M04_HQ003421C0050_P00007_JA_6Mos Ext_FAR Part 6.3 - For CA Signa.pdf

CUI

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

CUI

Control No. WHS-2024-1487-JA September 27, 2024

JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

UNDER FEDERAL ACQUISITION REGULATION FAR SUBPART 6.3

1. AGENCY AND CONTRACTING ACTIVITY: The Department of Defense (DoD), Washington Headquarters Services, Acquisition Directorate (WHS/AD), Enterprise Office of the Secretary of Defense Division (EOSD), Technical Analysis Branch (TAB) on behalf of the Office of the Under Secretary of Defense for Intelligence and Security (OUSD(I&S)) Executive Directorate (EXDIR).

2. DESCRIPTION OF ACTION: OUSD(I&S) has a continuing need for Customer

Engagement & Field Support Services, Facilities & Information Technology Management Support and Security Planning, & Programming. These services are currently supported under Contract HQ0034-21-C-0050, which was awarded to Digital Forensics Services, LLC. (DFS). The current contract expires September 27, 2024, and the Government intends to extend the current contract period of performance (POP) for continuity of services while the Government works to establish a Blanket Purchase Agreement (BPA) to support this effort, the requirement is currently going through the procurement process for award. On September 25, 2024, a bid protest was filed against the BPA awards. Therefore, an extension will be required to continue services while the Government completes its source selection process. The extension will be under FAR Clause 52.217-8, “Option to Extend Services” of the contract. However, the option was not evaluated as part of the initial competition under FAR 17.207(f). The extension will be awarded as a Firm-Fixed Price (FFP) contract type, with a total value of $1,175,451.18, using Fiscal Year 24 Operation and Maintenance Funds. The estimated $1.2M value of this extension includes approximately 840 additional labor hours for approximately eight (8) contract personnel to provide support services to OUSD(I&S).

The POP will be extended from September 28, 2024 to March 27, 2025.

3. DESCRIPTION OF SUPPLIES/SERVICES: EXDIR has a requirement to maintain Customer Engagement & Field Support Services, Facilities & Information Technology Management Support and Security Planning, & Programming. This requires expertise in security, resource requirements, formulating strategies, strategic planning and concept development, program analysis and evaluation, policy, and development of solutions that assist with the decision-making process, and other areas related to the mission of

OUSD(I&S).

The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform services as defined in the contract Performance Work Statement (PWS), except for those items specified as government-furnished property and services. The Contractor shall perform to the standards in the contract. The Contractor’s performance and deliverables shall provide wide ranging specialized and sensitive administrative and program support at the direction of the Executive Directorate.

4. AUTHORITY CITED: This action is authorized under provisions of 10 U.S.C.

3204(a)(1), FAR 6.302-1(a)(2)(iii)(A), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. EXDIR requires continued, support from DFS in order to fulfill its requirement to provide Customer Engagement & Field Support Services, Facilities & Information Technology Management Support and Security Planning, & Programming. If not, the Government would experience unacceptable delays in providing the necessary support for EXDIR within the Defense Intelligence and Security Enterprise.

REASON FOR AUTHORITY CITED: Failure to extend these services and losing the support and expertise of the DFS contract team would result in incalculable delays that would derail or halt progress on efforts across EXDIR and the OUSD(I&S) enterprise. These delays would impact the EXDIR’s on-going efforts to provide daily physical and personnel security support to OUSD(I&S) as well as facility and IT support to the entire organization.

Failure to extend DFS’ support or competitively awarding to any other source would result in a substantial duplication of costs to the Government during the procurement process which is currently on-going during corrective action from the bid protests. The substantial duplication of cost is estimated at $72,400.00, which is not expected to be recovered through competition.

Awarding services to a contractor other than DFS would involve multiple transitions between vendors (e.g., incumbent vendor, new interim vendor during the bridge contract, and new long term vendor for the current procurement) this would result in the Government paying multiple vendors for the transition of different contracts (estimated at $72,400.00) for continuous support.

These multiple transitions involve additional resources and unnecessary costs for the Government, and could cause unacceptable risks, delays, and interruptions in services.

Furthermore, if a new contract were to be awarded there would be at least a 45-day gap in support due to the time it would take to on-board new personnel, the conduct of appropriate security indoctrination procedures, issuance of new personnel accounts, and granting access to respective applications. This 45-day gap would not account for any ramp up or training time the contractor would need. This could potentially add another 15-30 days to the gap in support. This sort of gap or work stoppage in support is likely to result in mission failure across EXDIR due to all of I&S’ mission areas being located or supported in a Secure Compartmented Information Facility (SCIF), requiring the above-mentioned security procedures to occur prior to any onboarding of new contractor personnel. Without this contract support, I&S would be detrimentally hindered in onboarding new personnel causing mission failure for EXDIR's Mission Support and Security directorate while also disrupting all mission areas within I&S that require new employees to onboard. In order to maintain continuity of services, an extension of services is the most logical and cost effective solution to the Government because competitively awarding to another source would result in a substantial duplication of costs and a stop gap or work stoppage.

There are currently ongoing initiatives where a break in service would disrupt critical work. Some activities are daily and not able to be disrupted as they impact I&S’ ability to conduct normal business operations. For example, EXDIR’s security team is responsible for day-to-day personnel and physical security activities critical to the I&S mission. In addition, the security team, to which the DFS contractor staff provide essential support is in the process of developing an Operations Security (OPSEC) plan for the entire organization. This is a compliance issue and must be resolved by the end of calendar year 2024.

Additionally, these on-going initiatives have significant impact to specific areas of the EXDIR such as security, facility and IT operations support. For instance, one major initiative is a project involving a new I&S Sensitive Compartmented Information Facility (SCIF) space that requires security, facility and IT support. I&S’ is heavily reliant on this space to conduct critical operations. Another initiative is a time-sensitive pilot program that I&S is undergoing from October through December. Mission partners require the dedicated IT and secure communications support, DFS provides. Approximately eight (8) DFS personnel contribute essential support to these initiatives. Without continued service from DFS, this would have detrimental impacts on the success of this pilot program.

As mentioned, the existing DFS contract provides critical support to the daily operations of EXDIR. The DFS contract team are embedded with federal EXDIR staff and have special and current knowledge about influence and perception management initiatives happening across the Department of Defense (DoD). An extension avoids unacceptable delays in fulfilling the operational objectives of the EXDIR. DFS’s critical support is necessary to the I&S enterprise and avoids adverse impact on the aforementioned initiatives while the Government works the source selection process for potential award.

5. EFFORTS TO OBTAIN COMPETITION: Due to the urgent need to extend services to avoid a lapse in contractor support, the Government posted a “Notice of Intent” on

SAM.GOV to notify industry of its intent to extend services on September 26, 2024. The NOI posted received a response from a vendor who expressed interest in the requirement, but did not provide a capability statement. The CO promptly responded and informed the vendor this was not a solicitation or request for proposal, and we were currently going through a source selection process. The vendor did not respond nor further inquire about the NOI.

6. FAIR AND REASONABLE COST DETERMINATION: The Contracting Officer determines that the anticipated prices will be fair and reasonable by using the techniques identified at FAR 15.404-1, “Proposal Analysis Techniques” to ensure award will be at fair and reasonable prices. In addition, the Government will compare proposed prices set forth by DFS to historical prices paid by the Government under the current contract, HQ0034-21-C-0050. The Government will also compare proposed prices with the Independent Government Cost Estimate prepared for the POP extension.

7. MARKET RESEARCH: Market Research has been limited to the NOI to sole source this extension action that was posted on SAM.GOV as described in paragraph 5, above.

As indicated, The NOI posted received a response from a vendor who was interested in the requirement. The CO promptly responded and informed the vendor this was not a solicitation or request for proposal, and we were currently going through a source selection process. The vendor did not respond nor further inquire about the NOI. No further Market Research was conducted due to severe time constraints and there being only one responsible source to satisfy agency requirement.

8. OTHER FACTS: Due to the irreparable damage that may result to EXDIR's mission should services be interrupted with a gap in services during the bid protest process; a POP extension will be negotiated with DFS to provide services while the Government continues its procurement evaluation for potential award.

9. INTERESTED SOURCES: The synopsis/ NOI posted on SAM.gov received a response from one (1) firm who expressed an interest in the requirement, but did not provide a capability statement. Therefore it was determined the inquiry submitted was not valid, as the vendor did not provide any indication regarding capabilities and the NOI expressly stated it was not a request for quote/proposal.

10. ACTIONS TO INCREASE COMPETITION: The Government issued a sources sought notice, via SAM.GOV, for the competitive follow-on contract. WHS/AD reviewed all capabilities statements submitted in accordance with the instructions of the notice. The acquisition strategy for a new competitive follow-on was determined based on the results of that market research.

Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis?

☐Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification ☐ were ☐ were not completed.

☒No. The original acquisition was conducted on a competitive basis.

☐Not Applicable. This is a new requirement.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Contracting Officer’s Representative/Program Office Date

Contracting Officer Date

APPROVAL

This justification is, approved.

David H. Kao, Competition Advocate

Date