EFO SAP Quality Assurance.Redacted.pdf

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

CUI

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

UNDER FEDERAL ACQUISITION REGULATION (FAR) SUBPART 16.5

Multiple Award Schedule/Multiple Award Contract (MAC) Orders under MAC/Fair Opportunity, FAR 16.507-6

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY:

Requesting Agency:

Defense Logistics Agency Information Operations, System Applications and Products (SAP) Platform – J62X 8725 John J. Kingman Road Fort Belvoir, VA 22060

Contracting Activity:

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

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

Pursuant to FAR 16.507-6(b)(3), the action being approved is an exception to the fair opportunity process. This justification authorizes the use of other than full and open competition to award a firm-fixed price task order for the SAP Platform requirement.

This acquisition will be a sole source award in accordance with the terms of the SAP Platform Core Task Order, SP4709-26-F-0019, which was competitively

DLA Contracting Services Office – Philadelphia (DCSO-P) SUBJECT: EFO – SAP Platform - Quality Assurance and Audit Support Services awarded to Accenture Federal Services via the J6 Enterprise Technology Services (JETS) 2.0 contract vehicle. This Task Order will provide technical support services, to include developing and maintaining program lifecycle documentation, providing support in all aspects of IT Audit Support; Configuration Management (CM); Systems Engineering (SE); and Lifecycle Program

Support Services to include but not limited to consulting for: remediation of IT findings, preventing IT findings, FIAR compliance improvements, and gaining an understanding of options for various scenarios. This support will assist SAP Platform in pre and post milestone support.

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

THE AGENCY’S NEEDS, INCLUDING AN ESTIMATED DOLLAR AMOUNT:

The Defense Logistics Agency (DLA) has a critical need for integrated Program Management, Systems Engineering, Configuration Management, Cybersecurity, and Audit Compliance services. The Contractor shall provide the skilled personnel and management controls necessary to support both the strategic S/4 HANA ERP Transformation and the continuous lifecycle sustainment of the SAP Platform Portfolio, which includes EBS, WMS/DSS, FLIS, and their integrated systems.

The total estimated dollar value for the proposed firm fixed price (FFP) requirement is the Period of Performance (PoP) from September 28, 2026 through September 27, 2027.

4. IDENTIFICATION OF THE EXCEPTION TO FAIR OPPORTUNITY AND

SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION OF THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THAT THE

NATURE OF THE ACQUISITION REQUIRES USE OF THE EXCEPTION

CITED:

Pursuant to FAR 16.507-2 and 16.507-6 (B)(3) an exception to the fair opportunity process is justified in the interest of economy and efficiency because it is a logical follow-on to an order already issued SP4709-24-D-0079 (SP4709-26-F-0019) under the JETS 2.0 contract vehicle, and all awardees were given a fair opportunity to be considered for the original order. The relationship between the Core Task Order and this follow-on is logical in terms of scope and continuity of effort as it is beneficial to have a single contractor held accountable from end-to-end to establish processes, documentation, and evidentiary matter in support of a successful audit.

Awarding the SAP Platform - Quality Assurance and Audit Support Services to Accenture Federal Services is necessary to maintain continuity and achieve the required level of quality without incurring duplicative costs. The SAP Platform provides unique, specialized services to the entire DoD community via DLA’s Enterprise Business System (EBS), Federal Logistics Information System (FLIS), and Warehouse Management System (WMS), which are critical applications for the Department. Accenture Federal Services, as the current SAP Platform support contractor possesses preexisting institutional knowledge of the as-implemented DLA system architecture. This includes an intimate understanding of the specific configurations, data structures, and the rationale behind key technical decisions made during the migration required to support the Program Management, Systems Engineering, Configuration Management, Cybersecurity, and Audit Compliance services, to include but not limited to consulting for remediation of IT findings, preventing IT findings, FIAR compliance improvements, and gaining an understanding of options for various scenarios. Awarding this requirement to a source other than Accenture Federal Services would introduce significant operational, schedule, and financial risks to DLA's SAP Platform Portfolio, specifically:

Schedule & Onboarding Delay: A successor contractor would require an estimated [e.g., 3 to 6 months] ramp-up and discovery phase to master DLA's unique SAP architecture, custom interfaces, and security configurations, directly stalling ongoing modernization milestones.

Audit Readiness Non-Compliance: Critical IT audit remediation and compliance tracking would be interrupted, risking failure to meet mandated FIAR audit milestones and resulting in avoidable Notices of Findings and Recommendations (NFRs).

Operational & Technical Risk: Lacking institutional knowledge of DLA-specific configurations increases the risk of system instability, configuration errors, and disruption to enterprise supply chain support.

Unrecoverable Duplication of Costs: DLA would incur redundant costs estimated at [$X / X contractor hours] to fund a new vendor's orientation and discovery phase without yielding additional technical capability.

Accenture Federal Services (AFS) has developed foundational, proprietary-level expertise in the DLA SAP Platform’s Program Management, Systems Engineering, Configuration Management, Cybersecurity, and Audit Compliance domains through performance under ERP S/4 HANA Modernization, Task Order number, SP4701-25-F-0009. Under that order, AFS was responsible for engineering and deploying critical custom architecture components specifically designed to enable real-time interoperability across disparate DoD supply-chain networks, ensure continuous enterprise transaction processing, and enforce Financial Improvement and Audit Readiness (FIAR) compliance standards.

Retaining this continuity is vital to DLA, as the SAP platform is the primary transactional backbone supporting global logistics, material readiness, and financial accountability for the Department of War.

In the interest of economy and efficiency, issuing this logical follow-on order to AFS is essential to capitalize on this system-specific context. Transitioning this requirement to another contractor would require a substantial and unacceptable outlay of Government resources. Based on a technical review by the DLA Program Management Office, any successor vendor would require an estimated 4 to 6 months discovery and ramp-up period to map existing customizations, resulting in a duplication of cost for orientation and baseline discovery that yields no new capability.

Failure to award this follow-on requirement to AFS will cause immediate, quantifiable operational degradation and audit exposure:

IT Audit & FIAR Compliance Exposure: A disruption in ongoing audit compliance activities would stall active remediation of existing Notices of Findings and Recommendations (NFRs), directly jeopardizing DLA’s mandated annual financial statement audit milestones.

System Degradation & Incident Response: Lacking intimate familiarity with DLA's customized SAP code base, an alternative vendor would significantly increase ticket resolution times for Priority 1/2 system incidents, risking transaction backlogs in warfighter requisition processing.

Assessment Methodology: This determination was established through the Program Office's technical risk assessment and historical onboarding metrics from previous platform transitions.

Furthermore, because the initial SAP Platform Support Core Task Order was awarded through a full and open competitive source selection under the JETS contract vehicle (where fair opportunity was provided to all eligible contract holders), the baseline labor categories and technical capabilities were fully evaluated and established at competitive market pricing. Issuing this logical follow-on fulfills the original requirement’s life cycle efficiently without circumventing the benefits of the initial competition.

5. DETERMINATION BY THE ORDERING ACTIVITY CONTRACTING

OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE

FAIR AND REASONABLE:

The determination that the anticipated cost for this Task Order will be fair and reasonable will be made in accordance with FAR 15.403-1. The primary basis for this determination is the use of the pre-negotiated labor rates established in the competitively awarded SAP Platform contract (SP4709-26-F-0019) with Accenture Federal Services, which have already been determined to be fair and reasonable. The Contracting Officer will perform a price analysis using the following techniques: (1) The Government will develop an Independent Government Cost Estimate (IGCE) based on the specific tasks outlined in the Performance Work Statement (PWS) and the pre-negotiated labor rates from the base contract. (2) The contractor's proposal will be evaluated to ensure that the proposed labor categories and rates are in accordance with the established rates in the base contract. (3) The contractor's proposed level of effort (labor hours) will be compared to the IGCE and reviewed for reasonableness by the technical evaluation team to ensure it is appropriate for the work required. This combination of using pre-negotiated, competitive labor rates and conducting a thorough analysis of the proposed level of effort will ensure the final price is fair and reasonable to the Government.

6. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

Not Applicable.

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

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES IS

MADE:

Accenture Federal Services has cultivated hard-won, experiential insight into the as implemented architecture. Because this baseline of knowledge is rooted in having actively built and operated the system, introducing a different contractor would require a massive, redundant outlay of Government resources. A new vendor would have to spend significant time replicating this experiential learning, causing unacceptable schedule delays and economic loss. The lifecycle of this barrier is tied directly to continued support for integrated Program Management, Systems Engineering, Configuration Management, Cybersecurity, and Audit Compliance services for which ensuring continuity remains the most logical, economical, and efficient path forward.

DLA is taking several concrete actions within this contract to actively remove any knowledge barrier:

(1) A core requirement of this Quality Assurance and Audit Support Services task is the