M02 JOFOC 24012 HITS Bridge_Exhibit 1 Attachment.pdf

EXHIBIT 1

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

HUD Information Technology Systems (HITS) Extension of Services (CS) BRIDGE

CONTRACT

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY, AND

SPECIFIC IDENTIFICATION OF THE DOCUMENT AS A “JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION”

U.S. Department of Housing and Urban Development (HUD) Office of Chief Procurement Officer (OCPO) 451 7th Street SW, RM 5184 Washington, DC 20410

Contracting Activity: Office of the Chief Procurement Officer, Headquarters

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

The purpose of this justification is to request an extension of the current period of performance (POP) for CLIN 0001 - End User Services for 6 months with the incumbent contractor, Perspecta Enterprise Solutions, LLC, under the current Bridge Contract Number 86615321C00007, to ensure continued support for ongoing HUD operations. The current CLIN 0001- End User Services’ POP ends on 7/31/2021. Also, to establish a new CLIN for End User Services for option period 1 for 12 months. As a result, the ceiling of the contract will increase accordingly.

The End Users Services is a critical part of Office of the Chief Information Officer (OCIO) capabilities, encompassing contractor activities related to Wireless and Mobile Communications, Telecommunications and Help Desk in providing the critical infrastructure and operational services necessary to HUD in fulfilling its mission.

Method of Contracting: Modification to the existing contract

Type of Contract: Firm-Fixed Price

Type of Funds: IT Funds are provided for this action

3. A DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE):

HUD requires continued provisioning of a stable, reliable enterprise-wide infrastructure to meet its strategic objectives and responsibilities under Federal legislation and executive orders. The contractor shall be responsible for the provisioning, management, storage, maintenance, backup, and operation of all infrastructure hardware, software, and support services to meet or exceed HUD’s current Enterprise Infrastructure core functions consistent with the assigned Contractor functions.

A bridge contract – 86615321C00007 was established with a total value of $103,067,706.00 to continue HITS CS services provided under the previous Perspecta Contract, DU100F-15—05 to permit adequate time to respond to the results of the End User contract protest and re-solicit the Data Center services using an alternative acquisition strategy. The current contract breakout is provided in table 1 below.

Table 1: Current HITS Contract Bridge – 86615321C00007 Price

CLIN

Supplies or Services (Description/Title)

Unit & Quantity

Total CLIN Price

Base Year (BY):

End User Services

POP: 02/01/2021 to 07/31/2021

6 Months $2,147,158.00

Base Year (BY):

Data Center Asset Management POP: 02/01/2021 to 01/31/2022

Months $49,626,536.00

Option Period (OP) 1:

Data Center Asset Management

POP: 02/01/2022 to 01/31/2023

Months

$51,294,012.00

TOTAL: $103,067,706.00

Base Year (BY), CLIN 0001 – End User Services will expire on 7/31/2021 under the current contract 86615321C00007. These services were competed and awarded was made under Contract – HHSN316201200026W/86615319F00014, which was terminated for convenience. CLIN 0002 BY and CLIN 0003 OY – Data Center Assets will expire on 1/31/2022 and 01/31/2023, respectively. Hence, a requirement is needed to:

Extend the current period of performance (POP) for BY CLIN 0001 – End User services for an additional 6 months from 08/01/2021 - 01/31/2022, to continue to provide the continuation of services (Telecommunications, Help Desk and Wireless and Mobile Communications). This increases the estimated value of CLIN 0001 by $2,147,158.00.

Establish CLIN 0004 – End User Services for an optional period (OP) of 12 months from

02/01/2022 – 01/31/2023, increasing the estimated value of the option year by $4,433,881.00.

Table 2 below shows the requested revisions of CLIN 0001 and CLIN 0004 to the current contract:

Table 2: Revised HITS Contract Bridge – 86615321C00007 Price

Supplies or Services (Description/Title)

Unit & Quantity

Total CLIN Price

End User Services POP: 08/01/2021 to 01/31/2022

6 Months $2,147,158.00

Option 1 End User Services POP:

02/01/2022 to 01/31/2023

Months

$4,433,881.00

TOTAL: $6,581,039.00

Note: The total revise contract ceiling value increases by $6,581,039.00.

The table 3 below shows the revised Contract Bridge breakout:

Table 3: Revised CLINs for HITS Contract Bridge – 86615321C00007 Price

Supplies or Services (Description/Title)

Unit & Quantity

Total CLIN Price

Base Period:

End User Services

POP: 02/01/2021 to 01/31/2022

Months $4,294,316.00

Base Period: Data Center Asset

Management POP: 02/01/2021 to 01/31/2022

Months

$49,626,536.00

Option Year (OY) 1:

Data Center Asset Management

POP: 02/01/2022 to 01/31/2023

Months $51,294,012.00

Option 1 End User Services POP: 02/01/2022 to 01/31/2023

Months

$4,433,881.00

TOTAL: $109,648,745.00

The total contract value of $109,648,745.00.

CLIN 0001 for 6 mos. Base Period (BP) = $2,147,158.00

CLIN 0001 6 mos. Extension BP = $2,147,158.00

+ CLIN 0001 12 mos. BP + Extension= $4,294,316.00

Total revised Ceiling Value = $6,581,039.00

CLIN 0002 for BP = $49,626,536.00

CLIN 0003 for OP1 = $51,294,012.00

CLIN 004 for OP1 = $4,433,881.00

Total Contract Value BP = $53,920,852.00 [=CLIN 0002 for BP +CLIN

+ Total Contract Value OP = $55,727,893.00 = [CLIN 0003 for OP1 +CLIN 0004 for OP1]

Total Contract Value BY+OP = $109,648,745.00

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The statutory authority cited is FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

As the incumbent, Perspecta currently provides the provisioning, management, storage, maintenance, backup, and operation of all infrastructure hardware, software, and support services to meet or exceed HUD’s current Enterprise Infrastructure core functions that are critical. Their current contract – 86615321C00007 includes the services for both the Data Center services (labor and assets) and for the End User services which will expire 7/31/2021.

There are no other alternatives currently available which could provide the continued support of the Department of HUD’s HITS CS efforts in time to mitigate a break-in-service. A break in service would result in the immediate shutdown of the Department’s data center environment rendering HUD unable to support the needs of the American public and HUD’s mission.

At this time, Perspecta Enterprise Solutions LLC, located in Herndon, Virginia, is the only responsible source and as a logical follow-on to the existing contract that can satisfy HUD’s HITS CS requirements currently under contract without a potential delay.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICAL, INCLUDING

WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS REQUIRED BY SUBPART

5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202 APPLIES.

The notice of intent to award a sole source to the incumbent contractor Perspecta for the End User Services was posted on beta.sam website on July 28, 2021. Any responses to this notice will be considered.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

The basis of award and reasonableness of the total price proposed will be analyzed in accordance with FAR 15.404-1(b)(2) utilizing acomparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items and/or a.

comparison of proposed prices with independent Government cost estimates.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10) AND

THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT

CONDUCTED.

Market Research was not conducted in accordance with FAR 10 for this action, given the inability of a new vendor being able to provide continuation of the required services in time to mitigate a break in service. The notice of intent to award a sole source to the incumbent contractor Perspecta for the End User Services was posted on beta.sam website on July 28, 2021. Both End User Support Services and Data Center Services are planned to be recompeted in FY21-FY22 on a competitive basis.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

Without the critical infrastructure support currently being provided under the Perspecta contract, HUD would experience a detrimental impact to its enterprise information technology infrastructure. HUD would not be able to deliver on its mission to “create strong, sustainable, inclusive communities and quality affordable homes for all.” All HUD staff (HUD employees and contractors) who access the HUD network would not be able to perform their duties. This includes staff that support actions which include Housing Foreclosures, Fair Lending, Rental Assistance, and specific citizen needs from seniors, homeless, veterans, disabled, and low-income populations. In addition, HUD would no longer be able to manage timely payment of benefits to lenders and to the public from the various financial systems providing over $1.3 trillion in mortgage insurance through HUD’s Office of Housing, and by the Office of Community Planning and Development to administer grants to local organizations. HUD would not be able to communicate important program and agency information through websites to all external parties. There are no other alternatives currently available which could provide the continued support of the Department of HUD’s HITS CS efforts at this time due to the ongoing protest for the End User contract and having to re-solicit using an alternative acquisition strategy for the Data Center service. The impact of a break-in-service would result in the immediate shutdown of the Department’s data center environment rendering HUD unable to support the needs of the American public and HUD’s mission.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION.

Any source that responded to the previous and future solicitations for the follow-on End User or Data Center is considered an interested party.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED.

As mentioned above, End User Services and Data Center Support Services are planned to be recompeted on a competitive basis during FY21-FY22 .

12. CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION IS

ACCURATE AND COMPLETE TO THE CONTRACTING OFFICER’S KNOWLEDGE

AND BELIEF.

See certification at Part 2, Form-24012