JA26-001 WMATA FY26_Redacted FINAL.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Subpart 13.5 Justification & Approval (J&A)

Purchase Request Number: TBD Contract Number: TBD Task/Delivery Order Number: N/A Procurement Title: Washington Metropolitan (Metro) Area Transit Authority (WMATA) SmartBenefits Program Estimated Value:

Statutory/Regulatory Authority: 41 U.S.C. §1901/FAR 13.501(a)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA26-001

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 41 U.S.C. §1901 and FAR 13.501(a).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Defense Information System Agency (DISA) Manpower and Personnel Directorate (MPD-J1)

P.O. Box 549 Ft. Meade, MD 20755

Contracting Activity:

Defense Information Technology Contracting Organization (DITCO) National Capital Region (NCR) Acquisition Resources Contracting Branch (PS61) P.O. Box 549 Ft. Meade, MD 20755

2. NATURE/DESCRIPTION OF ACTION(S): This J&A supports the action to issue a sole source award to the incumbent, The WMATA, to support the mission requirements of The Mass Transit Subsidy Benefits program, an entitlement program for federal employees. For mass transit in the Washington District of Columbia (D.C.) area, the required source is the SmartBenefits program. SmartBenefits is a web-based program and the sole program for transferring benefits from employers to employees utilizing mass transit in the Washington D.C.

metro area. The Department of Transportation (DOT) uses this program to ensure that funds are available for the active participants each month. WMATA requires federal agencies to use SmartBenefits, as the primary means of providing transit benefits. The benefit is for commuting between the participant’s residence and workplace.

Washington Metropolitan Area Transit Authority (WMATA) SmartBenefits Program; JA26-001

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The current contract, HC104722A0001, is a Blanket Purchase Agreement (BPA). This new action will be issued as a BPA for a one-year base period and two one-year option periods.

WMATA is the transit authority for the NCR and does not hold any GSA schedules. The expected cost of this action will not exceed over the three-year contract period.

This contract provides DISA the ability to eliminate third party costs associated with our participation in the SmartBenefits program. In the past, DISA had DOT/TRANSERVE award and managed this program. By utilizing DOT’s/TRANSERVE services to procure and acquire SmartBenefits DISA was paying a seven percent fee in addition to the costs for the SmartBenefits.

3. DESCRIPTION OF SUPPLIES/SERVICES: The SmartBenefits is the required program for the Department of Defense NCR Mass Transit Benefits subsidy program. WMATA is the required source and the only organization with the qualifications and capabilities to perform the master database functions that are required for operating the SmartBenefits program. There are no other organizations that are either eligible or capable of performing the master database function that WMATA provides.

The most recent contract was awarded as a BPA on 8 June 2022. The ordering period for this BPA was 8 June 2022 through 7 June 2025 with a ceiling of . However, the volume of orders, in part due to the COVID 19 Pandemic and a large-scale shift to remote work over the ordering period, reduced the amount utilized under this BPA to . The ceiling on the BPA provided flexibility to add additional participants throughout the ordering period. This was most seen towards the end of the ordering period as the Presidential Memorandum - Return -to-Work was issued and an increase in users was realized. The ceiling amount of for the new BPA is needed, as the usage over the next three (3) years will be higher as more people are now utilizing these benefits.

WMATA offers parking and transportation as part of their SmartBenefits program. DISA has elected not to participate in the parking program in the past years. On 18 December 2015, the parity between parking and mass transit benefits was reinstated permanently under the Consolidated Appropriations Act, 2016, Protecting Americans from Tax Hikes (PATH) Act, Division Q which automatically includes parking benefits in the transit benefits program beginning in 2016.

The cost of this procurement is based on the size of the DISA workforce that is eligible and elects to participate in the SmartBenefits program. At present, there are 300 active mass transit benefit participants, which is an increase from the approximate 100 participants prior to the Presidential Memorandum - Return-to-Work. This number fluctuates based on the time of year, locations from which and to which employees commute, eligibility of employees and the future participation by new employees or withdrawal from the program by current employees participating in the program. Due to the above fluctuations, the participant level will be established at 400 employees as this BPA will cover one (1) base year plus two (2) option years for a total of three (3) years, and currently the full impact of the Presidential Memorandum - Return-to-Work is unknown. In addition to the fluctuations in participants, the inflation rates have not been stable, which adds to the unknown future participants ridership costs. The mass

Page 4 of 8 Pages with jurisdiction in suburban Maryland and northern Virginia. The program offers electronic auto load and reloadable capabilities for employers to assign value to Smart Trip cards for the employees authorized to participate in the SmartBenefits mass transit program. There are no other organizations that are either eligible or capable of performing WMATA functions for the SmartBenefits Program.

(2) Proposed sole source contractor. WMATA established a commuting system throughout the Washington D.C. Metro Area, including the states of Virginia and Maryland. WMATA, not only manages the SmartBenefits Program, but regulates the fare machines, databases, and bus and rail systems used in the program as well. The SmartBenefits Program allows the employers to allocate the dollar value of employees' monthly commuting benefit directly to reusable and rechargeable plastic Smart Trip cards that can be used for rail and bus travel throughout the Metro regions.

WMATA is the only organization with the capability to provide SmartBenefits program participants with the required access to use Metro (WMATA) commuting stations established throughout the NCR.

(3) Discussion regarding cause of the sole source situation. WMATA is the only organization with the capability to provide DISA employees with access to the SmartBenefits Program that is interconnected to the transit system that largely supports commuters within the NCR.

(4) Demonstration of unique source. The SmartBenefits Program is operated and controlled through WMATA, including the extensive real estate involved in the support of its Metrorail and Metrobus operations. There are no other organizations that are either eligible or capable of performing the master database and transit functions that are connected to the services provided by WMATA for commuters in the NCR.

(5) Procurement discussion. J1 is in the process of planning for the execution of a sole source follow-on procurement for this requirement. The WMATA contract is the only solution for DISA to continue with the SmartBenefits program in support of employees who commute to and from work using WMATA’s Metrorail and Metrobus operations. WMATA was awarded a sole source contract on 12 January 2012 and the current and last option year expired on 14 June 2025. As described herein, competition is not possible in the procurement of the SmartBenefits Program for DISA employees.

(6) Impact. It is not possible to pursue full and open competition as this is a required source. Additionally, there is no other organization capable of administering the SmartBenefits Program. The WMATA is the only one responsible source and no other supplies or services will satisfy agency requirements. There is no other alternative than the exception to full and open competition.

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES: None at this time.

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7. DETERMINATION OF FAIR AND REASONABLE COST: The SmartBenefits subsidy maximum for the requirement is currently set to cost per person through the end of the calendar year 2025. The new BPA will start around November 6, 2025, with a maximum of per person. Any future changes to the subsidy maximum will be determined by Congress. If the maximum increases more than the estimated amount, it is anticipated the contract ceiling will be increased to cover the increase. The costs paid will be set by Congress and are not subject to negotiations. They are in line with the transit benefit subsidy maximum authorized and approved by Congress. The WMATA transit system is authorized by the United States Congress, and is jointly funded by D.C., together with jurisdictions in suburban Maryland, northern Virginia, and parts of Delaware, West Virginia, and Pennsylvania. WMATA was created by to be tri-jurisdictional and is not-for-profit. WMATA is prohibited from receiving any fee or profit, as they are a not-for-profit transportation authority. They are the area transportation authority and manage all major transportation hubs in the NCR and surrounding areas. Based on the foregoing, the Contracting Officer has determined the costs are fair and reasonable.

8. MARKET RESEARCH: Market research was conducted for the follow-on requirement, and the results are that full and open competition is not appropriate for the action. The WMATA is a tri-jurisdictional organization authorized by Congress to operate the transit service in the Washington, D.C. metro area. The WMATA is a large not-for-profit business that provides the SmartBenefits Program as a commercial service to private and federal entities across the NCR.

The SmartBenefits Program offers electronic payment for the employees authorized to participate in the mass transit program using re-loadable Smart Trip cards. Historically, DISA worked through the DOT to acquire SmartBenefits participation, but DISA was charged a seven percent fee by DOT/TRANSERVE. DISA reduced costs and has saved approximately in contracting fees by eliminating DOT/TRANSERVE as a third party for participation in the program.

Although there are other commuter systems that provide means of transportation, such as the Maryland Transit Authority (MTA) and Amtrak services, they do not provide commuting services that are capable of accommodating commuters throughout the NCR region. The MTA and Amtrak services that are provided are only able to transport commuters to Maryland areas, or limited locations in the tri-state region and have their own mass transit subsidy programs to pay for the benefits of the areas they serve. WMATA is capable of transporting commuters across the entire tri-state region, via Metrorail and Metrobus commuter locations and those services are largely connected to the SmartBenefits program. WMATA is the only capable source for meeting the needs of the Government’s requirement. There is no consolidating or bundling of task orders or other contracts for this follow-on procurement. Based on current market research performed between 1 June 2025 through 15 July 2025 it has been determined that only the aforementioned SmartBenefits program provided by WMATA, can fully meet the Government’s needs.

9. ANY OTHER SUPPORTING FACTS: The WMATA is the only responsible source, and no other supplies or services will satisfy the agency’s requirements for the follow-on.

10. LISTING OF INTERESTED SOURCES: No other sources have been identified.

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11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History:

Contract: HC1047-22-A-0001 Contractor: WMATA Basis for Award: Sole Source, OTFAOC Value:

Period of Performance: 8 June 2022 to 7 June 2025 (Base plus Two-Option Years)

Contract: HC1047-19-A-0001

Basis for Award: Sole Source, OTFAOC Value:

Period of Performance: 12 January 2019 to 11 January 2022 (Base plus Two-Option Years)

Contract: HC1047-16-A-0001

Basis for Award: Sole Source, OTFAOC Value:

Period of Performance: 12 January 2016 to 11 January 2019 (Base plus Two-Option

Contract: HC1047-12-G-4001

Basis for Award: Sole Source, OTFAOC Value:

Period of Performance: 12 January 2012 to 11 January 2016 (Base plus Three-Option

DOT

Contract: Intra-Agency Agreement (MOA) Contractor: WMATA Basis for Award: Economy Act of 1932 (15 U.S.C. 1535) and Administrative Working Capital Fund (49 U.S.C 327) Value:

Period of Performance: 1 October 2008 to 11 January 2012 (Base plus Three-Option

(b) Market Research will continue to be conducted to examine and monitor the changes within the public transportation industry in the NCR.

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(c) Within 14 days after establishing the WMATA BPA this justification will be posted to SAM.gov. Further, WMATA is capable of transporting commuters across the entire tri-state region via Metrorail and Metrobus commuter locations and those services are largely connected to the SmartBenefits program. Currently the Government is not aware of another transit authority in the Washington Metro Area that offers a program similar to SmartBenefits on a transit network that transports commuters across the Metro Area.

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

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NAME: Carey E. Mantici SIGNATURE/DATE: See separate signature page

TITLE/ORGANIZATION: Transportation Specialist/Program Manager (J1/JI-4)

PHONE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Martin Reed SIGNATURE/DATE: See separate signature page

TITLE/ORGANIZATION: Chief of Travel and Transportation (J1/JI-4)

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Bryn Riska SIGNATURE/DATE: See separate signature page

TITLE/ORGANIZATION: PSD/PS61

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $15M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: Andrea Horstmann SIGNATURE/DATE: See separate signature page

TITLE/ORGANIZATION: Procuring Activity Competition Advocate/DISA

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Bryn Riska,