TabAConsolidation DF-Redacted.pdf

CUI

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

DETERMINATION AND FINDINGS

FOR AUTHORITY TO CONSOLIDATE CONTRACT REQUIREMENTS

Based on the following findings, I determine consolidating Information Technology (IT) contracts to serve the needs of the Defense Support Services Center (DSSC), is necessary, justified, and in the best interest of the Government in accordance with 15 U.S.C. 657q, as implemented in the Federal Acquisition Regulation (FAR) Part 7.107-2.

FINDINGS

1. Identification of Contracting Activity

Defense Human Resources Activity (DHRA) Acquisition Management Directorate 4800 Mark Center Drive, Suite 06J25-01 Alexandria, VA 22350

2. Nature/Description of Action

DSSC plans to consolidate nine contracts into one contract, named “DSSC Managed Services for IT Modernization”, to change from separate customized platforms into one single Low Code / No Code modernized platform. The contracts were inherited separately by the DSSC Programs from across the Under Secretary of Defense for Personnel and Readiness (USD P&R). The high-level benefits resulting from the consolidation include reduction in cyber posture risk, cost savings with a single platform Authority to Operate (ATO), and an out-of-box platform that will allow similar workflows without heavy customization. A single infrastructure to manage ensures the consolidated systems are operational, secure, maintained, and updated frequently to meet program mission requirements and the needs of our Service members and their families.

Controlled by: Defense Human Resources Activity (DHRA) Controlled by: DHRA, Office of Comptroller, AMD CUI Category: SSEL Dissemination Control: FEDONLY

POC: LaShondra Pelican, lashondra.n.pelican.civ@mail.mil

D&F for Authority to Consolidate Contract Requirements for DSSC Managed Services for IT Modernization

The separate legacy contracts provide stove-piped support and expertise for Systems Analysis, Cybersecurity, and Evaluation to the programs and their diversified mission areas. DSSC has identified seven programs that receive IT support services and are within scope of the new contract. All seven programs broadly consist of similar structures and workflow use cases compatible with Low Code / No Code platforms. One of the primary advantages of Low Code / No Code platforms are that common modules and elements can be shared, achieving significant cost savings in addition to benefitting from shared baseline compliant cyber security standards.

The programs include:

Table 1

Program Acronym Mission Description and Impacted Systems

Computer/Electronic Accommodations Program

CAP Ensures that people with disabilities and wounded Service members have equal access to the information environment and opportunities in the Department of Defense (DoD) and throughout the Federal government. By fulfilling this mission of providing real solutions for real needs, CAP is helping to make the Federal government the model employer for people with disabilities.

SYSTEM(s) INCLUDED in SCOPE: CAP Portal and Website.

Defense Activity for Non-Traditional Education Support

DANTES Provides consolidated management of Defense Voluntary Education (VolEd) programs that help Service members gain the knowledge they need to achieve their education goals, advance in their military careers, and successfully transition into the civilian workforce at the conclusion of their military service.

SYSTEM(s) INCLUDED in SCOPE: DoD Memorandum of Understanding (DoDMOU).

Defense Language & National Security Office

DLNSEO Provides strategic direction and oversight on present and future requirements related to language, regional expertise, and culture and creates and sustains programs to award scholarships to students for study or program in languages and regions critical to national security.

SYSTEM(s) INCLUDED in SCOPE: National Security Education Program (NSEP)-IT Comprehensive Data Collection System.

Defense Travel Management Office

DTMO Consolidates, streamlines, and centrally manages commercial travel by providing single focal point to the DoD and the travel industry. DTMO’s flagship IT program, the Defense Travel System (DTS), is managed by the Defense Manpower Data Center (DMDC) and excluded from the scope of this effort.

SYSTEM(s) INCLUDED in SCOPE: DMTO Passport and DTMO Ticket Management System (also referred to by its current legacy platform “Oracle Service Cloud”).

Employer Support of the Guard and Reserve

ESGR Promotes cooperation and understanding between Reserve component Service members and their civilian employers and assists in the resolution of conflicts arising from employees’ military commitments. It is the lead DoD organization for this mission under DoD Directive 1250.1, National Committee for Employer Support of the Guard and Reserve (NCESGR).

Program Acronym Mission Description and Impacted Systems

SYSTEM(s) INCLUDED in SCOPE: ESGR IP (Portal), Inquiry and Case Management System (ICMS), ESGR Public, and Exhibit Arts Fulfillment System

(EAFS).

Federal Voting Assistance Program

FVAP Administers the Uniformed and Overseas Citizens Absentee Voting Act, 42 USC 1973ff (UOCAVA), Title XVI of the National Defense Authorization Act of FY 2002 and portions of the Help America Vote Act of 2002. FVAP also conducts national and international “Get Out the Vote” campaigns, maintains the automated Voting Information Center, and administers the National Voter Registration Act, which designates Armed Forces Recruiting Stations as Voter Registration Agencies.

SYSTEM(s) INCLUDED in SCOPE: FVAP Portal.

Military-Civilian Transition Office

MCTO Continually improve the delivery of resources, information, and assistance provided through the programs, promoting their effective and efficient support of transitioning Service members and members of the National Guard and Reserve, their families, and communities worldwide. The office ensures transitioning Service members are able to successfully return to their civilian life while also addressing the challenges National Guard and Reserve Service members and their families face as they prepare for and return from deployment or mobilization.

SYSTEM(s) INCLUDED in SCOPE: Transition Assistance Program (TAP), Skillbridge, EventPlus, and Yellow Ribbon which are to be modernized into a combined system.

DSSC is seeking to increase capabilities and enhance cybersecurity since the majority of DSSC’s IT systems are considered an overall High Risk by DHRA/DMDC Cyber Security due to their current legacy outdated technologies, scanned critical cyber vulnerabilities, and imposed conditions. To date, organizational IT efforts have been mostly reactive, focusing on multiple, soon to expire ATO accreditations, leaving little bandwidth to maintain and upgrade the systems to meet mission requirements. The majority of the DSSC IT Systems are public-facing and have ATOs at DoD Impact Level four (IL4) at moderate/moderate/moderate Personally Identifiable Information (PII) levels with privacy overlay.

The IT systems requirements within the below nine contracts are compatible for delivery via a modernized commercial IT Low Code / No Code platform based on IT working group analysis led by DSSC IT and the Cybersecurity advisor.

As previously mentioned, leveraging this ability would create substantial cost savings estimated at $ , which is described in further detail below. Thus, it is logical for these requirements to be reconfigured into a single requirement that could augment security and streamline processes.

All vendors, where applicable, will be notified about potential DSSC IT modernization efforts and advised that not all option periods may be executed before the program transitions to the DSSC IT Modernization contract.

DSSC currently obtains IT systems support services via the following contracts:

Support). Based on the current migration schedule, should the DSSC IT Modernization be executed in Fiscal Year (FY)24, CLIN X002 will be deleted/terminated for convenience starting Option Year Two.

• The DANTES Website Maintenance and Sustainment Support (consisting of the

DoDMOU application) contract, H9821022F0205, was awarded to Vantage Point Consulting, Inc., as a Woman-Owned Small Business set-aside competed under a GSA MAS. The period of performance is a base plus three one-year options with an ultimate contract expiration date of 29 June 2026. DHRA may issue a new contract to replace H9821022F0205 due to out-of-scope cybersecurity changes. Under this consolidation, DSSC is expected to transition DODMOU contract H9821022F0205 in June 2025, prior to the anticipated award of the new contract. However, if this consolidation is delayed, the new contract will have to be awarded and this consolidation would include the newly awarded contract.

• The DLNSEO National Security Education Program (NSEP) IT contract, H9821019F0195, was awarded to ASSYST, Inc., competed as a small business set-aside with a contract expiration date of 6 August 2024. A follow-on acquisition is in progress with a one-year base period and four one-year options and a period of performance from 24 July 2024 - 23 July 2029. It is currently being competed as a small business set-aside using GSA MAS.

• The DTMO IT Services “Passport” contract, H9821021F0060, was awarded to Kaimetrix, LLC, competed as a Small Business set-aside on GSA, currently in Option Year Three with a period of performance from 16 March 2024 – 15 March 2025 and an ultimate contract expiration date of 15 March 2026. A follow-on acquisition process will start in early FY25.

• The DTMO Oracle Service Cloud TMS contract, H9821020F0240, was awarded to

CACI Enterprise Solutions, Inc., a large business, and competed as unrestricted full and open competition under the National Institute of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC) Chief Information Officer-Solutions and Partners 3 (CIO-SP3). The period of performance is a base plus four one-year options with a contract expiration date of 26 August 2025, and a total contract value of

, of which is specifically used for IT Support Services.

• The ESGR IT Web Application Support contract, H9821024C0002, was awarded to Nisga’a Tek, LLC, as an 8(a) sole source award to an Alaskan Native Corporation with a period of performance of a one-year base and four one-year options from 16 November 2023 through 15 November 2028.

• The Exhibit Arts Fulfillment System (EAFS) contract, H9821023C0006, was awarded to Exhibit Arts, LLC, as a competitive woman owned small business set-aside via the

System for Award Management. The period of performance is a one-year base and four one-year options from 1 February 2024 through 31 January 2028.

o EAFS consists of two parts: a web-based online interface and the backend fulfillment of the orders/materials. The government requires that the ordering web-based interface must meet DoD Impact Level 4 cyber security requirements. Since the DSSC IT Modernization platform will meet DoD Impact Level 4 cyber security requirements, the government will benefit by providing its own compliant web-based ordering interface to open up competition and potential cost savings from other printing and award companies providing just fulfillment.

• The FVAP IT contract, H9821020F0039, was awarded to Information Technology

Coalition, Inc., as a competitive Service-Disabled Veteran Owned Small Business under GSAs VETS-2 contract, with a contract expiration on 19 January 2025. A follow-on acquisition is in process with a one-year base and four one-year options from 20 January 2025 through 19 January 2030.

• The MCTO Transition Reintegration Employer Support IT contract, H9821024CE001, a recently approved consolidation for SkillBridge, EventPLUS, and TVPO Full Time Support, was awarded in June 2024 to Goldbelt Apex LLC, an SBA 8(a) Alaskan Native Corporation. That consolidation was focused on MCTO program requirements while this consolidation focuses on the entire DSSC IT Portfolio. MCTO’s mission falls within the DSSC IT portfolio and is included in this consolidation as the entire DSSC portfolio is being streamlined for additional benefit to the Department.

The need for a DSSC Enterprise IT solution has been known and in the planning stage for more than three years. However, roadblocks and delays such as staffing changes, continuing resolution budget, governance approvals, DMDC strategic direction changes, and evolving technology, delayed planning and approvals for the IT Managed Services solution prior to the MCTO contract end dates. With MCTO contracts for Skillbridge, EventPLUS, and TVPO all ending in 2024, DSSC quickly shifted focus to ensure continuity of these vital services while they finalized the IT managed services solution and obtained budget approval. DSSC hoped the MCTO consolidation would be a short-term solution to prevent a break in services while also reducing staffing and making the program more efficient. As such the three MCTO contracts were consolidated into two as opposed to one contract which separated the IT services from the full staff support allowing the full staff support contract to continue and IT support services contract to be further consolidated into the DSSC IT portfolio once approved. However, without an approved strategy and no expectation of budget approval for IT Managed services in the foreseeable future, the MCTO requirement was planned as a base plus options to ensure the services continued until they could be transitioned to the DSSC IT portfolio. To DSSC’s surprise, the IT Managed Services strategy and budget was approved earlier than expected, but with the MCTO consolidation already in process and no guarantee of approval for this consolidation, the logical solution was to proceed with the MCTO awards rather than allow the contracts to end without a new place for that work to go. The MCTO IT contract value of is almost the same amount forecasted for this requirement to consolidate all DSSC’s IT portfolio at . It is advantageous that DSSC move forward on this Portfolio modernization sooner rather than later and it is of utmost importance for MCTO to be included in this effort to achieve these additional significant cost savings.

For the consolidated requirement, DSSC performed the following activities in accordance with FAR Part 7.107-2:

(a.) Market Research

As the decision was made to move towards a managed services contract for an FY24 award, the DHRA requirements team began researching strategic vehicles to identify potential sources and solutions. The team narrowed the focus to two strategic vehicles, Defense Logistics Agency’s (DLA) J6 Enterprise Technology Services (JETS) contract and NIH’s CIO-SP3 contract. The two vehicles are multiple award Indefinite Delivery, Indefinite Quantity (IDIQ) contracts that support the full range of IT services and technical and management expertise necessary to support applications, software, hardware, infrastructure, and systems.

A Request for Information (RFI) was posted on CIO-SP3 from 18 March 2024 - 15 April 2024.

Five responses were received. All five vendors were determined capable, as summarized below.

Table 3 Vendor CAGE Business Size Capable

Accenture Federal Services 1ZD18 Large Yes Booze Allen Hamilton 17038 Large Yes Credence Management Solutions 4WPK2 Small

Yes

FWG Solutions 6MYW2 Small, 8(a) Yes ICF Inc. 5M571 Large Yes

Because of DHRA’s commitment to small business, the Director of the Office of Small Business Programs (OSBP) coordinated additional market research with the requirements team to identify capable 8(a) Alaskan Native Corporations (ANCs) for a potential direct award. The team proceeded with scheduling several capability briefings, held 9-10 May 2024, with three 8(a) ANCs: Akiak NikSoft Joint Venture, Koniag Data Solutions (KDS), and Arctic Slope Regional Corporation (ASRC) Federal. Upon conclusion of the presentations, the Government determined KDS presented the strongest solution to meet the required objectives.

KDS proved demonstrated experience in providing managed services, Low Code / No Code applications, and applications development. KDS presented a favorable methodology entitled the “Digital Services Center (DSC)” framework. The DSC framework highlights the process by which the DSSC IT Task Office would operate as the center of excellence/governance model with the ability to scale this portfolio more efficiently.

Although the procurement can be competed amongst 8(a) or small businesses, a direct award to an 8(a) ANC is most favorable, as a major portion of the approved funding that MCTO is providing to DSSC is specifically earmarked for FY24 and not available in FY25. DSSC can only afford to initiate this effort now because of funding provided by MCTO. Otherwise, DSSC faces difficulty funding both the legacy systems and the cost of building the new modernized environment.

DSSC has a narrow window of opportunity to fully capitalize on the cost savings potential from this consolidation, leading to the decision to direct award without competing. The MCTO program alone spends more on custom IT than the entire low code platform is expected to cost. If DSSC delays the consolidation by competing it, the first two years (FY24 -FY25) slide to the right and it is back where it started but with less money to spend on the modernization. Since some of the contracts do not have cyber requirements to the level required, the Department is at risk with the current cyber posture of the legacy apps and more money will have to be invested to fix the legacy systems.

The savings obtained from a competition may save money, however, even if the Government gets a slightly lower price, DSSC will have spent more on the current legacy contracts and added cyber costs. In 2023, the average cost of a cyber breach to the Government was , according to an article posted by Defense Innovation Unit1 (25 October 2023). The majority of DSSC systems are a high cybersecurity risk so awarding sooner is in the best interest of the Government.

(b.) Alternative contracting approaches that would involve a lesser degree of consolidation.

DSSC considered transitioning all the applications to their own individual platforms. The alternatives to reduce the number of contracts from nine to seven, vice consolidating all into one contract would not afford the benefits DSSC would achieve from one Center-wide solution.

DSSC would continue to incur high operating costs, fall behind on cyber security requirements, maintain numerous ATOs, require teams skilled in various technologies/systems, and maintain numerous contracts to provide the required IT support.

1 Defense Innovation Unit. (2023, October 25). Capitalizing on Commercial Technology to Promote Cybersecurity Across the DoD. https://www.diu.mil/latest/capitalizing-on-commercial-technology-to-promote-cybersecurity-across-the

(c.) Coordination with the Office of Small Business Programs (OSBP) and Small Business Participation.

The acquisition will remain in the Small Business Administration (SBA) 8(a) Program. DHRA’s OSBP and the SBA Procurement Center Representative (PCR) continue to support the overall acquisition strategy and consolidation effort. DSSC initiated early engagement with DHRA OSBP and the SBA PCR through early discussions, collaboration and acquisition document reviews.

(d.) Negative impact of the acquisition strategy to small business concerns.

Eight small businesses will be impacted by this consolidation because their contracts will either be reduced, have options that are not exercised, or will not have follow-ons.

(e.) Steps taken to include small business concerns in the acquisition strategy.

Although requirements currently on contract with small businesses are being consolidated, a small business concern will still be included in the new acquisition strategy because this effort will be a sole source 8(a) award to an Alaska Native Corporation.

3. Justification and Findings for Determination

DSSC provides critical support services to the Department’s military and civilian personnel and their families, enhancing national security, mission readiness, resiliency, and reintegration.

DSSC is seeking a managed services provider to execute the operations and IT systems of a diverse non-integrated portfolio. DSSC is designated to oversee a portfolio that is vital to the all-volunteer Total Force. The DSSC Director operates under the supervision of the Director, DHRA, with policy support guidance from the Assistant Secretary of Defense for Manpower and Reserve Affairs (ASD M&RA) and the Assistant Secretary of Defense for Readiness (ASD R) both of whom report directly to the Under Secretary of Defense for Personnel and Readiness.

The separate legacy contractors provide stove-piped support and expertise for Systems Analysis, Cybersecurity, and Evaluation to the programs and their diversified mission areas.

Contract H9821024CE001, for MCTO Transition Reintegration Employer Support IT, is valued at for a customized application whereas this consolidation of nine contracts will provide a more secure Low Code / No Code solution for about the same price. Therefore, the benefits of consolidation substantially outweigh maintaining the current structure where nine separate contracts support DSSC’s IT systems within DHRA. Additionally, this consolidated Low Code / No Code effort will be suitable for small businesses since the government will own the source code.

option year values of current contracts with 2% escalation to account for inflation. All IGEs were derived from the use of a labor mix consistent with these requirements with rates from the Bureau of Labor and Statistics (BLS) associated with that mix and historical information.

Table 5 (WITH Consolidation) carries over the above amounts from Table 4 (WITHOUT Consolidation), with values zeroed out in the year of anticipated migration and the related outyears. Additionally, the spending has been added for the subject IT modernization effort to capture the complete IT portfolio costs if consolidated.

The calculations for Table 6 (Cost Savings Per FY) can be explained as such:

• The Base Year, FY24, has the highest upfront costs. During the first year of the modernization, the vendor will be performing the following: technical analysis of the legacy systems, architecting/building out the new Low Code / No Code platform to best meet the requirements specifications determined by the technical analysis, obtaining an ATO for the built platform, and developing Minimum Viable Products (MVPs) for DODMOU, CAP, and MCTO. Other Direct Costs (ODC) (e.g. Software Licenses) are expected to be at a minimum since there are no systems expected in production and limited development licenses are not required until the second half of the performance period.

• Option Year 1, FY25, the vendor is expected to achieve the following: release a full version of DODMOU to production within the first month, further iterate the MVPs for CAP and MCTO, and develop MVPs for NSEP and ESGR. ODCs are expected to increase since there will now be a system in production and heavy usage of development licenses throughout the performance period.

• Option Year 2, FY26, the vendor is expected to release full versions of CAP, MCTO, NSEP, and ESGR to production and develop MVPs for FVAP, EAFS, DTMO Passport and DTMO TMS. ODCs are expected to increase since more systems will be released to production within the performance period.

• Option Year 3, FY27, all IT systems are expected to be transitioned and absorbed within the DSSC IT Modernization production environment, resulting in higher ODCs. The vendor is also expected to operate and maintain the systems along with iterate prioritized improvements and enhancements to the systems.

• Option Year 4, FY28, the vendor is expected to continue operating and maintaining the systems along with iterate prioritized improvement and enhancements. Labor and ODCs should increase relative to inflation.

As a result of the consolidation effort, DHRA is expected to save approximately between the period of FY24-FY28, an overall savings of 19%. This is due to the efficiencies of promote uniformity, best practices, cyber security, and management efficiencies. IT alignment under DSSC increases synergy across DHRA.

The consolidation is necessary and justified in accordance with 15 U.S.C. 657q.

Date:

Mr. John M. Tenaglia Principal Director, Defense Pricing and Contracting