PIEE WAWF Hosting (EFO)_REDACTED.pdf

Source Selection Information See FAR 2.102 and 3.104

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using an exception to fair opportunity, pursuant to the authority cited herein.

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

Agency Requiring Activity:

Defense Logistics Agency (DLA), J62CE Wide Area WorkFlow (WAWF) Fort Belvoir, VA 22060 POC: David Hunt, Contracting Officer Representative Phone: (269) 961-5708, (269) 986-8812 Email: david.hunt@dla.mil

Contracting Activity:

DLA Contracting Service Office- Philadelphia 700 Robbins Avenue Philadelphia, PA 19111-5092 POC: Mark Esposito Phone: (215) 737-0394 Email: mark.esposito@dla.mil

2. NATURE AND DESCRIPTION OF THE ACTION BEING APPROVED:

Pursuant FAR 16.505(b)(2)(i)(B), the action being approved is an exception to fair opportunity.

This justification authorizes the use of other than full and open competition for the award of Procurement Integrated Enterprise Environment (PIEE) Wide Area Workflow (WAWF) Hosting services. This acquisition will be a sole source award subsequent to the PIEE Hosting Support task order SP4709-19-F-0044, which was competitively awarded under the J6 Enterprise Technology Services (JETS) contract vehicle. The PIEE Hosting Services RFQ provided instruction that all subsequent task orders would be issued on a sole source basis to the PIEE Hosting Services awardee. The PIEE Hosting Services Task Order was awarded to Credence Management Solutions, Limited Liability Company (Credence) on July 3, 2019 for a total dollar value of $14,685,977.32. The contract contains one (1) four-month base period, two (2) one-year option periods and one (1) six-month option period. The contract will expire on May 2, 2022 if all options are exercised.

Procurement Sensitive - For Official Use Only -- FAR 2.101 and 3.104

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

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The scope of the resulting task order encompasses all activities necessary for the vendor to provide Infrastructure as a Service (IaaS) to establish various hosting environments for Development, Test, Production and Disaster Recovery (DR)/Continuity of Operations (COOP) for Wide Area Workflow (WAWF) within a DoD Level 5 approved hosting facility. The activities include, but are not limited to, computer processing capacity and storage necessary to support the development, testing and sustainment of the PIEE capabilities for WAWF. This PIEE-WAWF environment will also support acceptance, stress, and load testing to ensure performance tuning which will keep the applications performing at optimum levels. The contractor shall be required to provide all labor, materials, and other services, to include professional services necessary to fulfill the requirements as set forth in the Performance Work Statement, and shall incorporate these requirements into the applicable deliverables. The contractor shall provide management oversight for all of the activities detailed in the Performance Work Statement and shall provide access for Government employees as required.

Based upon the J6 Acquisition Strategy (AS), the initial requirement under SP4709-19-F-0044 was to move applications out of DISA and IBM hosting environments. The applications moved under SP4709-19-F-0044 included FedMall and four applications that are a part of the larger WAWF Electronic (e)-Business Suite of Applications: Electronica Data Access (EDA), Procurement Administrative Lead Time (PALT), Procurement Process Model Library (PPML) and Clause Logic Service (CLS). During the solicitation process, all prospective offerors were advised that the resultant task order would be limited to FedMall, EDA, PALT, PPML and CLS. The aforementioned applications were included under SP4709-19-F-0044 because they were “cloud-ready” at the time, meaning that the architecture and design was deployable in a scalable cloud hosting environment. Due to system complexities, the remaining applications of the WAWF e- Business Suite were not considered to be “cloud-ready” and could not be included under SP4709- 19-F-0044. Thus, a phased approach was taken and only those applications that were ready to be moved were included under the competitive task order. The current requirement covers all remaining WAWF applications, which are now “cloud-ready.”

The estimated dollar value of this requirement is $11,905,865.69. The base period of performance is expected to begin on March 1, 2020 and will continue through November 2, 2020; Option Period 1 will begin on November 3, 2020 and will continue through November 2, 2021; and Option Period 2 will begin on November 3, 2020 and will continue through May 2, 2022.

YEAR LABOR INFRASTRUCTURE

OTHER DIRECT

COSTS (ODC)

TOTAL

(8 Months)

BASE

$ 2,492,164.66 $ 1,709,054.00 $ 4,201,218.66

(12 Months)

OY1

$ 3,063,192.82 $ 2,050,865.00 $ 5,114,057.82

(6 Months)

OY2

$ 1,565,156.21 $ 1,025,433.00 $ 2,590,589.21

TOTAL $ 7,120,513.69 $ 4,785,352.00 $ 11,905,865.69

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY (SEE FAR

16.505(b)(2)) AND THE SUPPORTING RATIONALE, INCLUDING A

DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE EXCEPTION CITED:

Per FAR 16.505(b)(2)(i)(B), an exception to the fair opportunity process is justified because only Credence is capable of providing the services required at the level of quality required because the services ordered are unique or highly specialized.

PIEE is an efficient, effective common hosting environment for functional procurement capabilities managed by the DLA J6 Strategic Capabilities and Processes Office (SC&P). WAWF is one of these functional procurement capabilities. One of the SC&P missions is to provide an enterprise cloud hosting environment for PIEE systems.

The PIEE is the primary enterprise procure-to-pay (P2P) application for the Department of Defense and its supporting agencies. PIEE delivers access to a number of independently managed business applications and capabilities. The PIEE Common Operating Environment (COE) represents a new Department of Defense (DoD) acquisition strategy of providing procurement business and financial services capability to procurement professionals in support of the Warfighter. The PIEE is not an individual Information Technology (IT) application or system.

Rather, it is a collaborative COE based on core components designed to present a virtual procurement work space for professional procurement individuals.

PIEE leverages cloud computing and virtual servers to gain efficiency and standardize the software and hardware footprint, reduce system interfaces, and reduce architecture complexity. PIEE consolidates the common capabilities, leveraging data across application and reducing system interfaces. Consolidation of procurement capabilities, such as WAWF (an electronic invoicing, receipt and acceptance procurement capability), under the PIEE infrastructure will help achieve savings in acquisition, sustainment, and manpower resources, and will improve DoD’s ability to execute its missions while defending its networks against growing cyber threats. PIEE enables enterprise role-based access to its environment for functional procurement capabilities, such as WAWF, to adopt Single-Sign-On capability.

An Integrated approach of PIEE capabilities will enhance business agility and allow effective management of common data and infrastructure. PIEE capabilities currently support over 450,000 users and the processing of in excess of $4.6 billion dollars of transactions in DoD annually.

The PIEE Hosting environments are grouped for procurement systems, support far-reaching interfaces and provide integrated procurement capabilities across all government agencies. Many DoD and Government agencies use the PIEE Systems to fulfill their e-business procurement requirements. The hosting infrastructure is one stop for procurement capabilities for the integration efforts under the PIEE infrastructure. The tightly coupled design of the infrastructure and procurement capabilities allows PIEE to process extremely high data volumes in a very efficient manner. This requires the PIEE Cloud Service Provider (CSP), Credence Management Solutions, to support and maintain scalable infrastructure. Due to the homogenous nature of the PIEE environment, the data, functional processes and capabilities can overlap within procurement core capabilities resulting in leveraging common capabilities within the PIEE environment. To fulfill a customer requirement, there often has to be both a data translation map developed and a PIEE core capability update needed to take place, which includes items like customized data reporting, data translation and validation routines that utilize the PIEE core capabilities functionality. Both actions must be worked within a single hosting environment to ensure that the solution is efficiently leveraging the common procurement capabilities without duplicating the data. If a single hosting provider is not used, then difficulties can be anticipated with capability integration due to duplication of hosting environment, interfaces and subsequent architectural complexities, likely resulting in a complex or unusable environment. These difficulties create the potential of mission failure created by data delays, as well as impacts to management of contracts, invoicing and payment.

The WAWF Electronic (e)-Business Suite of Applications resides in the PIEE COE. The below applications and the respective capabilities they represent (Requirements, Award, Post-Award Administration, Payment, Property Management, Purchase Card, Security, and Operational Support) reside within the WAWF e-Business Suite (some WAWF applications have already migrated to Credence’s PIEE hosting environment as indicated below):

• WAWF to include WAWF mobile applications

• Electronic Data Access (EDA) – NOTE: has migrated to PIEE hosting environment

• MyInvoice

• Item Unique Identification (IUID) Registry

• Joint Appointment Module (JAM)

• Electronic Military Interdepartmental Purchase Request (eMIPR)

• Management Reporting System (MRS)

• National Industrial Security Program (NISP) Contracts Classification

System (NCCS)

• Contract Closeout (CCO)

• Contract Deficiency Reports (CDR)

• Contracting Communication (CCM)

• Data Lake

• Government Furnished Property (GFP)

• Clause Logic Service (CLS) – NOTE: has migrated to PIEE hosting environment

• Procurement Business Intelligence Service (PBIS)

• Procurement Process Model Library (PPML) – NOTE: has migrated to

PIEE hosting environment

• Solicitation

• Supplier Performance Risk System (SPRS)

• Joint Appointment Module (JAM)

• Procurement Administrative Lead Time (PALT) – NOTE: has migrated to PIEE hosting environment

• Contracting Information Technology (CON-IT)

• Purpose Code Management (PCM)

• Government Purchase Card (GPC)

• Single Sign On (SSO)

The invoice and the receiving report from WAWF, and the contract from EDA enables the entitlement systems to perform a match needed to authorize payment. WAWF through PIEE is the Enterprise data entry point for IUID and Passive Radio Frequency Identification (RFID) data for new acquisition items, is the source of receipt and acceptance data for service component and agency Enterprise Resource Planning (ERPs), and is central for the Business Enterprise Architecture (BEA) enterprise solutions for Standard Financial Information Structure (SFIS) and Intra Governmental Transfer (IGT).

WAWF Property is the Enterprise data entry point for the Paperless Government Furnished Property (GFP).

It is extremely vital that hosting be maintained by the same vendor (Credence) that was awarded PIEE Hosting support task order SP4709-19-F-0044 in order to maintain the integrity of the WAWF system. To date, Credence has successfully implemented the migration of EDA along with PALT, PPML, CLS, and FEDMALL out of one hosting environment and into the Amazon Web Services hosting environment ahead of schedule.

Since WAWF data integration requirements are complex and can generate PIEE core software and infrastructure updates, this further necessitates the requirement for a single vendor in a single environment for the PIEE infrastructure solution. Award of all WAWF hosting support to a single vendor will ensure acquisition data resides under one layer of PIEE, reduce the number of interfaces and streamline system architecture. The risks associated with awarding to a second vendor include untimely data exchange, lack of standardization of infrastructure, duplication of hosting environments and associated interfaces, and added complexities to the architecture.

Awarding on a sole source basis to Credence will reduce the complexities of multiple hosting environments and network architectures.

Without this support, PIEE customers would experience degraded production support and unwelcome downtime. This would create delays for services between DoD agencies as well as commercial vendors. Any solution outside of a single CSP would lead to an immediate, negative impact to the Warfighter through delays to contract management, payment and invoicing.

Therefore, failure to award the current WAWF hosting requirement to Credence will result in major disruption to the PIEE mission.

The current task order with Credence (SP4709-19-F-0044) supports the same type of services that are required under this acquisition, and the affected applications are interdependent. It is important that the task orders are managed by a single contractor responsible for all services so that consistency in configuration management will be achieved. Introducing another vendor would require additional efforts related to hosting environments, integrations, interfaces and testing, since another vendor would have to develop the requirements in their own environment and then transfer them over to the current environment where the other applications (EDA, FedMall, CLS, PPML, PALT) reside. Additional work, such as integration and extensive testing, would be required if these services were awarded to another contractor.

WAWF cannot be down for maintenance during the last quarter of 2020 due to fiscal-year end activities. The introduction of another contractor would present schedule and performance risks, which would jeopardize the Government’s ability to deliver the functionality in 2020. Risk by way of code errors could be introduced by recreating code for multiple system integrations. Schedules, rules and additions would have to be coordinated with interfacing partners, firewalls and environment platforms respectively. Another contractor would require 1-3 months to onboard their staff and require significant ramp-up time to familiarize their developers with the current architecture, likely delaying delivery to late in 2021 at the earliest.

5. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE:

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable. It is anticipated that the Government will use various price analysis techniques including, but not limited to: (1) Comparison of proposed prices to historical prices paid; (2) Comparison of proposed prices with Independent Government cost estimates; and/or (3) Comparison of proposed prices obtained through market research for the same or similar services.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

None

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

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE EXCEPTION TO

FAIR OPPORUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE:

The PIEE Hosting Task Order was originally competed under JETS, and DLA plans to compete the next task order to the maximum extent possible under JETS when the original expires in May 2022. DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry and in the Government. As a continuing effort, DLA uses a variety of vendors, manufacturers and contracts to fulfill its requirements and will continue its practice of surveying the market to ensure full and open competition.

8. CERTIFICATIONS.

Technical Certification: I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

David Hunt DATE

DLA J62CE WAWF PMO/COR

Contracting Certification: I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

Mark Esposito DATE Contracting Officer DLA Contracting Services Office Philadelphia

In accordance with FAR 16.505(b)(2)(ii)(C)(2), I have determined that FAR 16.505(b)(2)(i)(B) applies and I approve this justification.

ASSUNTA BONANNO DATE

Competition Advocate DLA Contracting Services Office Philadelphia

HUNT.DAVID.R.JR.

1095044820

Digitally signed by

HUNT.DAVID.R.JR.1095044820

Date: 2020.02.28 08:49:54 -05'00'

Digitally signed by

ESPOSITO.MARK.A.1284006352

Date: 2020.02.28 09:06:40 -05'00'

BONANNO.ASSUNTA.

1229097675

Digitally signed by

BONANNO.ASSUNTA.1229097675

Date: 2020.02.28 10:06:25 -05'00'