M04 - LSJ SUBPART 8.4 - 26JUN2023 - 3-Mos Extension - PMOSS_COR signed.pdf

Control No. WHS-2023-250

JUSTIFICATION FOR LIMITED SOURCE JUSTIFICATION (LSJ)

UNDER FEDERAL ACQUISITION REGULATION SUBPART 8.4

1. AGENCY AND CONTRACTING ACTIVITY:

AGENCY: Office of the Under Secretary of Defense, Policy (OUSD(P))

CONTRACTING ACTIVITY: The Washington Headquarters Services (WHS), Acquisition

Directorate (AD)

2. DESCRIPTION OF ACTION: WHS/AD proposes to extend HQ003418F0125 to the incumbent

AVANTUS FEDERAL LLC without full and open competition to continue providing Policy Management

Operations & Specialized Services (PMOSS) for the Office of the Under Secretary of Defense, Policy

(OUSD(P)). The existing contract expires on June 30, 2023, and a 3-month extension is required for continuous PMOSS services until a new competitive acquisition is awarded. WHS/AD is targeting the re-competitive acquisition to be awarded by September 2023. The total estimated value of this proposed extension is approximately $1,258,169.40.

3. DESCRIPTION OF SUPPLIES/SERVICES: OUSD(P) is responsible for providing responsive, forward-thinking, and insightful policy advice and support to the Secretary of Defense, and the Department of Defense, in alignment with national security objectives. Within OUSDP, the Policy Management &

Operations (PMO) office’s mission is to provide outstanding strategic management and services in support of Policy’s mission. PMO is committed to the pursuit of excellence, transparency, and accountability. The contractor shall provide PMOSS services to implement OUSD(P) requirements. To accomplish the objectives, the contractor shall provide (#1) high-quality services and expertise to OUSD(P) in the areas of resource management, human capital, leadership and organizational development, travel, facilities, and executive secretariat; and (#2) identify and institute innovative solutions for organizational challenges associated with CAPE’s mission needs. The total period of performance (PoP) is from July 1, 2023 to

September 30, 2023.

Table #1

HQ003418F0125, 3-Month Extension

Policy Management Operations & Specialized Services $1,161,182.88

Copy Editor Services $5,076.00

Human Capital Services $49,865.40

MISO Support Services $42,045.12

3-Month Extension Total $1,258,169.40

4. CIRCUMSTANCES JUSTIFYING LIMITED SOURCES: This action is authorized under provision

10 U.S.C. 2304(c) as implemented by 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.

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

Considering the highly specialized nature of PMOSS, it is likely that if the Government extends the contract to any other source, other than the incumbent, PMOSS will experience unacceptable delays or substantial duplication of cost may occur to the Government. For instance, as of HQ003418F0125-P00018, the estimated contract value is $22,314,450.66. Therefore, a 3-month extension to HQ003418F0125 is estimated to be $1,258,169.40, to include approximately 468 hours per month, totaling 12,636.00 labor hours for approximately 27 contract personnel to provide support services to OUSD(P). Should the

Government issue an extension to another vendor, to maintain continuity of services, the Government will incur approximately $1,128,358.53 in duplication costs, which is not expected to be recovered through competition. Transitions from the incumbent will involve additional resources and unnecessary costs for the Government.

Table #2

HQ003418F0125 Contract Value as of P00018, Per Month $371,907.51

Estimated Contract Value Divided by 12 Calendar Months Per Year

($22,314,450.66 ÷ 12)

Total # of Hours for 3-Month Extension 468.00 (Totaling 12,636.00 for entire duration of 3-month Extension)

Total # of FTEs for 3-Month Extension 27.00

Duplication of Costs $1,128,358.53

(Contract Value, Per Month) x (3-Month for Extension) + Labor Mix

($371,907.51) (3) + (468 x 27)

3-Month Extension Total - $1,258,169.40 (As referenced in Table #1)

Variance $129,810.87 (3-Month Extension Total - Duplication of Costs)

OUSD(P) has expressed a continued need for PMOSS support while working the competitive effort. The

Government required additional time to properly gather historical data, survey the market, and finalize an acquisition strategy that would represent the best interest of the Government’s requirement for a successful competitive acquisition. Failure to extend services to the incumbent would involve transitions between the incumbent and a short-term vendor, and can cause unacceptable risks, delays and interruptions in services.

Timing is critical, and the Department cannot afford a lapse in support while this competitive effort is still being executed.

To provide time-sensitive support to OUSD(P), it is imperative that the incumbent seamlessly continue providing support for an additional three months, while WHS/AD continues to execute the competitive effort. Therefore, to maintain continuity of services, an extension of PoP is the most logical and cost-effective solution to the Government.

5. BEST VALUE DETERMINATION: The Contracting Officer hereby determines this action represents the best value to the Government, in that a determination of a fair and reasonable price will be made prior to award. Actions are anticipated to ensure reasonableness of the price will be accomplished with the procedures and criteria contained under FAR 8.405-2(d). The Contracting Officer will evaluate the proposal in conjunction with the requiring activity to ensure that the overall price for the order represents the best value. The agency will also request additional discounts as required by FAR 8.404(d), Pricing, and ensure that the labor mix and level of effort are reasonable in accordance with FAR 8.405-2(d).

6. MARKET RESEARCH: On June 15, 2023, WHS/AD issued a “Notice of Intent to Sole Source,” on

SAM.GOV. The Notice of Intent was posted for five (5) days and closed on June 20, 2023. Based on the

Notice of Intent, no vendor challenged the 3-Month Extension to PMOSS. The Government is currently working on a long-term contract and anticipates award by September 2023.

7. OTHER SUPPORTING FACTS: WHS/AD will solicit this effort as a task order extension for three months in order to maintain continuity of support for CAPE. The task order extension will be issued as the most logical and cost-effective strategy and solution to the Government which will avoid duplicative costs and unacceptable delays in fulfilling the agency’s requirement and a potential gap in performance of critical services while a competitive acquisition occurs.

8. ACTIONS TO REMOVE OR OVERCOME ANY BARRIERS THAT LEAD TO THE

RESTRICTED CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE: No barriers currently exist. The Government will conduct a competitive acquisition and the PoP for the new award will begin in September 2023.

9. If this acquisition is for new work as a logical follow-on to on original Federal Supply Schedule (FSS), was the original order was placed under the FSS ordering procedures?

☒Yes, the original acquisition was issued on a competitive basis.

☐No, 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.

☐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.

Juan P. Cardenas, Contracting Officer Representative/Program Office Date

Nikita N. Wimper, Contracting Officer Date

APPROVAL

This justification is, approved.

David H. Kao, Competition Advocate

Date