Justification Zenpoint EOMS2.pdf

SENSITIVE BUT UNCLASSIFIED

8/05/2024

JUSTIFICATION FOR SOLE SOURCE 8(a) CONTRACT EXCEEDING $25 MILLION

PURSUANT TO FAR 19.805-1(b) and FAR 19.808-1(a)

In accordance with FAR 19.805-1(b), 19.808-1(a) and 6.303-2(d), upon the basis of the following justification, the Department of State, A/OPE/AQM/WW proposes to enter into a sole source 8(a) contract exceeding $25 million

1. Identification of the agency and the contracting activity:

The U.S. Department of State (DOS) Office of Acquisitions Management (AQM) proposes to enter into a contract on the basis of other than full and open competition with Zenpoint, LLC, reference Contract #19AQMM18F3367 to provide a full range of lnformation

Technology (IT) services with highly skilled, qualified and experienced business, technical and program management personnel to meet mission critical needs on behalf of the

Bureau of Diplomatic Technology (DT). DT estimates that the follow-on contract total life cycle cost would be $73,072,429.35.

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

Department of State (DOS) Acquisition Management (AQM) is requesting a contract for a one (12)-month base period followed by two (3)-month option periods.

The work performed during the new award contract completes and/or continues activities currently being performed on the 19AQMM18F3367 contract. The new contract period is required to ensure that the Department maintains continuity in mission critical functions and sustains essential IT services. The new award will enable the Department to replace the existing task order that will expire August 30, 2024.

Market research will be conducted to determine the appropriate acquisition strategy for the follow-on requirement.

3. A description of the supplies or services required to meet the Department's needs.

Zenpoint, LLC will provide a full range of services involving highly skilled, qualified, and experienced business, technical and program management personnel specializing in

Technical and IT security services to support government operations. These services, which are critical to operations throughout the department are:

• Program and Project Management Services

• Cloud computing services

• Software development services

• Engineering and Integration Services

• Research and Development

• IT O&M Services

4. The authority and supporting rationale and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the supply or services.

FAR 6.302-5(b)(4) Authorized or required by statute. Sole source awards under the 8(a) Program (15 U.S.C. 637).

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

The Contracting Officer has determined the anticipated cost/price to the Government for the supplies/services covered by this J&A will be fair and reasonable based on comparison to prices paid for substantially similar services that are currently under contract, and comparison to market prices; historical prices; and independent estimates. The Contracting

Officer will not award the planned contract action unless the

Contracting Officer evaluates and determines that the resultant cost/price is fair and reasonable.

6. Such other matters as the head of the agency concerned shall specify for purposes of this section

Market research was conducted for this requirement regarding pricing to ensure the vendor's pricing is in line with other vendors in the same space. This is a follow-on to the existing vendor, with the same terms and conditions as was previously competitively negotiated. STARS III & OASIS 8(a) were reviewed, and none of the vendors had the capabilities to include the requirements that the current vehicle has. Furthermore, it is noted that a similar requirement was competed 5-years ago on 8(a) STARS II, which received only 2 proposals, with only 1 being determined to be satisfactory. The current vendor is a partnership between Techniko, LLC and Zenpoint, LLC, with contractors from

Zenpoint, LLC performing a large portion of the current work. Therefore, Zenpoint, LLC has highly specialized expertise and is performing successfully on the existing award.

Zenpoint, LLC is the only viable candidate to continue supporting the critical and integrated services covered by the current Task Order under the scope of Contract

#19AQMM18F3367. Zenpoint, being a partner of the current contractor continues to perform the work and has the qualified and cleared workforce necessary to continue support services. Zenpoint, LLC has contract employees with elevated privileges to systems along with Top Secret clearances with approved SCI access where required.

If the current task order ends, shortly after August 30, 2024 the impact would cascade across the Department of State negatively impacting organizational systems and services.

The resulting impact in end user experience would be a significant degradation of all currently supported systems, with the potential for complete loss of service, especially in regards to high profile projects such as FOIA, CDS, User experience and Lakehouse. The current contract supports many offices within the Diplomatic Technology (DT) Bureau, Management (M) bureau and Administration (A) bureau's, all of which would experience an impact should the current contract support cease.

This J&A is hereby determined to be legally sufficient.

Competition Advocate

08/07/2024