P03 JOFOC BY STATUTE FINAL.pdf

This is a Justification and Approval (J&A) document for the Department of Veterans Affairs seeking to award a sole source contract for Innovation Portfolio Support Services.

The contracting activity is the Department of Veterans Affairs, Network Contracting Office (NCO) 8, located in Tampa, Florida. The acquisition is conducted under the authority of Revolutionary FAR Overhaul (RFO) 6.103-5(c)(1) and VA Acquisition Regulation (VAAR) 819.7008. The contractor is M&H Transformation Partners (M&H), a Joint Venture firm comprised of McKinsey and Company, Inc. (mentor—large business) and FedComply, LLC dba Hidden River Group (protégé—Service-Disabled Veteran Owned Business). The contract value is $5,000,000, with a Period of Performance of 12 months beginning September 15, 2026, and continuing until September 14, 2027. The anticipated cost to the government is $4,949,938.00. M&H will provide professional, technical, and program management services including portfolio governance, pilot concept scoping, pilot readiness, accelerator lifecycle facilitation, partner coordination, performance measurement, drone delivery demonstration planning, air taxi integration discovery, and knowledge transfer. The justification cites VAAR 819.7008 and 819.7009 authorizing sole source awards to certified service-disabled veteran-owned small businesses. Market research confirmed that 11,004 SDVOSB and VOSB firms are capable of providing similar services under NAICS Code 541611 (Professional: Program Management/Support), but determined M&H is the only capable and interested contractor. The CO has determined the anticipated cost is fair and reasonable based on comparison with similar VA contracts and GSA pricing. No other barriers to competition exist, and VHA is committed to competitive procurement for future similar requirements.