Justification_for_8(a)_Sole_Source_FBO.pdf

JUSTIFICATION FOR SOLE SOURCE 8(a) CONTRACT EXCEEDING $22 MILLION FAR Part 19.805-1(b) and FAR Part 19.808-1(a)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 19.805-1(b), 19.808-1(a) and 6.303-2(d), upon the basis of the following justification, the Office of Acquisition Management proposes to enter into a sole source Indian tribe owned 8(a) contract for the proposed contractual purpose for professional staffing services. The total estimated cost is $200,000,000.00 to include option years.

2. A description of the supplies or services required to meet the Department’s needs.

The U.S. Department of State (DOS) has a growing requirement for a variety of labor categories to support the Department’s various missions. There is a significant mounting need for staff augmentation domestically and abroad that cannot be supported by the year or greater acquisition timeline currently required to solicit and award similar acquisitions through competitive procedures. This acquisition will not preclude the use of, or provide grounds for any existing contractual option from being exercised. This new vehicle will provide for the recruiting of key talent with necessary skill sets that traditional staffing contracts do not support given the intense price competition in the marketplace which results in incumbent personnel having to accept significant salary and/or benefit reductions to retain their positions. Alternatively, the loss of these experienced personnel will have a profound adverse impact on Departmental mission capabilities.

The contract ceiling for this effort will be $200,000,000.00, which will support professional staffing and other types of administrative support that includes, but is not limited to, the chart below that shows the 21 bureaus most directly impacted by the need for additional staffing augmentation. Some of the support will be domestically based while other support may be needed internationally.

3. The statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract.

Award under Section 8(a) of the Small Business Act is authorized at by Statute 15.U.S.C.

637(a) as prescribed at FAR 6.302-5(b)(4) and SBA’s acceptance of the requirement on behalf of a firm owned by an Indian tribe or an Alaska Native Corporation.

The decision by the contracting officer to utilize the 8(a) program is recognized in FAR 5.202(a)(4) as being authorized by statute. Section 8(a) of the Small Business Act permits award to tribal rules firms on a sole source basis.

4. A determination that the use of a sole-source contract is in the best interest of the agency.

The identified Indian Tribal 8(a) company, Cherokee Nation Mission Solutions, LLC, 10838 E. Marshall St., Ste 240G, Tulsa, OK 74116-5682, DUNS 078296911, Cage:

75YO8, has been determined to be small under NAICS Code 561210, and eligible for award under Section 8(a), of the Small Business Act. Cherokee Nation Mission Solutions is also a Tribal owned HUBZone certified small business.

The Cherokee Nation’s team has extensive experience in providing the types of high quality professional staffing personnel and retaining personnel that meet the Government’s requirements. Their experience with the Department’s mission, protocol, culture and procedures as well as their familiarization with DOS personnel and priorities makes them uniquely suited to provide quality services for these mission critical functions both domestically and internationally. This quality of Cherokee Nation’s team experience would take the risk out of a significant downgrade in quality and efficiency endangering the Department’s ability to fully pursue and execute its mission.

A Market Survey was conducted of Tribal 8(a) firms that also incorporated not only small business but also those that would provide socio-economic benefits to SBA and DOS.

Vendors also have HUBZone status with a level of expertise for the required capabilities and resources to fulfill the requirement.

Vendor Name [DUNS] 1 Muscogee International - 078355980 2 Cherokee Nation Construction Services- 828559349 3 Cherokee Nation Mission Solutions - 078296911 4 All Native - 962374141

5. A determination that the anticipated cost of the contract will be fair and reasonable.

The importance of both the quality of the effort as well as cost to the Department was conveyed to the vendor in preliminary discussions. Cherokee Nation assured the Department it would be utilizing highly talented individuals. In order to attract these types of personnel Cherokee Nation offer salaries comparable to those with like or similar skill sets as reflected in the Bureau of Labor Statistics for Washington D.C. The contractor likewise affirmed that the loaded rates will be developed to achieve an approximate 1.6 wrap rate. This rate compares favorably to the wrap rates of has recently DOS awarded contracts. Based on these assertions the Contracting Officer anticipates that the resultant IDIQ contract rates, as well as those for task orders issued under the contract, will be fair and reasonable.

Utilizing the rates established in the IDIQ Contract, the Department will negotiate the appropriate labor mix as well as the hours necessary to accomplish the requirements of the individual task order.

By signing the justification, the Contracting Officer has made a determination that the labor rates to the Government are expected to be fair and reasonable.

6. Any other facts specified by the agency head as required in support of this justification.

The Small Business Act requires that a contracting officer review all acquisitions to determine whether or not the requirement can be met at a fair and reasonable price by a Small Disadvantaged Business firm. The contracting officer, having made this determination, would proceed with the acquisition in full compliance with the terms as well as the intent of the FAR.

A Bureau supports SBA’s 8(a) program, which gives opportunities to small disadvantaged business. Award of this contract helps the agency achieve its small business contracting goals for both the Indian economic goals, 8(a) program and HUBZone goals.