Redacted ETS2 J and A.pdf

ACTION MEMORANDUM

TO: Michael Ashkouri, Esq., Activity Competition Advocate – M/OAA/OD

FROM: Hung Vu, Technical Officer – M/CIO/ITO/SD

SUBJECT: JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

(1) Identification of the agency and the contracting activity:

This document sets forth the facts and rationale justifying an exception to fair opportunity, in accordance with FAR 16.505(b)(2)(i)(C). The contracting office is USAID/M/CIO/PAD/AM and the cognizant technical office is USAID/M/CIO/ITO.

(2) The nature and/or description of the action being approved:

This request is to approve a follow-on 5-year task order award to CWTSato Travel in the amount of approximately $1,000,000.00, under the GSA IDIQ contract GS-33F-AA009, E-Gov Travel Services 2 (ETS2).

The GSA IDIQ contract is currently in the second option period of June 4, 2019, through June 3, 2023; it also includes a third option period of June 4, 2023, through June 3, 2027. Under this proposed action, CWTSato Travel will continue to provide highly usable, secure End-to-End travel management services from October 1, 2021, through September 30, 2026. A 2 -year base period and one 3-year option will align with the period of performance of the GSA Master contract. The period of performance for the Master contract is listed in Section 4.

The original period of performance of the subject task order was October 1, 2015 – June 3, 2020 (4 years, 9 months). The period of performance was modified shortly after award to align with the term of the GSA IDIQ with a completion date of June 3, 2019 and adding an option period through September 30, 2020. Pursuant to FAR 52.217-8, Option to Extend Services, the task order was modified in July 2020 to extend the period of performance for 6 months from September 30, 2020 to March 31, 2021. On March 8, 2021, a no-cost extension was issued to continue performance through September 30, 2021 without additional funding of the subject task order.

(3) Description of the supplies or services required, including the estimated value:

The ETS2 program includes all aspects of official federal business travel, including travel planning, authorization, reservations, ticketing, fulfillment, expense reimbursement, and travel management reporting. ETS2 is intended to provide USAID with the capability to perform all aspects of official travel management online with processes and procedures consistent with applicable FTRs and policies and incorporate information technology (IT) advances within the travel industry.

The total estimated cost for the follow-on service and support for the 5-year period of performance, including options, is $1,000,000.00. There have been communications with the IDIQ COR and the contracting office and the cognizant technical office throughout the planning process. Formal IDIQ COR concurrence will be obtained prior to the signing of a new order

(4) Identification of the exception to fair opportunity (see 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.

This action is requested in accordance with FAR 16.505(b)(2)(i)(C) – The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

Approximately 15 years ago USAID paired with the Department of State (DoS) to form the travel system that would best serve the two agencies. Many of the travel destinations are co-located, therefore the strategy of the two agencies combining efforts was logical. There are three components to the Travel Service program. Those components are:

1. Travel Management Center (TMC/CWT SATO),

2. E2 Helpdesk, and

3. Travel Management System (TMS) (E2)

The first two components are supported by an Interagency Agreement (IAA) with DoS for five years for the complementary tasks of the Travel Management Center (TMC) services to CWTSato Travel. The subject task order (AID-CIO-M-15-00024) was awarded to CWTSato Travel to support the third ancillary component, Travel Management System (E2). Extending this arrangement of five years will meet the Agency’s travel needs and align with the GSA Master contract and avoid a critical gap in services. The agency travel in formation will be shared between those two systems, E2 for USAID and ETS 2 for DoS. This will allow both DoS and USAID to leverage the investment made in customizing the system. All three components are necessarily supported by the same vendor (CWT Sato Travel). If the task order with the current vendor is not extended, the other two components covered by the IAA between USAID and DoS would have to be competed.

In 2015, the subject task order was competed under GSA’s ETS2 Master Contract-Global Travel IDIQ. Two vendors indicated interest in the solicitation. However, during competition, the second vendor, Concur Technologies declined to submit a proposal. After evaluations, a source selection decision was made and the contract was awarded to CWT Sato Travel.

The Task order’s period of performance aligns with the Master Contract:

Master Contract Period of Performance and Options:

i. The Period of Performance for the Base Period is three years after the date of award or effective date of the contract, whichever is later. (09/12/2013 – 06/03/2015

ii. The Period of Performance for the First Option Period is for a four-year period of performance beginning after the end of the base period. (06/04/2015 – 06/03/2019)

iii. The Period of Performance for the Second Option Period is for a four-year period of performance beginning after the end of the first option period. (06/04/2019 – 06/03/2023)

iv. The Period of Performance for the Third Option Period is for a four-year period of performance beginning after the end of the second option period. (06/04/2023 – 06/03/2027)

Therefore, as the facts indicate, this non-competitive extension to CWT Sato Travel is being advanced in the interests of economy and efficiency, because it is a logical follow-on to the subject task order issued under the Master contract. Also, the Master contract provided all offerors fair opportunity to be considered for the original order.

Additionally, the ETS2 is the Agency’s only travel management services tool. Work performed under the contract to date has been critical to the agency’s travel operations. CWT Sato Travel has also built custom interfaces to Phoenix (Financial Management System), communication, and Single Signed On (SSO) that are not part of the travel system baseline.

(5) A demonstration by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

The resulting task order will be Firm Fixed Price (FFP). The anticipated price of approximately $1,000,000.00 is based on the government’s analysis of the current expenditure rate plus a review of the Master Contract’s posted rates as the basis for the amount provided.

The Contracting Officer will conduct an analysis of proposed prices for the new task order to determine that pricing is fair and reasonable. Proposed prices will also be compared with historical prices paid and available market prices.

(6) Other facts supporting the use of exception to fair opportunity:

USAID and DoS have made a significant investment in the software and several customized modules that currently support the implementation of unique travel services for both agencies during the last 15 years. USAID has approximately 80 overseas Missions and along with the headquarters in DC, approximately 40,000 trips per year are conducted. Both domestic and international travel are critical to accomplishing USAID’s mission. Installing a replacement system across the agency would create a substantially high impact on cost and time to -- which in turn would cause a crippling negative impact on USAID foreign aid services.

As mentioned above, the investment has contributed to the current travel services, to create the optimal services which provide efficient global support and at a reasonable cost to the agency. Full and open competition, in the current circumstances would be impractical, detrimental, and highly disruptive to the success of USAID’s mission.

Also, to award to a new vendor would sever the relationship with DoS and USAID as both agencies share responsibilities for the program. All the customizations would need to be incorporated into whatever system is implemented, such as Foreign Currency Exchange and Single Sign on components. Additionally, the inability to deploy a new system, implement and train staff on a new system and integrate hardware and software during a pandemic hampers this effort.

Finally, USAID would be forced to run the two systems concurrently to avoid an interruption in service if forced to make a transition of service providers. And any new system would need to be approved through the security approvals and fully integrated with USAID’s major systems and all this would create a significant debt. Thus, failure to continue performance of ETS2 services will

-04'00' cause a severe impact on USAID capabilities essential to the Agency Mission.

(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 opportunity before any subsequent acquisition for the supplies or services is made:

USAID will continue to survey the market to determine if future Commercial off the Shelf (COTS) products exist that would easily integrate with the Agency’s critical syste ms (such as Phoenix).

USAID will also continue to review the Agency’s travel requirements for possible future competition. It must be noted that if approved, this award will satisfy the Category Management requirement since it would be awarded under a GSA government-wide contract. Also, if approved, this award will be in line with the direction of GSA to utilize the Master Contract awardee for the life of the contract inclusive of the option periods. All three components are optional modules within the GSA Master Contract; therefore, all can be done within the same procurement.

(8) Technical or Requirement Personnel Certification:

I certify that the technical statements included above, and which form a basis for the justification, are complete and accurate.

Hung Vu 09/07/2021

Hung Vu Date Technical Office Representative

(9) Contracting Officer Certification:

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

Joseph Wayne Digitally signed by Joseph Wayne Lentini (affiliate)

______L_e_n__t_in i _(a_f_filiate) Date: 2021.09.07 12:49:10

Joseph Lentini Date Contracting Officer

(10) Approving Official Determination:

I have determined that the statutory exception which applies -FAR 16.505(b)(2)(i)(C) as described above, appropriately applies to this order.

Michael Ashkouri

Digitally signed by Michael Ashkouri Date: 2021.09.10 09:56:22

______________________-0_4_'0_0_' ____________ _________

Michael Ashkouri, Esq. Activity Competition Advocate Date Approving Official

CLEARANCE PAGE FOR ACTION MEMO FOR Justification and Approval of a 5-Year Follow-on of the “Travel Management System” Task Order under the E-Gov Travel Service 2 (ETS2) GSA Master Indefinite Delivery, Indefinite Quantity Contract (ETS2 IDIQ)

Clearances:

(cleared via email) 09/03/2021

George Mathew Date General Counsel

Jennifer L Norling (affiliate)

Digitally signed by Jennifer L Norling (affiliate) Date: 2021.09.09 16:09:25 -04'00' _

Jennifer Norling Date Agency Competition Advocate (Acting)