JA for Lease MCPRD Redacted.rtf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION > SAT

Sole Source DFISS III MCPRD RFF-KC lease expense as an ODC

FOR OFFICIAL USE ONLY

PROCUREMENT SENSITIVE

SOURCE SELECTION SENSITIVE

REFERENCES:

· (for SAP under FAR 13.5) In accordance with FAR 13.501(a)(1)(ii), for acquisitions over $100,000.00 using the authority of the test program for commercial items, the contracting agency is required to prepare a sole source (including brand name) justification using the format at FAR 6.303-2, as provided below.

DOCUMENTATION:

(1) Identification of the agency and the contracting activity.

Requiring Activity

Headquarters Marine Corps – MCPRD RFF-KC 1500 E. Bannister Street Kansas City, Missouri 64197-0001

Contracting Activity

DFAS Columbus Contract Services Directorate Building 21, Room 2B218 3990 E. Broad St.

Columbus, Oh 43213-1152

(2) Nature and/or description of the action being approved.

In accordance with the references indicated above, DFAS is documenting the basis of a sole source acquisition under the authority of the test program for commercial items (Section 4202 of the Clinger-Cohen Act of 1996) or the Services Reform Act of 2003.

The nature of this acquisition is for the current DFAS FINANCIAL INTEGRATED SYSTEMS SERVICES (DFISS) III contractor to lease approximately 4,400 square feet of office space and minor maintenance required to house their employees working under DFISS III Blanket Purchase Agreement (BPA) Call HQ0425-07-A-0005-0003.

TSO-KC is required by the 2005 Base Realignment and Closure (BRAC) law to relocate to Indianapolis, Indiana by September 2011. Therefore, the Government is no longer capable of providing Government furnished space for the DFISS III support contractor to utilize in supporting the TSO-KC. The requiring activity has determined that it is in the best interest of the Government for the contractor to obtained office space for its employees working under DFISS III BPA HQ0425-07-A-0005-0003 and bill this leased space as an other direct cost. The prime contractor is to have a lease agreement in place by October 1, 2010. Prior to a signed agreement, the prime contractor (lessee) must submit terms and conditions, and all costs associated with the lease to the government for approval. Rent costs will be reimbursed to the contractor as costs are incurred.

The cost of minor maintenance shall be included as part of the lease costs. Cost of minor maintenance which excludes construction, alteration, or repairs, as defined in the FAR 22.401, may be reimbursed as lease costs. Such costs shall be pre-approved by the government. All costs will be reimbursed as incurred by the contractor.

Since these other direct costs are not part of the prime contractor’s GSA Schedule 70 contract, this acquisition is in conjunction with the BPA Call being awarded for the DFISS III support services. It has been determined that due to cost efficiencies and to mitigate unacceptable delays in fulfilling the agency’s requirements for contractor support under the DFISS III BPA that the current DFISS III contractor lease approximately 4,400 square feet of office space and minor maintenance required to house their employees working under DFISS III BPA HQ0425-07-A-0005-0003.

(3) A description of the supplies or services required to meet the agency’s needs (including the estimated value).

The prime contractor shall obtain office space (approximately 4,400 square feet) and minor maintenance required to house their employees working under DFISS III BPA Call HQ0425-07-A-0005-0003. Due to Information Technology Security requirements the leased office space must be an accredited, secure facility that meets Marine Corps World Wide Network requirements as defined by Marine Corps Bulletin 5239 “USMC Information Assurance Vulnerability Management (IAVM) Program. This requirement is necessary to enable the contractor to access the Marine Corps World Wide Network to perform the tasks and requirements specified in the Statement of Work for DFISS BPA Call HQ0425-07-A-0005-0003.

In accordance with USMC policy, an accredited, secure facility is a security requirement to protect the MCEN from the spread of malicious logic (viruses and Trojan Horse programs) and to protect Sensitive But Unclassified (SBU) information from being compromised. Contractors performing duties will be provided government furnished workstations and printers.

The current DFISS III contractor has entered into to negotiations to lease office space with GSA or other Governmental agencies prior to October 01, 2010. The lease terms and conditions, all associated costs [i.e. total cost of lease, square footage being leased (approx 4,4K sq ft), and all included items (i.e. amenities, utilities included, etc)] will be provided to the Government for approval, prior to a signed agreement being initiated. Rent costs will be reimbursed to the contractor as costs are incurred. The current DFISS III contractor understands the minor maintenance which excludes construction, alteration, or repairs, as defined in the FAR 22.401 may be reimbursed as lease costs (if pre-approved by the government).

The lease and minor maintenance cost is estimated at approximately $XXX,XXX.XX which includes the facility management fee. The leased office space must be in place no later than October 1, 2010 and all costs must be pre-approved by the government.

(4) An identification of the statutory authority permitting other than full and open competition.

10 U.S.C. 2304(c) authorizes the Department of Defense (DoD) to contract without full and open competition under certain circumstances. For this acquisition, other than full and open competition is permitted per FAR 6.302-1 (a)(ii)(B) - Unacceptable delays in fulfilling the agency's requirements. (See 10 U.S.C. 2304(d)(1)(B).)

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The current DFISS III prime contractor will occupy the leased space for the duration of DFISS III BPA Call HQ0425-07-A-0005-0003 1 Oct 2010 through 27 Jun 2012 once the lease has been approved by the Government. The facility must be secure and accredited by the government for connectivity to the Marine Corps World Wide Network (MCW). TSO-KC will incur unacceptable delays in fulfilling the agency’s requirements if other vendors’ were to compete for office space required for the DFISS III support contractor to house its employees. The anticipated delays would result in substantial duplication of costs to the Government that is not expected to be recovered through competition.

Furthermore, in order for a non-government agency to provide a unique lease of this magnitude, the leased space would need to be secure and accredited by the government or this would cause unacceptable delays in meeting BRAC requirements. TSO-KC would face substantial duplication of costs if the leased office space does not have connectivity to a secure Marine Corps World Wide Network. A competition for this leased office space would not recover that duplication of cost that would be incurred by Government. The current DFISS III support Contractor is very familiar with USMC network policies and regulations and has a clear understanding of how to mitigate the potential delays in acquiring the leased office space required to continue work under DFISS III BPA Call HQ0425-07-A-0005-0003.

Currently USMC has an accredited, secure building leased through GSA with Marine Corps World Wide Network already available. The USMC has a substantial investment in the current LAN infrastructure not including associated engineering and implementation costs. Market research indicates it would cost approximately $X,XXX,XXX.XX to install all existing LAN Server equipment in another building. This sole source justification is submitted for approval for the proposed issuance of an RFQ to the current DFISS III Support Contractor to acquire lease office space and minor maintenance from government agencies authorized to lease to private entities that meet the requirements of the Statement of Work.

It is in the Government’s best interest to leverage the current investment in the USMC network infrastructure already in place at a GSA accredited and Secure building in Kansas City, MO. Competing the office space requirement would result in substantial duplication of cost to the Government that is not expected to be recovered through Competition.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by