20180817--LEAP_JandA_Redacted.pdf

J&A Number: NSWC-PHD-J&A-18-032

Code: NSWC PHD 02B

P.R. Number: N6339418R0017

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Surface Warfare Center (NSWC), Port Hueneme Division (PHD), Port Hueneme, California.

2. Description of the Action Being Approved

NSWC PHD will use other than full and open competition award a contract for Advanced

Leadership Effectiveness and Potential (LEAP) Program Training and Ad Hoc

Management Development training and coaching to Transformation Systems, Inc. (TSI) of

Arlington, Virginia.

3. Description of Supplies/Services

The Advanced LEAP Program is a framework and a program that includes four types of mastery which help individuals achieve greater success. The Advanced LEAP Program helps individuals expand results, leverage relationships, integrate their environment, and inspire performance. The Advanced LEAP Program is an assessment framework to identify strengths and developmental opportunities to become more personally, interpersonally, organizationally, and motivationally agile. The Advanced LEAP Program includes group and team training. Advanced LEAP Program workshops explore how to put in motion the latest research and philosophy on motivating and energizing a workforce.

The workshop format combines experiential learning, paired mentoring, group discussions, individual development, and action planning. TSI will also provide ad hoc training and coaching to Navy leaders and managers to heighten their awareness of what it takes to be their best, do great things, and have meaningful success.

The period of performance for this effort will be from the date of award through 30

September 2019. The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The estimated dollar value by fiscal year and appropriation is provided in the below table.

Estimated Dollar Value ($M)

FY18 FY19 Total

DAWDF 0.50 3.50 4.00

4. Statutory Authority Permitting Other Than Full and Open Competition

When utilizing FAR subpart 13.5 procedures, 41 U.S.C. 1901(e) requires justification of determinations to acquire items from a sole source in accordance with 10 U.S.C. 2304. 10

U.S.C. 2304(c)(5) states “a statute expressly authorizes or requires that the procurement be made through another agency or from a specified source, or the agency's need is for a brand-name commercial item for authorized resale.” The statutory authority permitting the acquisition of this requirement by other than full and open competition is 15 U.S.C.

637(m), as implemented by FAR 6.302-5, "Authorized or Required by Statute," and FAR

19.1506 "Women-Owned Small Business Program Sole Source Awards."

5. Rationale Justifying Use of Cited Statutory Authority

This contract will be awarded to TSI, a women-owned small business (WOSB) concern.

This contractor possesses unique knowledge of professional and management development training to expand results, leverage relationships, integrate their environment, and inspire performance. TSI has recent and relevant experience training U.S. Navy acquisition management and leadership personnel on effective methods to address challenges and embrace opportunities for improvement. LEAP has been successfully utilized to build the competency of the Navy Acquisition workforce by multiple DoD customers, including the

Director, Acquisition Career Management (DACM), Assistant Secretary of the Navy for

Research, Development & Acquisition (ASN RDA).

FAR Section 19 implements parts of the Small Business Act (15 U.S.C. 631, et seq.) and applicable sections of the Armed Services Procurement Act (10 U.S.C. 2302, et seq.).

FAR 19.201 specifically institutes policy to provide maximum practicable opportunities in acquisition to small business, veteran-owned small business, service-disabled veteran-owned small business (SDVOSB), HUBZone small business, small disadvantaged business, and WOSB concerns. Since this acquisition is estimated to be greater than the simplified acquisition threshold, the contracting officer first considered acquiring the required services from a small business socioeconomic program (i.e. 8(a), HUBZone, SDVOSB, or WOSB) before considering a small business set-aside (FAR 19.203(c)).

Since there is no order of precedence among those socioeconomic programs (FAR

19.203(a)), the contracting officer determined (based on results of market research described below and TSI’s unique knowledge and extensive experience) that acquiring the services identified in this Justification and Approval should be made sole-source through a

WOSB (FAR 19.1506(b)) under NAICS code 611430, professional and management development training. The WOSB Program, set forth in section 8(m) of the Small Business

Act, 15 U.S.C. 637(m), authorizes contracting officers to restrict competition to WOSBs or

Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) for Federal contracts in certain industries. The WOSB and EDWOSB sole-source statutory authorization is implemented in FAR 19.1506.

In accordance with FAR 19.1506(b), the contracting officer considered award to a WOSB before considering a small business set-aside. In accordance with FAR 19.1506(b): (1) the acquisition of the professional and management development training described above is associated with a NAICS code that the SBA has determined WOSB concerns are substantially underrepresented in Federal procurement; (2) the contracting officer does not have a reasonable expectation that offers would be received from two or more WOSB concerns; (3) the total estimated award amount including options will not exceed $4M; (4)

TSI is a responsible contractor for performance through review of its past performance record (CPARS evaluations and past and current performance of similar work); and (5) award can made at a fair and reasonable price (see Section 7). The contracting officer also verified that none of the exclusions listed in 19.1504 apply, specifically requirements cannot be fulfilled through Federal Prison Industries, Inc., AbilityOne agencies, Indefinite-

Delivery- Indefinite-Quantity orders, or Federal Schedule Supply orders.

Regarding whether two or more WOSB concerns could perform the work, market research

(see Section 6) showed that due to the highly specialized work, two or more WOSB concerns were unlikely to submit offers. NSWC PHD conducted a search of the Small

Business Administration (SBA) Dynamic Small Business Search website for professional and management development training, and NAICS code 611430. The contracting officer issued a sources sought notice on 23 July 2018, stating an intent to sole source this requirement. The notice invited interested parties to submit capability statements outlining their interest and capability to meet the requirements. One capability statement was received in response, and following review by the Contracting Officer and the requiring activity it was determined the submission did not clearly demonstrate a capability to satisfy the requirement. Based upon the above the Contracting Officer is unable to conclude offers would be received from two or more responsible and capable WOSB concerns.

Based on the above which show all requirements of FAR 19.1506(b) have been met, the contracting officer determined award to TSI is appropriate and in the Government’s best interest.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

The proposed contract was synopsized on the FEDBIZOPS website on July 23, 2018 and one other potential sources expressed an interest in this requirement. The materials provided by potential sources expressing an interest in this requirement were provided to

NSWC PHD’s Business Operations team, the subject matter experts for professional and management development training. NSWC PHD’s Business Operations team maintains in-depth knowledge of professional and management development training and the market place for these highly specialized services. This includes insight into techniques and methods that individual companies are focused on, and their resultant outcomes. NSWC

PHD’s Business Operations team maintain this knowledge through ongoing strategic market research and attendance at relevant symposia and conferences. The NSWC PHD

Business Operations team determined no WOSB’s other than TSI have the knowledge and technical capability required to provide the LEAP Program, and no other potential source possessed experience working with Navy acquisition teams.

Based upon the above and additional feedback solicited from Navy and NSWC PHD subject matter experts in the fields of acquisition and professional and management development, the Contracting Officer determines that while reasonable efforts were made to solicit offers from as many WOSB’s as possible, TSI is the only WOSB qualified to perform this effort.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable. Similar quantities of this requirement have been purchased from this offeror in the past and other than cost or pricing information was received. This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

NSWC PHD intends to fully evaluate the reasonableness of conducting a full and open competition to satisfy professional and management development training requirements in the field of acquisition for FY20 and beyond. This evaluation will include regular interfaces with industry to include an Industry Day and publication of additional sources sought notices to the Governmentwide point of entry. The Contracting Officer and NSWC

PHD’s Business Operations team will continue strategic and tactical market research in this area as it is vital to the continued development of competency in all corners of Navy acquisition. While the Contracting Officer’s preference will be to continue to set aside this requirement to responsible and capable small business concerns, all potential strategies to satisfy this requirement will be considered.