JOFOC_OST_ASSESSMENT_FOR_NA-1_CAVANAGH_FINAL_signed.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

NATIONAL NUCLEAR SECURITY ADMINISTRATION

OFFICE OF SECURE TRANSPORTATION (NA-15)

PURCHASE ORDER NUMBER DE-NA0002172

June 10, 2013

I. AGENCY IDENTITY AND CONTRACTING OFFICE

The primary role of the National Nuclear Security Administration Office of Secure Transportation (OST) (NA-15) is to provide safe and secure transportation of nuclear weapons, nuclear weapon components and special nuclear material in support of the national security of the United States of America. The operations facilities support the operational duties of the Federal agents who are responsible for the daily safeguard and transport of nuclear weapons, components, test assemblies, and strategic quantities of weapons grade special nuclear material up to and including Secret Restricted Data (SRD).

OST shipments are conducted in a manner to ensure the security and safety of the cargo. The personnel who operate the transportation vehicles and the escort vehicles are federal agents. The OST annual budget is about $250 million. The OST monitors weather from their operations center and weather checks are performed every two hours. In 2012, OST employed about 350 couriers. It employs military veterans, particularly ex-special-operations forces. Besides dealing with "irregular hours, personal risks, and exposure to inclement weather," agents "may be called upon to use deadly force if necessary to prevent the theft, sabotage or takeover of protected materials by unauthorized persons.

Through an active liaison program, NNSA maintains an emergency contact directory of federal and state response organizations located throughout the contiguous United States. During a convoy emergency, an open communications line is established and maintained between the control center and the appropriate state agencies. This way a continuous update of information from the scene can be relayed to the responding units. The OST has a system of emergency response including initial notification, monitoring and assessment of the situation, and working with other agencies in support of this vital national security function.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

This document sets forth the justification and approval required for an exception to full and open competition allowed under the Competition in Contracting Act of 1984 (CICA), 41 U.S.C. § 3304(a)(1) as implemented by the small purchase procedures for justifying an award to a single source pursuant to FAR 13.106-1(b)(1)(i). This JOFOC supports a sole source purchase order for a six-month period of performance. The purchase order will be awarded to Mr. James J. Cavanagh, sole owner and principle of the Cavanagh Group, 424 N. Saint Asaph Street, Alexandria, Virginia 22314-2318. Mr. Cavanagh will be performing a comprehensive and professional external assessment of the NNSA Office of Secure Transportation (NA-15) and provide reports as required to the NNSA Office of the Administrator (NA-1).

III. DESCRIPTION OF SUPPLIES AND/OR SERVICES

The purpose of this purchase order is to task the contractor with an external assessment and comprehensive review of OST operations. The external assessment and comprehensive review of the OST shall be performed in two (2) phases. Phase 1 shall include the external assessment and comprehensive review of the current operations and organizational structure of the OST and will be completed in the time prescribed in the contract. Phase 2, if necessary, will include an Addendum or supplemental to the external assessment and comprehensive review of the OST completed in Phase 1. During Phase 2, The Cavanagh Group will analyze any outstanding issues raised during Phase 1 at the request of NNSA management.

The comprehensive review of the OST will address, but is not limited to the following areas below.

As the contractor complies data and conducts meetings and interviews, other issues may arise that shall be incorporated into the comprehensive review:

• Identify mission requirements for the OST;

• Analyze and evaluate the management and current organization of the OST;

• Analyze and evaluate training and discipline of OST personnel, with special emphasis on couriers;

• Analyze and evaluate of internal communications within the OST;

• Analyze and evaluate processes and performance of internal assessments and investigation within the OST;

• Analyze and evaluate the use and effectiveness of employee concerns programs, dispute resolution, and other systems for hearing and responding to employee issues;

• Identify organizational reporting structure, including alignment within the Office of Defense

Programs (NA-10);

• Analyze and evaluate physical and cyber security systems and performance, including a determination on whether OST plans and training sufficiently address a full range of possible threats to its shipments; and

• Recommendations for changes to improve the operations and organizational structure based on the findings and results of the external assessment and comprehensive review of the OST.

The estimated value of this acquisition is not to exceed $108,680.00 for a six-month period. This purchase will not exceed the simplified purchase threshold.

IV. AUTHORITY

The statutory authority permitting other than full and open competition is 41 USC § 3304(a)(1), as implemented by the small purchase procedures for justifying an award to a single source pursuant to FAR 13.106-1(b)(1)(i). Mr. Cavanagh was formerly the National Nuclear Security Administration Associate Principal Deputy Administrator at the National Nuclear Security Administration (NNSA) in Washington, D.C, and served as the NNSA Deputy Chief Operating Officer for the NNSA. He also served as the NNSA Acting Associate Administrator for Acquisition & Project Management, which is responsible for integrating multi-billion dollar acquisition management and project management policy and operations across the NNSA Nuclear Security Enterprise. In addition, as required by his position as NNSA’s Senior Internal Affairs Management Official, Mr. Cavanagh was a sworn and badged Federal Officer. Mr. Cavanagh’s previous positions in the Federal Government clearly demonstrate unique business management experience and ability. His qualifications for leadership and managerial support to NNSA are extensive and extraordinary.

Mr. Cavanagh began his Federal career as a management intern for the Secretary of the Army, served as business manager for clinical trials for both the National Heart and Lung and the National Cancer Institutes, and managed the procurement oversight and review program for the Secretary of Health and Human Services. Moving to the Department of Energy in 1980, Mr. Cavanagh became the Director of Business and Financial Policy, the Director of Procurement and Property Review and Evaluation, the Manager of Benchmarking and Strategic Initiatives, and the Director, Office of Procurement Services. After the creation of NNSA in 2000, Mr. Cavanagh was appointed Deputy Director, Office of Acquisition and Supply Management and Head of Contracting for NNSA; and in 2004 became the Deputy Associate Administrator for Management and Administration

Mr. Cavanagh designed and led numerous Federal-wide and Government-Industry Partnership initiatives, including four (4) that have earned Vice Presidential Awards. He has been one of five National Benchmarking Champions for the Office of the Vice President. He is a co-founder of the Federal (later International) Benchmarking and Best Practices Council, which he chaired from1996- 1999, and is a member of the Benchmarking Committee and a Charter member of the Public Sector Network of the American Society for Quality. In 2003, he was awarded the NNSA Administrator’s Gold Medal for “Distinguished Service in the National Security of the United States.” In 2008, Mr.

Cavanagh was selected by the President of the United States to receive the Senior Executive Service Presidential Rank Award recognizing him for his “professional dedication and commitment to excellence in enhancing Federal Government performance and creating a more effective civil service." In 2009, he received the NNSA Administrator’s Achievement Award for Sustained Performance Excellence. Mr. Cavanagh posses a B.S. in Business Administration (Marketing Research and Finance) from Villanova University, and is a graduate of the Villanova and Columbia Universities Experimental MBA Program; the “Senior Managers in Government Program” and the “Senior Executives in National and International Security Program” at Harvard University’s John F.

Kennedy School of Government, and the Federal Executive Institute. Mr. Cavanagh has been a national and international lecturer on business management and improvement, and has published numerous magazine and journal articles, and workbooks/guides on acquisition, benchmarking, knowledge management, and process improvement-related subjects.

V. APPLICATION OF AUTHORITY

41 USC 3304(A)(1) states that “An executive agency may use procedures other than competitive procedures only when 1) the property or services need by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency”. FAR 13.106(b)(1)(i) states that, “Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source available.”

VI. EFFORTS TO IDENTIFY ADDITIONAL SOURCES

The Cavanagh Group, owned and operated by Cavanagh as sole principal, possesses a unique capability and expertise not found elsewhere. A review of contractors available to perform the services being requested was performed and it was determined that while there were other contractors available, none appeared to have the desired combination of independence, skills, and background to adequately meet the needs as outlined above.

A notice of intent to sole source these services to The Cavanagh Group, LLC was posted on May 13, 2013 on Federal Business Opportunities’ (FBO) website (https://www.fbo.gov/), with a request to all responsible sources to submit a capability statement or expression of interest by 4:00 pm Eastern Daylight Time (EDT), Tuesday, May 28, 2013. As of 5:00 pm EDT, Tuesday, May 28, 2013, NNSA did not receive any capabilities statements or expressions of interests. In addition, NNSA continues to make periodic surveys of the commercial marketplace.

VII. DETERMINATION OF REASONABLENESS OF COST OR PRICE

It is the determination of the Contracting Officer that the anticipated costs will be fair and reasonable based on a price/cost analysis performed utilizing data from GSA supply schedules and other sources for other complex management consulting and professional support contracting actions. This acquisition will be for a six-month period of performance. As stated previously, the estimated value of this six-month acquisition is not to exceed $108,680.00. This purchase will not exceed the simplified purchase threshold which is currently $150,000.

VIII. MARKET SURVEY

Mr. James J. Cavanagh, principal and sole owner of the Cavanagh Group, LLC, posses a significant level of background and experience operating within the unique environment found at sites involving mission related activities analogous to OST throughout the military-industrial nuclear weapons complex. The Office of the Administrator, with the assistance of the NNSA Contracts and Procurement Division (NA-APM-12) , conducts regular market surveys to identify potential providers of the types of services needed to support this and similar requirements, and will continue to do so, as needed.

IX. OTHER FACTS

The circumstances supporting the requirement to request a quote from only one source is based on Mr. Cavanagh’s very relevant and unique experience and expertise in management and business issues within NNSA and DOE.

X. INTERESTED SOURCES

A notice of intent to sole source these services to The Cavanagh Group, LLC was posted on May 13, 2013 on Federal Business Opportunities’ (FBO) website (https://www.fbo.gov/), with a request to all responsible sources to submit a capability statement or expression of interest by 4:00 pm Eastern Daylight Time (EDT), Tuesday, May 28, 2013. As of 5:00 pm EDT, Tuesday, May 28, 2013, NNSA did not receive any capabilities statements or expressions of interests—therefore NNSA did not survey and interested sources.

XI. STEPS TO FOSTER COMPETITION

Efforts to foster competition are not necessary since no follow on requirement is anticipated.

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