REDACTED - Justification for 8(a) Award Over 25M - OCIO IT Mgmt and Consulting Support Services Redacted Copy_Redacted.pdf

U.S. Department of Energy Washington, DC 20585

Justification for a Sole-Source 8(a) Contract over $25 Million Office of Headquarters Procurement Services

Office of the Chief Information Officer

1. Identification of the Agency and Contracting Activity

This document sets forth the justification and approval of a sole-source 8(a) contract to an Alaska Native Corporation (ANC) over $25 million in accordance with Federal Acquisition Regulation (FAR) 19.805-1(b)(2); where an acquisition exceeds the competitive threshold (i.e., $7.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4.5 million for all other acquisitions), the Small Business Administration (SBA) may accept the requirement for a sole source 8(a) award if-

(1) There is not a reasonable expectation that at least two eligible and responsible 8(a) participants will submit offers at a fair market price; or

(2) SBA accepts the requirement on behalf of a concern owned by an Indian tribe or an Alaska Native Corporation.

In accordance with FAR 19.808-1(a), the SBA may not accept for negotiation a sole-source 8(a) contract that exceeds $25 million unless the requesting agency has completed a justification in accordance with the requirements of 6.303. As such, the proposed contractor, Kadiak, LLC, is an Alaska Native Corporation and this justification satisfies the requirements of FAR 6.303-2(d), which states the following:

(d) As a minimum, each justification for a sole-source 8(a) contract over $25 million shall include the following information:

(1) A description of the needs of the agency concerned for the matters covered by the contract.

(2) A specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract (see 19.805-1).

(3) A determination that the use of a sole-source contract is in the best interest of the agency concerned.

(4) A determination that the anticipated cost of the contract will be fair and reasonable.

(5) Such other matters as the head of the agency concerned shall specify for purposes of this section.

This sole-source contract under the 8(a) Business Development Program (15 U.S.C. 637) is being issued by the U.S. Department of Energy (DOE), Office of Headquarters Procurement Services (MA-64), located in Washington, DC on behalf of the Office of the Chief Information Officer

(OCIO).

2. A Description of the Needs of the Agency Concerned for the Matters Covered by the

Contract

OCIO’s Mission, Strategic Goals, and Required Support Services and Tasks:

The OCIO requires IT Management, Business Consulting, and Support Services to accomplish its mission, strategy, and strategic goals. The mission of OCIO is to advance the Department’s missions through policy, standards, and services, which meet mission requirements, balance risk and innovation, and set clear performance goals and expectations for the enterprise information ecosystem.

The OCIO has four strategic goals:

(1) Supporting DOE’s Information Consumers - To ensure delivery of high-quality information and IT solutions that meet consumers’ needs and enable mission outcomes.

(2) Excelling as Stewards of Enterprise IT Resources – To safeguard DOE’s resources through the cost-effective management of information and IT solutions.

(3) Enhancing Information Security – To protect the integrity of Departmental information by strengthening DOE’s cybersecurity posture.

(4) Investing in DOE’s Workforce and Partners – To invest in DOE’s IT workforce and the partnerships required to advance the Department’s mission.

In support of OCIO’s mission and strategic goals, the following support services and tasks are necessary in the performance of this contract:

(1) Conference Administration and Program Administrative Support

(2) Executive Secretariat Support

(3) Labor Relations Consultant Support

(4) Administrative Office and Space Management/Inventory Control Support

(5) Budget and Performance Management

(6) Contract Planning, Administration and Execution Support

(7) Enterprise Policy, Portfolio Management and Governance Support

(8) Enterprise Governance and Federal Information Technology Acquisition Reform Act

(FITARA) Management

(9) Architecture, Engineering, Technology and Innovation Contractor Support

(10) Security Management

Name and Address of the Contractor:

Kadiak, LLC 4100 Lafayette Center Dr., Suite 303 Chantilly, VA 20151 DUNS Number:

NAICS Code: 541618 (Other Management Consulting Services)

Contract Type:

The resultant contract will be a Time-and-Materials contract. In accordance with FAR 16.601(d), a determination and findings will be approved by the DOE Head of the Contracting Activity (HCA) prior to contract award.

Estimated Total Contract Value (including options):

The estimated total contract value and period of performance of this contract is as follows:

Performance Term Period of Performance Estimated Total Base Year 11/24/2020 to 11/23/2021 Option Year 1 11/24/2021 to 11/23/2022 Option Year 2 11/24/2022 to 11/23/2023 Option Year 3 11/24/2023 to 11/23/2024 Option Year 4 11/24/2024 to 11/23/2025

FAR 52.217-8

(Optional 6-month Extension)

11/24/2025 to 05/23/2026

Total

3. Specification of the Statutory Provision Providing the Exception from the Requirement to Use Competitive Procedures in Entering into the Contract (see 19.805-1)

Sole-source awards under the 8(a) Program (15 U.S.C. 637) are authorized, therefore full and open competition is not required. Likewise, FAR 19.805-1(b)(2) states, “where an acquisition exceeds the competitive threshold, the SBA may accept the requirement for a sole source 8(a) award if the SBA accepts the requirement on behalf of a concern owned by an Indian tribe or an Alaska Native Corporation.”

4. Determination that the Use of a Sole-Source Contract is in the Best Interest of the

Agency Concerned

The award of an 8(a) sole-source contract that exceeds $25 million to an Alaska Native Corporation is in the best interest of DOE because this contract will support the achievement of the OCIO’s mission objectives and goals, and it will support the achievement of DOE’s socio-economic goals.

The proposed contractor, Kadiak, LLC, has experience with providing comprehensive services in management consulting, program management, portfolio management, and financial management. Kadiak, LLC also has experience and expertise in performing the services identified in the DOE/OCIO performance work statement (PWS). Kadiak, LLC has the required corporate experience, staffing/recruiting capability, past performance, and business maturity to manage a contract of this size and complexity. This company also offers a unique niche of being able to blend IT services with general business support services and has a strong strategic capability.

Kadiak, LLC, is a wholly owned subsidiary of Koniag Government Services (KGS).

Kadiak, LLC provides DOE with the agility and customer commitment of a small business, with corporate reach back capability with their parent company with the operating maturity, infrastructure, and processes of

Based on the above information and market research, DOE has determined that awarding a sole-source 8(a) award to Kadiak, LLC is in the best interest of the Government.

5. Determination that the Anticipated Cost of the Contract will be Fair and Reasonable

The contracting officer (CO) will use historical data and the actual costs of the incumbent contract as a basis for negotiating a fair and reasonable cost for this award. In addition, the Independent Government Cost Estimate developed for this requirement incorporated a labor category and rate analysis, which compared labor rates from similar labor categories, published on the General Services Administration (GSA) Federal Supply Schedules (FSS) for companies that provide similar services.

6. Such other Matters as the Head of the Agency Concerned Shall Specify for Purposes of this Section

A sole-source 8(a) ANC contract is necessary to support the Government’s need for IT Management, Business Consulting, and Support Services to accomplish its mission, strategy, and strategic goals. Kadiak, LLC has the required capabilities and expertise to meet the Government’s requirements to include assisting the OCIO with meeting congressional, Office of Management and Budget and FITARA mandates, and Department-wide strategic IT initiatives.

In accordance with FAR 19.808-1(e), an 8(a) owned by an ANC “may not receive an 8(a) sole source award that is a follow-on contact to an 8(a) contract, if the predecessor contact was performed by another 8(a) participant (or former 8(a) participant) owned by the same Alaska Native Corporation, Indian Tribe, Native Hawaiian Organization, or Community Development Corporation.”

To that end, the predecessor contract with Chickasaw Management Services, LLC (CMS), which expires on November 23, 2020, was awarded as a sole-source through the SBA’s 8(a) Business Development Program. CMS is owned by CNI Government, LLC, and the proposed contractor, Kadiak, LLC is owned by Koniag Government Services, LLC. Therefore, DOE’s request to contract with Kadiak, LLC is complaint with the requirements of FAR 19.808-1(e).

The contracting officer will provide a copy of DOE’s approved justification to the SBA’s Associate Administrator for Business Development to obtain the SBA’s authorization for DOE to negotiate directly and issue a contract award to the identified 8(a) ANC contractor.

Additionally, a copy of this justification will be posted to Beta.SAM.gov for a minimum of 30 days in accordance with FAR 6.305, Availability of the Justification.

7. Certification and Signatures:

The information contained in this Justification for a Sole-Source 8(a) Contract Over $25 Million is accurate and complete to the best of my knowledge and belief.

10.19.20

Date Contracting Officer’s Representative

Office of the Chief Information Officer (OCIO) IM-13

10.19.2020

Director

Office of the Chief Information Officer (OCIO) IM-13

10.20.20

Contracting Officer/Team Leader Office of Headquarters Procurement Services, MA-64 Office of Acquisition Management

10/19/2020

Division A Manager

10/23/2020

10/27/2020

Head of Contract Activity

DOE Competition Advocate Office of Contract Management

APPROVED BY:

DOE Senior Procurement Executive