JEFO_Exceeding_SAT_Jan_2013_v2.pdf

Justification for Exception to Fair Opportunity Exceeding the SAT pursuant to FAR 16.505(b)(2)(ii)(B)

For

CAPITAL PLANNING & INVESTMENT CONTROL (CPIC) SUPPORT

JEFO No.: 090-14

Date: March 24, 2014 PR Number: RUIO-14-EB040

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Office of Procurement Operations, on behalf of the Office of the Chief Information Officer (OCIO), Enterprise Business Management Office, (EBMO).

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

DHS/OPO intends to modify the existing task order # HSHQDC-06-D-00033/HSHQDC-12-J- 00442 without considering other awardees pursuant to FAR 16.505(b)(2)(i)(B), in accordance with the FAR clause 52.217-8 “Option to Extend Services” and prepared this justification for an exception to fair opportunity. The proposed contractor is Dynamics Research Corporation (DRC), Two Tech Drive, Andover, MA 01810-2434.

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

The OCIO has an on-going need for support services for annual budget reporting to the Office of Management and Budget (OMB), and the development and maintenance of forms within the Investment Management System (IMS) and the Next Generation Periodic Reporting System (nPRS). IMS and nPRS are two systems that will generate Management reports through the Decision Support Tool (DST). These systems are the source (data entry) systems that feed the Under Secretary for Management (USM)’s Cube initiative. By reducing the burden of data gathering and correlation, the Management Cube will allow DHS to better explore trends, relationships, and correlations across people, asset, funding, and investment data. Without the continued support services, extracting the data from the source systems becomes problematic because no other contractor has the knowledge to generate the files in the appropriate format to populate the DST and Cube.

This extension is necessary to continue the current level of services through the submission of budget documents to the Office of Management and Budget (OMB) in September and until the successor contract is put in place. Without these services, OCIO/EBMO will not be able to submit monthly investment updates to the OMB IT Dashboard; prepare the forms in IMS for the FY16 Budget cycle by portfolio (Component, Level of Investment, IT or Non-IT, etc); update the guidance documentation that is incorporated in the IMS system with changes from OMB;

coach the components on the changes proposed by OMB and implemented by DHS, score the Investments as they are submitted in July; and do the actual generation of the XML files for submission to OMB in September.

The estimated total cost is $988,288.60 as follows:

Period Unit Price Total Base Period 1 month $197,657.72 $197,657.72 Option 1 month $197,657.72 $197,657.72 Option 1 month $197,657.72 $197,657.72 Option 1 month $197,657.72 $197,657.72 Option 1 month $197,657.72 $197,657.72

TOTAL $988,288.60

4. Identify the exception to fair opportunity and supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value). (Check one and explain rationale below):

_____ The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

____X__ Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

________ The order must be issue on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

_________ It is necessary to place an order to satisfy a minimum guarantee.

_________ For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

Rationale: Note -- For logical follow-on the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value):

N/A

5. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The modification will be made in accordance with FAR clause 52.217-8, which states that “the Government may require continued performance of any services within the limits and at the rates specified in the contract.” The labor rates under the current option period have been established and negotiated at the time of award and they were found to be fair and reasonable.

6. Any other facts supporting the justification.

The continue performance of these support services is necessary. The task order expires on April 15, 2014 and a break in service is not acceptable. DHS will exercise FAR clause 52.217-8 “Option to Extend Services” as it is necessary and it flows down from the main EAGLE IDIQ, and it is in the best interest of the Government. A successor contract is being re-compete it. The procurement package was received by the ITAC under PR# RUIO-14-EB034. The projected award date of the new task order is August 8, 2014. The FAR clause 52.217-8 “Option to Extend Services” was not evaluated as part of the initial award.

The incumbent contractor is the only contractor that has the specialized knowledge and experience necessary to continue performance during the transition period until the new contract is awarded. A delay in budget allocations has caused the delay in the new procurement of services. At this time DRC is the only source capable of providing the services required at the level of quality required to continue performance.

Switching vendors and any transition during the time period of April-September would be very disruptive to the Components and the Department. Awarding to a new contractor would cause an undue burden on the government, lost productivity, and extensive transition time as there is only one vendor that is capable of producing this work. Changes are expected from OMB in late May, and system updates, guidance documentation and coaching will be required. For a new contractor to pick up this responsibility, and for DHS to continue to submit monthly updates to the OMB IT Dashboard with a new contractor will be challenging if not daunting. The amount of ramp-up time, transition, and on-boarding of a new contractor would require additional time and increase the cost to DHS.

DRC has the experience with this Oracle PPM tool, and has customized it to DHS and component needs for the past eight (8) years. There are other vendors that have experience with the Oracle PPM tool; however, only DRC has the knowledge and experience with the customization requirements specific to DHS.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

A successor contract is being re-competed under the PR #RUIO-14-EB034.

8. DHS intends to post the requirement and this justification on FedBizOpps pursuant to FAR 16.505(b)(2)(ii)(D).

9. Technical/Requirements Personnel Certification.

Pursuant to FAR 16.505(b)(2)(i)(B), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the justification, are accurate and complete.

10. Approval:

Pursuant to FAR 16.505(b)(2)(ii)(B), I certify that this justification is accurate and complete to the best of my knowledge and belief and hereby determine that the circumstances for an exception to fair opportunity exist:

Over $650,000 but not exceeding $12.5 million Date Component Competition Advocate