JEFO_HHSN316201200018W_75P00121F80070_P00003.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Acquisition Title: FY22 HSPD-12 Contract Modification

Agency: PSC

PSC Divisions: ASA - Assistant Secretary for Administration

Acquisition Year (FY): FY22

Author: Joseph Gonzalez

2. Description of Action:

Nature: New Requirement Follow-on Order

Modification to Existing Delivery/Task Order/Contract Number: HHSN316201200018W/75P00121F80070

Order Against: Multiple Award ID/IQ Contract Number:

Pricing: Firm-Fixed Price Time & Materials Cost Type

Funds: OMA Other Funds: Service and Supply Fund

3. Description of Applicable Contract Provisions:

This modification is pursuant to FAR 52.212-4 (c), Changes.

4. Description of Supplies or Services:

The estimated value of the proposed action, including all options, is: $ $957,000.00

The purpose of this action is modification of the current HHS HSPD-12 contract. This modification will enhance a range of functions that are covered under the existing Time and Materials contract line items. The period of performance for these enhancements is anticipated to be the remainder of Option Period 1 (approximately 7/1/2022 through 12/31/2022) and Option Period 2 (1/1/2023 - 12/31/2023) These changes will provide for the improvement of services related to complying with Federal Identity, Credential and Access Management (FICAM) requirements and the completion of in-flight integration activities and security updates for the system's authority to operate, and needs of the user base.

At a high level, this justification is required for the following modification tasks. USPS Pilot Support; Additional scope of Federated SSO Adaptive Authentication solution (AMS/XMS); Advanced Analytics, BI Publisher Migration, and Dynamic Reporting of Audit and Security Requirements; Core TIC Support & DN1 Circuit Upgrade; Zero Trust Implementation Within IAM@HHS Data Centers/Infrastructure;

Robotic Process Automation (RPA) for Document Management; Automation for Bulk Induction of ACF Records; Enhancement for Fingerprint Card Printing; On-Site Fingerprinting Support and Training.

5. Authority and Rationale:

The Contracting Officer shall give every awardee a fair opportunity to be considered for a delivery/task order exceeding the micro purchase threshold unless one of the following statutory exceptions applies. FAR 16.505(b)(2). Mark the applicable exception:

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)(A)];

Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized [FAR 16.505(b)(2)(i)(B)];

Deloitte Consulting, LLP provides a managed service for the HHS ICAM and HSPD-12 Program, a legislatively mandated requirement., under HHSN316201200018W/75P00121F80070.

The period of performance included a 9-month base period and two 12-month option periods. The current option period ends December 31, 2022. Option Period 2 is January 1, 2023 through December 31, 2023.

Deloitte has been the long-term incumbent contractor for the IAM@HHS HSPD-12 system and has the proprietary knowledge needed to make these enhancements at the required high level of quality. This knowledge was gained through their own design and implementation of the Smart Card Management System (SCMS) for the IAM@HHS HSPD-12 program in conjunction with HHS' input, and Deloitte has been the one to upgrade the components of that system as needs have required. Deloitte developed and owns the Smart Card Management System (SCMS) that provides HSPD-12-compliant credentials and ICAM services throughout HHS. This is a managed service that HHS elected to use in 2009 with HHS ownership solely in the actual data and ancillary integration-built transaction code.

Deloitte is the sole provider with engineering access to this intellectual property and the proprietary knowledge of the inner workings of this system.

Deloitte's current smartcard management system is approved by GSA for compliant Federal Identity, Credential and Access Management Services, which is required by NIST before such a framework can be put in place due to the amount of PII information that these systems process. Accordingly, the architecture is uniquely tailored to work in the HHS HSPD-12 environment so that the data these systems handle is transacted in the most secure and efficient manner to retain compliance and the public's trust.

Competing the work to be addressed via this modification and having another vendor attempt to make these changes would require an extensive transition period where Deloitte would have to provide the new vendor with proprietary access as well as a lengthy time period for that vendor to become familiar enough with the system so as to be able to make these changes without jeopardizing the integrity of the system as a whole. The IAM@HHS HSPD-12 system is considered highly critical to HHS' day-to-day operations as it serves as the primary method for HHS users to be issued HSPD-12 PIV cards, for authentication to HHS networks, the encryption of emails and sensitive documents, as well as the digital signing of those same emails and documents.

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)(C)];

It is necessary to place the order to satisfy a minimum guarantee [FAR 16.505(b)(2)(i)(D)]; or

A statute expressly authorizes or requires that the purchase be made from a specified source. [FAR 16.505(b)(2)(i)(E)].

6. Agency Actions to Take or Remove Barriers That Led to Fair Opportunity Exception (If applicable):

Describe the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration prior to any subsequent acquisition for the supplies of services is made. If no such actions have been taken, explain why.

A current fully competitive solicitation for the next-generation FICAM solution is still in process. This competition will make it possible for there to be a planned transition for a potential new vendor to take on this system and undergo a mutually agreed upon transition period to allow Deloitte to hand over their proprietary access and knowledge while giving the new vendor the team needed to learn the systems, adapt, and stand up their own solutions if required.

7. Fair and Reasonable Price/Cost Determination: I hereby determine that the anticipated price/cost for this contract action will be fair and reasonable.

The IGCE has been prepared using the current contract methodology, negotiated under the NITAAC CIO SP3 IDIQ. The contracting officer will ensure that the price is fair and reasonable. Certified cost and pricing data is required, if applicable. The modification price proposal must address labor estimates, material costs and material indirect costs. The fully loaded hourly rates established at the NITAAC/CIO-SP3 contract have already been determined fair and reasonable, and price analysis will be conducted to ensure the quoted rates are consistent with those on Deloitte's CIO-SP3 contract. Further, the price analysis will consider the level of effort and labor mix to ensure it is appropriate for the work to be performed. Any proposed material costs (e.g., direct materials, subcontracts for supplies and incidental services for which there is not a labor category specified in the contract, and other direct costs such as incidental services for which there is not a labor category in the contract, travel, computer usage charges, etc.) must include an explanation of each material element, detailing the rationale used in developing the estimate, as well as supporting documentation. The Government will evaluate material costs to determine they are necessary for the work to be performed, as well as perform a cost analysis of any proposed material costs to determine the reasonableness of the proposed cost. Material Indirect Costs shall be proposed in accordance with the incumbent’s current negotiated indirect rate agreement.

Signature: Date: 5/21/2022

Name: Victoria Estabrook

Title: Contracting Officer

8. Any other facts supporting the justification:

9. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this Justification for an Exception to Fair Opportunity is accurate and complete.

Program Manager

Name: Marcia Levin

Position Title: Director, ISBS and HSPD-12 Program Manager

Email address: marcia.levin@psc.hhs.gov

Phone: 301.492.4235

Program Manager Supervisor (or one level above Program Manager)

Name: Kory Whalen

Position Title: Director, Operations & Management

Email address: Kory.Whalen@psc.hhs.gov

Signature:

Date:

10. Contracting Officer's Approval (Required for proposed contract not to exceed $700,000 (value calculated including all options)): I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Name: Victoria Estabrook Phone: (301) 492-4729

Signature: Date: 5/27/2021

11. Legal Review:

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million value calculated including all options)):

I have reviewed this justification and find that it adequately supports an exception to fair opportunity.

Digitally signed by Victoria W. Estabrook -S DN: c=US, o=U.S. Government, ou=HHS, ou=PSC, ou=People, 0.9.2342.19200300.100.1.1=2000119096, cn=Victoria W. Estabrook -S Date: 2022.05.21 16:02:55 -04'00'

Kory D. Whalen -S Digitally signed by Kory D. Whalen -S Date: 2022.03.16 14:43:59 -04'00'

Digitally signed by Victoria W. Estabrook -S DN: c=US, o=U.S. Government, ou=HHS, ou=PSC, ou=People, 0.9.2342.19200300.100.1.1=2000119096, cn=Victoria W. Estabrook -S Date: 2022.05.27 19:30:38 -04'00'

Name: Carolyn C. Taylor Phone: 202-603-6685

Signature: Date: 06/03/2022

13. Office of Small and Disadvantaged Business Utilization:

I have reviewed this justification and find that it adequately supports an exception to fair opportunity.

Name: Phone:

Signature: Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million value calculated including all options)):

Name: Phone:

Signature: Date:

15. Department Competition Advocate:

Concur: Non-Concur:

Name: Phone:

Signature: Date:

Carolyn C. Taylor Digitally signed by Carolyn C. Taylor Date: 2022.06.03 10:39:17 -04'00'

(The below approval paragraph is required if the cumulative contract value, including all options, exceeds $68 million.)

16. HHS Senior Procurement Executive (SPE) Approval:

Based on the foregoing justification, I hereby approve the procurement of stated supplies/services being procured on the exception to the fair opportunity basis pursuant to the authority of paragraph 5, 41 U.S.C. 4101, as implemented by FAR 16.501-2.

State supplies/services being procured:

State the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 3304:

Name: Phone:

Signature: Date: