JA 24 -47 Redacted.pdf

CUI

SOURCE SELECTION INFORMATION – See FAR 2.101 and 3.104

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

JOINT FINANCIAL OPERATIONS AND SYSTEMS SUPPORT (JFOSS)

BRIDGE ACTION

CONTROL NUMBER 24-47

1. CONTRACTING ACTIVITY.

United States Transportation Command (USTRANSCOM), Directorate of Acquisition, Information Technology (IT) Programs & Support Services Division (TCAQ-D), 508 Scott Drive, Scott AFB, IL 62225.

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

Due to a post-award Government Accountability Office (GAO) protest of the anticipated follow-on award, the Government requires continued JFOSS support. The agency anticipates issuing a 3 month extension including a 2 month base period (BP) with a 1 month additional option period (OP) through a modification to the existing task order HTC71119FD015. The modification includes labor hour (LH), firm fixed price, and time and materials contract line items. This action is a logical follow-on and continuation of the same services currently being accomplished under task order HTC71119FD015. The execution of this modification will provide continued support to accomplish work in the interim until GAO renders a decision and any recommended actions are implemented and the Government is able to acquire follow-on support.

3. DESCRIPTION OF SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

(INCLUDING ESTIMATED VALUE).

The JFOSS contract provides technical guidance, integration, risk management, issue resolution, integrated schedule management, communication management, strategic and technical audit program analyses and reports to support the full range of USTRANSCOM operational and financial systems.

The 3 month extension includes a 2 month BP with 1 month additional OP, estimated at in total. The period of performance (PoP) for the base period is 1 July - 31 August 2024, with an additional OP from 1-30 September 2024.

JFOSS services are currently provided by Ernst & Young LLP (EY), via a competitively awarded task order HTC71119FD015, which was placed against the General Services Administration (GSA) Professional Services Schedule (PSS) (which was later converted to Multiple Award Schedule (MAS)) contract, GS-00-F-290CA. The current PoP consisted of a 6-month BP with three 1-year OPs, and one 9-month OP, with performance ending 31 December 2023. After utilizing six months of the FAR 52.217-8 Option to Extend Services clause, the PoP will expire on 30 June 2024.

CUI Controlled by: USTRANSCOM Controlled by: Directorate of Acquisition CUI Category/ies: PROCURE Limited Dissemination Control: FED ONLY

POC:

4. LIMITED SOURCES JUSTIFICATION AUTHORITY AND SUPPORTING

RATIONALE.

Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(C) - In the interest of economy and efficiency, the extension is a logical follow-on to an original Federal Supply Schedule (FSS) order. Order HTC71119FD015 was placed in accordance with the applicable FSS ordering procedures and was not issued under sole-source or limited-sources procedures.

The solicitation HTC71123QD003 (HTC71124FD034) was issued on 18 August 2023, pursuant to FAR 16.505. After evaluating all quotes, TCAQ awarded a task order to KPMG LLP on 13 March 2024 based on the best value evaluation criteria in the request for quote for $107,828,757.06. On 26 March 2024 EY filed Government Accountability Office (GAO) Protest B-422469.1 with a Supplemental Protest received on 7 May 2024. The Government anticipates a GAO decision on/around 5 July 2024. The 3-month PoP authorized pursuant to this Justification and Approval (J&A), exercised and funded in increments as needed, provides sufficient time to allow for the GAO decision and implementation of the 1-month transition period provided by the newly awarded task order HTC71124FD034. If the GAO renders an adverse decision, the Agency will have the bridge Option Period to continue support while the necessary actions are taken. It is vital that there be no interruptions in these services during the resolution of the protest action(s).

The process to resolicit, evaluate, and award a task order cannot be accomplished in less than a month. Additionally, there is no reason to believe competing a task order would result in a different outcome. If there was an indication EY would prevail in a protest, the Contracting Officer would have taken corrective action. The Government has no other option available for continuing this critical service in the short timeline provided other than executing a bridge action to EY under the current task order HTC71119FD015.

There are no changes being made to the Performance Work Statement (except for updating the PoP), as the scope of the bridge action remains the same as the initial order. It is a logical follow-on to the task order already issued, and all Schedule holders were given a fair opportunity to be considered for the original order.

Therefore, a bridge action is necessary because the expected GAO decision for Protest B-

422469.1 (and supplemental protest) is expected after this task order expires. This J&A confirms the interest of economy and efficiency of this modification for continued JFOSS services because it is a logical follow-on, until the GAO renders a decision, and/or any recommended actions are implemented, and the Government is able to resume services under task order

HTC71124FD034.

5. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ORDER

REPRESENTS THE BEST VALUE.

Given the circumstances, the Contracting Officer will attempt to negotiate a fair and reasonable price. In accordance with FAR 15.404-1(b)(2)(ii) and (v) the price will be determined fair and reasonable with proposed prices compared to historical prices paid, to the Independent Government Cost Estimate, or other techniques as needed. In addition, the mission partner technical experts will provide a technical review of the LHs and skill mix proposed by EY for the LH effort.

6. DESCRIPTION OF MARKET RESEARCH CONDUCTED.

The acquisition team reviewed the current task order (HTC71119FD015) and the market research documentation for HTC71123QD003 (HTC71124FD034). While there are commercial contractors available in the commercial marketplace, it was concluded that based on the requirement for the need for continued support the only logical solution was to continue with the incumbent contractor for the duration of the extension.

7. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION.

Without immediate and continued contractor support, TCJ8 would not be able to timely respond and coordinate with the Independent Public Accountant (IPA) on the USTRANSCOM Financial Statement Audit or audit requests. An immediate halt would occur to all progress in remediating corrective action plans to the IPA’s Notice of Findings and Recommendations. USTRANSCOM would not be in compliance with the Office of the Secretary of Defense Comptroller’s metrics for tracking Audit progress is reported to Congress annually. Without these resources, USTRANSCOM would not make continuous progress according to our audit roadmap which has us achieving a clean audit opinion by 2028. A lapse in contractor support would also gravely affect USTRANSCOM’s ability to comply with mandatory reporting requirements, also including a non-acceptable delay to daily accounting, accounting system operations, and completion of quarterly reporting. IT system controls and the Management Internal Control Program would not be able to complete the necessary testing and monitoring of the program affecting the annual Statement of Assurance (SOA). Since the IT controls are imperative to the health of our audit and day to day operations, effective controls are in place so we can rely upon the financial statements that are produced from the SOA. Ineffective controls present risk to the organization should external parties gain access and protects USTRANSCOM from a negative public image.

When solicitation HTC71123QD003 (HTC71124FD034) was issued on 18 August 2023, it was presumed that award would be made prior to 1 January 2024. However, due to pre-solicitation and pre-award delays, three months of the FAR 52.217-8 extension period were utilized via modification P00023 to extend the task order (HTC71119FD015) to cover the period of 1 January 2024 – 31 March 2024, and subsequently P00026 was issued to extend by an additional month to cover 1 April 2024 – 30 April 2024. Due to the GAO protest, modification P00028 was issued to extend the task order by an additional two months to cover 1 May 2024 – 30 June 2024.

In response to the supplemental protest, and in an effort to avoid a break in service, a bridge modification is required to cover the period 1 July 2024– 30 September 2024. The Government anticipates the three month bridge extension period will be sufficient to resolve or pursue recommended action from the impending GAO results.

GONZALEZ.MEG

AN.M. Date: 2024.06.24 06:56:52

Digitally signed by

Date: 2024.06.21 10:24:57 -05'00'

Date: 2024.06.25 14:11:07 -05'00'

8. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE RESTRICTED

CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE.

Due to the importance of this requirement and the need for these critical services to continue, uninterrupted, as documented above, the agency is unable to solicit offers from various sources in an economic and efficient manner without jeopardizing mission requirements. It is impractical to solicit offers from other sources and negotiate a new contract award for the short term required support until the GAO ruling is received and any recommended actions are implemented as the current contract is set to expire 30 June 2024.

9. CONTRACTING OFFICER’S CERTIFICATION.

I certify that the justification is accurate and complete to the best of my knowledge and belief.

MEGAN M. GONZALEZ

Contracting Officer

10. TECHNICAL OR REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that the supporting data which form a basis for this justification are complete and accurate.

Contracting Officer Representative

11. WRITTEN DETERMINATION OF THE APPROVING OFFICIAL IDENTIFYING

THE CIRCUMSTANCE THAT APPLIES TO THE ORDER.

Based on the above cited justification, I hereby determine the circumstance in FAR 8.405- 6(a)(1)(i)(C) applies to this justification for an exception to fair opportunity.

Competition Advocate