Sole Source JA_UPDATED UNC In-Scope Increase_with redacted information.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

18 Jun 2019 FOR OFFICIAL USE ONLY Page 2 of 5

I. Contracting Activity.

Air Force District of Washington, SAF Enterprise Support Division 1500 West Perimeter Road, Suite 5750 Joint Base Andrews, MD 20762 Contracting Officer: Andrew Hoffman

II. Nature and/or description of the action being processed.

This action is a modification to contract FA7014-21-D-0012 to increase the ceiling of from $700,000 to $2,610,940 an increase of $1,910,940.

III. Description of supplies/services required to meet agency needs.

To meet agency needs, SAF/AQC requires the development of academic programs from regionally and/or nationally accredited colleges and universities to educate acquisition senior leader professionals to look through the eyes of the defense industry to understand what drives their business behavior and program decisions. The specific need is to develop a cadre of Mission-Focused Business Leaders with a better understanding of their industry counterparts' business strategies, motivations, risks and cost structures for the Department of the Air Force. The scope of this continued effort is to improve and enhance the knowledge, skills, and abilities, relating to the relationships between the DoD/Government and industry that influence immediate and long-term business-leader relationships, of the acquisition workforce within the Department of the Air Force. The understanding of pressures and demands on senior executives in specific lines of business; cash flow, firm valuation, financial statements; industry behavior and impacts of DoD budgeting and funding uncertainty therein; different risk-sharing models/arrangements; the critique of contractual incentives from both the DoD/Government and industry perspective are some of the many critical competencies necessary to understand these relationships.

This current IDIQ consists of in-residence courses (CLIN 0001), virtual courses (CLIN 0002), and development packages (CLIN 0003). The additional services to be acquired are listed within the IDIQ CLIN Breakdown below:

CLIN Qty from Qty to Unit of measure Unit Price Ceiling from Increased by Ceiling to

0001 01 06 Each

0002 01 12 Each

0003 02 02 Each

Totals $700,000 $1,910,940 $2,610,940

(Price per lot includes all materials, tools, etc. to complete the project)

Course attendees will be drawn from across the Department of the Air Force and/or other DoD/Government agencies, primarily strategic-level O-5/6 (GS14/15) acquisition professionals, O-7/SES program executives officers, and/or other key operational-level acquisition staff members (e.g. O-4 (GS-13). The In-Residence courses are anticipated to be held bi-annually. The Virtual courses are anticipated to be held quarterly.

The current ordering period on the IDIQ contract is three (3) years (03 May 2021 - 02 May 2024) which will remain unchanged. Each awarded task order will have a tailored period of performance based on the course selection.

IV. Statutory authority permitting other than full and open competition.

10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 3 of 5

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The original J&A approved the acquisition of 1 in-residence course (CLIN 0001), 2 virtual courses (CLIN 0002), and 2 development packages (CLIN 0003), and established an ordering period through 02 May 2024. After successful completion of the original in-residence and virtual courses, and after thorough market research, it was determined that the most advantageous option for the Air Force is to acquire these additional courses directly from UNC.

In September 2019, the University of North Carolina (UNC) was able to demonstrate its unique capability to meet the high level requirements to train DoD contracting leaders. Under contract N0018919DZ033, the US Navy awarded a competitive IDIQ contract to UNC to create a specifically tailored course to assist DoD contract leaders. Leveraging in-person executive seminars and hybrid executive seminars inclusive of pre-recorded modules and instructor-led live sessions adequately provide content delivery methodologies adaptable to differing environments. Course creation, course updates, or other updates in support of this effort sufficiently reduce and mitigate risks including but not limited to those resulting from emergent and/ or evolving mission needs, industry changes, advancements, etc. whilst providing relevant and advanced enhancement of knowledge, skills, and abilities. Collaboration between UNC and SAF/AQC will effectively ensure content creation and delivery throughout this effort. SAF/AQC will maintain discretion relating to the inclusion of additional acquisition workforce members from or course creation, course updates, or other updates for other DoD/Government agencies. The improved and enhanced knowledge, skills, and abilities resulting from this effort support the development of Mission-Focused Business Leadership.

To ensure the uniqueness of the course offerings at UNC, SAF/AQC reviewed similar programs across 15 additional accredited Universities. While each University provided courses similar in nature, they lacked the targeted topics required by SAF/AQC, which have only been offered by UNC. This program provides an in-depth, strategic understanding, of several targeted areas that enable AF Contracting to be on equal footing with their industry counterparts which include applying financial concepts (revenue statements, Securities and Exchange Commission filings, etc.) that can be leveraged during negotiations, improving current and future years of a specific defense program; competitive forces that shape business strategy (i.e. solvency, longevity, etc.; time value of money implications; capital markets and budgeting.

In an effort to meet the needs of SAF/AQC's requirement to train senior contracting officials, only one awardee, University of North Carolina, Chapel Hill, is capable of providing the services required, at the level of quality required, without an increase in cost to meet the Government's requirement.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

For the initial J&A, SAF/AQC completed one-on-one's, received capability briefings, and searched the websites of at least 16 accredited universities.

For this amended J&A, AFDW released a Request for Information (RFI) on SAM.gov on 21 Dec 2021 for two weeks after researching the websites of at least sixteen (16) accredited universities and the GSA schedules that would be able to provide this type of training in order to ensure there was an effort to solicit from as many potential sources as practicable prior to increasing the current IDIQ. The AF received five responses to the RFI. Of those responses, UNC was the only accredited college/university to directly respond to the RFI. The other responses were from contractors that would either provide the courses themselves, or partner with a college/university in order to provide the courses. Pursuing this route would result in a substantial pass through charge, resulting the those companies adding none, or at best negligible value to the contract. The AF decided that using a contractor to provide a new course would be a detriment as it would add undue costs to the program and the end result would similar or equal to which UNC already provides. There would

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 4 of 5 also be additional development costs for any other prime contractor to develop curriculum to meets the AF's needs. UNC does not have these additional costs as the program has already been developed and implemented to meet AQC's requirement.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The cost to the Government will be determined fair and reasonable in accordance with IAW FAR 15.404-1(b) to include comparison to historical prices paid on previous Task Orders under this IDIQ and comparison to the independent government estimate. Certified cost and pricing data is not required as this is a commercial acquisition.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

SAF/AQC completed extensive market research to find the right types of available courses to assist the Air Force's most senior contracting officials in becoming mission focused business leaders. SAF/AQC conducted a Request for Information and read through the course offerings for over sixteen (16) colleges/universities. While each school offers executive level education, modifications will be required to each course to reach the level of detail the Air Force has already developed and tailored the UNC curriculum to match its needs.

AFDW/PK released a Request for Information (RFI) on SAM.gov on 21 Dec 2021 for two weeks after researching the websites of at least sixteen (16) accredited universities and the GSA schedules that would be able to provide this type of training in order to ensure there was an effort to solicit from as many potential sources as practicable prior to increasing the current IDIQ. The AF received five responses to the RFI. Of those responses, UNC was the only accredited college/ university to directly respond to the RFI. The other responses were from contractors that would either provide the courses themselves, or partner with a college/university in order to provide the courses at a substantial pass through to the government. The other responses were from large and small businesses that would either provide the courses themselves, or partner with a college/university in order to provide the courses. This approach would not afford AQC to leverage the program that has already been developed and implemented to meet AQC's unique requirement. The current curriculum was leveraged from the larger Navy IDIQ, then tailored specifically for the AF through this IDIQ by UNC. Having any other prime contractor develop their own program would inherently involve development costs resulting in something similar yet not equal to the current IDIQ.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

N/A

X. List of any sources that expressed, in writing, an interest in the acquisition.

In addition to the 16 from the originally approved J&A:

Xator Corporation- Leadership Foundry King Fisher Services Procurement & Acquisition Center of Excellence (PACE), LLC Synergy University University of North Carolina

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

SAF/AQC does not intend to compete this program in its current format. This course was specifically sought after to address current issues that contracting officers, and leadership, experience during negotiations. As this issue evolves

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 5 of 5 over time, so will this requirement. SAF/AQC will apply those lessons learned to better focus research efforts on what other academic institutions can offer to address the problem(s) as it has evolved. Through these efforts we will be able to determine how to best utilize existing/slightly modified programs in order to establish greater competition for future requirements. New courses will ensure that our career field is tracking the latest industry trends, receive C-suite type training, and experience first-hand the innovation available in an academic setting. Overall, this approach will allow current and future Senior Contracting Officials to see how this, and future programs, have shaped the Air Force's ability to negotiate better outcomes.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.