Redacted - LSJ - STEPS (R2)_SCS Follow-on.pdf

(3) Description of the supplies or services required to meet the agency’s needs (including the estimated value):

This proposed follow-on task order is to secure non-personal services to assist DLA with: (1) implementing Resiliency Efforts and Mitigating Actions (REMAs) developed during the Supply Chain Strategies planning effort (task order SP4704-25-F-0024) from March 2025 – October 2025; (2) ensure successful adoption and horizontal (cross-organization) integration of REMAs; (3) develop methodologies to manage performance of initiatives incorporating measures of effectiveness and measures of performance; (4) define and prioritize digital visualization and simulation capabilities, coordinating efforts between the Headquarters staff and Major Subordinate Commands (MSCs) to obtain functional requirements at a level of fidelity that enables J6 digital tool development; and (5) as an option, to integrate the actions required to support DLA’s transformative efforts, which include efforts to reduce/optimize the DLA Distribution and DLA Energy physical infrastructure footprint, divest DLA’s Supply, Storage, and Distribution (SS&D) mission and return that mission to the Departments of the Army and Navy, consider the divestiture of other operational functions, consider the transfer of five missions to appropriate Federal agencies (Law Enforcement Support Office, Blankets for Homeless Shelters, Wildland Fire Protection Program, FEMA Generator Leasing, Child Development Center at Ft Belvoir), and potentially expand two other mission/functions (Installation Energy & Utilities Privatization Missions, Veteran’s Affairs Medical Support) to other Department of Defense (DoD) departments/agencies or other Federal agencies.

The total estimated value of the resultant task order including one year of service is .

(4) Authority and supporting rational and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service:

The acquisition is conducted on a limited source basis pursuant to:

FAR 8.405-6(a)(1)(i)(C) - In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures; or

DLA will initiate the follow-on actions discussed in paragraph three no later than (NLT) October 1, 2025; additionally, some are already under way within the agency. As McKinsey & Company (McKinsey) assisted the agency to develop the Supply Strategies and supported integration of the Supply Strategies under task order SP4704-25-F-0024, in addition to providing significant input to DLA’s digital visualization and decision-making tool and have already provided support to DLA’s transformational efforts, they have extensive knowledge of the DLA Supply Chain Strategies and are therefore postured to conduct follow-on actions immediately.

McKinsey not only assisted the agency in developing DLA’s Supply Chain Strategies for including how DLA should implement its Major Subordinate Command (MSC) specific and integrated efforts, but also worked on the 70 actionable project tasks i.e. Resiliency Efforts and Mitigating Actions (REMAs), that will be implemented over the upcoming fiscal year. McKinsey worked with each MSC project team to assist in developing the REMAs, and then supported the staff work to obtain DLA leadership support and approval for all ways ahead. Given their in-depth knowledge of DLA’s Supply Chain Strategy project, they are unique in their position to provide follow-on project work as the only contractor who would be able to start work on the implementation on day one.

As part of the follow-on efforts McKinsey will implement, in coordination with the DLA staff and MSCs, the 70 REMAs. Each REMA is a project unto itself that seeks to better posture DLA to provide logistics support in a time of war. As the contractor that worked on the development of 70 work projects, McKinsey is positioned to immediately begin work without delay. Other contractors would require lengthy subject matter familiarization across 70 distinct projects. Other follow-on actions include using the supply chain expertise gained from developing these REMAs to derive and manage functional requirements for digital visualization and simulation capabilities.

Support of DLA’s Transformative efforts and strategy development that include organizing the actions required to conduct analysis to assess the divestiture of various DLA missions and services; optimize facility/infrastructure; and transfer missions to other DoD or Whole of Government Agencies require McKinsey’s knowledge, expertise, and ability to begin work immediately. As the contributing author of DLA’s Supply Chain Strategies document and the developer of the framework for its implementation, McKinsey is the only source capable of providing the services at the level of quality required. Other firms would take months and require the substantial expenditure of additional funds to become familiar with and develop the requisite subject matter expertise to perform and, therefore, significantly delay implementation of the follow-on actions of these critical DLA requirements.

(5) Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d):

The Contracting Officer determines the anticipated cost to the government will be fair and reasonable, and the resulting order represents the best value to the government, by comparing quoted prices to historical prices paid for the same or similar supplies/services and/or comparison with the independent government cost estimate (IGCE).

(6) Description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted:

Upon identification of the requirement, the contracting officer conducted market research by reviewing the capabilities and experience of the vendors under the DLA Strategic Transformation and Enterprise Project Support (STEPS) blanket purchase agreements (BPA) awarded against GSA schedule. Despite each of these vendors having extensive experience and capabilities to support transformative efforts across private and public organizations, it was evident only McKinsey could initiate and execute the follow-on requirements in the timeframe required by the Government and without a duplication of cost based on McKinsey’s execution of task order # SP4704-25-F-0024 in support of DLA’s Supply Chain Strategies development Additionally, McKinsey’s knowledge, insight, and relationships, coupled with the trust leaders and action officers have in them, uniquely positions McKinsey as the only contractor capable of related follow-on actions.

(7) Other facts supporting the use of other than full and open competition:

McKinsey is uniquely positioned to support follow-on work for Supply Chain Strategies and integration of related efforts across DLA, support of digital visualization and simulation, and other transformational efforts. McKinsey possesses an in-depth knowledge of the organization built over years of previous analysis and one-on-one engagements and resulting relationships with DLA personnel. The degree of trust that has stemmed from these efforts furthers their ability to implement the significant change that will result from implementation of the various efforts that they would be tasked with accomplishing.

(8) Statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

For the reasons set forth in Paragraph 4, DLA has no plans at this time to compete future contacts for the types of supplies/services covered by this document but will conduct market research for any additional needs related to these services. If another potential source emerges, DLA will attempt to exercise competition for future requirements if feasible.