JA Final Redacted.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FEDERAL ACQUISITION REGULATION (FAR) 13.501(a)(1)(ii)

1. Identification of the agency and contracting activity.

Requiring Activity/Program Office:

Defense Counterintelligence and Security Agency (DCSA) Chief Financial Officer - Pricing & Analytics 27130 Telegraph Road Quantico, VA 22134

Contracting Activity:

DCSA- Contracting and Procurement Office (CPO) 27130 Telegraph Road Quantico, VA 22134

2. The nature and/or description of the action being approved, i.e., sole source, limited competition, establishment of a new source, etc.

The Chief Financial Office (CFO) Pricing & Analytics (P&A) plans to issue a sole-source contract to CostControl USA, 200 E Pratt St STE 4100 Baltimore, Maryland 21202-6155. DCSA intends to solicit directly to CostControl USA. CostControl USA is an Other than Small Business. This contract will be for an enterprise software license and will be a one-year, firm-fixed price contract with four one-year options. The NAICS code is 513210. The small business size standard associated with this NAICS code is $47.0 million dollars. Total estimated value for this contract, including options, is

3. A description of the supplies or services required to meet the agency’s needs.

The contractor will provide an annual enterprise software license for CostPerform Expert in support of DCSA. Specifically, DCSA needs a cost allocation software to track and allocate costs. Additionally, the software needs to be able to create and track metrics associated with both direct and indirect costs so DCSA can understand and appropriately price the services it offers to other agencies.

CostPerform offers multiple cost accounting and allocation methods, smart calculation functions, analysis and simulation tools, the ability to ingest data at a macro level, support budget scenarios, native roll-up and drill down analysis, and create cost allocations using operational metrics as cost drivers.

4. Identification statutory authority permitting other than full and open competition.

The contracting officer has deemed only one source reasonably available in accordance with FAR 13.501(a)(1)(ii). This justification is prepared in accordance with FAR 6.303-2. The statutory authority permitting other than full and open competition is 41 U.S.C. § 1901.

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5. Demonstration of contractor’s unique qualifications.

DCSA and predecessor agencies have used CostPerform for approximately ten years. While DCSA has used CostPerform in some format for many years the requirements for DCSA’s cost allocation software have changed. This is due to the ongoing DCSA cost audit and the new requirements for tracking and allocating costs at a more granular level. The previous CostPerform contract was awarded at for one year, and this requirement is estimated to be per year. The increased cost is because of the increased functionality required by DCSA, while there are unlimited users allowed under this tier of software, the reason for the upgrade to the “expert” version is for the increased functionality, not for an increased number of users. The change in software to the “expert” level raises the cost and functionality substantially enough for this to not be considered a follow-on. The increase in functionality is estimated to be than what we currently have. The new features of the “expert” tier of software include:

Ability to ingest data at a macro level Enhanced reporting capability so data can be viewed within the model rather than exported and viewed separately ETL (extract, transform, load) tool which makes it easier to pull and analyze data

While DCSA will be using a new tier of CostPerform there will still substantial savings to the Government for staying with CostPerform. Even with switching to a new tier of software there are still benefits to staying with CostPerform rather than soliciting to a new company.

Currently DCSA has substantial amounts of cost allocation data already within the CostPerform system. Even with the new tier of software none of this data will have to be input again. If a new software provider was chosen all the data that DCSA has in the CostPerform system could not efficiently be transitioned. There would have to be significant rework and data entry to get another software to the point where CostPerform is currently.

While the functionality of the software is increasing there is still significant time and cost savings to staying within the CostPerform ecosystem. Since DCSA is staying within the CostPerform ecosystem no data will have to input again. It is estimated it would take at least a year for another software to be at the point where CostPerform is now, and any costs savings that could be realized by switching to a new software provider would be far outweighed by the cost of having to switch software providers.

The cost allocation software cannot be replaced with any other software. The required cost allocation software must:

Support user privileges settings Support multiple users configuring simultaneously Support user audit logs Create allocations using operational metrics as cost drivers to drive costs across layers Flexibility to move objects in layers, and with moving layers within a model Support Technology Business Management (TBM) Use Cases and reporting Support import tasks using scripts to import data Have a graphical user interface to easily trace costs from resources through activities to cost objects by multiple data elements Support rate/ price setting analysis Support scenarios (budget, actuals, what-if) and multiple periods

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Support trend analysis Export entire model through OLAP cube Native roll-up and drill down analysis

Direct and indirect cost analysis Native graphical user interface model validation functionality

This software must include a graphical user interface and an automated capability (e.g., important tasks) to ingest data and rules to create and define objects, hierarchy, and attributes for allocating costs.

6. Description of efforts made to ensure that offers solicited from as many potential sources as practicable.

The branch chief of working capital fund pricing and analytics searched online for other software companies that provide similar software in August and September 2024. The government reviewed many companies’ websites for documentation on what their capabilities were, but none of the companies had all the required features. Specifically, the government researched

None of the companies listed were able to provide the required features that CostPerform can provide.

The contracting officer has determined that we will solicit directly from CostPerform since they will be able to provide all the required functionalities required by DCSA. The required software is only sold by CostControl on both GSA eBuy and NASA SEWP. Market research revealed that receiving the licenses directly from the OEM through a stand-alone contract would be cheaper than receiving the same product from the OEM via a GSA eBuy or NASA SEWP given the contract access fees both contract vehicles require. There would be no benefit to soliciting under eBuy or SEWP. Therefore, we will solicit directly from CostControl.

7. A determination by the contracting officer the cost to the Government will be fair and reasonable.

The contracting officer has determined that issuing a contract directly to CostPerform is in the best interest of the Government. This determination is made on the basis that this CostPerform software is available directly from CostControl which will decrease administrative time and burden. When the quote is received the contracting officer will determine if the price is fair and reasonable based on publicly available pricing.

8. A description of the market research conducted and the results.

The program office researched companies that provide similar functionality and based on information found online as well as industry experience. The program office found three software companies that would be most likely to be able to supply a product like CostPerform. These companies were Each of these companies were invited in for a capability demonstration. They were given a high-level view of the requirements to discuss and find out if the companies could meet DCSA’s needs. DCSA had separate extensive demonstrations from each company. The demonstrations were on The demonstration was on

During each of the demonstrations there were discussions about capabilities and requirements. After the initial meetings it was clear none of the companies could meet DCSA’s requirements. Specifically, none of the companies were able to:

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Create allocations using operational metrics as cost drivers to drive costs across layers Support Technology Business Management (TBM) Use Cases and reporting

Support rate/ price setting analysis Support scenarios (budget, actuals, what-if) and multiple periods Export entire model through OLAP cube Native roll-up and drill down analysis Native graphical user interface model validation functionality requested to have a second capability demonstration on , with new subject matter experts from their company to possibly answer DCSA’s questions, but even after the second capability demonstration it was clear that Planful would still not be able to fulfill the seven previously stated needed capabilities.

Separate from the capability briefs the program office researched Each of these companies were researched online to see if they showed enough capability to warrant a demonstration. None of these companies showed capabilities that warranted a demonstration since it was clear from their documentation online that they did not have the features DCSA required.

Additionally, the Government posted a notice of intent to sole source on December 20, 2024, and was open until January 6, 2025, and no responses were received.

Market research indicated CostPerform Software is the only software with the capability that can fulfill the validated requirement.

9. Any other facts supporting this justification.

No other facts support this document. DCSA, and DCSA’s predecessor agency, have been using CostPerform for more than 10 years. There are no other products available on the market that have all the required functionality. As described in section 8 no other companies had all the required features listed in section 5.

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.

A notice of intent to sole source was posted on December 20, 2024, and was open until January 6, 2025. No responses were received.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the suppliers or services required.

The Government will continue to monitor the marketplace to determine if alternative solutions exist or new entrants enter the marketplace that would meet the Government’s needs. Every effort will be made to provide for competition to the maximum extent practicable, based on new technologies that will support mission partner needs.