JEFO - SF 1014 EST Services_Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1014 - JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

Prescribed by Treasury: DTAP 1016.505

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the IRS Information Technology (IT), Enterprise Services, Enterprise

Systems Testing (EST) and the contracting activity is IRS Procurement, Office of Information

Technology Acquisition.

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

The purpose of this Justification for an Exception to Fair Opportunity is to obtain approval to award a Cost-Plus-Fixed Fee (CPFF) nine-month bridge contract to Northrop Grumman

Systems Corporation to provide continued services while the re-compete process is completed.

The period of performance will be April 26, 2020 – January 25, 2021.

2.b Name of the vendor. Northrop Grumman Systems Corporation

2.c Requisition No.: 5000093355

2.d Bridge contract: ☒ Yes ☐ No 2.e Brand name: ☐ Yes ☒ No

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

The proposed acquisition is to acquire ongoing contractor consulting services to support the performance of various types of testing of IRS tax administration and other corporate applications and systems and ensure continuity of contractor support for thorough and comprehensive testing of 1) mission-critical Filing Season 2019 application and system updates and 2) legislatively-mandated changes to tax administration applications and systems.

3.b Includes IT: ☒ Yes ☐ No PSC: D306 NAICS: 541519

3.c IGCE/Estimated dollar value:

The IGCE is for a base period of performance April 26, 2020 to January 25, 2021.

4.a Identification of the exception to fair opportunity being used:

☒ 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:

The proposed acquisition is to acquire ongoing contractor consulting services to support the performance of various types of testing of IRS tax administration and other corporate applications and systems and ensure continuity of contractor support for thorough and comprehensive testing of 1) mission-critical Filing Season 2019 application and system updates and 2) legislatively-mandated changes to tax administration applications and systems. The blackout period for implementation of changes to IRS Tax Administration

TO FAIR OPPORTUNITY

applications and systems began on 12/31/2019, after which time only changes to correct tax processing defects identified during Production processing are permitted. Due to the extension of the tax payment deadline, the period required to complete testing, including retesting of corrections to defects identified during Production processing, has been extended from present through 6/30/2020. A Period of Performance through 01/25/2021 is required to ensure continuity of contractor support for testing of IRS Tax Administration applications and systems and completion of transition from the incumbent. Mid-year testing will need to be prepared for and executed, likely on a very compressed timeline before and immediately following the 7/15/2020 filing and payment due date extension, particularly so that EST can prepare for and begin its 2021 filing season testing cycle in the July/August timeframe. The IRS experienced delays in execution of the competitive solicitation due to the Government shutdown and as a result of the overwhelming number of questions received during the solicitation process and the solicitation was canceled. At this time a limited competition among a subset of Alliant 2 vendors would result in unacceptable delays because the incumbent is the only known contractor with sufficient number of knowledgeable and cleared staff who are immediately available to work on the IRS systems.

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

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on comparing prices/costs and labor hours with prior and similar task orders issued and by performing cost and price analysis techniques in accordance with FAR Subpart 15.404.

6.a Any other facts supporting this justification:

NA

6.b Attachments: ☐ Yes ☒ No

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 the exception to fair opportunity before any subsequent acquisition for the supplies and services is made:

The Contracting Activity issued the competitive solicitation March 25, 2020. The IRS has addressed the matters that lead to the cancelation of the previous solicitation and is confident award will be made. As a result, approval of this sole source provides the Government the necessary time to complete the solicitation and evaluation process, make a new award and transition the testing services.

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:

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Signature:

8.b 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

TO FAIR OPPORTUNITY

contracting officer for this acquisition, I hereby approve the processing of this requirement based on the authority specified in 4.a above.

Name: Frederick Thomas Date:

Signature:

Date: 2020.04.08 09:52:33 -04'00'

6. Additional Reviews and Approvals (As applicable):

9.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: A.

Date:

9.b Advocate for Competition (if over $700,000, but not exceeding $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.

Name: Date:

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