JEFO Redacted.pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

Control No. 2020-WHS-0020

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY

(JEFO)

UNDER FEDERAL ACQUISITION REGULATION SUBPART

16.5

1. AGENCY AND CONTRACTING ACTIVITY: The Department of Defense, Washington Headquarters Services, Acquisition Directorate, Enterprise Facilities Construction Division

2. DESCRIPTION OF ACTION: The contract action requested for approval is to increase the ceiling price from $60 Million to $100 Million by modification of CLINs under correct option periods two through four of IDIQ HQ003417D0016. The IDIQ Contract is a Firm-Fixed type contract. No funding is needed for this action.

The current ceiling, $60M, will be reached if all options are exercised on current task orders through the final option year.

Thus, an increase in the ceiling price to $100M is needed to accomplish unexpected and unforeseen additional work not captured within the original estimate as described below.

3. DESCRIPTION OF SUPPLIES/SERVICES: This is a non-personnel services contract to provide a wide range of analytical and planning, design, and construction management support services to assist the Washington Headquarters Services (WHS), Facilities Services Directorate (FSD) in the accomplishment of its missions. The Contractor shall provide all personnel, equipment, tools, materials, supervision and non-personal services necessary to perform technical support services for the Department of Defense (DoD), WHS with exception to those items specified as Government furnished property and services. The Contractor shall successfully integrate and coordinate all activity needed to execute the requirement, manage the timeliness, completeness, and quality of products. The Contractor shall also provide corrective action plans, proposal submittals, timely identification of issues, and effective management of subcontractors.

4. EXCEPTION TO THE FAIR OPPOURTINTY.

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 and cost-effective increase to a contract already issued that all offerors were given a fair opportunity to be considered for the original award.

5. FAIR AND REASONABLE COST DETERMINATION:

Proposal will not be requested to raise the ceiling of the IDIQ contract because the ceiking increase will be based largely on the same labor rates in the current contract. Rates of the labor categories used under the IDIQ will not change except for the Project Manager V that will be added into this IDIQ contract.

Certified Cost and Pricing Data will not be requested since proposal will not be requested.

6. ANY OTHER FACTS SUPPORTING THE

JUSTIFICATION: This action is a result of the combined impact of three unforeseen changes in conditions from the time of the award of this contract. First, it was anticipated that the organization supported by this contract would fill certain positions necessary for the organization based on Government billets that were supposed to materialize and would not require as much contractor support. This intent affected the establishment of the original ceiling on the IDIQ at conception and caused the ceiling to be set rather low based on anticipated support by the Government.

The original initiative changed later in FY17 and now these Government positions will no longer be filled because there are no longer any Government billets available to support this mission, and the Government is now relying more on contractor support to complete its mission. The lack of Government billets is due to the delayering effort by DOD which affected WHS personnel positions in FY17. The increased demand for contractor personnel under this IDIQ contract will be integrated into the organizations supported by this contract.

Second, a new multi-phased/multi-year project for “N2 to BACnet Execution” and FSD Mission increases has evolved and adds to contractor support as well.

The N2 to BACnet requirement is a multi-phased/multi-year project to replace the Pentagon's obsolete building controls infrastructure, devices and configuration with a modern, secure system. This project was unforeseen with FSD learning that it would be funded in the past year. The current controls protocol (running the Pentagon’s building controls) runs off of Windows 7, will no longer be supported by Microsoft and requires urgent replacement to be compatible with Windows 10 and remain secure.

Additionally, replacement parts are very difficult to obtain.

Funding was added into FSD's budget as an "Above Fiscal Guidance" last summer by WHS leadership to address this critical issue. The effort is very labor intensive as it requires the Government's representatives to lead, coordinate, and manage access to every tenant space in the Pentagon. Additionally the effort will produce thousands of drawings that need to be reviewed through the Pentagon Building Manager's Office for quality checks and commissioning. Finally, the Government will require significant assistance in managing the schedule. These needed resources can be provided by the IDIQ Contract HQ003417D0016, however, it currently lacked the capacity due to the magnitude of the project.

Third, WHS/FSD is also now expected to take on several additional facilities and missions not anticipated when the contract was first awarded. These include operation and maintenance of the PAC, additional responsibility to coordinate, procure, and manage lease space and potential management of construction projects for Defense Contract Management Agency, and support to OSD offices such as Joint Chiefs of Staff in coordinating, procuring, managing, and constructing facilities on their behalf. FSD is also regularly being asked to assess the ability to support other Fourth Estate Agencies and activities in the future.

The combined effect of these additional requirements were unexpected because FSD was unaware that cyber security requirements would arise within the period of performance of the CMTSS IDIQ contract. Therefore, CMTSS IDIQ requirement was never sized to support the N2 to BACnet requirement and the multi-phased/multi-year project was not anticipated at the time of the award of this IDIQ contract. The requirement to support the additional FSD mission requirements were unexpected because at the time that the CMTSS IDIQ requirement was planned it was expected that these increases would be supported by additional Government personnel. To support these missions WHS/FSD estimated that each organization would need one contractor in each LCAT per new initiative i.e. PAC, JCS, DCMA. It is determined that increasing the ceiling of the CMTSS IDIQ Contract is more advantageous to the Government rather than awarding a separate contract because it is more efficient to administer one contract particularly where the contractor’s experience can be put to use in the same location for the same agency.

7. ACTIONS TO REMOVE OR OVERCOME ANY BARRIERS

THAT OVERCOME ANY BARRIERS THAT LEAD TO

THE EXCEPTION TO FAIR OPPORTUNITY BEFORE

ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES

OR SERVICES IS MADE: This action will be a source of data for following re-compete actions. The new ceiling amount as a result of this action will be considered when generating estimates for future similar contracts.

8. If this acquisition is for new work as a logical follow-on to an order already issued under the contract, was the original order was placed in accordance with the fair opportunity process?

☐Yes, all awardees were given a fair opportunity to be considered for the original order.

☐No, the original order was issued under a sole-source basis.

☒Not Applicable.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Contracting Officer Representative/Program Office Date

Contracting Officer Date

Signature on File

CONCURRENCE

Base on the foregoing, I hereby concur with this justification and recommend for approval.

David H. Kao, Competition Advocate Date

APPROVAL

Based on the foregoing, this justification is, hereby, approved.

David H. Kao, Competition Advocate Date

David D. Sanders, Director Acquisition Directorate

Date

Signature on File