SF 1012 Limited Sources Justification Redacted.pdf

DEPARTMENT OF THE TREASURY

LIMITED-SOURCES JUSTIFICATION

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 9/23) Prescribed by Treasury: DTAP 1008.405-6

1. Identification of the agency and the contracting activity:

The requiring activity is the Internal Revenue Service (IRS) Taxpayer Services, and the contracting activity is the IRS, Office of Procurement, Office of Business Solutions Acquisition, Support Contracts Branch, Human Capital Support Section.

2.a Nature and/or description of the action being approved:

The purpose of this limited sources justification is to obtain approval to award a Firm Fixed Price order for consulting services with Deloitte & Touche LLP. The need date for this sole source is August 1, 2024.

New requirement is scheduled for award December 2024 and the work on this bridge agreement is not planned to continue beyond date of award.

2.b Name of the vendor: Deloitte & Touche LLP 2.c Requisition No.:

2.d Bridge contract: ☒ Yes ☐ No 2.e Brand name: ☐ Yes ☒ No 3.a A description of the supplies or services required to meet the agency’s needs:

The purpose of this requirement is to expand digital services and digitalization to allow taxpayers the capability to file all documents securely and exchange correspondence electronically. Under this requirement, the contractor will support the Inflation Reduction Act (IRA) Initiative 1.2 Team in identifying the initiative outcomes, defining, and managing the portfolio of projects required to achieve impact, and measuring and reporting up and out to the IRA Transformation and Strategy Office (TSO) and Treasury on progress. The contractor will provide support in 1) portfolio management/ reporting/ measuring progress against planned deliveries, and 2) support for the IRA Initiative 1.2 projects for upfront analysis, prioritization and demand management and postdelivery change management and end user adoption.

3.b Includes IT: ☐ Yes ☒ No 3.c IGCE/Estimated dollar value:

Performance Period Estimated Cost

$ 24,000,000

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

4.a Identification of the authority being used (Check the appropriate box that applies).

☒ FAR 8.405-6(a)(1)(i)(A) – An urgent and compelling need exists, and following the procedures would result in unacceptable delays.

☐ 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.

☐ 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 or BPA provided that the original order or BPA was placed in accordance with FSS procedures 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.

☐ FAR 8.405-6(b) – Items peculiar to one manufacturer. (i.e., Brand Name specifications)

4.b Supporting Rationale:

The government experienced difficulty in finalizing requirements for the five-year competitive vehicle including conducting additional market research. This led to delays for a final acquisiton package. This is not due to lack of planning. The competitive recompete for this requirement is underway, with a planned award date in December 2024. A December award timeframe would result in a lapse in service for the IRA Program of at least 4 months. Using a sole source task order to the incumbent to prevent a lapse in service ensures the legislated IRA goal of implementing 5 digital priorities to reduce paper volume, increase access to digital data, and prepare the IRS to manage digital data is achieved by 2025. This includes expanding digital mobile formats, scan at point of entry all paper tax forms, scan correspondence and non-tax forms, digitally extract data from scanned tax forms and expand similar processes across IRS.

The onboarding of a new contractor can take 3-5 months. Bringing a new vendor while a recompete is being processed is not in the best interest of the government. It makes sense to continue services with the incumbent that have the background and the personnel to ensure there is no disruption in the services for this program.

were included to account for additional time that may be needed due to unanticipated delays in award.

The recompete is being set-aside for small business. As a result, the internal review process may take longer than anticipated and there may be many proposal submissions which could lengthen the time needed for proposal evaluation and there may be protests.

The incumbent contractor (Deloitte & Touche LLP) currently provides the required services in support of the IRA Initiative 1.2 goals under the IRS BPA established for the Enterprise Digitalization & Case Management Office (EDCMO). This BPA is no longer an option for the recompete. While an expedited milestone schedule has been prepared it is impossible to secure an award that would prevent a lapse in service. A delay is unacceptable as these services are critical for supporting the day-to-day operations and execution of a fully structured business organization providing communications support required to create and manage the portfolio’s planned deliveries, organizational readiness support, post-delivery change management and end user adoption and development of Executive level portfolio documentation.

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

The IRA dictates an acceleration of a fully digitalized IRS by 2025. In accordance with the IRA Strategic Operating Plan, Initiative 1.2 Expand Digital Services and Digitalization is accelerating the digitalization and future processing of incoming returns.

5. A determination by the ordering activity Contracting Officer that the order or BPA represents the best value consistent with FAR 8.404(d):

The Contracting Officer has determined that the order represents the best value consistent with FAR 8.404(d) and lowest overall cost alternative (considering price, special features, administrative costs) to meet the Government’s needs based on obtaining pricing information from the proposed contractor for the purposes of conducting a price analysis. IAW FAR 8.405-2(d), the ordering activity will consider the level of effort and the mix of labor proposed to perform specific tasks being ordered to determine price reasonableness.

6. A description of the market research conducted among schedule holders and the results or a statement why market research was not conducted:

Market research was conducted by the Procurement and Program Office from November 2023 – January 2024 for the recompete. After initial review of documents, more information was needed. An actionable package was received in April requiring additional market research. Additional research was conducted in April 2024. The results of the market research confirm that there are multiple sources capable of fulfilling this type of requirement;

however, to avoid a lapse in service until the competitive award is placed, this bridge is in the best interest of the Government. Due to the time constraints, it is not feasible to make an award to any other vendor except Deloitte & Touche LLP for this sole source.

7.a Any other facts supporting this justification: No 7.b Attachments: ☒ Yes ☐ No PWS and IGCE

8. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made:

The anticipated award timeframe for the recompete is December 2024. As a result, approval of this sole source provides the Government the necessary time to recompete the requirement and make a new award.

9. Certifications and Approvals:

9.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

Name: Date: 6/20/2024

Signature: Date: 2024.06.20 07:53:32 -04'00'

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

9.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a limited source basis. I also certify this limited-sources justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a limited-source basis.

Name: Date:

Signature: Date: 2024.06.20 12:47:46 -04'00'

10. Additional Reviews and Approvals (As applicable):

10.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $15 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

10.b Advocate for Competition (if over $750,000, but not exceeding $15 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this limited-sources justification.

Signature: Date: 2024.07.16 16:47:29 -04'00'

10.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this limited-sources justification.

Name: Date:

Signature:

10.d Treasury Chief Information Officer (for IT requirements that are over $75 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Signature:

10.e Senior Procurement Executive (if over $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, I hereby approve this limited-sources justification.

Signature:

This signature page was added to document that the IRS Inflation Reduction Act (IRA) Initiative 1.2 Program Management Office (PMO) Sole Source Bridge is an exception to the moratorium on making awards to other-than-small-businesses that are bridge actions (reference: Memorandum entitled “Concern over critical Internal Revenue Service (IRS) acquisition deficiencies”).

Prepared by:

Date Contracting Officer, IRS

Reviewed By:

Date: 2024.07.31 17:47:22 -04'00'

. Date Chief Procurement Officer, IRS

Approved By:

Date: 2024.07.25 06:33:46 -04'00'

Chief Operating Officer and Head of Contracting Activity, IRS

Deputy Assistant Secretary for Acquisition and Senior Procurement Executive, Treasury