JA - Heidrick_Final_Redact.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

WHS-2025-1652-JA

JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION (JOFOC) UNDER FEDERAL

ACQUISITION REGULATION (FAR) SUBPART 6.3

1. AGENCY AND CONTRACTING ACTIVITY: The Contracting Activity is the Department of Defense (DoD), Washington Headquarters Services

(WHS), Acquisition Directorate (AD), Enterprise Security Services

Directorate (ESSD). The Requiring Agency is the Office of the Secretary of

Defense (OSD).

2. DESCRIPTION OF ACTION: This action seeks approval to issue a sole source, firm-fixed-price (FFP) contract to Heidrick & Struggles International in support of the Office of the Secretary of Defense (OSD) for Private Sector

Leadership Engagement Support Services. This requirement demands a vendor with a proven track record in providing premier global leadership advisory and on-demand talent solutions deploying data-driven methodologies to locate the world’s best leaders who can create diverse and inclusive cultures and transform teams to achieve the highest levels of performance. Due to the complexity and urgency of this effort, time is of the essence. The contract will be funded with

Fiscal Year (FY) 2025 appropriations and has an estimated total value of

$2,316,000.00.

3. DESCRIPTION OF SUPPLIES/SERVICES: The requirement involves sourcing top-tier private sector leaders with proven success in relevant industries to address the DoD’s most urgent challenges. These leaders will provide strategic guidance and actionable recommendations to modernize systems, optimize resource utilization, and enhance operational effectiveness. Specific services include:

• Identifying and engaging leading private sector experts.

• Developing recommendations for cost savings and reinvestment in high-priority missions.

• Proposing improved management practices, organizational structures, and technological advancements.

• Providing a roadmap for implementing recommended changes.

• Offering strategic guidance to address current challenges and support modernization efforts.

This initiative is critical to enhancing the nation’s defense and security by improving operational efficiency and addressing structural and modernization challenges within the

DoD.

Performance Period Performance Period Dates Amount

Base Period

April 18, 2025 through April 17, 2026

$2,316,000.00

4. AUTHORITY CITED: This action is authorized under 10 U.S.C. 3204(a)(2) as

Implemented by Federal Acquisition Regulation (FAR) 6.302-2 “Unusual and Compelling Urgency.”

5. REASON FOR AUTHORITY CITED: The DoD is facing a series of urgent and interrelated challenges that require immediate and decisive action. The DoD’s current organizational structures and service delivery models are not optimized to meet the demands of modern defense operations, resulting in inefficiencies that threaten operational effectiveness and increase costs. Addressing these inefficiencies cannot be delayed, as failure to act promptly may result in mission failure, degraded readiness, and increased risk to personnel and national security.

Additionally, the defense industrial base is under considerable strain due to outdated processes, limited innovation, and fragile supply chains. These vulnerabilities, if left unaddressed, could severely impact the DoD’s ability to respond to emerging threats and maintain critical capabilities. Compounding this urgency is the need to rapidly divest from legacy systems and reinvest in high-priority mission areas, a transition that requires immediate access to specialized private-sector expertise.

There is insufficient time to conduct a full and open competition without causing unacceptable delays in meeting these mission-critical needs. Any delay in acquiring the necessary support could allow adversaries to exploit existing vulnerabilities in operations, supply chains, or technological systems. Such delays would pose a direct risk to national defense and could result in compromised security, resource shortages, or loss of life during high-risk operations. Awarding a contract without delay is essential to avoid significant harm to the government’s ability to fulfill its mission.

6. EFFORTS TO OBTAIN COMPETITION: Due to critical operational challenges posing unacceptable risks to national security, the DoD requires a rapid response solution. A full and open competition for a requirement of this magnitude – valued between $700,000.00 and $7,000,000.00 – typically requires a Procurement Acquisition Lead Time (PALT) of

120 days. This estimate is based on AD Policy guidelines, which includes 30 days for market research, 45 days for proposal submission and evaluation, and 45 days for award and contract negotiation. While some individual steps could potentially be expedited within a competitive process, such as reducing the market research period to 15 days or employing streamlined evaluation techniques, even with these accelerations, the PALT would likely still require a minimum of 75 – 90 days. Furthermore, leveraging pre-existing contracts through a Federal Supply Schedule (FFS) offers a faster alternative of approximately 90 days. However, even this expedited approach remains insufficient given the immediate threats from adversaries. Therefore, a non-competitive procurement is necessary to ensure timely delivery of this critical capability.

7. FAIR AND REASONABLE COST DETERMINATION: The contracting officer will determine that the anticipated prices will be fair and reasonable by using the techniques identified at FAR 13.106-3, specifically, FAR 13.106-3(a)(2)(vi), to ensure the award will be at a fair and reasonable price. Certified Cost and Pricing

Data will not be obtained.

8. MARKET RESEARCH: Market research was conducted to identify potential sources capable of meeting the DoD’s urgent requirements. An internet search identified the “Big Five” global executive search firms: Korn Ferry, Russell Reynolds Associates, Heidrick & Struggles, Spencer Stuart, and Egon Zehnder. However, due to the critical nature of the operational need and the exceptionally tight timeframe, specifically how both state and nonstate actors pose multiple immediate threats to the Homeland and US national interests, precludes conducting comprehensive market research. Engaging with multiple vendors to assess potential solutions would consume valuable time, jeopardizing the DoD’s ability to respond effectively within the required timeframe. The specific technical requirements for this solution are highly specialized and require expertise in recruiting for highly technical roles within the DoD, such as cybersecurity, artificial intelligence, aerospace engineering, or specific weapons systems development. This requires a deep understanding of the relevant technologies and skill sets, as well as the defense industry landscape, including organizational structures, key players, and current challenges, which are known to be possessed by Heidrick & Struggles. Briefings from

Heidrick & Struggles demonstrated their proven capability to deliver a solution that meets these critical needs.

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: Failure to award this contract to Heidrick & Struggles International, Inc. would result in significant delays in addressing critical challenges facing the DoD. Such delays could lead to persistent inefficiencies, increased costs, and heightened risks to national defense and security. The urgency of this requirement demands immediate action to prevent serious harm to the Government’s ability to execute its mission.

More specifically, the rapidly evolving geopolitical landscape—particularly the growing strategic threat posed by the People’s Republic of China (PRC)—requires urgent and comprehensive reform of DoD programs and services. Delayed implementation of these reforms would hinder the Department’s ability to allocate resources effectively and build the capabilities necessary to maintain a competitive advantage. Every delay not only weakens the United States’ strategic position but also increases the likelihood of strategic surprise or shock.

10. INTERESTED SOURCES: To date, no other sources have expressed an interest in this requirement.

11. ACTIONS TO INCREASE COMPETITION: The DoD will evaluate the outcomes of this effort and explore opportunities to foster competition for similar requirements in the future. Lessons learned from this initiative will inform future acquisition strategies to ensure broader participation.

12. Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis?

☐ Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification ☐ were ☐ were not completed [Must include explanation of why the answer is “no”].

☐ No. The original acquisition was conducted on a competitive basis.

☒ Not Applicable. This is a new requirement

CERTIFICATION

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

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Contracting Officer’s Representative/Program Office

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Contracting Officer

APPROVAL

This justification is, approved.

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David H. Kao, Competition Advocate