CFSS_LSJ_FAR 8.405_6a1iB_SAQMMA14F2094_R.pdf

LIMITED SOURCES JUSTIFICATION

SECTION 1: IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Department of State Contracting Activity ☒ Office of Acquisitions Management

Requiring Activity Bureau of the Comptroller and Global Financial Services, Office of the Deputy Comptroller DC, Global Financial Management Systems (CGFS/D/GFMS)

SECTION 2: NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Approval is requested to limit the number of sources for award of an extension to task order SAQMMA14F2094 issued under General Services Administration (GSA) Multiple Award Schedule (MAS) contract with SOS International, LLC (SOSi). This planned modification will be an interim award pending completion of the ongoing competitive acquisition process for a follow-on contract. The planned modification number is P00091; the estimated dollar amount is $9.6M including option. Interim award modification P00084 extended the period of performance through 30 November 2024 and was authorized under Limited Sources Justification (LSJ) dated 30 November 2023.

SECTION 3: DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS

Task order SAQMMA14F2094 provides payroll and associated financial system, including the Global Foreign Affairs Compensation System (GFACS), support for the Compensation and Financial System Services (CFSS) program. The CFSS program supports the systems that pay Foreign Service Officers, Civil Service employees, Foreign Service Annuitants, and Locally Employed Staff (LES) in approximately 170 countries. Pay rules are constantly changing and the pay systems must be updated to correctly pay employees. The task order also provides support services for the disbursing system that pays the US Government’s expenses overseas, including payroll, in multiple currencies. In addition, the task order provides services for financial management support systems implemented to provide oversight. CFSS has migrated to GFACS, a web-based application based on commercial software utilizing Oracle PeopleSoft. The ongoing task order is comprised of four overarching task areas including: A) CGFS/GFMS Program Management and Analysis; B) CGFS/GFMS Development, Maintenance, and Enhancement (DME); C) CGFS/C Operations Support; and D) GFACS American Payroll Time and Labor application development and implementation support.

This LSJ provides for an interim extension modification to the existing GSA MAS task order consisting of a 6-month base period and one 3-month option period. This action will permit sufficient time for finalization of the ongoing follow-on competitive acquisition and award of the new contract and will allow sufficient time for transition to full performance capability by the follow-on contractor.

There would be a severe impact to the Department and other agencies if this task order is not extended by the planned extension modification and subsequently replaced via the planned follow-on contract. Without these services, the Department will not be able to pay personnel or overseas vendors correctly nor be able to effectively manage financial operations in accordance with Department policy and Federal regulations.

The estimated value for the entire period of performance if option is exercised is $9.6M.

SECTION 4: AUTHORITY AND SUPPORTING RATIONALE

This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501), as implemented in FAR 8.405.6 by the following:

☒ FAR 8.405-6(a)(1)(i)(B) - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

DoS utilizes the Global Foreign Affairs Compensation System (GFACS), legacy payroll systems and Global Financial Management Systems (GFMS) for compensation and financial management activities. The current customer base for DoS compensation systems includes American DoS employees located worldwide, Locally Employed Staff (LES), domestic and overseas personal services contractors, and Foreign Service Annuitants and qualified beneficiaries. In addition, DoS provides payroll cross servicing for several overseas employees from other agencies. GFACS is a PeopleSoft based application requiring specific technical and functional expertise. The chief unique qualification of the contractor is its ability to maintain the current level of support to GFACS to reduce the risk of degradation or cessation of services. CFSS is a multi-year, extremely complex program with high visibility within and beyond DoS. SOSi is the current contractor implementing the application and providing ongoing application support and development for the American Payroll functionality. Removing SOSi at this time without a replacement contractor would adversely impact DOS Payroll functionality, causing significant disruption of payroll operations with a substantial associated cost increase. The chief unique qualification of the contractor is its ability to seamlessly maintain the current level of expert support to GFACS, reducing the risk of degradation or cessation of services, which would adversely impact the ability to pay DoS employees worldwide.

Contract History On July 10, 2014, DOS awarded task order SAQMMA14F2094 against General Services Administration (GSA) Schedule 70 contract GS35F4951H to STG, Inc (now SOS International, LLC). The award provided for a Base Year and four Option Years. All Options have been exercised. The period of performance originally ended on June 30, 2019, and was extended to December 31, 2019 pursuant to FAR 52.217-8 Option to Extend Services.

Subsequently, the acquisition process for a follow-on CFSS contract was initiated. Due to delays encountered throughout the acquisition process, interim extension modifications have been awarded for the purpose of maintaining continuity of support throughout this process; the current contract end date is November 30, 2024. The planned timeline for award of a follow-on contract has been adversely impacted by continuing personnel resource constraints. A solicitation was issued in December 2020; CGFS requirements changes subsequent to award of the current interim extension (P00084, awarded 30 November 2023) led to solicitation cancellation for the then-ongoing competitive process in May 2024. A new acquisition process is underway and is in the pre-solicitation phase. In order to allow time for completion of that process a further contract extension is required. Considering the complexity and attendant timelines and the possible transition to a new contractor, an interim award consisting of an additional 6-month base period with one 3-month option period is planned.

SECTION 5: DETERMINATION BY THE ORDERING ACTIVITY CONTRACTING OFFICER THAT THE

CONTRACT ACTION REPRESENTS THE BEST VALUE CONSISTENT WITH FAR 8.404(D)

The Contracting Officer has determined the anticipated contract action will represent the best value based upon the requirements of FAR 8.405 (d).

GSA has deemed MAS contract priced hourly labor rates fair and reasonable. A review of technical content of the pricing proposal will be performed by the program team. The Contracting Officer will ensure that reasonable discounts off GSA MAS IT contract rates are provided where applicable/appropriate. Based on these factors, the Contracting Officer will have full information to determine price reasonableness for the extension period.

SECTION 6. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE

HOLDERS AND THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED

For the currently in-process competitive follow-on acquisition, market research was conducted by publishing Sources Sought Notices to SAM.gov and GSA e-Buy to maximize competition; the results were documented in a Market Research Report (MRR). No separate market research was conducted for the planned interim extension, which is intended only to provide time for completion of the ongoing competitive acquisition process for the follow-on contract.

SECTION 7. 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 (N/A)

SECTIONS 8 AND 9. CERTIFICATIONS AND APPROVALS