do not fit the requirement.

Neither of the interested parties provided reference to or mention of the ADKAR methodology or training tools in any of the provided documentation. The ADKAR approach to managing change in a structured manner (Awareness, Desire, Knowledge, Ability, and Reinforcement) is the methodology that the Agency needs to leverage in its change management approach. The Government is seeking to base its future training on a well-established, proven, benchmarked and structured approach to the managing of the human side of change at many levels to include enterprise, program, initiative and project implementations.

In addition, the Agency wishes to leverage its existing capability, internal skill, and knowledge in using the ADKAR method of managing change for this requirement. These companies’ capabilities do not specifically address a structured approach to managing change and appear to rely on a tailored offering created for each user.

After a review of the capabilities of each firm, it has been determined that neither firm was found to offer the type of Change Management training required by the agency.

7. Fair and Reasonable Cost Determination –

Prosci is the only provider of the material necessary to meet the government needs. The price is comparable to other training requirements obtained by the Defense Commissary Agency.

Prosci’s price for these training courses, support, and material are public and made available in the open market in published materials on the internet. The prices offered to DeCA are the same as those charged to commercial customers. In accordance with FAR 13.106-3(a), the contracting officer will make a determination as to whether offered prices are fair and reasonable prior to award.

8. Market Research and Interested Sources –

As indicated in paragraph 6, no other interested sources have been located or are able to provide the required training material.

9. Actions to Increase/Foster Competition –

Although the current acquisition is being conducted in a sole source environment, the requirements personnel will evaluate the change in the Agency's management culture (measured through our Organizational Assessment Survey) to determine if the training is making improvements in the work environment. The Agency will also reevaluate the current training program, prior to any future procurement action, to determine if the Prosci training program is still the most efficient and effective to meet the Agency's needs.

10. Other Factors –

N/A

Requirements Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Mark Simpson Signature:

Change Management Officer

Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the price for this contract action will be fair and reasonable. I certify that this J & A is accurate and complete to the best of my knowledge and belief.

Jill A. Craft Signature:

Contracting Officer

APPROVAL

Based on the foregoing justification, I hereby approved the procurement of Prosci Training Materials on an other than full and open competition basis pursuant to the authority of 10 U.S.C.

2304(c)(1), provided funds are available, or will be available, and provided that the services and products herein described have otherwise been authorized for acquisition.

APPROVED:

Signature:

Jill A. Craft Contracting Officer

SIMPSON.MARK.L.1

075896839

Digitally signed by SIMPSON.MARK.L.1075896839 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=SIMPSON.MARK.L.1075896839 Date: 2014.06.11 16:01:47 -04'00'

CRAFT.JILL.ANN.1299005042

c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042

2014.06.12 10:56:08 -04'00'

CRAFT.JILL.ANN.1299005042

c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042

2014.06.12 10:56:37 -04'00'