Sole Source Justficiation final_Redacted.pdf

Version 2.0

Source Selection Information – see FAR 2.101 and 3.104

SOLE SOURCE JUSTIFICATION

FOR AN ACTION EXCEEDING THE SIMPLIFIED ACQUISITION THRESHOLD

USING SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901

NEEA0000-20-00322

1. Agency and contracting activity. Department of Commerce (DOC), National Oceanic and

Atmospheric Administration (NOAA), Acquisition and Grants Office (AGO), Satellite and Information Acquisition Division (SIAD) and National Environmental Satellite, Data, and Information Service (NESDIS).

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

This is a sole source, firm-fixed priced, follow-on contract with McKinsey & Company Inc.

(McKinsey; Duns: 825229318) to the GSA FSS Contract/Blanket Purchase Agreement (BPA)/Call Order GS10F0118S/ST133017BA0074/1332KP18FNEEA0013. This sole planned source action will not be awarded under that same GSA FSS contract GS10F0118S (or any related BPA’s), simply because GSA contract GS10F0118S has been cancelled following failed post-award negotiations between GSA and McKinsey regarding McKinsey’s use of weekly rates per team, rather than pricing in accordance with labor rates for individual categories as is more typical.

The required sole source action is for McKinsey to analyze the current NESDIS organization and workforce using a proprietary Organizational Health Index (OHI) methodology and compare those current results with the previous OHI McKinsey provided in 2018. McKinsey will measure the progress achieved, assess NESDIS’ progress towards NOAA’s short-term and long-term goals, and provide a detailed plan for revisions, if needed, to achieve an optimal structure and workforce model in the future.

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

The requirement is to conduct a 2nd OHI survey, analyze results, continue to support the Change Management, User Engagement and Governance Working Groups aimed at addressing the Power Principles most aligned with improving NESDIS’ overall organizational health, and provide results to NESDIS headquarters leadership in Silver Spring, MD. The first McKinsey OHI action achieved short-term goals and identified long-term goals with specific milestones over the next year. A 2nd OHI, that uses the same McKinsey-proprietary/unique tools and methodology as the fist OHI, is required allow NESDIS to compare the results of the 2nd OHI with those of the 1st OHI to accurately assess any changes or progress within NESDIS, while avoiding introducing any confounding variables that would result from using a new/different OHI methodology and approach.

This accurate assessment of changes within NESDIS, without any external variables associated with changing the OHI approach, is necessary for NESDIS to make the appropriate organizational adjustments, while implementing appropriate additional action plans for NESDIS’ future workforce model.

, which includes a five (5) month period of performance.

4. Statutory authority permitting the sole source (including brand name) acquisition.

41 U.S.C. 1901, using SAP up to $7M as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

41 U.S.C. 1903, using SAP up to $13M for contingency operations as authorized by FAR 13.500(c) and implemented by FAR 13.501(a).

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited. The contracting officer has determined the following circumstances justify the use of a sole source as supported below:

Only one source –

In in 2018, what was ultimately the first OHI, McKinsey competitively won the task order to perform organizational health and transformation activities for NESDIS. During that 1st OHI, McKinsey performed an OHI survey to assess dozens of indicators related to the management and operations of NESDIS. During the 1st OHI, McKinsey ran the survey and provided the results to the leadership of NESDIS. McKinsey also developed definitive recommendations to address the finding of the OHI.

The information which was developed from McKinsey and McKinsey’s tools and methodologies used to complete the OHI are proprietary and this information shall be used when comparing both OHI results. In order to allow NESDIS to understand if demonstrable improvement have been made due to the various actions taken in response to the first OHI survey, a 2nd OHI is required that must be completed using the same proprietary methodologies and tools as the first to avoid introducing confounding external variables between the results of the two OHI’s.

Many contractors offer an Organizational Health Index (OHI)-like tool and/or methodology, however, those tools and methodologies are proprietary and comparisons are not able to be made between the various versions employed by different consultants and the results of those various tools and methodologies. The 1st OHI provided NESDIS leaders integrated organizational health across core practices, and uses the McKinsey Talent System Assessment Tool (TSAT) as a framework to assess how the different elements of the talent system support the organization’s goals. NESDIS needs a snapshot to be performed consistently between the 1rst and 2nd OHO to assess the long-term strategy. Like the TSAT, McKinsey’s benchmarking survey questions from the first OHI are proprietary, running the second OHI utilizing McKinsey will allows for a specific comparison of year-on-year changes in performance. Furthermore, it allows the best possible continuation in developing additional action plans to support the previous established long-term goals of the Change Management, User engagement, and Governance Working Group. The only way NESDIS can compare what results have made from the Organizational Health improvements is to run a 2ND OHI with McKinsey.

For the original NESDIS Strategic Organization Assessment, McKinsey satisfied the requirements in a successful manner. McKinsey's tested and applied frameworks, coupled with their combination of project management tools, were successful.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

The NOAA Contract Specialist (CS) posted the Contracting Officer’s (CO) approved Notice of Sole Source Intent (Notice ID: NEEA0000-20-00322) on May 18, 2020 with a response date for input from interested parties of June 2, 2020. As result of this posting, no interested contractors submitted a request. In addition, this justification will be made available on Beta.SAM.GOV within 14 days of contract award (with any sensitive or proprietary information redacted).

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on comparison of the IGCE and published prices. Prior to award of the proposed contract order cost or price information shall be obtained from the contractor and a price/cost analysis will be performed and documented to sufficiently determine that the cost to the Government of the proposed acquisition will be fair and reasonable.

8. Description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Due to the sole source nature of the requirement which requires the use of proprietary tools and methodologies to ensure consistency without confounding external variables, and due to the lack of contractor responses to the Notice of Sole Source Intent described in Section 6 of this document, NOAA simply updated the market research performed for the first OHI and NOAA noted the use varied proprietary approaches within the contractor responses to the first OHI requirement that was competed as further evidence of the varied and proprietary nature of the different contractor approaches to providing organizational surveys and assessments.

Instead of completely repeating/re-doing the market research performed previously, a Notice of Sole Source intent was posted on BETA SAM (Government Point of Entry) for 14 days. No contractors submitted a response, so no indication was received counter to the rationale summarized in that Notice of Sole Source, nor was any interest received.

9. Any other facts supporting the use of a sole source (including brand name), such as:

All other facts have been documented herein.

10. List of the sources that expressed a written interest in the acquisition.

As documented in Section 6 of this document NOAA posted a Notice of Sole Source Intent for this planned sole source action; no source(s) have expressed any written interest of this acquisition for the 2nd OHI.