JEFO N4 ERP Support-Redacted.pdf

Source Selection Information – See FAR 2.101 and 3.104

Document # 26-185

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

(ABOVE SAT)

1. Identification of Requiring Activity and Contracting Activity.

The requiring activity is the Assistant Secretary of the Navy, Financial Management & Comptroller (ASN (FM&C)), Washington, DC. The contracting activity is NAVSUP Fleet Logistics Center (FLC) Norfolk, Contracting Dept., BUMED/FM&C Directorate.

2. Nature and description of contract action.

This acquisition is conducted under the authority of 10 U.S.C. 3406(c)(5). This action is an exception to the fair opportunity process to be awarded as a modification to an existing task order. The placement of a new Cost-Plus Fixed Fee (CPFF) CLIN on an existing order is anticipated.

This procurement action is to modify the fleet migration support services currently performed by Deloitte and Touche LLP under Contract N0018922DZ017, Task Order N0018925FZ224, which was solicited on a competitive basis but ultimately received only one quote. This justification specifically addresses the requirements to expand analysis and support to OPNAV N4.

3. Description of Required Supplies/Services to meet the agency’s needs.

The proposed acquisition is to issue a modification to an existing Task Order issued to Deloitte.

Task order N0018925FZ224 provides functional support services assisting in the generation, design, and implementation of requirements supporting the Navy’s technical upgrade of the Navy ERP system from ERP Central Component (ECC) to S/4 HANA. This technical upgrade is a critical part of a holistic effort called ERP+ to modernize the Navy’s financial management IT infrastructure and operations. The current instance of Navy ERP (ECC) is approaching obsolescence and its software will no longer be supported by its manufacturer. ERP+ is targeting deployment starting in FY29 to ensure the continued availability of a modern ERP that will drive the Navy’s ability to sustain a clean audit opinion year-over-year.

The original scoping of ERP+ was on the Navy’s financial management (FM) community.

During the course of performance on the current contract, the government made the design decisions to include Navy Operational Supply System (NOSS) requirements in ERP+. After analyzing 3,500 NOSS requirements, it was determined that ERP+ covered ~88%, which made the ERP+ S/4HANA platform the best path forward. A Memorandum of Understanding (MoU) was signed in October 2025 between OASN (FM&C) and OPNAV N4 to deliver operational supply capability via ERP+. This task order modification would provide contractor support for

ERP+-related services similar to what is being provided for FM to the OPNAV N4 logistics community in order to pave the way for NOSS requirements to be delivered through ERP+.

Specifically, the proposed tasks would provide 1) LOG IT Governance, 2) IT Portfolio Management, 3) Resource and Financial (POM) analysis, and 4) Requirements Analysis.

Without additional support to N4, there is an increased likelihood that these efforts may fail to achieve their necessary milestones on the timelines required to meet the DON’s ERP+ timeline, putting at risk the Navy’s ability to sustain a clean audit and successfully integrate NOSS.

Specific services and key goals of the proposed task order are:

LOG IT Governance to manage, analyze, and provide recommendations based on strategic N4 leadership direction, agenda development, briefing material, leadership talking points, coordination with external stakeholders, meeting minutes, action tracking, and overall governance preparation, scheduling, and battle rhythm.

IT Portfolio Management to manage, analyze, and provide recommendations for LOG IT systems, applications, capabilities alignment to the BEA and capabilities requirements documents and the overall roadmap for LOG IT modernization and cattle-drive in-service LOG IT systems. Includes support for using and analyzing authoritative LOG IT system data and interface standards.

Resource and Financial (POM) analysis to manage, analyze, and provide recommendations for the N4L6 Logistics and Warfighting POM balance based on OSW, DON, Navy and N4L6 priorities. Includes analyzing historical financial data, managing obligations and expenditures, and reviewing reports daily, cost estimates and other artifacts to determine funded and unfunded priorities.

Requirements Analysis to manage, analyze, and provide recommendations for generating and documenting requirements, and managing end-to-end logistics processes, supporting the development of capability needs statements via DoDI 8000.57 (Software Acquisition Pathway), supporting and managing integrated product teams and associated outputs to gather, document, and analyze requirements and their delivery to support LOG IT implementation

The period of performance for N4 LOG IT Support is seven (7) months. The Government Estimate for N4L6 LOG IT Support is . This modification is estimated to increase the value of task order N0018925FZ224 from to , a increase.

4. Identification of the Exception to Fair Opportunity and Supporting Rationale - Including Demonstration of Contractor’s Unique Qualifications.

The statutory authority that permits not providing each awardee a fair opportunity to be considered for each order exceeding the micro-purchase threshold issued under a multiple award contract is 10 U.S.C. 3406(c)(5), as implemented by FAR 16.507-6(b). The applicable exception to the fair opportunity process for this justification for the award of an order exceeding the simplified acquisition threshold is:

The exception to the fair opportunity process is FAR 16.507-6(b)(2), 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.

Deloitte was awarded the ERP+ Requirements Generation TO (N0018924FZ713) in 2024. This task order was solicited as a competitive task order on the FIP IV vehicle, and Deloitte was found to be the only offeror that submitted an at least acceptable technical proposal. Likewise, Deloitte was awarded the follow-on effort (N0018925FZ224) in August 2025 as the only offeror that submitted a proposal. Deloitte demonstrated a complete background in Government-specific financial system knowledge and DON business/operation processes. Deloitte was the only firm that demonstrated the capability to deploy a fully qualified workforce (including key personnel) on the timelines required to achieve the task order’s goals. Starting with the performance of N0018924FZ713, Deloitte gained invaluable institutional knowledge as it assisted the DON with undertaking a critical multi-year transformation to modernize financial management, logistics, supply chain, and other core business functions through a complex technical upgrade . During course of the performance of N0018925FZ224, the government made a design decision to incorporate NOSS requirements into ERP+. While this has long-term ramifications for the overall ERP+ project, the most immediate impact is that strategic support to Governance, Portfolio Management, Requirements Analysis, and financial analysis is needed now to lay the groundwork for this transition. This support needs to be integrated with current ERP+ support underway with the FM community because it is essentially the same project: designing, generating, and implementing requirements for the ERP+ platform. The increase in scope to encompass logistics is a logical extension of the current services.

The incorporation of LOG IT Governance, IT Portfolio Management, Resource and Financial (POM) Analysis, and Requirements Analysis into the existing Performance Work Statement (PWS) is critical to establishing momentum for the N4 ERP+ transition. As the current performer, Deloitte possesses specialized understanding of the Department of the Navy's (DON) business processes, systems, and strategic ERP+ objectives. Awarding these specific N4 tasks to Deloitte directly leverages their ongoing expertise and execution of the core task order tasks already being performed for the FM community. Deloitte is already managing governance, aligning technical capabilities, and supporting cross-functional Integrated Product Teams (IPTs) for system requirements development. Additionally, Deloitte has existing, cleared staff that are ready to commence work immediately on contract and do not require suitability processing.

Transitioning these tightly coupled N4 logistics and IT portfolio tasks to a secondary vendor would introduce significant integration risks, duplicate foundational efforts, and cause unacceptable schedule delays. Therefore, utilizing Deloitte for this similar scope ensures seamless continuity, immediate operational impact, and optimal resource alignment with broader Navy and N4 priorities.

5. Determination of Fair and Reasonable Cost.

In accordance with FAR 16.507-6(d)(2)(v), the contracting officer has made the determination that the anticipated cost to the Government will be fair and reasonable.

6. Any other facts supporting the justification.

This procurement uses a MAC and will be solicited and awarded in accordance with FAR Subpart 16.507.

7. Actions Taken to Remove Barriers to Competition.

This task order will conclude all activities associated with this requirement. The incumbent company was chosen out of five (5) MAC IDIQ holders. The incumbent is completing a continuation of their prior work, which was extended due to unforeseen circumstances. Upon completion, no further requirements or follow-on activities are planned as of the time of this document. Thus, as this concludes the effort entirely, it poses no barriers to future competition.