Justification_for_8(a)_Sole_Source_OBOGOV_FBO.pdf

JUSTIFICATION FOR SOLE SOURCE 8(A) TRIBAL CONCERN CONTRACT

EXCEEDING $22 MILLION

FAR Part 19.805-1(b) and FAR Part 19.808-1(a)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 19.805-1(b), 19.808-1(a) and 6.303-2(d), upon the basis of the following justification, the U.S. Department of State Office of Acquisition Management proposes to enter into a sole source 8(a) contract for the proposed contractual action based on the fact that the Small Business Administration (SBA) has accepted the requirement on behalf of a concern owned by a Tribal 8(a) concern for professional IT support and services on behalf of the Bureau of Overseas Buildings Operations (OBO). The total estimated ceiling is $250,000,000.00 for a five-year period - $50,000,000.00 for the base period and $50,000,000.00 for each additional option period.

2. A description of the supplies or services required to meet the Department’s needs.

The requirement is to provide a range of professional staffing services and support at the various offices of the Bureau of Overseas Buildings Operations at a total estimated ceiling of $250,000,000.00 over the course of five years. This requirement includes the performance of high-level professional services, in the effort to allow the Bureau of Overseas Buildings Operations to accomplish its mission of providing safe, secure and functional facilities. In addition, OBO needs to procure professional IT services in its effort to accomplish its global mission through better information management, data accuracy, and improved business processes. This effort will assist OBO in its overarching goal of requiring ready, reliable, and relevant data at any point in the life of a project or real property from anywhere – in Washington, DC, or around the world. This requirement will enable the highest quality information for data-driven decisions through an integrated enterprise system, providing greater transparency and connectivity.

The professional services shall include labors categories focused mainly in the following areas:

Records Management:

NARA certified Records management team is needed to provide a wide array of archiving services to the bureau. These critical services include determination of records to be disposed of and records to be boxed and filed in accordance with NARA retention procedures, to include digitizing or hard copy retention. In addition, the team will prepare and review complex retention schedules and coordinate transfer of data to and from construction project locations.

IT Administration and Security:

Professional IT services are needed to support OBO’s various task categories including application development, and maintenance and integration services to support existing

IRM secure internal systems and enterprise databases. Additionally, highly skilled resources are needed to supplement the development of business application platforms and provide ongoing improvement efforts, in the area of IT security, to protect the bureau’s internal systems.

Budget/Financial Analysis:

Professional budget and financial services needed to support on-going operations within the numerous offices within the bureau. These services include detailed expense and resource reporting, preparation of funding requests, and moving all funding requests through the proper approval process channels.

Program Management and Support:

Provide professional support analysis to various bureau offices in the areas of executive management, bureau planning and construction and design policy and procedures as it pertains to the Real Estate acquisition process.

Real Estate:

Provide expertise in support of various real estate purchase, sales and redevelopment programs within OBO. In addition, professional realty specialists are needed to provide general international real estate transaction related guidance to overseas missions. This guidance includes providing detailed analysis of acquisition options to compare and contrast the various lease vs buy options to arrive at the most cost effective solutions.

3. The statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract.

Award under Section 8(a) of the Small Business Act is authorized by Statute 41 U.S.C.

253(c)(5) and 15 U.S.C. 637 as prescribed at FAR 6.302-5 (b)(4) and SBA’s acceptance of the requirement on behalf of a firm owned by a Native American tribe.

The decision by the Contracting Officer to utilize the 8(a) program is recognized in FAR 5.202(a)(4) as being authorized by statute. Section 8(a) of the Small Business Act permits award to tribal firms on a sole source basis.

4. A determination that the use of a sole-source contract is in the best interest of the agency.

HCI Management Services (HCIMS), a division of All Native Group, has demonstrated extensive experience with the Department of State, in particular providing the Department with critical, quality professional services. These critical professional skill sets are essential to the success of the Bureau of Overseas Buildings Operations, in particular, to the data integrity initiative. This initiative is tasked with implementing an integrated enterprise system of record that will provide unified, accurate, and accessible data on all OBO projects and real property here and overseas. Once implemented, this system will allow for accurate and timely responses to data calls and easy access to data to drive critical decision-making.

In considering HCIMS, the contracting officer also considered the will of Congress to support those businesses that have been statutorily defined as Small and Disadvantaged Businesses and, therefore, authorized to receive awards on a Sole Source Basis under Section 8(a) of the Small Business Act. This Act reflects not only the will of Congress, but also Departmental goals, established by the Small Business Administration, assigned to the Department. Awards under the 8(a) Program are but one of the items included in the Goal Accomplishment Report, a predefined government-wide report managed by the Office of Federal Procurement Policy within the Office of Management and Budget

The other consideration in the selection of HCIMS, and the utilization of the 8(a) Program, is timely execution of the effort. With the announced budget and staffing reductions, it has become more imperative than ever to enable the Bureau of Overseas Buildings Operations to improve their operational efficiency as expeditiously as possible.

HCIMS has a successful track record with large-scale labor requirements at the U.S.

Department of State. Their ability to team, to quickly find exceptional staff, as well as their ability to quickly implement complicated business processes and procedures allows for the agency to make an award by the target date of November 20, 2018.

The selection of HCIMS achieves all of the objectives stated above, facilitating an award to a firm with a demonstrated track record of performance in the key areas and objectives of this requirement. This award will significantly reduce acquisition lead time while supporting the Department’s critical small business goals.

Based on the information provided above, it is determined to be in the best interest of the Department, as well as the Bureau of Overseas Buildings Operations, to award a sole-source 8(a) contract to the selected vendor, HCI Management Services, 1 Mission Drive, Winnebago, NE 68071, DUNS 962374141, CAGE Code: 6FV02. HCIMS has been determined to be a small business under NAICS code 541511, and eligible for award under Section 8(a) of the Small Business Act.

5. A determination that the anticipated cost of the contract will be fair and reasonable.

Because the resultant contract will be an Indefinite Delivery/Indefinite Quantity Contract the most critical, measurable element of the cost is labor. In order to ensure the established rates are fair and reasonable, the contractor will be required to provide a detailed buildup of the proposed labor rates. The basic rates will be compared to Bureau of Labor Statistics rates for similar job categories, and the overall build up (wrap rate) will be viewed in comparison to other competitive contracts to ensure that is reasonable and well within the range of those comparative rates.

Prior to award, the contracting officer will make a determination that the proposed labor rates are fair and reasonable. At the task order level, the contractor’s proposal will be reviewed to ensure that the labor skills match the requirements and are in concert with those necessary for the specific efforts.

6. Any other facts specified by the agency head as required in support of this justification.

The Small Business Act requires that a Contracting Officer review all acquisitions to determine whether or not the requirement can be met at a fair and reasonable price by a Small Disadvantaged Business firm. The Contracting Officer, having made this determination, would proceed with the acquisition in full compliance with the terms as well as the intent of the FAR.

The Bureau of Overseas Buildings Operations supports SBA’s 8(a) program, which gives opportunities to small disadvantaged business. Award of this contract helps the agency achieve its small business contracting goals for both Native/tribal economic goals and participation in the 8(a) program.