W15P7T-12-D-E010-KX08__EFO_FINAL_SIGNED_BY_ALL_PARTIES_APPS_SUSTAINMENT_6_MONTH_EXTENSION.pdf

Control No: JA-19-E-124 Contractor: CACI Technologies, Inc Supply/Service: Application Development Sustainment Support (ADS2)

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY (EFO) JUSTIFICATION

Program/Equipment: U.S. Army CECOM Software Engineering Center (SEC) Application Development Sustainment Support (ADS2)

Authority: 10 U.S.C. 2304c(b)(3) and FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

Amount: $4,950,000.00

Prepared By:

Kevin Venezia Phone: 443-861-8226 Software Engineering Center (SEC) DSN: 848-8226 Branch Chief Date Reviewed: 31 January 2019 kevin.m.venezia.civ@mail.mil

Procuring Contracting Officer: Phone: 443-861- 4869 Kandi McDonald DSN: 848-4869 Procuring Contracting Officer Date Reviewed: 05 February 2019 kandi.a.mcdonald.civ@mail.mil

Technical Representative:

Kevin Venezia Phone: 443-861-8226 Software Engineering Center (SEC) DSN: 848-8226 Branch Chief Date Reviewed: 31 January 2019 kevin.m.venezia.civ@mail.mil

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager: Julie Pham, Chief Applications Division Phone: 443-861-8669

Legal Counsel: Phone:

mailto:kevin.m.venezia.civ@mail.mil mailto:kandi.a.mcdonald.civ@mail.mil mailto:kevin.m.venezia.civ@mail.mil

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY (EFO) JUSTIFICATION

1. Contracting Activity: U.S. Army Contracting Command, Aberdeen Proving Ground (ACC-APG), ATTN: CCAP-CCE Bldg 6001, 6565 Surveillance Loop, APG, Maryland, 21005.

2. Description of Action: The Communications and Electronics Command (CECOM) Software Engineering Center (SEC) requests a six (6) month Period of Performance (PoP) extension for task order W15P7T-12-D-E010/KX08 for SEC Application Development Sustainment Support (ADS2). This PoP extension will be Cost-Plus-Fixed-Fee (CPFF) Term. The incumbent contractor for W15P7T-12-D-E010/KX08 is CACI Technologies, Inc. of 14370 Newbrook Drive, Chantilly, VA 20151-2218 (CAGE 8D014). The Government projects award of this PoP extension on or before 29 March 2019, when W15P7T-12-D-E010/KX08 is currently set to expire, with the extension covering a PoP of 30 March 2019 to 29 September 2019. The Independent Government Cost Estimate (IGCE) for this PoP extension is $4,950,000.00 and is based upon current expenditure rates. Fiscal Year 2019 (FY2019) Operations and Maintenance, Army (OMA) appropriations will be used for this acquisition. An acquisition plan is not required because this modification action does not meet the DFAR threshold for acquisition plans.

3. Description of Supplies/Services: The contractor staff, 21 Contractor Man-year Equivalent (CMEs), will provide technical expertise in the sustainment of SEC’s application portfolio. Integrated Government/contractor teams perform tasks that include, but are not limited to: Application development, helpdesk support to application end users, software code updates/maintenance to correct identified errors, and monthly software security updates to ensure the applications are compliant with current DoD cybersecurity requirements,. This is an enduring requirement supporting SEC mission.

The task order’s PoP and associated values including the proposed 6-month PoP extension, are listed below:

Base Period:

Option Year 1:

Option Year 2:

30 Sep 2015 30 Sep 2016 30 Sep 2017 to to to

29 Sep 2016 29 Sep 2017 29 Sep 2018

Value: $ 6,107,000 Value: $ 9,418,686 Value: $ 9,574,789

6-Mon 52.217-8 Ext: 30 Sep 2018 To 29 Mar 2019 Value: $ 4,787,395 6-Mon EFO Extension: 30 Mar 2019 To 29 Sep 2019 Value: $ 4,950,000

Total: $34,837,870

4. Authority Cited: 10 U.S.C. 2304c (b)(3) and FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

5. Reason for Authority Cited: Reason for Authority Cited: The proposed modification to Task Order W15P7T-12-D-E010/KX08 is anticipated to be issued under the logical follow-on authority listed at FAR 16.505(b)(2)(i)(C) because the work under the proposed modification is the same work required under the current task order for which all offerors had equal opportunity to be considered. This is the first time this authority is being used for this task order.

The Contracting Officer has determined efficiencies would be realized by issuing an extension to the existing order in lieu of conducting a limited source competition. Conducting a limited source competition for a short term extension would result in duplicate costs as illustrated in the table below. The cost depicted below have already been planned and programmed for the competitive follow-on procurement, which is estimated to be released in the April/May 2019. In February ACC-APG contracting team and SEC technical representative team conducted an in person IPT to determine hours and to develop the cost saving table below. The team used an average labor rate of $75.00 for all positions including the vendor. Considering all the different labor involved at all stages of the solicitation and contract award, including the Contractor Project Manager, the Contract Specialist, the Contracting Officer, SEC Technical Representatives, the Contracting Officer’s Representative (COR), and Legal Counsel, the IPT team collectively determined an average loaded labor rate of $75.00 would be used to calculate all hours with the lowest position being a GS-12 Contract Specialist to the highest positions being GS-15 legal advisors and the Contractor. This labor rate was deemed a reasonable labor rate by all parties in the IPT to calculate total labor costs.

Hours

Cost ACC Technical Legal Vendor

Pr e

A w ar d

Requirements Development 100 200 12 X $23,400.00 ACC/Legal Review 25 5 25 X $4,125.00

Request for Proposal 90 30 3 15 $10,350.00 Technical / Cost Evaluation 100 150 40 X $21,750.00

Discussions 30 15 10 40 $7,125.00 Source Selection Determination 40 2 5 X $3,525.00

Peer Review 50 2 5 X $4,275.00 Award 80 5 X X $6,375.00

Po st

A w ar d 60 Day Transition Period 15 100 X 100 $16,125.00

CAC Cards (time and supplies) X 10 X 10 $1,500.00 Badges (time and supplies) X 10 X 10 $1,500.00

SAAR (2875) X 15 X 15 $2,250.00

Processing GFE distribution X 30 X X $2,250.00

Total $104,550.00

If the Government was to solicit a limited source competition for a short term extension, the likely result would be a break in services because the Government could not issue a solicitation, receive proposals, evaluate offerors, award a task order, nor could the successful offeror have enough time to hire qualified staff, process Common Access Card (CAC) badges or conduct required background checks for staff in less than 60 days. Plus the NEXGEN IDIQ contract requires an additional 60-days transition period to seamlessly transfer knowledge from one contractor to another.

The expertise required to perform the maintenance of SEC and CECOM applications requires in depth subject matter expertise and knowledge that cannot be easily substituted or hired quickly.

Based on historical information on the current effort, a backfill of an employee typically takes 30 days, which includes acquiring Government Furnished Equipment (GFE), obtaining a CAC and campus badge, and being granted access to the NIPR (Non-classified Internet Protocol Router Network) and DREN (Defense Research and Engineering Network) networks.

Additional time is required for knowledge transfer with subject matter experts, which is typically done during the balance of a 60-day transition period as this task order typically requires for phase in and phase out.

In addition to the wasteful duplicate costs that would result from a limited source competition in lieu of an extension, the Government could also be harmed by a break in service or by inadequate time allotted for knowledge transfer between contractors. Either situations could put application sustainment functions at significant risk which could impact hundreds to thousands of users across a portfolio of over 20 web applications throughout CECOM and CECOM’s customers. This potential downtime could have a significant impact on the ability of CECOM personnel to support the Warfighter adequately in order to meet CECOM’s mission.

An example of an application serviced under this requirement that would have a detrimental impact on the warfighter if the Global Support Center (GSC) which Project Leads use to schedule and deploy SEC Field Service Engineers worldwide to attend training and repair communication systems embedded with the Warfighter. The GSC provides a completely secure web-based portal for Warfighters and customers to streamline the field support process through the use of the Field Support Management Tools (FSMT) suite of applications. The GSC is fully owned by the Government and supports field support operations world-wide. Without maintenance of the GSC system there could be downtime of the system which could endanger soldier lives if Project Leads are unable to access the system to deploy needed warfighters.

Additionally, the CECOM Software Engineering Center is responsible for providing support to CECOM’s application support mission as defined in the CECOM 10-1 regulation which defines each organization, each division and each branch mission statement. Without contractor support, SEC would be unable to provide the requisite support. For example: SEC maintains the Performance review Interface for Managers and Employees (PRIME) application. Without contractor support for the PRIME system, the PRIME system would be subjected to extended downtime and performance degradation resulting in the inability of organizations that utilize PRIME to efficiently process performance reviews and subsequent payouts of employee performance awards.

If the Government tried to award a short term extension to other than the incumbent contractor, it is likely the new contractor would have difficulties gaining timely access to the DREN or other information systems required for processing CAC badges and security background, and would not likely possess the immediate knowledge base and system familiarity as the incumbent contractor currently possesses without a full 60-day transition period. With the potential that a new contractor could have staffing delays, delays in access to security systems for background checks and processing of CAC cards, there is a very real possibility that these issues could result in a break in service. The break in service would cause SEC to fail to provide application helpdesk support services and required software maintenance through agile sprint upgrades on 20 different application systems that SEC proposed task order supports.

Historically, task orders on the NEXGEN contract have taken 12-18 months after receipt of proposals to evaluate, award and to complete final task order transition. However, due to some recent efficiencies implemented in processing NEXGEN orders, ACC-APG, SEC Branch, has reduced the timeline for term efforts to between 30-90-days after receipt of proposals not including any transition period. Using this streamlined process for a CPFF term efforts the Government anticipates the total acquisition time after receipt of proposals to be between 30 to 90-days for award plus a 2-month transition for a total duration up to 5-months which would be anticipated for either a limited competition extension or the follow-on effort. In either case, each of these strategies would take longer than 60 calendar days which would not be the case if the Government issued a sole source bridge modification extension to the existing order.

From the current expiration of task order W15P7T-12-D-E010/KX08 on 29 Mar 2019, the Government estimates that all pre-award, award and post award milestones will be completed for the planned competitive solicitation as indicated in the milestone chart listed in paragraph 5 below.

CACI Technologies, Inc. is the only source that can satisfactorily perform in the timeframe required in order to efficiently and expeditiously maintain successful performance of the CECOM mission without interruption of services and additional re-procurement costs already planned for the follow on effort. The subject 6-month task order extension is required to maintain continuity of essential services provided under the current contract W15P7T-12-D- E010/KX08 until the new competitive follow-on task order is awarded. The current task order will expire on 29 March 2019.

The following table represents the timeline for the follow on solicitation SSESNG-19-R-2087 for Application Development Sustainment Support to be competitively solicited to the unrestricted suite under the multiple award NEXGEN Indefinite Delivery Indefinite Quantity (IDIQ) contract:

SSESNG-19-R-2087 Timeline to Award Event Description 30 April 2019* Solicitation Issued 30 May 2019* Proposal submission deadline 15 June 2019* Source Selection Decision 30 July 2019* Contract Award/Period of Performance start 29 September 2019* End of 60 day phase in period

* Planned dates

The following acquisition process contributed to the schedule delay that make a 6-month PoP extension necessary:

SSESNG-19-R-2087 Delaying Event Reason for Delay Acquisition Strategy was delayed The original acquisition strategy was to convert the current term effort to a completion effort.

However, over the course of many months (June through December 2018) numerous meetings were conducted with ACC and SEC to find a way forward resulting in the determination that the effort would still need to remain as a term effort The reasons the conversion was not possible are as follows: This requirement has 20 application systems to be maintained with numerous customers with ever changing customer priorities for agile sprints which limit the Government’s ability to define completion parameters. Another difficulty in converting this effort from term to completion is the required work is done with an integrated Government/contractor teams, therefore making it very difficult to determine exact deliverables that would be solely the responsibility of the contractor to delivery. The Government made a final decision in December 2018 to set the acquisition strategy for this requirement as a term effort with a more detailed agile sprint ordering procedures to be an attachment to the Performance Work Statement (PWS). The Government also decided to utilize the NEXGEN streamlined past performance trade off to cost source selection process in effort to reduce the need for a longer extension. ACC- APG has received most of the solicitation package on 11/06/2018 with the exception of the OPSEC form, DD254 and GFP documentation.

We have been meeting bi-weekly for IPTs for discuss and revise documents. We have met twice to discuss the agile sprint ordering procedures. ACC-APG is waiting on final revisions to the agile sprint ordering procedures based KO review comments provided to SEC in February 2019

Alternatives considered for the extension also included Government coverage of tasks during break in service, but SEC services directorate does not have adequate staffing to support the maintenance and support of 20 different application systems. Currently SEC Services team only has 13 personnel on staff on its Government team and not all are able to do agile sprint maintenance.

Other strategies considered were to bring other Government employees from outside SEC.

However, this strategy would still have required substantial time to get subject matter experts up to speed thereby necessitating a 60-day transition period. There is insufficient time to solicit, evaluate, award and hold a 60-day transition period without a break in services.

6. Efforts to Obtain Competition: The follow-on to the current W15P7T-12-D- E010/KX08 task order will be competed among SSES NEXGEN unrestricted suite vendors as a part of solicitation SSESNG-19-R-2087. Award of the competitive follow-on task order is planned for 30 July 2019.

7. Actions to Increase Competition: The Government intends to meet future requirements for ADS2 through a competitive acquisition on the SSES NEXGEN IDIQ contract soliciting the unrestricted suite consisting of both small and large firms pursuant to FAR Part 16.

8. Market Research: Market research for the proposed EFO extension to the ADS2 requirement was conducted on 30 January for W15P7T-12-D-E010/KX08 via an email to all of the NEXGEN multiple award task order prime vendors.

Of the five (5) businesses that responded, two (2) stated that they were willing and able to take on this requirement. See chart below for responses. One of the vendors that responded “yes” was the incumbent contractor, CACI Technologies, Inc.

V en do r

Y es

N o

R

FI

R es po ns es

Engility X

BAE X

AASKI X

CACI X

ACET X

The Prime Vendors were warned that “sufficient transition time between Contractors is required in order to avoid a break in service to the Government”. Of the Prime Contractors that responded, 2 (two) contractors responded (including the incumbent); both firms indicating that they were fully capable and willing to perform as required.

However, technical experts within SEC Services Directorate, SEC Security and ACC-APG determined that it would be impossible for any company except for the incumbent during this short window of less than 60 calendar days to task order expiration to be ready to perform work by 30 March 2019.

Considering market research showed interest by only the incumbent contractor and one other offeror, the Government has determined that award of a streamlined acquisition as described above would not only be impossible by the task order expiration date of 29 March 2019 but would most certainly result in unnecessary duplicative costs $104K as described in paragraph 5 above where such costs are already planned for the competitive follow-on task order.

9. Interested Sources: See Market Research paragraph 8 for a list of interested parties.

10. Other Facts: The procurement strategy for APPS Sustainment solicitation SSESR-2049 was a competitive solicitation issued under the restricted suite of the multiple award SSES NEXGEN IDIQ contract which resulted in 7 offers being received for this requirement from AASKI, BAH, CACI, Leidos, ManTech, Nexagen and Sotera. The resultant task order W15P7T-12-D-E010/KX08 was competitively awarded on 30 September 2015 to large business, CACI Technologies, Inc. (CAGE 8D014). Currently, Task Order W15P7T-12-D-E010/KX08 has a total value of $29,887,870.00 across a 42-month PoP including the base and all exercised options for the ADS2 requirement.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in this justification are accurate and complete to the best of my knowledge and belief.

Kevin Venezia, Contracting Officer’s Representative (COR) Signature & Date:

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in this justification are accurate and complete to the best of my knowledge and belief.

Julie Pham, Chief, Applications Division

13. Procuring Contracting Officer Certification/Fair and Reasonable Cost/Price Determination: I hereby certify proposed prices will be determined fair, reasonable and realistic before award by reviewing individual cost elements against current historical billing rates by the incumbent contractor and by comparing total proposed cost to the Government’s independent cost estimate. Since the proposed modification action exceeds the threshold of $2,000,000.00 at

10 U.S.C. 2306a for current cost or pricing data, a certificate will be obtained from the contractor prior to award of the resultant modification.

Kandi McDonald, Procuring Contracting Officer (PCO)

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Kandi McDonald, Procuring Contracting Officer (PCO) Signature & Date

Approval

Based on the foregoing justification, I hereby approve the award of a 6-month extension for Application Development Sustainment Support under task order W15P7T-12-D-E010/KX08 for the estimated amount of $4,950,000.00 using an exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(C) Sole-source, in the interest of economy and efficiency, because it is a logical follow-on to a previously competed order, subject to the availability of funds, and provided that the services described herein have otherwise been authorized for acquisition.

Cynthia Jackson, Command Advocate for Competition