REDACTED CAO-23-0052 JA IPPS-A INC II TDS Extension (Final).pdf

CUI//SP‐PROCURE//FED ONLY

Control Number: CAO-23-0052

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Contracting Command – New Jersey

2. Description of Action: Program Executive Office Enterprise Information Systems (PEO EIS), Program Management Office (PMO), Integrated Personnel and Pay System-Army (IPPS-A) intends to award a Cost-Plus-Fixed-Fee (CPFF) modification to Contract Number W15QKN-15-C-0049 with CACI-ISS, Inc. (CACI), 14370 Newbrook Drive, Chantilly, VA 20151-4206, to extend the Period of Performance (PoP) for continuation of the Training, Deployment and Sustainment (TDS) of the IPPS-A Increment II (Inc II) Program. The Government projects modification award for December 2022, and Fiscal Year (FY) 2023 Operation and Maintenance, Army and Other Procurement, Army funds will be used. An Acquisition Plan (AP) Amendment (Amendment 04) is currently in staffing for Army Acquisition Executive (AAE) approval.

This Justification and Approval (J&A) and resulting modifications will act as a bridge to provide TDS support from 1 January 2023 through the competitive follow-on award and subsequent transition, from approximately October through December 2024. The existing TDS PoP under the current contract is directly related to the Release (R) 3 Minimum Viable Solution (MVS) Go-Live date.

the IPPS-A program was re-baselined to shift R3 MVS Go-Live from December 2021 to September 2022 on 22 December 2021, as well as a subsequent extension to the R3 MVS PoP and Go-Live shift from September 2022 to December 2022 on 21 September 2022 to ensure R3 MVS Go-Live aligned with AAE guidance received via Acquisition Decision Memorandum (ADM) on 16 September 2022. As a result, the TDS support PoP must also be extended to prevent a lapse in services which are critical to the IPPS-A mission. A full and open competition would result in a minimum 27-month delay (see Section 5 below). Due to the interdependent nature of TDS support in relation to the R3 MVS Go-Live date, and the fact that the current Go-Live date was not determined until September 2022, it is not possible to competitively procure the additional TDS support by the end of the current PoP, 31 December 2022, and thus full and open competition would result in unacceptable delays.

A lapse in TDS support would jeopardize the success of the AAE-directed R3 MVS Go-Live by 31 December 2022 and would result in de-stabilization of the IPPS-A system post Go- Live. The necessary help desk and training staff support would not be available, and the software baseline would not be sustained, all of which would result in failure of the IPPS-A system, causing 1.1 million (M) soldiers, their supervisors, and HR professionals to lose access to critical personnel data.

3. Description of Supplies/Services: The purpose of this action is to modify contract W15QKN-15-C-0049 to extend the PoP of existing TDS services for a total of up to 24-months, including one 12-month extension, one 6-month option, and one option to extend services under the authority of Federal Acquisition Regulation (FAR) 52.217-8, for up to 6 months, for a total extension of 1 January 2023 up to 31 December 2024. This contract desk for the 1.1M users, over the shoulder support, stabilization, and sustainment of the system. As IPPS-A R3 MVS goes live, the program must be supported by Subject Matter Experts deployed to locations around the Army. The deployed software baseline must also be stabilized for new users. Simultaneously, the PMO and functional community have a standing list of Engineering Change Requests planned for deployment to the code baseline.

These activities will all require continuity of TDS support past 31 December 2022 until the competitive effort for IPPS-A Release 4 (R4) is awarded, currently forecast for the first quarter of FY 2024, which will transition and subsume the sustainment of deployed software baseline, as summarized below.

4. Authority Cited: Title 10 United States Code Section 3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) FAR 6.302-1(a)(2)(iii)(B) – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2)(iii)(B), for Department of Defense, National Aeronautics and Space Administration, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements. The proposed source is the incumbent contractor, CACI.

On 18 May 2015, Contract W15QKN-15-C-0049, was competitively awarded to CACI to perform as the sole System Integrator (SI) for IPPS-A Inc II, and to provide services to design, develop, integrate, test, train, deploy, and sustain IPPS-A Inc II. As a result of the R3 MVS extension under Modification P00120, which was awarded 21 September 2022, IPPS-A R3 MVS will Go-Live by 31 December 2022. Currently, the PoP for TDS under contract W15QKN-15-C-0049 extends through 31 December 2022. Without this additional extension of support through 31 December 2024, the IPPS-A system would not be stabilized post Go-Live, necessary help desk and training staff support would not be available, and the software baseline would not be sustained, all of which would result in the failure of the IPPS-A system, causing 1.1M soldiers, their supervisors, and HR professionals to lose access to critical personnel data.

A new, competitively awarded contract for TDS support would delay the deployment and sustainment of R3 by at least 27 months. The Acquisition Lead Time for preparation of an acquisition requirements package by PMO IPPS-A is estimated at 12 months. The Procurement Administrative Lead Time goal for a new Information Technology Services requirement such as this is 270 days, or nine months, for solicitation, source selection, and award of a new contract. Once a new contract is in place, it would then take an additional six months minimum for on-boarding and transition of a new contractor, to include hiring of personnel; provision of required computers and software; provision of security clearances and access to Government databases; review of existing training and deployment plans and documentation by the new contractor; and meetings between the incumbent, the Government, and the new contractor. The requirement for R3 MVS to Go-Live by 31 December 2022 is AAE-directed. If this total 27-month delay were to occur, there would be no continuity of support for the deployment and sustainment of R3. This would be unacceptable as it would jeopardize the program’s ability to provide a state-of-the-art HR and Talent Management system to the Army Total Force, as well as impact the existing R2 sustainment timeline.

Further delays to the deployment of R3 MVS will create significant challenges in several areas. The program will face greater challenges with its Trading Partners, who are also preparing modernization programs. IPPS-A will also face significant personnel impacts. For those who have already completed IPPS-A system training, there will be a lack of retention and the need to execute additional refresher training for personnel, in addition to turnover of already-trained personnel. Delays will also affect the level of command support for the IPPS-A program from line units. Further, a break in services will result in the loss of the highly skilled workforce, which already benefits from experience and deep understanding of the unique intricacies of the IPPS-A system design, to other programs or contracts. It is unlikely this workforce would be available to support the continuation of IPPS-A activities after a delay of 27 months. This delay would also impact the planned award of the R4 competitive follow-on effort by the first quarter of FY 2024 and delay the transition and subsumption of sustainment of the deployed software baseline.

The current SI is the only source able to provide the required TDS support while avoiding unacceptable delays. CACI has gained comprehensive knowledge and an in-depth technical understanding of the R3 solution acquired throughout the design, development, and test phases, as well as historic experience with testing, training, and deployment of R2. In addition, the R3 solution leverages the R2 software baseline currently being sustained by CACI. This deep understanding of R3 is essential to providing the required technical services. The in-depth technical knowledge of the R3 solution currently held by the SI, as well as the historic experience with TDS of R2, would not be easily transferred to an incoming contractor.

Sustainment of an information technology system is tightly coupled to the development and deployment effort being performed on the same system baseline. Sustainment of R2 is directly tied to the R3 development effort. The introduction of a new contractor for TDS support during this timeframe would require CACI to continue sustaining the R2 baseline while they complete testing and deployment of R3, which would introduce unacceptable risk into the existing software baseline and the overall integration of the software Releases into a unified baseline. R2 sustainment began with the deployment of R2 and continues in parallel with the development, testing, and deployment of R3. Having separate contractors responsible for testing, training, partial deployment requirements, and sustainment jeopardizes the integrity of the IPPS-A system. Failure to approve this justification for the extension of TDS support with the incumbent contractor would delay the IPPS-A R3 deployment schedule by approximately 27 months and would adversely impact the Army by limiting the Army Total Force’s access to modernized human resources and talent management systems, depriving the Army of efficient Military HR business processes, and preventing the replacement of aging legacy HR systems.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

a. Effective competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: Subcontracting opportunities will be maximized to the fullest extent possible as outlined in CACI’s subcontracting plan under contract W15QKN-15-C-0049, which was approved in accordance with FAR 52.219-9, Small Business Subcontracting Plan. A revised Subcontracting Plan will be incorporated into the contract.

7. Actions to Increase Competition: In parallel with the TDS effort which will extend through 31 December 2024, the Government is pursuing a separate competition for the IPPS-A R4 Pay design, development, testing, training, deployment, and sustainment. The Government released a draft Request for Proposal (RFP) for the newly developed R4 package for competition on 14 December 2021. Since then, additional market research and requirements development have occurred and are ongoing as described below. The Government intends to issue the formal RFP under full and open competition during the second quarter of FY 2023. The new contract is planned for award by the first quarter of FY 2024 and will also include continued sustainment for R2 and R3.

A previous class J&A was signed on 26 September 2019, which included approval to extend the PoP for TDS from October 2021 through December 2022. This J&A was for a re-baseline of IPPS-A Inc II’s cost and schedule to deploy R3 (HR capability) to all Army components.

This re-baseline incorporated lessons learned from the development, testing, and deployment of the R2 software. This approach was justified as award to any other source would have resulted in substantial duplication of cost to the Government that would not have been expected to be recovered through competition and would have resulted in unacceptable delays in fulfilling the agency’s requirements. The changes that have since occurred include delays for the R3 MVS, which required an additional re-baseline of the program in December 2021 in order to shift Go-Live from December 2021 to September 2022, as well as a subsequent extension to the R3 MVS PoP and Go-Live shift from September 2022 to December 2022 in order to ensure R3 MVS Go-Live aligned with AAE guidance received via ADM on 16 September 2022. Additionally, a J&A was signed on 8 July 2022 to incorporate additional scope to the existing TDS PoP ending 31 December 2022, to account for the aforementioned shifts to the R3 MVS Go-Live schedule. This approach was justified as award to any other source would have resulted in unacceptable delays in fulfilling the agency’s requirements.

8. Market Research: In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance, and Information 206.302-1(d), ACC-NJ posted a Request for Information (RFI) to the System for Award Management on 17 May 2021. Responses from the vendors listed below were received and reviewed by the Inc II Acquisition Manager for PMO IPPS-A.

A draft RFP was also sent out to all General Services Administration (GSA) Alliant 2 contract holders on 14 December 2021. out of the companies below responded, reiterating their interest and providing additional feedback. Additionally, on 28 April 2022, an Industry Day was held with all interested GSA Alliant 2 contract holders and their teaming partners. Of the companies listed below, participated in the Industry Day. The results of the draft RFP and Industry Day re-affirmed the continued validity of the original RFI. An additional RFI was posted to GSA Alliant 2 on 29 November 2022 in support of R4, with a deadline for questions of 09 December 2022 and a closing date of 11 January 2023, however no new interested or capable vendors are anticipated. Only the incumbent contractor is considered capable of meeting the required schedule for TDS without unacceptable delays in fulfilling agency requirements.

Respondents from the RFI were assessed on their capability of designing, developing, deploying, and sustaining IPPS-A Inc II.

The PMO also utilized various additional market research techniques from May 2021 through November 2022 that included contacting knowledgeable organizations within the Government with similar requirements, programs, or systems, reviewing previously completed market research of similar contracting efforts, conducting market surveys, and reviewing available Army, GSA and other schedules for applicability. Schedules reviewed include GSA Professional Services Schedule, GSA Alliant 2, Computer Hardware Enterprise Software and Solutions, Information Technology Enterprise Solutions-3 Services, and National Institutes of Health, Chief Information Officer-Solutions and Partners 3. In addition, an R4 Industry Day was held with all interested GSA Alliant 2 contract holders and their teaming partners on 28 April 2022. No additional companies were identified or expressed interest.

9. Interested Sources: To date, no other sources have written to express interest.

10. Other Facts:

a. Procurement history:

1. Contract Number: W15QKN-15-C-0049, Modification P00120. Awarded 21 September 2022.

2. Competitive Status: Sole Source.

3. Authority Previously Cited: FAR 6.302-1.

4. Summary of Paragraph 7 of Previous J&A: In parallel with the R3 MVS software testing and Go-Live, the Government will pursue a separate competition for the R4 Pay design, development, testing, and deployment. The new contract will also include continued sustainment for R2 and R3, which will have been deployed by that point. Explanation of the Results: Due to the previous delays to R3 MVS, the competition for R4 has also been delayed and is now planned for FY23 with a contract award in FY24.

5. Changed Circumstances: Contract W15QKN-15-C-0049 was accomplished using full and open competition. Subsequent modifications to re-baseline have required limiting the source to the incumbent due to the fact that another SI could not utilize the CACI Release designs without significant re-work. New competitions would have further delayed deployment of the releases and therefore, deferred the cost avoidance associated with maintaining legacy systems and inefficient processes.

6. No unusual patterns existed in the procurement history.

7. Significant Changes: A justification was approved on 21 September 2022 for an extension executed under Undefinitized Contract Action (UCA) Modification P00120. This J&A was for the extension of R3 MVS testing and Go-Live to shift the deployment from September 2022 to December 2022. This approach was justified as award to any other source would have resulted in unacceptable delays in fulfilling the agency’s requirements. As a result of the previous schedule shifts for R3 and delay in anticipated award of R4, the Government now requires the extension of TDS support.

1. Contract Number: W15QKN-15-C-0049, Modification P00119. Awarded 15

September 2022.

2. Competitive Status: Sole Source.

3. Authority Previously Cited: FAR 6.302-1.

4. Summary of Paragraph 7 of Previous J&A: In parallel with the TDS effort through 31 December 2022, the Government is pursuing a separate competition for the R4 design, development, testing, training, and deployment.

Explanation of the Results: Due to the previous delays to R3 MVS, the competition for R4 has also been delayed and is now planned for FY23 with a contract award in FY24.

5. Changed Circumstances: Contract W15QKN-15-C-0049 was accomplished using full and open competition. Subsequent modifications to re-baseline have required limiting the source to the incumbent due to the fact that another SI could not utilize the CACI Release designs without significant rework. New competitions would have further delayed deployment of the releases and therefore, deferred the cost avoidance associated with maintaining legacy systems and inefficient processes.

6. No unusual patterns existed in the procurement history.

7. Significant Changes: A justification was approved on 8 July 2022 for TDS

Additional Scope executed under Modification P001119. This J&A was for additional scope, including added capacity to conduct break/fix, additional capacity for the help desk, and to extend training staff to support Go-Live, to account for the shift in R3 MVS Go-Live from December 2021 to September 2022. This approach was justified as award to any other source would have resulted in unacceptable delays in fulfilling the agency’s requirements.

1. Contract Number: W15QKN-15-C-0049, Modification P00109. Awarded 22

December 2021.

2. Competitive Status: Sole Source.

3. Authority Previously Cited: FAR 6.302-1.

4. Summary of Paragraph 7 of Previous J&A: In parallel with the R3 software development and testing, the Government will pursue a separate competition for the R4 design, development, testing, and deployment. The new contract will also include continued sustainment for R2 and R3, which will have been deployed by that point. Explanation of the Results: Due to the previous delays to R3 MVS, the competition for R4 has also been delayed and is now planned for FY23 with a contract award in FY24.

5. Changed Circumstances: Contract W15QKN-15-C-0049 was accomplished using full and open competition. Subsequent modifications to re-baseline have required limiting the source to the incumbent due to the fact that another SI could not utilize the CACI Release designs without significant rework. New competitions would have further delayed deployment of the releases and therefore, deferred the cost avoidance associated with maintaining legacy systems and inefficient processes.

6. No unusual patterns existed in the procurement history.

7. Significant Changes: A justification was approved on 16 December 2021 for a re-baseline executed under UCA Modification P00109. This J&A was for a re-baseline of System Acceptance Testing, Limited User Testing, and Go-Live to shift the deployment of R3 (HR capability) to all Army components from December 2021 to September 2022. This approach was justified as award to any other source would result in substantial duplication of cost to the Government that would not have been expected to be recovered through competition and would have resulted in unacceptable delays in fulfilling the agency’s requirements.

1. Contract Number: W15QKN-15-C-0049, Modification P00106. Awarded 17

December 2021.

2. Competitive Status: Sole Source.

3. Authority Previously Cited: FAR 6.302-1.

4. Summary of Paragraph 7 of Previous J&A: It is the Government's intent to solicit for the future R4 design, development and sustainment under a competitive contracting strategy. The new contract will also include continued sustainment for R2 and R3, which will have been deployed by that point.

Explanation of the Results: Due to the previous delays to R3 MVS, the competition for R4 has also been delayed and is now planned for FY23 with a contract award in FY24.

5. Changed Circumstance: Contract W15QKN-15-C-0049 was accomplished using full and open competition. Subsequent modifications to re-baseline have required limiting the source to the incumbent due to the fact that another SI could not utilize the CACI Release designs without significant rework. New competitions would have further delayed deployment of the releases and therefore deferred the cost avoidance associated with maintaining legacy systems and inefficient processes.

6. No unusual patterns existed in the procurement history.

7. Significant Changes: A justification was approved on 8 November 2021 for the procurement of the IPPS-A R3 level of effort increase for development and test in support of Government Acceptance Testing, executed under UCA Modification P00106. This approach was justified as award to any other source would have resulted in unacceptable delays in fulfilling the agency’s requirements.

1. Contract Number: W15QKN-15-C-0049, Modification P00062. Awarded 22 November 2019.

2. Competitive Status: Sole Source.

3. Authority Previously Cited: FAR 6.302-1.

4. Summary of Paragraph 7 of Previous J&A: In parallel with the R3 software development and testing, the Government will pursue a separate competition for the R4 design, development, testing, and deployment. The new contract will also include continued sustainment for R2 and R3, which will have been deployed by that point. Explanation of the Results: Due to the previous delays to R3 MVS, the competition for R4 has also been delayed and is now planned for FY23 with a contract award in FY24.

5. Changed Circumstance: Contract W15QKN-15-C-0049 was accomplished using full and open competition. Subsequent modifications to re-baseline have required limiting the source to the incumbent due to the fact that another SI could not utilize the CACI Release designs without significant rework. New competitions would have further delayed deployment of the releases and therefore deferred the cost avoidance associated with maintaining legacy systems and inefficient processes.

6. No unusual patterns existed in the procurement history.

7. Significant Changes: A justification was approved on 26 Sept 2019 for a re-baseline executed under Modification P00062. This J&A was for a re-baseline of IPPS-A Inc II’s cost and schedule to deploy R3 (HR capability) to all Army components and to extend the PoP for TDS from 1 November 2021 through 31 December 2022. This re-baseline incorporated lessons learned from the development, testing, and deployment of the R2 software. This approach was justified as award to any other source would result in substantial duplication of cost to the Government that would not have been expected to be recovered through competition and would have resulted in unacceptable delays in fulfilling the agency’s requirements.

1. Contract Number: W15QKN-15-C-0049, Modification P00044. Awarded 1

October 2018.

2. Competitive Status: Sole Source.

3. Authority Previously Cited: FAR 6.302-1.

4. Summary of Paragraph 7 of Previous J&A: IPPS-A has yet to reach the post development capability support phase. However, it is the Government’s intent to solicit this phase using full and open competition.

5. Changed Circumstance: N/A

6. No unusual patterns existed in the procurement history.

7. Significant Changes: A justification was approved on 18 December 2017 for additional training, deployment and capability support efforts, which were impacted as a result of a program re-baseline executed under Modification P00006.

1. Contract Number: W15QKN-15-C-0049. Awarded 18 May 2015.

2. Competitive Status: Full and Open Competition.

3. Authority Previously Cited: N/A

4. Summary of Paragraph 7 of Previous J&A: N/A

5. Changed Circumstance: This contract was a direct follow on to the previous contract, W15QKN-15- C-0003, which was terminated for the convenience of the Government. All offers received for W15QKN-15-C-0003 were re-evaluated and awarded to the original awardee under W15QKN-15-C-0049.

6. No unusual patterns existed in the procurement history.

7. Significant Changes: No J&As were issued prior to this acquisition.

b. Other facts. N/A

11. Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: Functional Integration Branch Chief, IPPS-A Date:

12. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Typed Name:

Title: Deputy Project Manager, IPPS-A Date:

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. This determination will be made utilizing the Independent Government Estimate along with technical and cost analysis techniques outlined in FAR 15.404.

Additionally, certified cost and pricing data will be required.

Typed Name:

Title: Contracting Officer Date:

14. Contracting Officer Certification:

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

Typed Name:

Title: Contracting Officer Date: