J_and_A_Redacted.pdf

Reference Number: HC1028-12-D-0026 0099

Title of Effort: Defense Agencies Initiative (DAI) Operational Test and Evaluation (OT&E)

JUSTIFICATION & APPROVALS (J&A) FOR FEDERAL ACQUISITION

REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule (MAS)/ Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, DFARS 216.505-70, PGI 216.505-70

Purchase Request Number:

Contract Number: HC1028-12-D-0026

Task/Delivery Order Number: 0099

Procurement Title: Defense Agencies Initiative (DAI) Operational Test and Evaluation

(OT&E)

Contracting Office: Defense Information Systems Agency (DISA)/Defense Information

Technology Contracting Organization (DITCO)/ Joint Interoperability Test Command (JITC)

Mission Support Section

Estimated Value:

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve this exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

DISA/JITC

200 I Brainard Road, Building 57305

Fort Huachuca, Arizona, 85670

b. Contracting Office

DISA/DITCO/PL8315

2300 East Drive, Building 3600

Scott Air Force Base, Illinois, 62225

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to add an option to the current cost-plus-fixed-fee (CPFF) task order (TO) against the Testing and Evaluation (T&E) Multiple Support Services (MSS) indefinite-delivery/indefinite-quantity (ID/IQ) contract held by ManTech Telecommunications and Information Systems Corporation. This action will ensure that three years of testing knowledge is not lost, and then required to be replicated with another contractor prior to completion of the JITC evaluation of the Defense Agencies Initiative (DAI) Increment 2. DLA’s fielding and T&E schedule include the same activities that were associated with DAI Increment

2 Release 3; however, the congressionally approved schedule is implemented by the MDA such that the Operational Test and Evaluation (OT&E) is slipped to the right of the initial fielding, causing multiple Release testing events to overlap. To meet the revised timeline, the Government requires increased labor and travel to support simultaneous test planning, execution and reporting efforts. The current POP ends November 30, 2017.

The requested change to the task order will increase the level of effort by approximately labor hours, add an additional 30 days of travel (TDY travel for 16 individuals during the

OT&E event) to multiple off-site locations, and extend the PoP to May 31, 2018. The DAI program actively supports the testing and evaluation of this large, Enterprise Resource Planning

(ERP) business system to help the DoD Agencies achieve compliance in FY18, as directed by

DoD. This effort is funded with 2018 research, development, test & evaluation funding.

A six-month extension was proposed for the original award, but travel was not included with that proposal, thus a viable six-month extension was unavailable for exercise in accordance with FAR 52.217-8. The six-month extension option that was part of the original award would not have been sufficient to meet the proposed increases in labor and travel for this effort.

Increases in labor hours/level of effort are requested, along with a period of performance extension, to ensure this requirement is completed within the given timeframe.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Department of Defense has mandated that all Defense agencies be “audit ready” by

Fiscal Year 2018. The Defense Agencies Initiative (DAI) is a large Automated Information

System being developed to achieve auditable, Chief Financial Officer-compliant business environments for the Defense agencies, including DISA. DAI is intended to provide accurate, timely, authoritative financial data for the agencies, as well as time and labor accounting. The

DAI OT&E task actively supports the testing and evaluation of this large, Enterprise Resource

Planning (ERP) business system to help the DoD Agencies achieve compliance as directed.

JITC provides specialized test support to the DAI program, starting with the analysis by our contracted financial subject matter experts (SMEs) of the Defense agencies’ financial business processes. The analysis is used to plan the test procedures needed to verify that DAI

Increment 2 is an effective and suitable tool for the agencies’ financial management needs.

Extensive coordination with the agencies follows, so that the JITC data collection activity alongside real system users at the Defense agencies yields the required test data without interfering with the agencies’ operations. Our contracted financial test team examines the test results and provides reports to the Department of Defense acquisition authorities to support their fielding decisions for DAI Increment 2, to help ensure that the agencies meet the mandated auditability requirements. This extension will provide contractor support through the last stages of development and deployment of DAI Increment 2.

DAI Increment 2 has been developed, tested and deployed to over 20 Defense agencies in three distinct software releases starting in April, 2014. The Operational Test and Evaluation of the third release, which consisted of actual users executing mission tasks at the Defense agencies on the production system, was completed April 20, 2017, and the draft report was delivered to the government in May 2017. Release 4, which is the final software release for Increment 2, will be deployed in October, 2017. The OT&E of the fourth release is scheduled for March and April, 2018, with the draft report delivered to the government by May 31, 2018. The report will support a FINAL Milestone Decision in early September. JITC anticipates the Period of

Performance (PoP) for planning and executing the Operational Test and Evaluation of Release 4 to be December 1, 2017 through May 31, 2018. Thus, an additional option on the current task is needed to ensure the continuity of support to the customer to complete Increment 2.

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF

THE ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

(a) Exception to Fair Opportunity. IAW 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 modification 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) Description of the Justification. This action requires the authority cited, as the period of performance of the task order will expire prior to completion of testing activities. The current contractor for this task, ManTech Corp., is uniquely qualified to continue the testing activities as they have been responsible for the program for the last three years, through all phases of development, deployment and testing of DAI Increment 2. As a result, they provide highly specialized capabilities and resources that are not available from any other contractor in the timeframe needed. This action will ensure that three years of testing knowledge is not lost with the current contractor and their completion of

JITC’s evaluation of the Defense Agencies Initiative (DAI) Increment 2 is critical.

(c) Justification:

(1) Minimum Government Requirements. DAI is a Department of Defense (DoD) customization of Oracle E-Business Suite. The government requires immediate and highly specialized knowledge of the DoD-mandated audit ready posture for the DoD agencies. The agencies are to be ‘audit ready’ in FY18. The government needs to plan and execute a test of the DAI ‘audit ready’ capabilities and report the results by June 2018.

Only the current contractor has specialized experience with the application, and with its specialized configuration for implementation at more than 20 Department of Defense

Agencies needed to meet the government requirements on this tight schedule.

(2) Proposed Sole Source Contractor. This contractor, ManTech has supported the DAI program throughout the entire development and deployment of DAI Increment 2, from

April 2014 to the present. Continuing performance with the current contractor provides the Government substantial benefits as the work is an extension of what they are currently performing. Substituting contractors for the additional work at this phase of development will be detrimental by adding unnecessary delays and increasing costs to field the equipment. This is due to the amount of time already invested in the ongoing test efforts, resulting in their unique and highly specialized knowledge of requirements that DAI must meet and new DAI capabilities, as well as their working knowledge of testing requirements for programs on Deputy Assistant Secretary of Defense (DASD), DT&E, Director, Operational Test and Evaluation (DOT&E). Additional costs will include duplicative familiarization and the unavoidable coordination amongst stakeholders engaged in preparing for and conducting multiple, complex, and, in some cases, concurrent detailed T&E events. These costs would be in addition to the costs incurred for direct T&E labor and travel, which includes required labor and travel for developers, PMO personnel, Service and Agency users, and oversight representatives to prepare another contractor to sufficiently support this effort. As the DISA Operational Test lead for DAI, JITC has employed this contractor on this task to plan and execute all test events for DAI

Increment 2. To bring a new contractor on task during the planning phase immediately prior of the test effort represents an unacceptable performance, schedule, and cost risk. A new contractor would require at least 30 days to adequately familiarize with the complex financial processes of the Defense Agencies and their relation to DAI Increment 2. The contractor would require at least an additional 30 days to produce test procedures and coordinate with the twenty-plus agencies in order to plan and orchestrate the 5-week data collection effort. The delay in the results reporting could likely delay deployment of the next software release and impact the agencies’ ability to meet DoD-mandated ‘audit ready’ status. Even if there was sufficient time for a new contractor to obtain the requisite knowledge to prepare for and execute this events, the additional cost to the Government is expected to be approximately based on historical data from the ramp-up periods during previous software releases in FY17. These delays would result in an unacceptable increase in cost and an unacceptable impact to the acquisition decision schedule. This task order was awarded April 2014 and all 5 contractors on the T&E MSS submitted proposals.

(3) Discussion regarding cause of the sole source situation. The reason for this sole source situation is that ManTech has completed the majority of their OT&E and DT&E deliverables on the task order. As such, they can provide the Government highly specialized knowledge of the DAI Increment 2 system. As such, they are best suited to adapt quickly to the significant change of scope without incurring absorbent additional cost as a result of the re-baseline.

Given that the testing is nearly complete, it is impractical to compete a new task order and engage another contractor and still obtain DLA’s required OT&E date of March 2018.

(4) Procurement discussion. The nature of this action is to issue a cost-plus-fixed-fee modification to extend the PoP and increase the level of effort on this task order. This modification is required to ensure timely completion of testing activities and ensure that

DLA/DIA is able to meet its DoD testing and reporting requirements. The period of time needed to plan and execute the test, and to provide the results report as previously described is approximately 6 months: December 1, 2017 to May 31, 2018. Mantech has been indispensable in making test support for this critical task effective and successful.

Mantech is the only qualified contractor capable of providing continued service without incurring significant additional time and duplicative costs which have been estimated to be and . Mantech is currently in place, with the proper security clearances, and has the capability to support this task without interruption.

(5) Impact. Failure to extend the PoP will result in JITC not successfully completing the test and evaluation of Release 4 on schedule, thus delaying the reporting of results to the

DoD acquisition decision makers. The report will support a FINAL Milestone Decision in early September to go forward with DAI Increment 3, which includes deployment to

DISA. JITC anticipates the Period of Performance (PoP) for planning and executing the

Operational Test and Evaluation of Release 4 to be December 1, 2017 through May 31, 2018. Thus, an extension of the current task is needed to ensure the continuity of support to the customer to complete Increment 2. DAI is a program on

; we would not fulfill our reporting obligations as agreed upon with the DLA DAI program manager, and could delay the deployment of the next software release. The delays could impact DoD agencies ability to meet DoD-mandated audit requirements. As such, the logical action is to issue a modification to the existing task order.

If the requirement were to be re-competed, it would delay the start of the task for up to four months, based on the historical evidence of the time required to issue a competitive task order award. It could take as much as two additional months, with maximum stakeholder support, to transition to a tester(s) with adequate knowledge and understanding of the DAI system. Selecting another contractor would increase costs due to the time required to familiarize the contractor with DAI system capabilities and operational test requisites needed to adequately support data collection and reporting requirements.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: During source selection of solicitation number HC1028-12-D-0026–0099, a cost/price evaluation was conducted in accordance with FAR 15.404. The contract prices were determined to be reasonable. The proposed cost/prices for the extension will be compared to the current contract prices as well as the Independent Government Estimate in order to determine fair and reasonableness in accordance with FAR 16.505(b)(2)(ii)(B)(5)

6. MARKET RESEARCH:

a. In accordance with FAR Part 10.002, market research has been conducted to identify all qualified sources and results therof. The initial research was completed from 2012 to 2013 at the basic Test and Evaluation Mission Support Services (T&E MSS) contract level, and annually thereafter at the task order level in accordance with FAR 10.002(b)(1). The formal market analysis included review of contractors found on General Services Administration (GSA)

Schedule 70, and analysis of historical contract costs. As a result of the review, it was determined that the only way to avoid the loss of invested resources and additional costs to the

Government is to modify the existing task order to accomplish this expanded effort this is within scope of the original PWS. Market research has always identified that all prime T&E MSS contractors can complete the scope of work; however, ManTech competitively won this task order award and is the only contractor that can complete the work within the requirement timelines mentioned above.

7. ANY OTHER SUPPORTING FACTS: For efficiency purposes, a modification to the existing task order will be made as opposed to issuing a follow-on task order.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History.

Contract Number: HC1028-12-D-0026-0099

Contractor: ManTech Telecommunications and Information Systems Corporation

Contract Period: 10 April 2014 – 30 November 2017

Total Contract Value: (original TEP; Base + all options)

Contract Type: CPFF

Objective: The purpose of this tasking is to provide support for DAI OT&E.

This TO was awarded following a fair opportunity competition using the JITC T&E MSS

IDIQ. All seven T&E MSS contractors were afforded the opportunity to be considered for this TO.

This task was originally awarded for and had five previous modifications that altered the contract value prior to this modification. The table below details the modifications and the cumulative changes to the contract value and includes the presently planned modification referenced in this justification.

In order to support the customer’s test schedule, Option 3 will be extended as described below:

- Base: 31 March 2014 – 30 November 2014

- Option 1: 1 December 2014 - 30 November 2015

- Option 2: 1 December 2015 - 30 November 2016

- Option 3: 1 December 2016 - 30 November 2017

- Option 3 Extension: 1 December 2017 - 31 May 2018

(b) No related prior award was accomplished with the need for a brand-name exception to fair opportunity, limited-sources, and/or any other exception to full and open competition justification.

The requested change to the task order will increase the level of effort by approximately labor hours and of travel, thereby increasing the lifecycle amount by from to . This is a increase to the initial award lifecycle estimate.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): In accordance with the exceptions under DISA Acquisition Regulations Supplement 7.103 (S-91)(1)(viii), an AP is not required.