Justification and Approval 6.103-1 SP330023D0010 - Redacted.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

DLA Distribution Acquisition Operations, 430 Mifflin Avenue, Suite 3102A, New Cumberland, PA 17070.

2. NATURE/DESCRIPTION OF ACTION/CONTRACT TYPE (INCLUDING ESTIMATED

VALUE AND PERIOD OF PERFORMANCE):

This Justification and Approval (J&A) will authorize an increase to the maximum contract value of the Indefinite Delivery, Indefinite Quantity (IDIQ) contract SP3300-23-D-0010, awarded to Accenture Federal Services, LLC. The current maximum contract value is $26,815,637.73, and this action will increase the IDIQ maximum contract value to $46,815,637.73. This modification is prepared in accordance with the authority of FAR 6.103-1 and will be executed as an out-of-scope modification pursuant to FAR Part 43.

Contract SP3300-23-D-0010 is currently in place for analytical support, process design, and program management support services to assist DLA in the identification, evaluation, and potential implementation of business growth strategies to include pricing strategies, customer impacts, and system changes.

Contract SP3300-23-D-0010, known as the DLA Distribution BDO Professional Support Services contract, is a hybrid contract with a Firm Fixed Price (FFP) line item for transition labor, a FFP Level of Effort (LOE) line item for all labor, and a Cost Reimbursement (CR), No Fee line item for travel. The contract was competitively awarded to Accenture Federal Services, LLC on August 31, 2023, with an effective date of September 1, 2023. The contract is in the third year of the total five-year ordering period, which expires on August 31, 2028.

To date, DLA Distribution has placed twelve (12) task orders under this contract for a total obligation amount of . The current maximum contract value is $26,815,637.73. Under the memorandum “Warehouse Utilization Implementation” dated May 27, 2025, the Under Secretary of Defense for Acquisition and Sustainment appointed the DLA Director to serve as the Warehouse Utilization (WU) Initiative Program Manager and to implement the WU Initiative on behalf of OSD starting in FY25. As a result, OSD authorized the WU Defense Reform Initiative. This initiative was placed under the BDO Professional Support Services IDIQ contract SP3300-23-D-0010 in FY25 and FY26 under Task Orders SP3300-25-F-0864, SP3300-25-F-0888, and SP3300-26-F-0376. New funding being received in FY26 for this initiative is expected to exceed the current maximum contract value on the contract. An increase to the maximum contract value is necessary to enable DLA the flexibility and capacity to provide the necessary mission support for which this contract is intended.

Accordingly, this action increases the total IDIQ maximum contract value by $20,000,000.00, from $26,815,637.73 to $46,815,637.73, to ensure uninterrupted support.

3. DESCRIPTION OF SUPPLIES/SERVICES:

DLA Distribution requires support in analytics, process design, and program management. The goal is to help DLA Distribution identify, assess, and implement strategies for business growth, which involves analyzing pricing, customer impacts, and potential system changes. The scope of work includes developing pricing models to more accurately reflect costs and incentivize customer behavior to use organic facilities for high volume items while more appropriately allocating unfunded costs into the rates for long-term storage for dormant stock. The alignment of the pricing strategy with the business growth strategy is necessary in order to ensure success and requires the Contractor to perform extensive analytical work to evaluate the feasibility of different strategies and customer impacts.

While this increase to the maximum contract value does not change the nature of the work performed, it is an out-of-scope action because it increases the contract's maximum value beyond what was established in the original, competitive procurement.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

10 U.S.C. 3204(a)(1) - Only One Responsible Source/Limited Number of Responsible Sources and No Other Supplies or Services Will Satisfy Agency Requirements as implemented by FAR 6.103-1(b).

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS:

This contract was awarded as a single award Indefinite Delivery Indefinite Quantity (IDIQ) type contract to Accenture Federal Services, LLC. Accenture is currently performing all task orders at a satisfactory or above level. The most recent Performance Assessment Report from 10 September 2024 through 9 September 2025 included Very Good ratings in Quality and Schedule. Accenture had a rating of Satisfactory in Management, Small Business Subcontracting, and Regulatory Compliance. Additionally, DLA Distribution does not have any other contracts in place that provide for analytical, process design, and program management support.

No other contract instruments currently exist that can perform the required analytics, process design, and program management professional support services for DLA. A follow-on competitive procurement is underway; however, the award will not occur prior to the need for continued support. Re-competition of the remaining ordering period would result in:

Up to 12–18 months acquisition lead time for a new award, Significant duplicative administrative burden, Operational delays adversely impacting mission readiness, and Training, onboarding, and Common Access Card/security clearance costs estimated at $880,000, based on prior transitions of similar sized operations.

Maintaining continuity with the incumbent contractor prevents mission degradation, avoids duplicative costs, and enables uninterrupted support while the competitive follow-on award is finalized.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

In accordance with FAR 5.201, a notice of intent to pursue this action will be posted to the SAM.gov website. The approved Justification and Approval will be made publicly available on SAM.gov website within 14 days of modification award, in accordance with FAR 6.301.

7. DETERMINATION OF FAIR AND REASONABLE COST:

While this out-of-scope action is treated as a new procurement for the purposes of this justification, all pricing for future task orders will continue to be evaluated for fair and reasonable cost in accordance with FAR 15.404-1 and FAR 16.506.

DLA performs cost realism and price analysis at the task-order level, and determinations are fully documented in each task order file. This ceiling adjustment enables ordering but does not obligate additional funds. As such, the increase to the maximum contract value for this action is hereby determined fair and reasonable.

8. DESCRIPTION OF MARKET RESEARCH:

Market research performed for the original competitive procurement established adequate competition at that time. An updated review of existing vehicles revealed no alternative contracts capable of supporting DLA Distribution’s specific needs. The requirements, which include analytical, process design, and program management, fall outside the scope of other available contract vehicles.

In accordance with FAR 10.001, additional market research would not produce viable alternatives within the required performance window.

9. OTHER SUPPORTING FACTS:

N/A.

10. LISTING OF INTERESTED SOURCES:

While other sources may exist in the marketplace with the general capability to perform these services, none can meet the government's immediate and time-sensitive requirements without a lengthy and disruptive transition period. A competitive solicitation and subsequent transition to a new contractor would result in unacceptable delays and a significant duplication of costs that would not be recovered through competition. Therefore, for the specific requirement to prevent a work stoppage and continue uninterrupted services, no other sources are deemed viable.

11. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION:

The follow-on requirement is being competitively solicited under Full and Open Competition, with award targeted for 1, 202 , in accordance with FAR Part 6. No barriers to future competition exist.

12. STATEMENT OF DELIVERY REQUIREMENTS:

The contractor shall continue to perform the services as required in accordance with all task orders issued through the ordering period ending August 31, 2028 (or as otherwise prescribed by contract).

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION(S) COVERED BY THIS

J&A.

The proposed modification (P00004) will increase the estimated value of the contract by $20,000,000.00.

No obligation is required for this increase to the estimated maximum contract value, as obligations are made at the task order level.

J&A ENDORSEMENT

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION – FAR 6.104-1(a)

I certify that the facts and representations under my cognizance which are included in this justification and its supporting acquisition plan which forms a basis for this justification are complete and accurate.

Technical Cognizance:

(Requirements originator)

James E. Howard Signature Phone

COR

CONTRACTING OFFICER CERTIFICATION – FAR 6.104-1(a)(12)

I certify that this justification, including its supporting acquisition plan, is accurate and complete to the best of my knowledge and belief.

David R. Gilson, Jr. Signature Phone Contracting Officer

APPROVAL OF THE JUSTIFICATION – DFARS 206.104-72

Margaret Ross Signature Phone Competition Advocate