JEFO - SF1014_12-8-2020_ CA Approved.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), Wage and Investment (W&I) and the contracting activity is IRS Procurement, Office of Information Technology Acquisition (OITA).

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 Firm Fixed Price (FFP) contract to Enterprise Logistics Information Technology (ELITE). The base period of performance will be March 1, 2021 thru February 28, 2022.

Options Period of Performance will be March 1, 2022 through February 28, 2026 (5 years total).

2.b Name of the vendor. Perspecta Enterprise Services, LLC 2.c Requisition No.: 5000100769 2.d Bridge contract: ☐ Yes ☐-X No 2.e Brand name: ☐ Yes ☐ -X No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition is to acquire contractor development support services for Enterprise Logistic Information Technology (ELITE). ELITE software supports the distribution and inventory activities of the Distribution Division. A winning Most Efficient Operation (MEO) team selected ELITE to replace an existing outdated IRS system. The IRS began using ELITE in 2006. ELITE receives and processes customer orders for published products; maintains inventory at the National Distribution Center (NDC); utilizes wireless technology in the NDC warehouse; forecasts product needs; selects shipment transportation using rate shopping; and interfaces with several other systems.

3.b Includes IT: ☐ -x Yes ☐ No PSC: D308 NAICS: 541519 3.c IGCE/Estimated dollar value:

The IGCE is $1,902,293.68 for one 12-month base period & four 12-month option periods.

Period of Performance: March 1, 2021 through February 28, 2026.

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.

X☐ 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 contractor’s unique qualifications and the nature of the acquisition requires use of the authority cited as follows:

i. The proposed contractor developed and owns the propriety and patented software and algorithms that are used in these products and support the services specifically required for this acquisition; thereby the proposed source has the sole unique technical and other resources required for this acquisition; the Government currently uses the proposed contractor’s brand name product as part of its ELITE program. This software supports the Government need for continuity of operations in support of ELITE.

ii. No other software is suitable for use in this part of the ELITE project. A new vendor could introduce technical risks and software failure, if the appropriate vendor solution and skills are not applied; which could result in the inability to meet system upgrades and Filing Season commitments. In addition, ELITE would be subject to increased system instability & possible work stoppage that would ultimately result in increased taxpayer burden.

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 hours with prior and similar task orders issued, performing cost and price analysis techniques and through use of the GSA Calculator research tool.

6.a Any other facts supporting this justification:

N/A 6.b Attachments: Yes ☐ -X 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:

Due to the proprietary nature of the software and source code, continuing support from such vendor may be required in the future. Approval of this sole source provides the Government the necessary time to complete the ELITE work required to support the IRS’s mission and negate any negative impacts to the 2021 Filing Season.

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: Joseph Rupert Date: 12/07/2020

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

Name: Shontae Harley Date: 12/07/2020

Signature: //s//

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: N/A Date:

Signature:

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:

Signature:

9.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 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: N/A Date:

Signature:

9.d Treasury Chief Information Officer (for IT requirements that are over $68 million). 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.

Name: Date:

Signature:

9.e Senior Procurement Executive (if over $68 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 executive, I hereby approve this justification based on the authority specified in 4.a above.

Name: Date:

Signature: