Limited-Sources Justification (LSJ) VFK019_Approved_Redacted.pdf

BPA #HSCG23-14-A-VFK053

BPA Call #HSCG23-16-F-VFK019

Limited-Sources Justification

Pursuant to the authority of Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(B), this justification demonstrates the circumstances for limiting a Blank Purchase Agreement (BPA) order to fewer sources than those required in FAR 8.405-1, FAR 8.405-2, and FAR 8.405-3. The following facts and rationale support this justification:

(1) Agency and Contracting Activity.

The Department of Homeland Security (DHS), United States Coast Guard (USCG), Assistant Commandant for Acquisition (CG-9), Office of Contract Operations (CG-912), Formal Contracts Division II (CG-9122).

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

(a) The USCG intends to issue a modification to extend Blanket Purchase Agreement (BPA) Call #HSCG23-16-F-VFK019 under BPA #HSCG23-14-A-VFK053 issued under the Financial and Business Solutions (FABS) contract through the General Services Administration.

(b) Name and address of contractor:

TFC Consulting, Inc. (TFC) 9901 Belward Campus Drive, Suite 165 Rockville Maryland

(c) Task Order Type: Firm-Fixed Price

(d) Estimated total value (including options):

Period Unit Price Total

Extension

2 mo.

(e) Type of funding: Operations and Support

(f) Year of funding: Fiscal Year 2020

(g) Solicitation Number: 70Z02320RVFK00100

(h) Background information about requirement:

The contractor provides Audit and Financial Reporting Coordination support for the Office of Financial Policy, Remediation, Property and Reporting and Analysis. The BPA Call Order was awarded for one base period and three option periods. The current period of performance will expire on July 17, 2020. This action would extend the BPA Call Order an additional two (2) month.

*This LSJ is necessary to continue contractor support for this critical service. A previous LSJ for this same BPA Call Order was approved on 03/06/2020. Subsequently, a modification was processed to extend the period of performance for four (4) months. The Contracting Officer was confident that a four (4) month extension was a reasonable extension given the milestone schedule. At the time, there was no expectation that the BPA Call Order needed to be extended further than four (4). It was further expected that the follow-on task order would be awarded before the four (4) month extension was over. However, due to delay in the release of the solicitation and subsequent proposal evaluations an award cannot be made on time. The Contracting Team anticipated releasing the solicitation by March 20, 2020. However, reviews took longer than anticipated and the solicitation was not released until April 30, 2020. The proposals were received on May 18, 2020. .

, the evaluation team requires additional time to thoroughly and accurately complete its evaluation. In addition, the Contracting Team will require additional time to prepare the award which will also need to go through internal reviews.

(3) Description of Supplies/Services.

The DHS Office of the Inspector General is charged with conducting the USCG Chief Financial Officer (CFO) annual financial statement audit. The USCG has established processes and procedures for Audit and Financial Reporting Coordination in response to the annual financial statement audit. The USCG requires audit coordination support throughout the phases of the audit cycle, as well as pre-audit planning and assisting with the development of audit training material for the USCG in accordance with established processes and procedures. Additionally, any performance audits relating to the financial data and systems require audit coordination effort.

(4) Identification of the justification and the rationale.

The USCG will extend the current BPA Order using the authority of the following justification:

FAR 8.405-6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

The services provided to support the USCG is highly specialized because it requires the contractor to be experienced with the audit of federal financial statements and familiar with the audit coordination process. Contractors must understand financial statement audits in order to foresee and respond to request from auditors. The audit coordination process is in place to address auditor questions and requests in a timely manner. Any delay in the USCG’s response could impact the audit decisions. Without continued support, the USCG would fall behind on the audit which could result in an unfavorable audit opinion for the USCG and DHS.

In addition, this support is provided by skilled personnel, often with accounting backgrounds and are certified public accountants. TFC is the only source capable of providing this support at the current level and quality because of its experience and knowledge of the USCG audit coordination processes and procedures. In addition, TFC has an understanding of the level of support required during each cycle of the audit and has responded quickly in providing required personnel.

TFC has been performing this support since 2016 and is the only source at this time capable of providing the services required at the level of quality required. TFC is highly specialized in providing this support for the following reasons:

1) TFC has provided highly qualified staff with extensive experience working with government financial statement audits. TFC has demonstrated their ability to provide experienced personnel quickly, so the there is no disruption in support. TFC’s personnel has enabled the USCG to keep up with the rapid pace and demands of the Financial Statement Audit, especially in the beginning of the audit cycle. The auditors have been able to complete the audit without repeat effort from the USCG. The competitive Task Order will not be awarded in time to continue this critical support as the current audit cycle has already started.

2) TFC’s personnel are already vetted through USCG security and cleared to work on USCG facilities and have access to USCG systems. Bringing on a new contractor during this portion of the audit can pose a performance risk. Generally, it could take up to six weeks to onboard a new contractor through security. Contractors must also complete a Visit Authorization Request (VAR) which is approved by USCG security. Since the VAR requires background and clearance information, the contractor must have an approved facility to store the information. AS TFC has completed this process, there would be no delay in repeating it for a new contractor unless required under after the renewed competition.

3) TFC has demonstrated experience and knowledge of the USCG audit coordination process. Due to the time sensitive nature of the financial statement audit, these requests must be responded to quickly and requires coordination with many stakeholders. There is a learning curve that a new contractor would face in learning the USCG audit coordination process and procedures along with the USCG’s organizational structure.

Coordination with the appropriate USCG stakeholders has proven to be a time-consuming and difficult task. It is not likely that a new contractor will be able to execute these responsibilities in a timely manner. As the audit cycle has recently begun, there is no time for USCG staff to train new contractors on the coordination process.

Any delay due to a break in service will cause the USCG to fall behind and make the situation unrecoverable. This would negatively impacting the Audit Opinion on the USCG records, which feed into and represent a material portion of the DHS Financial Statements.

The follow-on work is being competed but is not anticipated to be in place prior to the expiration of the BPA Call Order. Below is the planned procurement timeline for the TO award.

a. Procurement Request Package: 10/22/2019

b. Sources Sought Notice Released: 10/25/2019

c. Sources Sought Responses Due: 11/8/2019

d. Review of Sources Sought Responses: 11/21/2019

e. Small Business Approval: 12/13/2019

f. Solicitation Release Date: 4/30/2020

g. Proposals Due Date: 5/18/2020

h. Proposals Evaluation Completed: 6/18/2020 (projected)

i. Task Order Award: 8/10/2020 (projected)

(5) Determination by the ordering activity Contracting Officer that the anticipated order represents the best value consistent with 8.404(d).

FAR Part 52.217-8 was included in the original solicitation for BPA #HSCG23-14-A-VFK053 and was included in Order #HSCG23-16-F-VFK019. However, the extension price was not evaluated as part of the award decision. The price of the extension will continue the current pricing without escalation. These rates were previously found fair and reasonable.

The price for this extension was calculated by multiplying the current task order’s monthly cost by two to determine the 2-month extension period cost. No other method of escalation was determined necessary to calculate the price. The contractor agreed to continue its price at this level.

The Contracting Officer determines that issuing an extension of performance, under FAR 52-217-8, to continue this effort represents the best value and will result in the lowest overall cost alternative, considering price and cost, to meet the Government’s needs. Consistent with FAR 8.404(d), USCG considered the level of effort and the labor mix proposed to perform the specific task being ordered, and determines that the total price is fair and reasonable.

(6) A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research was conducted on the BPA Order when it was awarded. Market research was renewed when Option Period 3 was exercised. In addition, a review of TFC’s performance records did not indicate any ratings below Satisfactory. In support of the coming re-competition for the requirement, the contracting activity conducted market research including the issuance of a sources sought notice to vendors holding an OASIS schedule contract with GSA. This research was concluded in November 2019.

(7) Any other facts supporting the justification.

None

(8) A statement of actions, if any, the agency may take to remove or overcome any barriers that preclude the agency from meeting the requirements of 8.405-1 and 8.405-2 before any subsequent acquisition for the supplies or services is made.

Market Research for the follow-on award indicates there is adequate competition in the marketplace. The follow-on award will be conducted and documented in accordance with the FAR requirements for competition.

(9) Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Marlecia N. Ocheni Date Contracting Officer

(10) Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

Date

Technical Representative/COR

(11) Legal Review and Concurrence:

I have reviewed this justification and deemed it legally sufficient.

Date

Attorney

APPROVAL:

Final approver if not exceeding $700K Date Marlecia N. Ocheni Contracting Officer