9_-_JETS_-_FedMall_EFO_-8_Extension_April_2018_COMP_AD_SIGNED__Redacted.pdf

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

Source Selection Information – See FAR 2.102 & 3.104

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

(FAR 16.505 (a)(4) and FAR 16.505(b)(2))

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY:

Requiring Activity:

Defense Logistics Agency (DLA) FedMall Program Management Office, Contracting Activity:

DLA Contracting Services Office, Philadelphia (DCSO-P) 700 Robbins Avenue Philadelphia, PA 19111

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

Pursuant FAR 16.505(b)(2)(i)(B), the action being approved is an exception to fair opportunity. This justification authorizes the use of other than full and open competition to extend sustainment and maintenance support services for the Next Generation E-commerce Solution (FedMall) under Task Order No. SP4709-17-D-0024 for a one-month period, April 21, 2018 through May 20, 2018 until a follow-on long-term task order is in place.

Task Order No. SP4709-17-D-0024/0001 was awarded on a sole-source basis to International Business Machines Corporation (IBM) under the J6 Enterprise Technology Services (JETS) Indefinite-Delivery Indefinite-Quantity (IDIQ) contract vehicle on June 5th, 2017. IBM is the only source capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized since IBM developed the FedMall system under Contract No. SP4701-15-D-7000 and has been providing ongoing sustainment and maintenance support of the system under Task Order No.

SP4709-17-D-0024 while a long-term sustainment and maintenance contract is being competed under full and open procedures under the JETS contract vehicle. This extension is required to provide continued support for the sustainment and maintenance of the FedMall system until a competitive long-term award is made.

DLA Contracting Services Office - Philadelphia

Source Selection Information – See FAR 2.102 & 3.104

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

Services required include a full range of project management and operations/maintenance/sustainment related activities of FedMall. Specifically, services will include Project Management Support (planning, organizing, staffing, directing, integrating, and control activities relative to the system management of the operations/maintenance/ sustainment tasks), and Maintenance Tasks (maintenance of the FedMall Solution in production).

Continued and uninterrupted sustainment of FedMall is required in order to ensure the system is available to support the daily needs of more than 50,000 active users, generating millions in sales for the agency.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY AND

SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

NATURE OF THE ACQUISITION REQUIRES USE OF THE EXCEPTION CITED:

In accordance with FAR 16.505, only one source is capable of providing the services required at the level of quality required because the services are unique and highly specialized. At this time, IBM is the only source capable of providing the required services because it has the expertise and the corporate knowledge of the FedMall application, software, and customized utilities required to support the system through initial stages of sustainment, which includes:

Continued development and hosting of FedMall

Testing and training

Operate, Maintain, and Sustain FedMall 24x7

Agile development with concurrent testing for items deferred from Business Release1, issues identified during DLA’s Business Process Validation, and new development identified during BR1 System Integration Testing and User AcceptanceTesting.

Development and deployment to correct all compliance issues identified by Cybersecurity or security reviews

Transition phase out plan, schedule, and implementation, while still supporting Project Management, Operation, Sustainment, and Maintenance on the system for the entire duration of the phase out option period, should a follow-on requirement to the resultant contract be issued to other than the incumbent (awardee of this contract). This period also includes training requirements to execute transfer of knowledge and documentation to both the Government Program Management Office and incumbent contractstaff.

An e-commerce single point of access for DOD ordering on the Internet is mandated by Public Law 105-261. The Office of the Secretary of Defense (OSD) directed revised functional requirements in their May 2014 Concept of Operations document, to include a single e-commerce system capable of subsuming other federal agency e-commerce programs. IBM was awarded the contract to develop and host FedMall through competitive acquisition procedures on December 22, 2014. Since that time, IBM has been the sole contractor supporting the requirement in an effort to meet OSD’s May 2014 directive. IBM completed the initial development of FedMall in June 2017, when the program deployed for limited Go Live functionality. Since that time, IBM has been providing sustainment and maintenance support services for FedMall under the development contract (Contract No. SP4701-15-D-7000), which expired on December 2017, and a subsequent sole-source task order under the JETS contract vehicle (Task Order No. SP4709-17-D-0024).

At the time Task Order No. SP4709-17-D-0024 was awarded, the FedMall Sustainment and Maintenance required was being solicited as a cost-type contract on Federal Business Opportunities. After receipt of numerous industry questions regarding the solicitation’s requirement, and the DLA FedMall Program Management Office (PMO) decided to review its requirement.

Therefore, the initial solicitation was canceled and the requirement and acquisition strategy were reassessed to address vendor questions

The revised solicitation was reissued under the JETS contract vehicle in October 2017.

The revised solicitation also provided for an industry question period. In response, there were a series of questions received from industry, which required coordination between the contracting activity and the DLA FedMall PMO to address. An amendment to the solicitation addressing industry questions was issued on October 26, 2017. The solicitation closed on November 7, 2017.

The Government anticipates that the long-term sustainment and maintenance task order for Federal support services will be awarded on or before May 21, 2018.

As is demonstrated above, IBM has been involved since the inception of each of these initiatives, and is extensively involved in the programming process. Introducing a new contractor at this stage would bring about a significant expenditure of time and costs in order to allow a new contractor to obtain the appropriate accesses, Government Furnished Equipment, and familiarize itself with the work in progress (typically 30-60 days) such that current deployment dates could not be met immediately.

Additionally, the introduction of a different contractor would present cost, schedule, and performance risks which would jeopardize the Government’s ability to meet immediate compliance deadlines. IBM is the only source with the expertise and corporate knowledge of the customized utilities in FedMall required to complete the immediate programming initiatives within their commercial-off-the-shelf software, to include functionality and operability issues.

Therefore, only IBM is capable of providing the immediate services required at the level of quality required because the services are unique and highly specialized.

5. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

The proposed price was an extension of the current price, which was the price of the last option period (not considering the previous FAR 52.217-8 1-month extension), and that price was determined to be fair and reasonable at the time of award. This awarded price was found to be the best price available and/or the more advantageous offer at the time of option exercise. An informal price analysis will be conducted to include a comparison with current market price at the time of this option extension, determining the cost fair and reasonable prior to modification execution.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

All facts are provided herein.

7. STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE EXCEPTION TO

FAIR OPPORTUNITY BEFORE ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES IS MADE:

This sole source action is only needed until such time as a new FedMall competitive acquisition is awarded. To that end, the fourth round of negotiations has closed, and the Government is currently determining whether further negotiations are required, and it is anticipated that award will be made by May 21, 2018.

8. CERTIFICATIONS:

Technical/Requirements Certification:

I certify that the supporting data provided for which I am responsible and which form a basis for this justification is accurate and complete.

Program Manager FedMall

Contracting Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer DLA Contracting Services Office – Philadelphia

Competition Advocate Certification and Approval:

In accordance with FAR 16.505(b)(2)(ii)(C)(2), I have determined that FAR 16.505(b)(2)(i)(B) applies and I approve this justification.

JOHN FAFARA DATE

Competition Advocate DLA Contracting Services Office

FAFARA.JOHN.M.128404503

Digitally signed by

FAFARA.JOHN.M.1284045030

Date: 2018.04.19 18:01:32 -04'00'