RedactedJandA.docx

Control Number:

Program/ Item: Naval Air System Command (NAVAIR) Depot Maintenance System (NDMS) Suite of Applications Estimated Dollar Value: $7,519,440.00 Control No.: CAO

Program/ Item: Naval Air System Command (NAVAIR) Depot Maintenance System (NDMS) Suite of Applications Estimated Dollar Value: $7,519,440.00 Control No.: CAO-15-0139

Justification Review Document for Other Than Full and Open Competition

Program/Equipment: Naval Air System Command (NAVAIR) Depot Maintenance System (NDMS) Suite of Applications

Authority: 10 U.S.C. 2304(c)(1); FAR 6.302-1(a)(2) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $7,519,440.00

Prepared by:

E-mail: theresa.m.eckstein.civ@mail.mil

Contracting Officer:

Linda A. Schmidt DSN: 562-7357

Contracting Officer Date Reviewed: 7 July 2015

E-Mail: linda.a.schmidt12.civ@mail.mil Technical Representative:

Ross Edward Phone: 301-757-8609

Requirements Representative:

Steve Clenney Phone: 301-757-3011

Title: Program Manager Date Reviewed: 7 July 2015 NAVAIR NDMS Program

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

Acting Center Director

Kimberly A. Kolb DSN: 562-6058

Signature: DATE: 8 July 2015

Legal Counsel DSN: 562-1976

Kenneth C. Gilliland

Signature: DATE: 8 July 2015

Acting Deputy Director DSN: 562-2631

Alex J. Matejka

Signature: DATE: 10 July 2015

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY: U.S. Army Contracting Command – New Jersey

2. DESCRIPTION OF ACTION: Naval Air Systems Command (NAVAIR) Navy Depot Maintenance Systems (NDMS) Program Management Office (PMO), Command Fleet Readiness Center (FRC) 7.2.2, Patuxent River, MD on behalf of the Department of Defense (DoD) has a new contract requirement for a three year Firm-Fixed Price (FFP) and Cost Reimbursement (CR) (no fee) contract with a one year base period and two one-year option periods to provide NAVAIR NDMS Suite of Applications Software Maintenance and Enhancement Support Services. This contract will be funded using Operations and Maintenance Navy (OM&N) funds.

3. DESCRIPTION OF SUPPLIES / SERVICES: This requirement is a follow-on to General Services Administration (GSA) Federal Supply Schedule (FSS) GS-35F-0247M, Order N00104-12-F-Q393 for NAVAIR Software Maintenance and Enhancement Support Services for the NDMS Suite of Applications. The new contract for the commercial services will be a three year FFP and CR (no fee) contract with a one year base and two one-year option periods with a total estimated value of $7,519,440. A follow-on contract to Astadia Corporation (Astadia), 12724 Grand Bay Parkway, Suite 300, Jacksonville, FL 32258-9491 will provide continued support to the NAVAIR NDMS Cecil Field Activity at FRC Southeast (FRCSE) Jacksonville, FL for significant software enhancements to the NAVAIR NDMS applications, and for new development of interfaces between NDMS and Defense Logistics Agency (DLA); Defense Finance Accounting Service (DFAS); Defense Industrial Financial Management System (DIFMS); Fleet Industrial Supply Center – Uniform Automated Data Processing System-Stock Points (FISC U2); Navy ERP; and, Networks Make To Order / Maintenance Repair & Overhaul (MTO/MRO).

Base Realignment and Closure (BRAC) law required the transfer of supply functions from the NAVAIR Depots (NADEPs) to DLA. NAVAIR NDMS requires the transfer of financial data to DFAS. NDMS provides end users with the capability to perform material and inventory management processes through a series of interfaces between NetWORKS MTO/MRO; FISC U2; DLA; DFAS; and, DIFMS applications. The measure of success will be when all physical items, inventory data outlined by BRAC and financial data is successfully transferred between NAVAIR, DLA, and DFAS with zero loss of information or accountability.

The ultimate goal for depot applications in the NDMS suite is to have each FRC look the same and perform its maintenance based upon a single business model. The NDMS Functional Guidance Team (FGT) and Technical Control Group (TCG) reviewed the business and technical value of each application in the NDMS suite currently in production at their respective FRC. As a result, they developed a prioritized list of applications for each FRC and the program which encompasses all production necessary and production related applications and interfaces.

The total estimated value of this acquisition is $7,519,440 and a three year contract is planned. The below table details the Software Maintenance Support and Enhancement Services and Travel estimates for the base year and two one-year option periods.

Contract

Software Maintenance/Enhancement Support Services (FFP)

Travel CR (no fee)

Total Dollar Value

4. AUTHORITY CITED: 10 U.S.C. 2304(c)(1); as implemented in Federal Acquisition Regulation (FAR) 6.302-1(a)(2)Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. REASON FOR AUTHORITY CITED: In accordance with FAR 6.302-1(a)(2)(iii)(B), the use of FAR 6.302-1(a)(2)is appropriate when unacceptable delays in fulfilling the agency’s requirements make the services available from only one source.

Astadia, formerly Idea Integration Corporation, has worked closely with NAVAIR for the past several years in an on-going mission-critical effort of sustaining and maintaining NDMS architectural framework (highly specialized services) that will improve NAVAIR’s ability to support the warfighter through substantially decreased cost and increased throughput at the depot-level maintenance facilities within the FRC. This sustainment and maintenance effort involves design, development and implementation of technical solution to Information /security patches and functional upgrades across the portfolio of 30 NDMS applications and the evolving IA posture governing the operational characteristics in the three tiered environment they are housed in at DISA. Astadia initially provided the critical Software Architecture expertise to design and implement the original NDMS Service Oriented Architecture (SOA) framework. This new framework decomposes existing feature functions of the existing architecture of the 30 applications and transforms them into a more robust, security hardened state of the art SOA designed to exist in a three tiered hardware architecture utilizing advanced server clustering techniques and failover redundancy to provide operational continuity in case of catastrophic failure. During this time, Astadia has accumulated significant breadth and depth of knowledge of the NDMS application suite, its underlying system architecture, and the various complex interdependent system interfaces between NAVAIR and NAVAIR partners such as DFAS and DLA. This work is sensitive as it supports the payroll of over 15 thousand civilians and provides over 50 million dollars in annual material cost consisting of 6 million quantifiable material assets to the Fleet. Currently, Astadia’s personnel contribute over 45 work years of NDMS specific development experience. This experience was attained during the conversion, data normalization, and migration of three autonomous FRC NDMS suite instances, each in a separate data center, into a single integrated web-based One-NDMS Concept of Operations (CONOPS) application suite that is now hosted at a single DISA data center.

To date, contracts valued in excess of $19.0M have been awarded by the Government to Astadia/Idea Integration Corporation for software maintenance and enhancement support services. If a follow-on contract is not awarded to Astadia, it will jeopardize NDMS’s mission critical initiatives to fully implement and optimize the SOA framework and jeopardize the full implementation of the mandated Single Site/Single Instance initiative that will consolidate information processing for the FRCs.

The contractor’s understanding of complex NDMS applications, interfaces and processes, coupled with the fact that Idea Integration Corporation built the SOA framework originally, means that any effort to replace them with another contractor at this critical juncture would result in duplication of costs of approximately $360,000.00 to the Government if experienced personnel had to be replaced and re-trained and these costs would not be recovered through competition, and would result in unacceptable delays of up to twenty-four (24) months to compete the effort and train new personnel.

6. EFFORTS TO OBTAIN COMPETITION:

a. Effective Competition: Effective competition is not anticipated for this requirement as Astadia, formerly known as Idea Integration Corporation, originally built the SOA framework and any effort to replace them with another contractor at this critical juncture repairing over 1200 IA deficiencies; immediate STIG implementation; and the on-going migration to a new Manufacturing Resource Planning II COTS software version project that is scheduled to run through 2016 would result in additional costs to the Government that would not be recovered through competition, but more importantly, would result in unacceptable days to the Agency’s requirement.

b. Subcontracting Competition: Astadia, a large corporation, has submitted their subcontracting plan for review and approval. Their current subcontracting goals for Small Disadvantaged Business; Women-owned Small Business; Historically Underutilized Business Zone; Veteran-owned Small Business; and Service-disabled Veteran-owned Small Business goals have been reviewed by Defense Contract Management Agency, Small Business Center and have been found to be acceptable goals and have recommended acceptance of Astadia’s subcontracting plan for this follow-on contract. While Astadia’s achievement of 94% for subcontracting to Small Businesses has far exceeded the DoD’s Small Business Program Subcontracting Goals for the past five years, DCMA’s Small Business Center has requested justification from the contractor for those areas in which their goals fall short of DoD’s recommended goals for this follow-on effort.

7. ACTIONS TO INCREASE COMPETITION: The NAVAIR NDMS PMO will continue to conduct market research for future requirements on existing and new technologies as it becomes available. As major changes in existing NDMS architecture and implementing technologies are needed to improve capability and are determined to be cost effective, then seeking competitive strategic technical approaches becomes feasible. Based on the results of those evaluations and emerging technologies, opportunities for future requirements competition may exist.

8. MARKET RESEARCH: The following actions have been undertaken to perform market research:

On 22 June 2015, a Sources Sought Notice was posted to the ASFI/FEDBIZOPS page in efforts to increase competition for NDMS Suite of Applications Software Maintenance and Enhancement Support Services. The Sources Sought Notice closed on 26 June 2015 and two responses were received; one from CSF Technologies and another from Astadia. The evaluators rated CSF Technologies technically unacceptable and not capable of meeting the requirement because they did not provide the breadth and depth of the complexity of maintaining a software architecture with many applications nor did they provide similar experience in their capability statement. Astadia was found to be technically acceptable of supporting the requirement based upon their 10 year history with the NDMS program. Additionally, in March 2015, extensive research was conducted by searching the worldwide web for vendors and also on the GSA FSS Advantage website for GSA FSS holders. Astadia does have a GSA FSS; however, as a result of the merger between Astadia and Idea Integration Corporation, the current GSA FSS will expire on 31 July 2015.

9. INTERESTED SOURCES: To date, no other sources have written to express an interest. In addition, any available sources would not be considered for this requirement because Astadia has the in-depth knowledge and expertise to continue critical developmental projects on an uninterrupted basis. The notices required by FAR 5.201 shall be published and all proposals received will be considered.

10. OTHER FACTS:

a. Procurement History: In 2006, the Department of the Navy conducted a competitive source selection for web-based software development on-site in Jacksonville, FL via GSA. Idea Integration Corporation was awarded a GSA FSS order based on full and open competition amongst the GSA FSS holders.

In 2008, the Contracting Center of Excellence, Mission and Installation Contracting Command posted a notice of intent on ASFI/FedBizOps to award a sole source contract. Contractors had to be knowledgeable in specific NAVAIR and NAVSUP applications such as NDMS Material Productivity Tool Supply Transformation Program (MTP STP); Manugistics MATO/MRO; FISC U2; and DFAS DIFMS to refine and assist with the integration and implementation of a J2EE solution using IBM’s Websphere WAS, MQ; Integrated Message Broker and JTEXT. There were no interested vendors that responded with the capability to perform the Government’s requirement. As a result, two GSA FSS orders, W91WAW-08-F-0119 and W91WAW-08-F-0120 were awarded on a sole source basis to Idea Integration Corporation.

In April 2012, a search of keys on GSA on-line library (“Jacksonville, FL”; “web development”, and “government”) produced 13 results in the applicable source/category. Each of these sources was checked to make sure on-site programming professional services were offered in Jacksonville, and that functions close to what Idea Integration Corporation provided were offered. One vendor was disqualified because they offered no programming professional services and was a hardware/equipment reseller. The rest were recorded in order to gauge possible competitors and labor rate reasonableness. An important note: Idea Integration Corporation was the only contractor of the selected group that appeared when the exact phrase “enterprise application integration” was selected – a very important discriminating factor in the selection. However, to promote competition on GSA amongst the FSS holders, the current GSA FSS order was solicited unrestricted on GSA and only the incumbent, Idea Integration Corporation submitted a proposal for the follow-on services, resulting in GSA FSS order N00104-12-F-Q393, which expires 31 July 2015. The following table depicts the last four contracts awarded to Astadia/Idea Integration Corporation.

b. Other Facts: N/A

11. TECHNICAL CERTIFICATION:

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

//signed//

12. REQUIREMENTS CERTIFICATION:

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

//signed//

Name: Steve Clenney Date: 7 July 2015 Title: Program Manager, NAVAIR NDMS Program

13. FAIR AND REASONABLE COST DETERMINATION:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based upon price analysis and comparison to the Independent Government Cost Estimate. In accordance with FAR 15.403-1(b)(3), Certified Cost and Pricing Data will not be requested for this effort.

14. CONTRACTING OFFICER CERTIFICATION:

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

Name: Linda A. Schmidt Date: 7 July 2015 Title: Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the procurement for NAVAIR Software Maintenance and Enhancement Support Services for the NDMS Suite of Applications on an other than full and open competition basis pursuant to the authority of 10 U.S.C. Section 2304(c)(1), as implemented by FAR 6.302-1(a)(2) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements; subject to availability of funds; and, provided that the services and property herein described have otherwise been authorized for acquisition.

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