Justification_for_Exception_to_Fair_Opportunity_TSyBO_3.6.24_SPE Signed.pdf

CUI//SP-SSEL

JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

UNDER IDIQ CONTRACTS

Task Order 47QFCA21F0018

Technology Synchronization of Business Operations (TSyBO) in support of:

Department of Defense (DoD) Office of the Under Secretary of Defense (Comptroller)

(OUSD(C)) and Chief Digital and Artificial Intelligence Office (CDAO)

U.S. General Services Administration (GSA) Federal Acquisition Service

Assisted Acquisition Services (AAS) APEX 5 1800 F Street, NW (QF0B)

Washington, D.C. 20405

Interagency Agreement Number: 47QFCA20S0032

Controlled by: Kristen.jaremback@gsa.gov

Version 08/25/2022

DocuSign Envelope ID: 19BB977A-56D4-4CAE-A6F1-C2900AC4149D

The General Services Administration (GSA) Assisted Acquisition Service (AAS) makes this Justification of an Exception to Fair Opportunity for the issuance of a task order modification pursuant to Federal Acquisition Regulation (FAR) 16.505(b)(2)(i)(B).

1. Identification of Agency and Contracting Activity :

Agency :

GSA AAS APEX 5 acting in support of Department of Defense (DoD) Contracting Activity :

GSA AAS APEX 5 Contracting Office (QF0B) 1800 F Street, NW Washington, D.C. 20405

2. Nature and/or Description of Action Being Approved :

AAS APEX 5 awarded this Cost-Plus Award Fee (CPAF) Task Order (TO) under the Alliant 2 contract vehicle on March 9, 2021, to Booz Allen Hamilton (BAH). BAH is providing support to the OUSD(C) and CDAO to provide enterprise level data to the OUSD(C), CDAO and its strategic partners (i.e., DoD Fourth Estate, DoD Departments, and Intelligence Community) as well as support in the areas of Information Technology (IT) engineering, Operations and Maintenance (O&M), technical, consulting, cyber security, and planning subject matter expertise to develop, maintain, sustain, and enhance the DoD Enterprise Government-owned data analytics environment, Advana, that includes data connections to other IT supporting systems (i.e., source systems) across the DoD. The TO period of performance is March 9, 2021, through August 15, 2025, which includes a base period of one year, a one-year option period One, a five-month option period Two, a one-year option period Three, and a one-year option period Four. The total TO value is $969,715,332.00. The TO is currently in the third option period and the TO labor ceiling will be depleted by March 08, 2024.

Due to increased mission need to support the Federal Government’s needs for data analytics until a new contract can be awarded, an increase to the labor ceiling is necessary. After the TSyBO award and part of its initial success, the Deputy Secretary of Defense Memo dated May 05, 2021 “Creating Data Advantage” stated: “ The Advancing Analytics (Advana) platform is the single enterprise authoritative data management and analytics platform for the Secretary of Defense, Deputy Secretary of Defense, and Principal Staff Assistants (PSAs), with inputs from all DoD Components. The use of other data management and analytics platforms must be approved by the DoD Chief Digital Officer (CDO) and appropriate Component CDO to ensure adherence to an open data standard architecture.” This policy resulted in the TSyBO TO being heavily utilized beyond the initial anticipated levels. DoD has also restructured to move OUSD(C) under the newly created Chief Digital and Artificial Intelligence Officer, or CDAO. John Sherman, DoD Chief Information Officer, serving as the acting Chief Digital and Artificial Intelligence Officer emphasized, "The intent of the office is to set up a strong foundation for data analytic and AI [Artificial Intelligence]-enabled capabilities to develop and field at scale[,]" which specifically called out the Advana platform (New DOD Chief Digital Artificial Intelligence Office Launches, Feb 4, 2022

(https://www.defense.gov/News/News-Stories/Article/Article/2923986/new-dod-chief-di gital-artificial-intelligence-office-launches/)).

The mandated use of Advana for data analytics has exponentially increased the volume of processed data and necessitated the inclusion of Outside of Continental United States (OCONUS) support. Prior to the award of the TSyBO TO, End of Year (EOY) 2020, Advana had less than 20k users, less than 125 dashboards, and only one accredited network (Non-classified Internet Protocol (IP) Router Network (NIPR) only). As of December 2023, the Advana Platform supports 103,000+ users, with 500+ dashboards in production across 44 portfolios. The integration of Joint Common Network/Joint Common Foundation (JCN/JCF) networks and all three accredited networks (NIPR, Secure Internet Protocol Router (SIPR), Joint Worldwide Intelligence Communications System (JWICS)) into Advana has increased utilization with sustained growth expected.

The increased direction to use Advana resulted in nearly five times as many users and over four times as many dashboards in production across three networks (vs. the single network at award)— exponentially increasing support and maintenance costs. With these new demands and an emphasis on ease of use and customer support, the required labor support has grown.

This increase in demand has necessitated AAS APEX 5 to first realign all available labor ceiling from option period four in September 2022 to support the growing level of effort and process a $300M ceiling increase in February 2023 on the Not to Exceed (NTE) Other Direct Cost (ODC) Contract Line Item Numbers (CLINs).

In conjunction, AAS APEX 5 is actively working on a recompete of the TO for these services to coincide with the end of the option period three, the award is scheduled for August of 2024. AAS APEX 5 in coordination with CDAO began discussing a recompete in May 2023 due to the current burn rate. Since that time, AAS APEX 5 and CDAO have been coordinating about the scope of the requirements, assessing acquisition alternatives, and conducting market research.

Without an increase to the option period three labor ceiling, the current ceiling will be exhausted prior to the recompete TO award. AAS APEX 5 considered modifying the TO to shorten the option period three period of performance, to permit exercising the Federal Acquisition Regulation (FAR) clause 52.217-8, Option to Extend Services once the current ceiling expires. However, the $77M ceiling associated with FAR 52.217-8 will not be enough ceiling for OUSD(C), CDAO to execute its mission prior to award of the competitive recompete procurement. Additionally, 52.217-8 would permit continued performance for up to six months, which may not be enough time to award the competitive TO and allow for sufficient post-award transition to a new contractor.

A failure to execute OUSD(C)’s and CDAO’s mission would immediately impact all DoD agencies reliant on the data analytics provided by the Advana platform. These projects are OUSD(C)’s and CDAO’s fundamental mission and the catalyst for DoD’s efforts to enable and strengthen defense and security institutions, build capabilities, and support shared security interests with partner nations. Current critical efforts supported by the TSyBO TO include the efforts in Ukraine and Israel, along with historically supporting daily Presidential Briefings during COVID, the Afghanistan Withdrawal, and many others.

Because of the ceiling shortfalls in option period three, OUSD(C) and CDAO is requesting a ceiling increase of $248,598,356 to meet the demand and provide enough ceiling until AAS APEX 5 is able to successfully award the follow-on TO. This proposed action and associated modification is the first increase to the total TO labor ceiling, and all of the increased support is within the original scope of the TO.

Given the significant increase in demand, the faster burn rate, and the upcoming competitive award of a new TO, AAS APEX 5 must end the TO Period of Performance on August 15, 2024, and increase the labor ceiling so that OUSD(C) and CDAO can meet mission requirements and the increased demand.

3. Description of Supplies/Services and Estimated Value :

The total ceiling increase amount requested for option period three is $248,598,356 resulting in a revised TO ceiling of $1,218,313,688. The specific Contract Line-Item Numbers (CLINs) impacted by this ceiling i ncrease are detailed in the following table:

CLIN Descrip on Current CLIN Ceiling Ceiling

Increase Adjusted Ceiling a er

MOD

3001 Labor $307,549,800 $248,598,356 $556,148,156

The ceiling for option period three will increase by $248,598,356. In totality, at the current burn rate, the $248,598,356 increase will allow the Government to receive performance for the remainder of option period three and the competitive acquisition sufficient time to be awarded. AAS APEX 5 has the option to use the Federal Acquisition Regulation (FAR) clause 52.217-8, Option to Extend Services, to further ensure a successful transition in and out of services, as well as keeping the CDAO mission operational so there is not a risk of gap in service.

In order to utilize the full six-month performance of the FAR 52.217-8 clause, APEX 5 will base the value associated with the FAR 52.217-8 on the half of the new option period 3 ceiling which is valued at $278,074,078.

4. Identification of the Exception to Fair Opportunity and Rationale:

This TO Justification is being prepared as required by FAR 16.505(b)(2)(ii)(B). Pursuant to FAR 16.505(b)(2)(i)(B), the TO ceiling value must be increased, to complete the work described for this task order, because only the incumbent is uniquely capable and qualified to provide high-quality IT services, with the security cleared personnel necessary to ensure continuous mission critical services for the remainder of the period of performance until the recompete is awarded. If this ceiling increase is not completed, this would result in a degradation of CDAO’s mission, reduction in quality of the operations, contract deliverables, and a break in services for the critical enterprise IT operations environment.

A fair opportunity to compete for this requirement was given under the original Solicitation, 47QFCA21Q0023, for this requirement under the multiple award Alliant 2 contract vehicle. Proposals were solicited from all Alliant 2 contract holders. Only one competitive offer was received and evaluated on a best value determination basis.

The work is complex and highly specialized. The current contractor is intimately familiar with the current operating environment and provides mission critical services to numerous DoD organizations across 44 data analytics portfolios. Advana’s ability to operate a secure cross domain solution offering connectivity across multiple Government unclassified and classified would suffer significantly if a ceiling increase was not completed. Furthermore, failure to increase the ceiling would hamper the Government’s ability to ensure all phases and aspects of the DoD cybersecurity accreditation/certification policies and procedures are implemented on the Advana Platform.

If a competitive bridge contract was pursued instead of increasing the ceiling, the procurement would take six to eight months to award, excluding more time needed for the transition and staffing security needs, which would cause a lapse in service and mission failure. AAS APEX 5 considered the amount of time required for a competitive action and concluded the transfer of knowledge, assets, people, hardware, software licenses and contract deliverables would take an additional three months after award.

Competing a short-term bridge contract, and potentially bringing on a new contractor to perform, until the next-generation TO is awarded would not allow continuous performance of mission critical services for CDAO at the level of quality required to accomplish its mission. Not completing the current task order will invite performance risk that will harm the Government. By increasing the ceiling value to the current task order, GSA will be able to reduce risk and support the needed competition and transition times required for a new task order.

An extension of the period of performance is not necessary and is not requested. It is not cost effective, efficient, or in the best interest of the Government to expend the time and effort required to award a competitive bridge contract.

5. Determination That the Anticipated Cost is Fair and Reasonable :

The Government received the offeror’s Rough Order of Magnitude (ROM) for the period covered by the ceiling increase and conducted a comparison of the proposed prices with prices received in response to the TSyBO TO solicitation and with current invoices from the TSyBO TO. The increase in utilization of the Advana Platform across the DoD has made it necessary to increase the level of effort and thus the need to increase the ceiling for option period three.After doing a cost analysis of the individual cost elements of the offeror’s proposed cost estimates, the CO determined that the cost elements were fair and reasonable. Additionally, a cost realism analysis was performed, and the estimated cost were determined to be realistic.Rates and costs for the ceiling increase are consistent with option period 3 It is not anticipated that a new solicitation/Bridge Contract would produce better pricing or a more advantageous offer. To consider any other alternatives would not be cost effective and would be detrimental.

6. Other Facts Supporting the Justification :

AAS APEX 5 continues to engage with industry in various forums to promote competition for the follow-on effort. The recompete along with other CDAO acquisition efforts are highlighted on the FEDSIM opportunities page and industry is encouraged to participate in first Friday to learn more about the recompete. Additionally, APEX 5 has released a Request for Information, conducted Market Assessment Discussions and opened a reading room for interested industry partners. To promote competition, AAS APEX 5 intends to release an Advance Notice of the solicitation, hold an Industry Day, and conduct Due Diligence Sessions in the coming weeks and months.

7. Statement of Actions :

AAS APEX 5 is engaged in recompeting the TSyBO TO for these services to align with the conclusion of option period three. The competitive acquisition will consider the mandated use of the Advana Platform for all DoD data analytics, the shifting technological landscape, and the new CDAO structure and mission which will alleviate these ceiling concerns in the future. There are no other actions identified that OUSD(C) and CDAO may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

I have reviewed this contract action and I have determined to the best of my knowledge and belief, based on the information contained herein, that it complies with all applicable policies and regulations.

Mark Lee Date Assistant Commissioner Office of Policy and Compliance

I hereby certify that the circumstances described in FAR 16.505(b)(2)(i)(B) apply to this order.

Jeff Koses Date Senior Procurement Executive (SPE) Office of Acquisition Policy

Version 08/25/2022

3/8/2024