JA22-060 MOD 01_Redacted.pdf

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Reference Number: 832267259 Title of Procurement: Department of Defense Office of Inspector General Information Technology Organizational Change Consulting Services-JA22-060 MOD 01

Controlled By: DISA/PSD/PL8312 CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: disa.scott.ditco.mbx.it-requirement@mail.mil

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MODIFICATION (MOD) LIMITED SOURCE JUSTIFICATION &

APPROVAL (J&A) FEDERAL ACQUISITION REGULATION (FAR) PART

8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract Orders under MAS/General Services Administration Schedules (GSA)/Federal Supply Schedules

(FSS) FAR 8.405-6

Purchase Request Number: HC10902200004238 Contract Number: Department of Defense (DoD) Enterprise Software Initiative (ESI) Blanket Purchase Agreement (BPA) No. N66001-19-A-0049 Task/Delivery Order Number: To be determined (TBD) Procurement Title: DoD Office of Inspector General (OIG) Information Technology (IT) Organizational Change Consulting Services Estimated Value: (inclusive of the estimated value of the 6-month unpriced option) Statutory and Regulatory Authority: 41 U.S.C. 152(3) and FAR 8.405-6(a)(1)(i)(C)

J&A Number: JA22-060 MOD 01

Upon the basis of the following justification, I, as Procuring Competition Activity Advocate (PACA), hereby approve this limited source justification in accordance with (IAW) FAR 8.405- 6(a)(1)(i)(C). The acquisition referenced herein is conducted under the Statutory Authority of the Multiple Award Schedule Program, 41 U.S.C. 152(3).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

DoD OIG 4800 Mark Center Drive Alexandria, Virginia 22350-1500

Contracting Activity:

Defense Information System Agency (DISA)/Defense Information Technology Contracting Organization (DITCO) PL8312 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S): MOD 01: The purpose of this modification is to add one 1-year option period, thereby increasing the estimated value of this requirement and extending the period of performance. This option year is required due to the extensive nature of DoD OIG Office of the Chief Information Officer (OCIO) organizational changes that were not able to be ascertained at the time of solicitation.

Title of Procurement: Department of Defense Office of Inspector General Information Technology Organizational Change

CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: disa.scott.ditco.mbx.it-requirement@mail.mil

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During the base period of this effort, a congressional mandate was received requiring the DoD OIG to increase overall organizational levels in response to real world conflict. This increase led to the identification of a new information technology (IT) platform, higher security efforts for data transmission, along with an increase in equipment. This evolving technology created the unanticipated need for an additional 1-year option period.

The nature of this sole source requirement is to procure consultation services for the implementation of the organizational change recommendations documented in comprehensive organizational assessment of the DoD OIG Office of the Chief Information Officer (OCIO) performed by Gartner, Inc. This requirement is a follow-on to task order HC102821F0503 awarded to Gartner, Inc. in May 2021. Fiscal Year 2022 Operation and Maintenance funds will be used to fund this firm fixed price (FFP) task order.

3. DESCRIPTION OF SERVICES:

The mission of the DoD OIG is to detect and deter fraud, waste, and abuse in DoD programs and operations; promote the economy, efficiency, and effectiveness of the DoD; and help ensure ethical conduct throughout the DoD. In support of this mission, the DoD OIG OCIO is responsible for installing, maintaining, operating, and supporting all DoD OIG IT systems and communications capabilities for approximately 1,800 end users and 65 locations around the globe. Due to the independence of the DoD OIG, the OCIO provides the full spectrum of IT services necessary to support the OIG mission.

The DoD OIG OCIO has a requirement to obtain IT organizational change consulting services to implement organizational change recommendations that are focused on improving the efficiency and effectiveness of DoD OIG OCIO’s IT business operations and capabilities. The period of performance for this requirement includes one 12-month base period plus one 12-month option period, with an estimated start date of September 1, 2022.

Estimated Period of Performance

Base Year September 1, 2022 through August 31, 2023 Option Period 1 September 1, 2023 through August 31, 2024

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION OF

CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Circumstances Justifying Limiting the Source. FAR 8.405-6 (a)(1)(i)(C). In the interest of economy and efficiency, the new work is a logical follow-on to an original FSS order.

The original order was placed IAW the applicable FSS ordering procedures and was not previously issued under sole-source or limited-sources procedures.

(b) Description of the Justification. This requirement is a follow-on effort to task order

HC102821F0503 which was competitively awarded to Gartner, Inc. under the DoD ESI

Title of Procurement: Department of Defense Office of Inspector General Information Technology Organizational Change

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BPA. The scope of this task order was a comprehensive IT organizational assessment of the DoD OIG OCIO’s roles, responsibilities, organizational structure, government and contractor staffing, business activities, and supporting processes. This organizational assessment documented the need for an immediate organizational redesign of the DoD OIG OCIO through a 512-page final report recommending comprehensive organizational changes to create a target state of the DoD OIG OCIO’s organizational structure and operational best practices for its newly mandated mission.

Throughout the completion of the previous task order, Gartner, Inc. conducted hands on interviews and reviewed thousands of pages of standard operating procedures, service level agreements, business cases, and developed in depth knowledge of the DoD OIG organizational structure and operational practices which is critical to the success the success of this follow-on requirement.

(c) Justification:

(1) Minimum Government requirements. The Government minimum requirement is successful implementation of the organizational change recommendations made under competitive task order HC102821F0503. This requirement will be satisfied through utilizing the extensive institutional knowledge of the DoD OIG gained by Gartner, Inc. during the completion of the previous task order.

(2) Proposed sole source contractor. The proposed sole source contractor is Gartner, Inc., the author of the final report issued under the previous competitive task order HC102821F0503. This report is a critical blueprint in the reshaping and redesign of the organizational IT infrastructure necessary to support the new Congressional mandates for the DoD OIG mission. The institutional knowledge gained during the completion of the previous task order cannot be duplicated by another contractor without any other contractor performing all tasks associated with understanding and assessing the current organizational structure. The estimated cost of this duplicative effort is over the course of an estimated 2,500 hours. This estimate was derived through detailed research of the previous task order performance work statement, quotes received during the previous task order solicitation, and a review of DoD ESI BPA price lists, the mandatory source under which this task order will be awarded. It is in the interest of economy and efficiency to continue to work with Gartner, Inc. to leverage this institutional knowledge gained during the prior contract.

This will save the Government time and additional expense that is not expected to be recouped through competition.

Due to an increase in extremist activities, Congress has mandated new mission requirements for the DoD OIG including the development of cyber driven protective measures, the generation of department-level protection for a revised and protective IT environment, and additional activities that support DoD whistleblowing and reprisal reforms. The success of these mandates is dependent upon the organizational changes recommended by Gartner, Inc. Any delay created by another

Title of Procurement: Department of Defense Office of Inspector General Information Technology Organizational Change

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contractor’s need to gain the institutional knowledge possessed by Gartner, Inc. will create an unacceptable delay in accomplishing the new Congressional mandates.

(3) Discussion regarding cause of the limited source situation. As the author of the final report detailing the necessary organizational change recommendations, Gartner, Inc.

is the only contractor with the current institutional knowledge developed through the accomplishment of the deliverable received under task order HC102821F0503.

(4) Demonstration of limited source. No other contractor has completed this in-depth level of research into the current DoD OIG OCIO’s structure, and no other contractor will gain this knowledge without the significant cost and effort discussed in paragraph 4(c)(2). Implementation of the organizational changes is anticipated to be a one-time requirement; however, the Government is requesting unlimited data rights for all deliverables obtained during the course of this requirement. Every effort will be made to ensure opportunities for competition should a follow-on effort be required.

(5) Procurement discussion. Another contractor would be required to recreate the effort accomplished under task order HC102821F0503 in order to effectively perform the follow-on contract. The prior contract and work done to compile the organizational change recommendations gave Gartner, Inc. a unique understanding of the DoD OIG OCIO’s mission that is necessary for the follow-on effort.

(6) Impact. Without the support of the capability provided by Gartner, Inc., the necessary organizational changes will be unacceptably delayed. Any delay in the organization changes within DoD OIG OCIO directly impacts the timeliness and success of the new Congressional mandates discussed in paragraph 4(c)(2). The recommended organizational changes also directly impact the scope the of DoD OIG Information Technology Support Services (ITSS2) follow-on requirement which is currently being recompeted with PL8311 (CSS tracking #8321165822). The scope of ITSS2, and the required staffing under this contract, is directly impacted by the recommended organizational changes received under the previous task order.

5. BEST VALUE DETERMINATION:

(a) This requirement will be awarded under the DoD ESI BPA, a mandatory source. By placing an order against a schedule contract using the procedures in FAR Part 8 and IAW FAR 8.404(d) the Contracting Officer has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall price to meet the Government’s needs.

(b) Although the DoD’s competitively awarded ESI BPAs have already established fair and reasonable pricing, the contractor’s proposed pricing will be compared to the independent government cost estimate, existing ESI BPA pricing, and GSA FSS pricing. Based upon the analysis of this data, the Contracting Officer will determine whether the proposed

Title of Procurement: Department of Defense Office of Inspector General Information Technology Organizational Change

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price is fair and reasonable. In addition, discounts from the DoD ESI BPA pricing, which were previously determined to provide the Government with pricing advantages, will be sought prior to award.

6. MARKET RESEARCH:

Market research was conducted in January through June 2022 and included a detailed review of the solicitation and award of task order HC102821F0503, discussions with Government subject matter experts, and reviews of existing DoD ESI BPAs and GSA FSSs. Based upon this research, it has been determined that only the aforementioned follow-on services provided by Gartner, Inc. can fully support the Government’s need. Furthermore, as discussed above, it was determined that a follow-on, sole source requirement is in the interest of economy and efficiency to the Government. Market research did not reveal any other vendors that can perform the requirements of this follow-on task without negatively impacting the economy and efficiency of the Government. This organizational change requirement is for one 12-month base period plus one 12-month option period and no expectation of any follow-on effort; however, the Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions for equivalent or similar services should a follow effort be required.

MOD 01: Request for quote (RFQ) number 832267259 was provided to Gartner, Inc., and a Notice of Intent to Sole Source was posted to SAM.gov on July 27, 2022. A quote from Gartner, Inc. was received on August 8, 2022.

7. ANY OTHER SUPPORTING FACTS: None

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS THAT LED TO THE

RESTRICTED CONSIDERATION:

(a) Procurement History. HC102821F0503 was issued as a competitive award to

Gartner, Inc., a large business, under the DoD ESI BPA. The period of performance for this requirement was July 1, 2021 through January 31, 2022.

(b) This requirement is for one 12-month base period plus one 12-month option period and no expectation of any follow-on effort; however, the Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions if required (e.g., there are similar services in the marketplace that provide the same functionality).

(c) The associated task order HC102821F0503 was competed through the DoD ESI BPA with quotes received and evaluated from the two ESI BPA holders. Gartner’s quote was determined to be the best value to the Government under a best value trade off procurement. As discussed, during the performance of the previous task order, Gartner, Title of Procurement: Department of Defense Office of Inspector General Information Technology Organizational Change

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Inc. obtained invaluable institutional knowledge that is critical to the success of the implementation of organizational changes recommended.