JEFO_FO_2016-03_FI_Consulting_Executed.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Tracking No. Page 1 of 3 Treasury Standard Form – 1014 (Rev 10/15)

Prescribed by Treasury: DTAP 1016.505

1. Identification of the agency and the contracting activity.

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

3.a A description of the supplies or services required to meet the agency’s needs.

3.b Estimated value.

4.a Identification of the exception to fair opportunity being used (Check the appropriate box that applies).

FAR 16.505(b)(2)(i)(A) – The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

FAR 16.505(b)(2)(i)(B) – 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.

FAR 16.505(b)(2)(i)(C) – The order must be issued 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

FAR 16.505(b)(2)(i)(D) – It is necessary to place an order to satisfy a minimum guarantee.

FAR 16.505(b)(2)(i)(E) – For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

FAR 16.505(a)(4) – The requirement is for an item peculiar to one manufacturer.

4.b Supporting Rationale.

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5. A determination that the anticipated cost to the government will be fair and reasonable.

6. Any other facts supporting this justification.

7. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made.

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8. Certifications and Approvals:

8.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

Name:____________________________________ Date: _____________________

Signature: ___________________________________ 8.b Small Business Specialist Determination (Contracting Activity). I have reviewed this justification for an exception to fair opportunity, including any attached documentation, if applicable, and concur / do not concur with the findings.

Name:____________________________________ Date: _____________________

Signature: ___________________________________ 8.c Contracting Officer Certification and Approval. I certify this justification for an exception to fair opportunity is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement based on the authority specified in 4.a above.

Name:____________________________________ Date: _____________________

Signature: ___________________________________

9. Additional Approvals (if applicable):

9.a Advocate for Competition (if >$700,000 and <$13.5 million) (Contracting Activity). I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this justification based on the authority specified in 4.a above r.

Name:____________________________________ Date: _____________________

Signature: ___________________________________ 9.b Head of the Procuring Activity or Authorized Designee (if >$13.5 million and <$67.5 million) (Contracting Activity). I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief.

Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification based on the authority specified in 4.a above.

Name:____________________________________ Date: _____________________

Signature: ___________________________________ 9.c Senior Procurement Official (if >$67.5 million) (Contracting Activity). I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement official, I hereby approve this justification based on the authority specified in 4.a above.

Name:____________________________________ Date: _____________________

Signature: ___________________________________

INSTRUCTIONS FOR

[In general, each justification for an exception to fair opportunity shall contain sufficient information and data to justify the proposed action thereby be able to stand on its own. This type of detail is critical in order to enable a reviewer to clearly understand the requirement and the rationale for supporting this justification. If the requirement involves classified or sensitive information, ensure the proper steps are taken to protect the information (e.g. marking). In the event of conflict between this template and applicable regulatory coverage, the more stringent requirement shall be followed.

1. Identification of the agency and the contracting activity. [Provide the name of requiring agency and the name of the actual requiring activity (e.g. Treasury’s Washington, DC Office – Central IT Division). Provide the name of the contracting agency and the name of the actual contracting activity (e.g. Treasury’s West Virginia Office – Contracting Division for IT).]

2. Nature and/or description of the action being approved. [Describe the type of action being issued (e.g. new award, contract modification or brand name). Identify the contemplated contract type (e.g. firm fixed price). Provide the name, address, socio-economic status and contract number of the proposed contractor.

If a contract modification, include the contract no., task/delivery order number (if applicable), and nature of why the modification is required)

If brand name, state this justification & approval is covering only the portion of the acquisition which is brand-name.

If known include the requisition number.]

3.a A description of the supplies or services required to meet the agency’s needs:

[Provide a clear, concise description of the supplies or services to be procured. Include a statement regarding the delivery schedule and/or the period of performance, inclusive of all option periods and award terms. If applicable, state the associated contract line or subline items the supplies or services are being procured against. For supplies, include details such quantity and a brief description of the items (e.g. twelve (12) laptops).

For brand name, provide the name of the brand, model number and other specific details associated with the brand name item(s) being procured; name(s) of known sources that can provide the brand name.]

3.b Estimated value. [State the total estimated dollar value of the order, inclusive of all options, award terms and other monetary incentives. If applicable, provide separately for each option, award term and other monetary incentive a general description (e.g. option period 1 – April x, 201x through March x, 201x) and the associated individual dollar amount. These separate dollar amounts should add up to the total estimated dollar value; however if there is a difference then provide a discussion as to why they don’t.

For brand name also provide the total estimated dollar value of the portion of the order, inclusive of all options, award terms and other monetary incentives, that is brand name.

For modifications provide the total dollar value of the proposed modification, the current total dollar value of the contract.

Include a statement that refers to the Independent Government Cost Estimate for specific details.]

4.a Identification of the exception to fair opportunity being used. Check the applicable exception being used for this justification.

4.b Supporting Rationale. [Provide a clear and concise description of the rationale for the use of the authority being cited above, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. For example, for

• FAR 16.505(b)(2)(i)(A) Describe the nature or circumstances of the urgency surrounding the agency’s need; how any follow-on work will be competed or how such urgency will be mitigated in the future; describe the extent and impact of the unacceptable delay (e.g.

quantitative data, dollars that would be lost, the impact to schedule) if fair opportunity was provided. Provide supporting rationale and a concise description of the extent, nature, and impact of the potential harm to the Government.

• FAR 16.505(b)(2)(i)(B) Describe what makes this contractor the only responsible source.

For example, (i) does the proposed contractor have facilities or equipment that are specialized or unique that are vital to the effort?; (ii) Is the proposed contractor the only one that can meet critical schedule(s) required by the Government?; (iii) Does the proposed contractor have prior experience or expertise of a highly specialized nature that is vital to the effort?; (iv) Does the contractor have an exclusive licensing agreement?.

Fully explain why any other supply or service provided by another vendor will not satisfy the Government’s need. Also, describe any type of market survey and analysis efforts conducted to support this conclusion.

• FAR 16.505(b)(2)(i)(C) If the logical follow-on exception is used, 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). Provide the estimated cost and/or time savings that will result from the non-competitive award, and explain the basis for the estimate.

• FAR 16.505(b)(2)(i)(D) If the satisfy a minimum guarantee exception is used, specify the amount of that guarantee, and, if applicable, the amount that has been ordered to date.

Discuss why the minimum was not otherwise met and any actions the Government took to meet that minimum.

• FAR 16.505(b)(2)(i)(E) If the statute exception is used, cite the statute along the specific language from the statute and how it applies to this order.

• FAR 16.505(a)(4) State the brand name product’s unique attributes (be specific and use technical terms, if necessary), provide an explanation of the proposed brand name item(s) unique qualifications and why no other similar product will suffice, including why other companies’ similar products lacking the particular feature do not meet, or cannot be modified to meet, the agency’s needs; why (if applicable) the nature of the acquisition requires the use of the brand name product. Provide an estimate of the cost and/or delay the Government would incur if other than the brand name item is used for this requirement.

Do not simply take information from a vendor’s website or other such marketing information to use as the basis as to why they are unique. Also, describe any type of market survey and analysis efforts conducted to support this conclusion.

5. A determination that the anticipated cost to the government will be fair and reasonable.

[Provide a narrative of the measures performed by the contracting officer to ensure the costs or pricing will be fair and reasonable. Provide any information, such as commercial pricelists or prior acquisition history that will help the contracting officer determine that the anticipated cost or pricing is fair and reasonable. This paragraph should always begin with a sentence similar to: “The contracting officer determines that the anticipated (insert cost or pricing) will be fair and reasonable based on….”.]

10. Any other facts supporting this justification. Examples might include:

• If the justification is based on an urgent and compelling need, there may be additional data or estimated costs that further support the extent and nature of the harm to the government in delay in award will cause or

• If acquisition of a patented or copyrighted product is based on the representation of the intellectual property holder that has not been licensed for resale]

11. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made. [Describe actions taken, or that may be taken, to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required (e.g. overcoming challenges to restrictive data markings, data rights, preparation of a performance based work statement). If planning or in the midst of a competition, include information regarding this action (e.g. estimated date when the competitive procurement will occur or award to be made).]

[INSTRUCTIONS: Ensure that the below begin on a separate page. Each review must be preceded by lower level approval(s), e.g., over $67.5 million all approvals are required. IN NO CASE WILL AN INDIVIDUAL SIGN MORE THAN ONE APPROVAL LEVEL. Retain only those signature blocks applicable to the dollar range of the acquisition being justified.

A supplemental justification is required if any of the following revisions occur between approval of the original justification and award or modification of the order: an increase in dollar value beyond the authority approved in the justification; a change in the competitive strategy that further reduces competition; or any type of change in requirement that affects the basis of the justification.]

Additional.

1. Tracking No.: This field is completed as prescribed by Bureau procedures.

Requisition Number: 16PR-OFS-0006: In accordance with FAR 16.505(b)(2)(ii) (A), the Contracting Officer (CO) is requesting an exception to the fair opportunity process. This task order is a follow-on to TOFS-11-D-0004/Task Order 1 which was for Internal Controls Testing Support services from FI Consulting. FI Consulting has custom developed highly specialized equity models specific to the Troubled Asset Relief Program (TARP) and sub-programs including the Capital Purchase Program (CPP) and Community Development Capital Initiative (CDCI). No other contractor is familiar with these custom developed models. Given that these programs are winding down and nearing an end – utilizing a new contractor would result in a substantial duplication of costs for Treasury. The cost of just familiarizing a new contractor with these custom models would likely exceed the cost of having FI Consulting continuing to maintain the models and perform minor enhancements.

3a A description of the supplies or services required to meet the agencys needs: The objective of this task order requirement is to obtain internal control services to support the Department of the Treasury’s (Treasury), Office of Financial Stability (OFS). Specifically, the contractor will assist management with meeting the requirements of the Chief Financial Officers’ Act; Federal Managers’ Financial Integrity Act (FMFIA); Office of Management and Budget (OMB) Circular A-123, Management’s Responsibility for Internal Control, Appendix A, Internal Control over Financial Reporting; Government Performance and Results Act (GPRA); and, the Federal Financial Management Improvement Act (FFMIA). These services will be provided as part of a team consisting of staff from Treasury’s, OFS, General Special Entity Accounting (GSEA), and Office of the Deputy CFO (ODCFO); and, contractor staff.

Period of Performance is for 12 months from date of award.

FI Consulting has custom developed highly specialized equity models specific to the Troubled Asset Relief Program (TARP) and sub-programs including the Capital Purchase Program (CPP) and Community Development Capital Initiative (CDCI). No other contractor is familiar with these custom developed models. Given that these programs are winding down and nearing an end – utilizing a new contractor would result in a substantial duplication of costs for Treasury. The cost of just familiarizing a new contractor with these custom models would likely exceed the cost of having FI Consulting continuing to maintain the models and perform minor enhancements. FI Consulting has spent thousands of hours working with these models. In contrast, only 668 hours of work are estimated for this year’s spending for Project Management and 4483 hours are estimated for technical workstream, for a combined total of 5151 hours. It is highly unlikely that any possible savings associated with competition would outweigh the labor hours necessary to familiarize a new contractor with the models. Also the volume of modeling work is declining rapidly and contract spending for this year is estimated to be approximately 1/7th of the previous year’s spending. For these reasons, utilizing a new contractor would not be cost-effective.

Therefore, in the interest of economy and efficiency, this exception is justified.