LSJ FIAR _EM_GATHERING redacted.pdf

CUI

CUI Category: Source Selection

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

6090 STRATHMORE ROAD, BUILDING 15A

RICHMOND, VA 23237

Limited Source Justification (LSJ)

# DCSO-R2-25-04

(1) Identification of the agency and contracting activity:

Requiring Activity:

DLA J88

McNamara Headquarters Complex Fort Belvoir, VA

Contracting Activity:

DLA Contracting Services Office – Richmond

6090 Strathmore Road, Building 15A Richmond, VA 23237

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

The authorization of the extension of services in accordance with FAR Clause 52.217-8 will provide coverage for the essential continuation of an effort to support DLA’s audit. The central Evidential Matter (EM) team plays a crucial role in providing EM to the auditor periodically during the audit cycle. Without the help of the central EM team, this evidential matter would need to be provided by DLA which could hinder daily operations and may cause delays in auditor timeframes.

DLA’s financial statements are audited every year. DLA has established a centralized evidential matter (EM) team to reduce the impact to DLA business operations and expedite the retrieval of EM, which will be required to support audit samples selected as part of substantive testing. DLA must provide EM sufficient to prove that business transactions are supportable in order to pass an audit. DLA requires assistance to pull this large amount of data/documents within prescribed audit timeframes by performing the data collection centrally in the most automated method possible.

DLA has developed an Audit Remediation Framework, in which audit remediation and systems consolidation and modernization are key components. Within that framework, DLA has developed and implemented the DLA Audit Roadmap that lays out milestones to achieve a clean audit opinion for Transaction Fund (TF) by 2024, General Fund (GF) by 2025, and Working Capital Fund (WCF) by 2028.

Contractor support shall assist the DLA in achieving the audit roadmap’s goals and objectives. At the same time, DLA is both modernizing and transforming key systems to address both audit and operational needs for the future.

(3) Description of the supplies or services required to meet the agency’s needs (including the estimated value):

The contractor must define, document, and maintain procedures to pull EM out of EBS and other DLA systems (e.g., LDG, iRAPT, etc.) as required. The contractor must create new or update existing documentation that describes the specific procedures, which will allow for data/document pulls to be able to be successfully performed within three business days. Some of these procedures already exist and will need to be updated; other new procedures will need to be documented for the first time based upon IPA requirements and requests.

The contractor must provide data populations and data sets of EM transactions to support the audit as defined by DLA specifications (based on IPA sampling protocols). These types of data pulls and data groupings have not been routinely performed by DLA. The data must be retrieved in no more than three days or as otherwise established by DLA and will include pulling EM packages for DLA customers.

Demonstrate assurance that all data pulled matches data populations through completeness, quality, and accuracy checks. This will include documentation of data reconciliations or other completeness tests such as a report that lists data gaps and suggested alternatives when all DLA system pull options have been exhausted (to include systems outside of EBS). Existing data team resources are not sufficient to support this level of data pulls. The resources supplied must be knowledgeable on DLA financial system configuration and documentation. Prioritization of requests may be required based upon the volume and distribution of requests during the audit.

The contractor must also:

o Attend weekly team meetings to be included with the B-WAR, o Prepare and present walkthrough on procedures taken when pulling evidential matter o Upload documents to the RC Tool/send via DOD Safe on behalf of DLA and send out coordination emails to the different teams.

Exercising the option to extend services under the authority of FAR 52.217-8 will allow J88 to extend the term of this task order, SP4704-23-A-0503 / SP4704-24-F-0026, up to three (3) months as follows:

November 16, 2024 – February 15, 2025, with an estimated value of . This change is required for EM support since DLA decided to extend the Transaction Fund audit until the end of February 2025. Without this support DLA would have to pull the EM using field resources which could hinder a negative impact on the audit and warfighter support.

(4) Authority and supporting rationale and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service:

Pursuant to FAR 8.405 6(a)(1)(i)(A), Lynch is the only viable approach at this time for this relatively short-term contract extension in order to prevent a lapse in service through the possible transition to a new vendor. Any alternative vendor other than Lynch would have a very significant ramp up time which would result in a lapse in critical FIAR support services while the audit is being completed. Since Lynch has been proving this specific FIAR support exclusively to DLA over the preceding nine months, only Lynch has the requisite knowledge of this unique requirements to satisfy the agency’s needs within the specified timeframe while a new TO is competed under the FIAR SDVOSB BPAs.

(5) Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d):

The Contracting Officer determines the anticipated cost to the government will be fair and reasonable, and that the resulting order represents the best value to the Government, by comparing proposed prices to historical prices paid for the same or similar supplies/services and/or comparison of proposed prices with independent government cost estimates.

(6) Description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted:

Vendors were notified that any -8 extension would be done at current year rates, therefore pricing was inherently evaluated at the time of award and the vendor's rates were determined to be fair and reasonable. The KO is confident that no lower rates could be obtained for this work. The KO is continuously monitoring the marketplace for the subject services through internet research, historical pricing data and updated existing market research.

(7) Other facts supporting the use of other than full and open competition:

The Government intends to compete the follow on requirement under the FIAR SDVOSB BPAs with a start date on/about March 1, 2025 as initially anticipated.

(8) Statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new solutions, both in industry and in the Government, as a continuing effort within DLA. DLA uses a variety of vendors and contracts to fulfill its requirements and will continue its practice of surveying the market to ensure full and open competition.

Controlled by: DLA Contracting Services Office, Richmond (R2) CUI Category: Source Selection Distribution/Dissemination Control: FED ONLY POC: Charli.Soren@dla.mil (804) 980-5168