PMRT_2023 JandA_redacted.pdf

CONTROLLED UNCLASSIFIED INFORMATION

Justification and Approval (J&A) for Other Than Full and Open Competition

CONTROLLED UNCLASSIFIED INFORMATION 11 Jul 2022 Page 3 of 10

I. Agency and Contracting Activity.

The Air Force Life Cycle Management Center (AFLCMC), Business and Enterprise Systems Directorate, Contract Management Division (AFLCMC/GBKB), 4225 Logistics Avenue, Building 266, Room A212, Wright-Patterson Air Force Base, Ohio 45433-5006 is the procuring agency for this acquisition. This J&A is for Other than Full and Open Competition (F&OC).

II. Nature and/or description of the action being approved.

The purpose of this Justification and Approval (J&A) is to seek approval for a new J&A to increase the estimated current contract (FA8770-20-D-0501/FA8770-20-F-0501) value by approximately $24,900,000 from $43,000,000.00 to $68,000,000.00 (cost breakdown provided below). We also seek to provide a new Contract Line Item Number (CLIN) for surge labor hour activity to the Acquisition Strategy. The request for the surge labor hours is due to the urgency associated with some new requirements and the inability to accurately estimate the extent of work to be performed at the start of the contract with any reasonable degree of certainty, resulting in potential inaccuracy in proposed labor hours and potential cost overrun scenarios.

For this effort, and to prevent later issues and/or risk we are seeking to establish a Labor Hour CLIN with an annual ceiling price of $3,000,000.00 for each Option Year (OY) 3 and Option Year (OY) 4 and $1,000,000.00 for extension of services (EOS), which the contractor understands to exceed would be at their own risk. This would be added via contract modification to the existing sole source Indefinite Delivery Indefinite Quantity contract to the incumbent contractor, Integrated Data Services (IDS). This J&A adds a Labor Hour CLIN to the current contract type in place is a mix of Firm-Fixed Price (FFP)/Cost Plus Fixed Fee (CPFF)/ Cost Reimbursable CLINs. This J&A increase does not change the originally-awarded Period of Performance of a base period of one (1) year with four (4) one (1) year options and a six (6) month extension of services (EOS). Specifically, this new effort will support the OY3 and OY4 and the six (6) month extension of service.

III. Description of supplies/services required to meet agency needs.

Project Management Resource Tools (PMRT) is a suite of Air Force (AF) Enterprise applications designed to support several key facets of program and financial management, acquisition reporting, and supervisory oversight. The primary PMRT applications are Comprehensive Cost and Requirement (CCaR), Data Access Program Reporting (DAPR), Resource Identification Tool (RIT), Strategic Management Tool (SMT), Management Acquisition Report (MAR), Strategic Resource Management (SRM), and PMRT Enterprise Analytics (PMRT EA). Descriptions of these applications are provided below:

Within the last year the Acquisition Tracker Application has also been added to the suite of productivity tools.

Requirements in recent Task Orders FA8770-22-F-0505 and Task Order FA8770-22-F-0512, awarded in 2 June 2022 and 12 August 2022 respectively, include additional capabilities

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In addition to requirements noted, which are currently or soon to be placed on contract, PMRT has multiple upcoming requirements as determined through Functional Management Group/Requirements Review Board/Tools and Training Council (FMG/RRB/T2C) backlogged items that are requested to be integrated as scope in upcoming contracting actions.

The request for the surge labor hours is due to the urgency associated with some new requirements and the inability to accurately estimate the extent of work to be performed at the start of the contract with any reasonable degree of certainty--resulting in potential inaccuracy in proposed labor hours, and potential cost overrun scenarios. For this effort, and to prevent later issues and/or risk we are seeking to establish a Labor Hour CLIN with an annual ceiling price of $3,000,000.00 for each Option Year (OY) 3 and Option Year (OY) 4 and $1,000,000.00 for extension of services (EOS), which the contractor understands to exceed would be at their own risk. This would be added via contract modification to the existing sole source Indefinite Delivery Indefinite Quantity contract to the incumbent contractor, Integrated Data Services (IDS). This J&A adds a Labor Hour CLIN to the current contract type in place is a mix of Firm-Fixed Price (FFP)/Cost Plus Fixed Fee (CPFF)/Cost Reimbursable CLINs, to which would be added the new Labor Hour CLIN type. This J&A increase does not change the originally awarded Period of Performance of a base period of one (1) year with four (4) one (1) year options and a six (6) month extension of services (EOS).

Specifically, this new effort will support the OY3 and OY4 and the six (6) month extension of service.

The total estimated value of this acquisition, including options, is $68.2M ($43.3M original J&A plus this new J&A valued at $24.9M) the PoP for the base year and options are as follows:

Option Year 3: One (1) year Option Year 4: One (1) year with Extension of Services: Six (6) months

Estimated contract cost breakdown of this new J&A:

FY$M (3400) FY23 FY24 FY25 Total New J&A $9.78 $10.04 $5.08 $24.90

*Includes Extension of Services of Six (6) month in 2025

PMRT has spent $30M in the past three (3) years (FY20-FY22). It is anticipated that PMRT will exceed the current $43.3M ceiling before the end of FY23. Sustainment cost continues to increase with the addition of new capabilities to the PMRT suite of applications, and the recent knowledge that PMRT may be required to provide Business Intelligence System (BIS) and Military Equipment Valuation (MEV) support. Additionally, contracted sustainment costs will grow with the move from on-premises hosting at Acquisition Logistics Technology Enterprise Systems and Services (ALTESS) to Cloud One in FY23.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The current PMRT enhancement and sustainment contract was awarded sole source to a small business, IDS. FA8770-20- D-0501 was awarded on 31 March 2020. The PoP for the current contract is 1 Feb 2020 to 31 Jan 2025.

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After thorough analysis via Market Research dated 18 April 2019, the Government has determined the incumbent contractor, IDS, is the only qualified source capable of performing the work required for this acquisition.

The use of CCaR is mandated through AFI63-101/20-101 dated 30 June 2020 page 142, Chapter 11, and the USG purchases an annual use license(s) for this tool. While CCaR is not required as part of PMRT, its inclusion is necessary to import and export data to and from other seven (7) native applications that are within PMRT reliant upon other applications and data sources for full functioning capabilities. Currently, there are no authorized resellers able to provide the CCaR enterprise software license and associated support to the AF Acquisition Domain.

Successful operation and support of PMRT requires a high level of understanding of the interconnection of this configuration and how it is designed to interact with other systems via interface. Therefore, attempting to operate or modify (which is necessary) PMRT without this detailed knowledge and understanding will result in an unacceptable level of risk to the program.

Further, a vendor lacking experience with this proprietary software and related architecture would introduce substantial risk to the system. Additionally, there are no other vendors currently with the ability to properly sustain PMRT due to limited technical data available to the Government.

This effort for the PMRT program is for a sole source contract that was awarded on 1 Feb 2020 for services that require unique qualifications. The original contract was awarded sole source to IDS by SAF/AQXS and the program and contract were officially transferred to AFLCMC/GBB, formerly HIB, via a PEO Portfolio Assignment memo in Jan 2018.

Market Research was conducted the week of 23-27 May 2022 to support the current effort for a new J&A and inclusion of additional labor hour activity. This research revealed multiple other office productivity tools. However, there were none that were comparable to the capabilities of the current PMRT tools. Therefore, this acquisition is for highly specialized capabilities and services. Aside from the market research it should be considered that the current vendor is familiar with the established code, customer and system requirements necessary for current use and capabilities. Current prime did all existing design of current capabilities to date. To replace this contractor would require a complete recreation of all capabilities for the inception of the PMRT program.

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V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

The first SS posted on 17 January 2019 remained open for a total of 30 calendar days and received responses from a total of two vendors: and the incumbent contractor, IDS. A thorough review of both responses identified IDS as the only responsible source able to meet all acquisition requirements. Though demonstrated they were able to perform and meet some of the requirements, their response noted specific challenges managing interdependencies/interfaces between the various PMRT applications. IDS demonstrated they are able to meet all of the requirements and the detailed Rough Order of Magnitude (ROM) they submitted demonstrated they fully understand the effort. In response to these market research results, the PMO recommended a Sole Source Acquisition Strategy to the Milestone Decision Authority during the Early Strategy and Issues Session (ESIS) conducted on 4 June 2019. To solidify this strategy, leadership proposed a second SS be posted for a two-week period to solicit any further responses before going forward.

A second SS was posted to FedBizOps on 11 June 2019 for a total of 15 calendar days and responses were received from two additional vendors: were considered able to perform some of the requirements, but neither were deemed able to meet all requirements. The Government review of

During the period in which both SS were posted to FedBizOps, as well as after the postings closed, several companies expressed interest in the new acquisition. All companies were informed, if interested, they should submit a formal response to the SS.

Based on this, any company that did not respond to the SS were not considered as serious candidates for the subject acquisition/contract. For this effort there is no requirement for a Notice of Proposed Contract Action (NOCA) IAW FAR5.201.

This exception is in accordance with FAR 5.202.

VI. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will determine the cost to be fair and reasonable in accordance with FAR 15.402, Pricing Policy.

Certified cost or pricing data or data other than certified cost or pricing data will be obtained when required or necessary to determine whether costs are fair and reasonable.

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VII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As stated in section IV above, a SS for PMRT enhancement and sustainment services was posted to FedBizOps in both January and June 2019. A total of four vendors submitted formal responses to the SS. The incumbent, IDS, and one other vendor, , responded to the January 2019 posting and two additional vendors, , responded to the June 2019 posting. As explained in both sections V and VI above, a thorough analysis of the

Market Research identified the incumbent contractor, IDS, as the only responsible source to satisfy all contract requirements.

In addition to posting a SS on FedBizOps, numerous other methods of Market Research were conducted.

A second Market Research was conducted the week of 23-27 May 2022, with a Market Research Report (MRR) completed 10 June 2022, to support the current effort for a new J&A, increase to cost ceiling and inclusion of additional labor hour CLIN. This research revealed multiple other office productivity tools. However, there were none that were comparable to the capabilities of the current PMRT tools. Web research revealed Office Productivity tools/applications such as Click Up, Money, Smart Sheet, TeamWork, Work Otter, ZoHo and Wrike. Each of these potential suppliers' capabilities to meet PMRT's requirements in terms of known schedule needs and for excess operational capacity falls far short of PMRT's present capabilities. This is true especially in terms of Agile implementation, financial data access , and the ability to access real-time business information from multiple government and industry sources. None of the tools reviewed during market research had the capabilities of agile implementation and none were capable of the ability to access financial data from multiple agencies, organizations in real time from multiple government sources.

The Methods of Research used were as follows:

- Internet Searches

- Government Database Searches (CPAR and PPIRS)

- Interviews of Government SMEs

- Contacting Known Source of Products or Services

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

While the technical documentation is anticipated to be delivered within the upcoming contract, awarding to an alternative source at this point would necessitate pursuing exploratory means of understanding the current data, database structures, system architecture, software platforms, PMRT interfaces and application functionality and logic. The PMO's technical and financial teams calculated that an award to any other source at this time would increase the current effort by approximately $9M above the total Independent Government Cost Estimate (IGCE).

Awarding to a contractor other than the incumbent would cause the Government to experience inefficiencies and result in duplicative effort for minimum of 24 months for the development labor that will be required for a new contractor to `ramp up' without the technical documentation associated with sustainment and enhancement of the PMRT system. In addition to the ramp up period, a contractor other than the incumbent would require additional recurring hours for Developers, Maintenance Programmers, Designer Business Analyst, QA Staff, Testing Staff (Systems Engineer), over the life of the contract due to the complexity of the PMRT development and sustainment activities. Awarding to a contractor other than the incumbent escalates program risk and creates unacceptable cost increases and service delays.

Based on the above information, by competing the PMRT contract, the Government would be projected to incur a substantial duplication of costs that would not be recoverable through competition.

In conjunction with the cost duplication, inefficiencies in performance and the lengthy ramp up period required for a new contractor to begin development and sustainment of the PMRT suite would cause the Government to incur an unacceptable delay leading to a break in service to the PMRT user community.

The complex nature and interaction of the PMRT application suite, application logic, technology stack, program interfaces, CONTROLLED UNCLASSIFIED INFORMATION 11 Jul 2022 Page 8 of 10 deficiencies in technical documentation artifacts, and other complexity factors, create high risk that a non-incumbent provider would have difficulty providing the current level of PMRT development and sustainment support services. Given a delay of at least 24 months, the automated financial management, requirements management, tracking, and reporting capabilities provided by PMRT to the user community would be significantly impacted.

Delays and potential system unavailability will divert a significant amount of already scarce organic financial management and program management resources from other critical activities to manually complete reporting related to management and execution of program funds.

In order to determine the amount of time required to match the capabilities of IDS, a team of Subject Matter Experts estimated the number of hours to develop the necessary technical documentation based on their experience working in BES software engineering. If work began immediately, the team has estimated the required time would be a minimum of 24 months. Required ramp-up efforts for optimal maturity level services would include phases in areas such as PMRT discovery and definition, scope, and planning, COTs/GOTs product stacks, data and database architecture understanding, system architecture understanding, application flow and logic understanding, middleware architecture design and the creation of technical documentation and diagrams. From this minimal learning curve, and the current PMRT program's need for quick execution, a 24-month delay that would be experienced by a new contractor due to the inefficiencies discussed above is unacceptable to the Government.

Accordingly, Integrated Data Services (IDS) is the only firm capable of providing the services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition with a total cost of approximately $9M and unacceptable delays of a minimum of 24 months in fulfilling its requirements.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

As the purpose of this J&A is to increase the cost ceiling and provide the inclusion of Surge to PMRT's updated Acquisition Plan this was not publicized for competition.

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X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

Thorough Market Research analysis indicated that there is only one viable source to fulfill requirements and meet the immediate need. Insufficient requirements for delivery of data in the current contract limited the technical rights to allow for competition of future effort. This contract effort requires significant detailed technical knowledge of the system configuration and interactions with other systems via interface. Attempting to operate or modify (as needed) PMRT without this detailed knowledge and understanding would result in an unacceptable level of risk to the program.

Additionally, if a vendor other than the incumbent is selected, that vendor will have to team with the incumbent and the contract which would almost certainly result in a higher cost, and negative schedule impact to the Government. The Government will continue to explore options to overcome any barriers to future competition. Further, the Government intends to secure the technical data necessary to ensure future competitive acquisition options. The proposed follow-on contract will incorporate requirements designed to capture the PMRT technical baseline and require delivery of technical documentation, artifacts, and source code at reasonable or no cost with sufficient data. Because the CCaR application, used within PMRT, is a proprietary application the Program cannot currently access this data.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.