JOFOC 31310023R0004 CGI FAMIS _Posting .pdf

Version Control Date: October 7, 2015

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

SOLICITATION: 31310023R0004

PROJECT TITLE: CGI FAIMIS SOFTWARE AND SUPPORT SERVICES

1. Nature and/or description of the action being approved.

a. Acquisition purpose and objectives.

This is a justification to solicit, negotiate and award a single award Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract on a sole source basis to CGI Federal Inc. (CGI).

The purpose of the contract is to obtain CGI Momentum® software licenses and related support services for the NRC's customized CGI Momentum®-based core financial system known within NRC as the Financial Accounting Information and Management System (FAIMIS). CGI currently hosts and supports the NRC’s financial management systems, which includes FAIMIS, eBilling and current Fee Billing systems, with the option to support future Fee Billing systems when implemented at the NRC. The customized FAIMIS system is hosted in an external FedRAMP-compliant cloud environment. The required services include: hosting;

operations and maintenance (O&M); help desk; enhancement support services for FAIMIS; and training.

This is a follow-on award to the current five-year NRC IDIQ contract 31310018D0004 which expires 1/31/2023. This is a commercial requirement covered under FAR Part 12 Acquisition of Commercial Products and Commercial Services.

b. Project background.

• The incumbent contractor is CGI Federal Inc. UEID# TRKEP1HEBNS5, 12601 Fair Lakes CIR, Fairfax, Virginia 22033-4920. The IDIQ contract # is 31310018D0004 with a period of performance (POP) of 2/1/2018 - 1/31/2023.

The IDIQ maximum ceiling is $46,225,760.00. The IDIQ contract was awarded to CGI pursuant to a sole source justification in accordance with

FAR 6.302-1.

• The requirement prior to the current contract was divided between software and services and both were awarded to CGI as follows.

The award for CGI software was GS35F4797H / NRC-HQ-12-F-09-

0001. POP 8/1/2012 – 1/31/2018. The contract was awarded pursuant to a limited source justification for CGI software.

The award for FAIMIS O&M services was NRCHQ11C330059 / NRCHQ12T090001. POP 12/08/2011 – 03/31/2018. The requirement was competed among two vendors and awarded to CGI.

c. Name and address of the proposed contractor(s).

CGI Federal Inc., UEID# TRKEP1HEBNS5, 12601 Fair Lakes CIR, Fairfax, Virginia 22033-4920.

2. Description of the supplies or services required to meet the agency’s needs.

a. Project title.

FAIMIS Software and Support Services.

b. Project description.

The Contractor will support the NRC customized version of FAIMIS which is key to the agency's ability to provide financial management in the following areas: (1) budget execution of appropriated funds; (2) fee billing of licensees; (3) disbursements; (4) travel; and (5) Treasury mandated financial reporting.

The Contractor may be issued task orders under the IDIQ contract to furnish the NRC with the following types of products and services: r:

• Customized CGI Momentum® software licenses (FAIMIS) and related support

• FAIMIS hosting services

• Application operation and maintenance (O&M) support services

• FAIMIS help desk support services

• Enhancement support services for FAIMIS

• CGI Momentum® release/upgrades support

• Other related products and/or services, such as services to integrate FAIMIS with other NRC or government-wide systems, that are necessary to comply with federal laws, federal regulations or are otherwise necessary to accomplish the goals and objectives of this acquisition

• Data and documentation related to services provided under the contract

• Training

c. Acquisition Information.

• Requirement type.

☐ Research & development (R&D) ☐ R&D support services ☐ Support services (non-R&D) ☐ Supplies/equipment ☒ Information Technology (IT) or Electronic and Information Technology (EIT) ☐ Construction ☐ Architect-engineer (A-E) services ☐ Design-build ☐ Other (specify): ____________________

• Type of action.

☐ New requirement ☐ Follow-on ☒ Other (specify): New contract

• Proposed contract/order type.

☒ Firm-fixed-price ☐ Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ ☐ Cost-plus-fixed-fee

☐ Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ ☐ Time and materials ☒ Labor Hours ☒ Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): IDIQ

• Statement of Work Type:

☒ Completion ☐ Level of Effort ☐ Performance Based

• Requisition number.

Requisition #: ZEROREQ-CFO-23-0006 Solicitation #: 31310023R0004

• Total estimated dollar value and performance/delivery period.

Total IGCE $40,000,000.00 Period of Performance: Five years 2/1/2023-1/31/2028

3. Identification of the justification rationale.

☐ This acquisition is conducted under Federal Acquisition Regulation

(FAR) 8.405-6.:

☐ Urgent and compelling need exists ☐ Only one source is capable of providing the supplies or services

(i.e., peculiar item, brand name item) ☐ Logical follow-on

☐ This acquisition is conducted under FAR 13.106-1(b).

☒ This acquisition is conducted under FAR 6.302-1.

☒ 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements ☐ 6.302-2 Unusual and compelling urgency ☐ 6.302-3 Industrial mobilization; engineering, developmental, or research capability; or expert services ☐ 6.302-4 International agreement ☐ 6.302-5 Authorized or required by statute ☐ 6.302-6 National security ☐ 6.302-7 Public interest

☐ This acquisition is conducted using Simplified Procedures for Certain Commercial Items pursuant to FAR 13.500.

☐ This acquisition is conducted using Simplified Procedures for Certain Commercial Items pursuant to FAR 13.500(c).

4. Description of the proposed contractor(s) unique qualifications to provide the required supply or service.

Momentum® is CGI’s proprietary commercial financial Enterprise Resource Planning (ERP) application. CGI is also the sole distributor of the licenses, and the sole provider of system maintenance, operations, and modernization support to Momentum®. NRC is using CGI’s proprietary software Intellectual Property (IP) as its ERP solution (FAIMIS).

CGI does not share its IP with other companies. As such, no other company can provide the comprehensive FAIMIS support NRC requires. No other company can directly access/support the CGI IP.

The NRC’s commercial instance of FAIMIS contains minor modifications in the form of customized code to support NRC’s complex license fee billing process. However, FAIMIS is customized for interoperability with two NRC-owned mission critical systems -eBilling and the Strategic Acquisition System (STAQS), the agency’s acquisition management system. eBilling is a web-based application that provides immediate delivery of NRC invoices, customizable email notifications, the capability to view and analyze invoice details, and access to Treasury’s systems to pay invoices. Development and maintenance of the eBilling platform, as well as the custom license fee billing module contained within the FAIMIS core financial system require mature understanding of the code behind the software and NRC’s complex fee billing processes. STAQS is the NRC’s automated acquisition system that interfaces with FAIMIS to process all the agency’s commitments and obligations. CGI also currently provides the NRC with end-to-end hosting services, operating in MS Azure GovCloud, for both FAIMIS, eBilling and STAQS integration with FAIMIS. Overall, FAIMIS has become an integral part of several critical systems that process fee billing, acquisitions, and other financial transitions for the NRC.

The NRC has made significant investment in its commercial instance of FAIMIS to ensure it is modified to support the NRC’s business processes and interfaces with other systems for seamless transactions across the agency. Therefore, if the NRC would have to replace its current ERP solution (FAIMIS) with some other solution, there would be a substantial duplication of cost due to the level of effort that would be required by the solution provider and NRC to re-create the current interoperability with other agency systems.

5. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a SAM.GOV notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A pre-solicitation Notice of Intent to sole source the subject requirement referencing 31310023R0004 was posted on SAM.GOV from 11/4/2022 to 11/21/2022 to determine whether there were any interested parties with the capabilities to perform the requirement. The notice requested that interested parties who believe they can meet the requirement submit a statement of capabilities. Only one vendor responded to the Notice of Intent, which is described in Paragraph 9 below.

6. Description of the efforts made by the Contracting Officer (CO) to determine that the cost/price of the contract/order is fair and reasonable consistent with FAR 8.404(d) or 15.406-2.

The Government will compare all pricing and labor rates quoted by the Contractor for the new contract to historical pricing covered in the current contract. Additionally, the Government will require that the Contractor show in its price quote whenever practicable, the underlying labor rates, labor categories, and level of effort for all CLINs.

The Government will then compare the Contractor’s labor rates with market labor rates for the same labor categories; and will also assess whether the level of effort and labor mix are reasonable for the requirement

7. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

See answer to paragraph #5 above. Additionally, a market research checklist was completed by the CO. The results of the market research are that only CGI can supply the required services, for the reasons listed in paragraph #4 above.

8. Other factors supporting the justification, if any.

In accordance with the United States Department of the Treasury (USDT)’s Financial Management Quality Service Management Office (FM QSMO), all Federal agencies are required to work with USDT to determine a path forward for an ERP system selection regarding the agency’s financial management system. NRC met with USDT in January 2022, which resulted in the determination that NRC should renew the existing contract with CGI, which expires in January 2023. An FM QSMO mandate is anticipated to be issued sometime in FY2024 or FY2025 that will require each federal agency to select from a list of approved Financial Management Software-as-a-Service (SaaS) solutions.

NRC will continue to meet with USDT quarterly to ensure that NRC will convert over to the mandated SaaS solution, if necessary. Per a recent USDT meeting, the deadline for when agencies are required to complete the cut-over to the approved SaaS solutions has not yet been determined. However, until a decisive date is established, and a selected SaaS solution is determined, the NRC should continue with a follow-on IDIQ contract with CGI.

9. List sources, if any, that have expressed an interest in the acquisition.

Hart, Brown & Associates - On 11/7/2022, the CO received an email from Michael Johnson at Hart, Brown & Associates, michaeljohnson@hartbrown.org, expressing interest in the requirement. The CO responded with an acknowledgement on 11/8/2022.

The vendor did not submit a capability statement that would allow the CO to determine whether the vendor could perform the requirement as directed in the Notice of Intent.

The vendor’s website at hartbrown.org was not accessible and the vendor was not listed in SAM.GOV. Consequently, the CO was unable to independently assess the capabilities of the vendor. Additionally for the reasons mentioned in paragraph #4, only CGI can provide the required services. The CO notified the vendor accordingly.

10. If applicable, describe the actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

The NRC is looking to minimize the level of customizations in the FAIMIS core financial system in the future so that NRC will have more flexibility to pursue other options including competitive solutions from other vendors.

mailto:michaeljohnson@hartbrown.org

The NRC will closely scrutinize future requests for renewal of the subject requirement and will ensure that any restrictions to competition are adequately supported and documented.

11. Certifications

By signing below, the COR certifies that, to the best of his or her knowledge and belief, the information and/or data which form a basis for the justification is accurate and complete.

Contracting Officer Representative

This is to certify that the justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

CONCUR:

Branch Chief

Competition Advocate

Head of Contracting Activity