LSJ_signed_on_18_February_2017_-_Redacted_Copy_(1).pdf

Control Number: W31P4Q-05-A-0031TO0037

SOURCE SELECTION INFORMATION -SEE FAR 3.104

LIMITED SOURCES JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

FOR

SYSTEMS AND COMPUTER RESOURCES SUPPORT (SCRS)

AVIATION AND MISSILE RESEARCH, DEVELOPMENT AND ENGINEERING

CENTER (AMRDEC)

SOFTWARE ENGINEERING DIRECTORATE (SED)

1. Contracting Activity: United States (U.S.) Army Contracting Command- Redstone (ACC-R), Enterprise Services Solution Directorate, CCAM-ESS, Redstone Arsenal, Alabama 35898-5000.

2. Description of Action: The purpose of this action is to modify the existing Army Aviation and Missile Command Expedited Professional and Engineering Support Services (AMCOM EXPRESS) Blanket Purchase Agreement (BPA) W31P4Q-05-A-003 l Task Order (TO) 0037, Science Applications International Corporation (SAIC), 1710 SAIC Drive, McLean, Virginia 22102-3702, phone (703) 676-5681, Commercial and Government Entity code 6XWA8, by increasing the current ceiling by $398,185,619.92 from $1,593,892,366.16 to $1,992,077,986.08, and a period of performance extension from 20 February 2017 to 20 February 2018 for W31 P4Q-05-A-0031 TO 0037 and shall be reflected across all continued administrative TOs W31P4Q-05-A-0031TO0038 and new BPA W31P4Q-15-A-0024 TOs 0001and0002 (further information provided in paragraph 10). SAIC's General Services Administration (GSA) Professional Services Schedule (PSS) is GS-OOF-002CA.

The added capacity results in an increase of3,866,382 labor hours from 16,133,609 to 19,999,991, an increase of$386,638,236.94 labor dollars from $1,514,892,366.16 to $1,901,530,603.10, an increase of$11,149,197.36 travel dollars from $70,080,000.00 to $81,229,197.36, and an increase of$398,185.62 material dollars from $8,920,000.00 to $9,318,185.62, on the basis of other than full and open competition.

The task order is fixed price level-of-effort which is 95.75% of total dollars on the TO and with cost reimbursement for travel, material and other direct costs which are 4.25% of total dollars on the TO. The task order was initially procured as a competitive action under the AMCOM EXPRESS with an award date of21February2014 and a not-to-exceed (NTE) ceiling of $836,092,366.16. A total of 12 firms were solicited under the AM COM EXPRESS Multiple Award Technical Domain BPAs.

SOURCE SELECTION lNFORMA TION - SEE FAR 3.104

This action will be funded with Research, Development, Test, and Evaluation (RDTE) funds, Operation and Maintenance, Army (OMA) funds, Aviation Procurement, Army (AP A) funds, and Foreign Military Sales (FMS) Administration funds. Services are to be provided on a fixed price level of effort for the labor Contract Line Items Numbers (CLINs) and cost reimbursement basis for travel, material and other direct cost CLIN s.

3. Description of Services: The AMRDEC SED requests an increase of $398,185,619.92 to the total dollar ceiling, 3,866,382 to the labor hour ceiling, $386,638,236.94 to the labor dollar ceiling, $11,149,197.36 to the travel dollar ceiling, and of$398,185.62 to the material dollar ceiling, and a period of performance extension from 20 February 2017 to 20 February 2018 broken down as follows:

Breakout Per Period $Value #of hours

Base Period: 20 February 2017 to 31 August 2017 $232,310,091.66 2,255,731

Option 1: 1 September 2017 to 30 November 2017 $122,146,665.80 1,186,044

Option 2: 1December2017 to 20 February 2018 $ 43,728,862.46 424,607

TOTAL $398,185,619.92 3,866,382

SED based the dollar values and labor hours for the above breakout/option periods on historical burn rates for the current SCRS Task Order. The dollars were calculated by dividing the percentage of tasks awarded per domain (Battlefield, Strategic, and Virtual) by the average historical SCRS bum rate consistent with each directed period ( 6 months for the Base and 2 - 3 month option periods). The bum rate is meant to convey a true picture of the bum rate history for the SCRS program. Therefore, the dollars and hours fluctuate based on the historical bum rate.

SED will transition contract duties for the new SCRS contract actions from ACC-R to GSA's Federal Acquisition Service. The GSA Federal Acquisition Service team that is currently providing contracting support for the new SCRS contracts has determined that the scheduled Task Order Request (solicitation) and award dates (February 2017, May 2017 and August 2017) stated in Paragraph 7 of this document will be met with minimal, if any, slippage in schedule.

Therefore, it is estimated that Options 1 and 2 stated above will not need to be exercised.

However, this option has been included in the event that slippage does occur so that the SCRS requirements will be fully supported until the new GSA contracts are in place.

The contractor shall support SED's mission as an Army Life Cycle Software Engineering Center in providing engineering services in the areas of computer hardware/software technology;

Independent Verification and Validation (IV & V); aviation flight safety and airworthiness

Control Number: W31P4Q-05-A-003 l TO 0037

SOURCE SELECTION INFORMATION - SEE FAR 3.104

software assessments; software development and sustainment; information assurance/cyber security; interoperability engineering and test, and software fielding/new equipment training in support for the U.S. Army, Department of Defense (DoD), Program Executive Offices (PEOs), Missile Defense Agency (MDA), other agencies, and private industry. The contractor shall provide personnel, management, training and travel except as provided by the Government, to perform all support functions under the cognizance of the SED in the Continental United States (CONUS) and Outside CONUS locations to include deployment to theaters of operation in the performance of this requirement. The contractor will provide, as an independent entity, and not as an agent or employee of the Government, contractor supervision, skilled contractor labor, incidental materials and other related services necessary to provide the support required.

4. Authoritv Cited: This limited sources justification is conducted under the Multiple Award Schedule Program. The authority used for this action is Title III of the Federal Property and Administrative Services Act of 1949 (Title 41 United States Code (U.S.C.) Section 251, et. Seq) and Title 40 U.S.C Section 501, Services for Executive Agencies as implemented by Federal Acquisition Regulation (FAR) 8.405-6(a)(l )(i)(B), "Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized."

5. Reason for Authoritv Cited: It is proposed that the prime contractor, SAIC, continue to provide support under W31P4Q-05-A-0031 TO 0037 and all administrative TOs through the implementation of a ceiling increase and a period of performance extension. This limited-source justification regarding SAIC supports the authority cited above in that the increase in ceiling (labor hours, labor dollar, travel dollar and material dollar) and period of performance increase can only be performed at the level of quality required by the incumbent contractor under the existing Federal Supply Schedule order which was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original task order ceiling was based on historical data obtained from burn rates under previous task orders and anticipated customer requirements. The task order is issued on a level of effort basis because the Government cannot firmly predict the tasks, efforts, and required outcomes that the contractor will be required to perform. Requirements increase or decrease as programs move into new phases oflife cycles. Because of the nature of work, in-scope increases to requirements were unforeseen by the SED, resulting in utilization of the ceiling at a faster rate than estimated. A technical data package is not required to perform the services under this action.

This action allows for continuous and uninterrupted support of current efforts while the requiring element, AMRDEC SED, pursues additional services through assisted acquisition efforts to be competed under the General Services Administration One Acquisition Solution for

Integrated Services (OASIS) vehicle. An award to any other source for current efforts would result in disruption to the essential engineering services currently provided under the existing task order by the incumbent contractor, and would result in unacceptable delays in fulfilling mission requirements. The continued services and support provided are essential to critical AMRDEC SED efforts in support of multiple DoD programs and customers on behalf of the warfighter.

The incumbent contractor has the necessary management, supervision, and labor force in place to successfully continue performance of the services without interruption. The current ACC-R procurement acquisition lead time for competitive actions over $SOM is 550 days. Due to the magnitude and complexity of the requirement, there is not sufficient time to prepare a solicitation, request for proposal, conduct a source selection, and award a contract without experiencing a disruption of services. Significant efforts have been expended to restructure and derive requirements. The prime objective to obtain effective competition has centered around engaging with industry. Many efforts to engage with industry have been undertaken to include one-on-one meetings as well as two, two-day Industry events. A website has been deployed to provide bi-directional communication with Industry. In order to communicate to industry the requirements, the context of the requirements, work environments, and scope of the efforts, much effort was required. Developing new processes has been needed in collecting, reviewing, releasing and clarifying of the community needed information. Much of this information was unavailable or distributed. These requirements are complex and expansive. Many contracting considerations have also had to be addressed because of moving to a new contract vehicle not necessarily tailored for the AM COM environment. AM COM EXPRESS Task Order clauses had to be reconciled with GSA OASIS base TO clauses. All of these issues have considerable impact on future execution. The incumbent contractor is the only logical interim choice to ensure continuity of services. If an increase is not allowed, SED will not have the capability to perform mission essential tasks, numerous Government requirements will not be met, and the impact will be felt all the way down to the warfighter in the field who requires the benefit of the advances and improvements provided through SED's efforts.

The AMRDEC SED is one of the three Life Cycle Software Engineering Centers. The AMRDEC SED serves the development community at Redstone as well as MDA, U.S. Army Space and Missile Defense Command (SMDC) and other DoD entities. The SED performs a variety of roles dependent on the Program Manager's (PM) acquisition strategy and engineering expertise needed. The SED will perform as prime developer, IV &V, pre-Milestone Decision support, test execution, software sustainment, product improvement programs, requirements development, interoperability certification and other required critical path acquisition functions.

The support to each PM is tailored to their specific acquisition needs. The main support mechanism for achieving these acquisition support services is the SCRS TO executed under the

AMCOM EXPRESS BPA.

There are many other programs (138 in all) that are dependent on the SCRS TO. Each has estimated cost and program schedule impacts of up to two years. The totality of impact is approximately $1.lB. The most significant programs that are supported by the SED SCRS TO are identified below, along with expected impacts that would result if a gap in coverage occurs on the SCRS TO.

The rationale below includes reference to cost impacts for each system identified. Cost impacts include the costs of activities that a PM has allocated to the SED for execution. This is the actual cost of services that will not be able to be rendered but must be performed.

Additionally, cost impacts include technical, programmatic, and administrative costs that would be incurred by the PM to secure services elsewhere. These cost impacts do not include the ripple cost effects of missing a critical event in a system's lifecycle where the SED task is not completed or is delayed.

Integrated Air and Missile Defense (IAMD)

IFPC Increment 2 - Intercept (IFPC Inc 2-I)

PATRIOT Missile System

Multiple Launch Rocket System (MLRS) f

Bradley Armored Fighting Vehicle (AFV)

THAAD

MDA BMDS Test and Infrastructure Support

Control Number: W31P4Q-05-A-0031 TO 0037

MDASensors

MDA Ground Based Midcourse Defense (GMD)'

Improved Data Modem (IDM)

Army Game Studio (AGS)

Control Number: W3 IP4Q-05-A-0031 TO 0037

Materiel - Common Operating Picture (M-COP)

6. Efforts to Obtain Competition:

a. Effective Competition: This effort was published in the Competition Advocate's Shopping List (CASL) on 8 April 2016 and was revised on I December 2016. SAIC is the only known contractor capable of meeting the Government's requirement within schedule and budget constraints and is the only contractor with the necessary management, supervision, and labor force in place to successfully continue performance without interruptions.

b. Subcontracting Competition: Subcontracting clauses FAR 52.219-14 Limitations on Subcontracting, 52.219-9 Small Business Subcontracting Plan, 52.219-16 Liquidated Damages -

Subcontracting Plan, and 52.219-8 Utilization of Small Business Concerns are included in the current BP A and will be applicable during the extension period.

7. Actions to Increase Competition: At the time of the previously signed Limited Sources Justification (LSJ) on 11 August 2015, significant efforts had been underway by the AMRDEC SED and the ACC-R to develop a path ahead to provide increased competition for this requirement. Commencing in March of2014, the SED, in concert with the ACC-R, conducted an Integrated Process Team (IPT), appointed a Greybeard Panel, and enlisted Defense Acquisition University (DAU) and General Accountability Office (GAO) subject matter experts to review the effort and suggest a path ahead. Senior management from the AMRDEC and the

ACC-R had been personally engaged to evaluate alternative courses of action to encourage and increase competition for this effort. The Government was seeking other sources and alternatives that would foster more effective competition on future requirements. In doing this, the Government generated three requirements, along functional lines, from the current effort in order to obtain competition as follows: (I) Battlefield Systems Engineering Support (BSES) -providing fielded technological resources to the warfighter on the battlefield within the designated area of responsibility including supporting systems; (2) Strategic Systems Engineering Support (SSES) - operational employment, spanning multiple areas of responsibility, and involving concurrent synchronous operations across combatant commanders and; (3) Virtual Systems Engineering Support (VSES) - virtual environments and interactive multimedia, which serve as the primary driver of system performance and operation.

The contracting activity released a Request for Information (RFI) entitled W31P4Ql5RFISCRS01 to industry 1November2014 via FedBizOpps.

The Government conducted an assessment of all responses and determined there were sufficient qualified firms to conduct three separate competitive acquisitions. After the previous LSJ was signed, a Service Acquisition Workshop (SAW) to support the three efforts was facilitated by the DAU in November 2015 with a follow-on session in January 2016. On February 26, 2016, the Principal Assistant Responsible for Contracting, Army Contracting Command - Redstone signed a Determination of Best Procurement Approach which stated that the use of the acquisition services and contract of the GSA Federal Acquisition Services for the acquisition of the BSES, SSES and VSES efforts represented the best procurement approach for, and was in the best interest of the Department of the Army.

Since the signing of the Best Procurement Approach, the SED has dedicated a team to refine the Performance Work Statement and associated documents. Significant efforts have been expended to restructure and derive requirements. The prime objective to obtain effective competition has centered around engaging with industry. Many efforts to engage with industry have been undertaken to include one-on-one meetings as well as two, two-day Industry events.

A website has been deployed to provide bi-directional communication with Industry. In order to communicate to industry the requirements, the context of the requirements, work environments, and scope of the efforts, much effort was required. Developing new processes has been needed in collecting, reviewing, releasing and clarifying of the community needed information. Much of this information was unavailable or distributed. These requirements are complex and expansive.

Many contracting considerations have also had to be addressed because of moving to a new contract vehicle not necessarily tailored for the AM COM environment. AM COM EXPRESS Task Order clauses had to be reconciled with GSA OASIS base TO clauses. All of these issues have considerable impact on future execution.

The Task Order Request for the VSES was released in November 2016 with an estimated contract award in February 2017. The Task Order Request for the SSES was released in January 2017 with an estimated contract award in May 2017. The estimated Task Order Request release for the BSES is March 2017 with an estimated contract award in August 2017. The GSA Federal Acquisition Service team that is currently providing contracting support for the new SCRS contracts has determined that the scheduled Task Order Request and award dates stated above will be met with minimal, if any, slippage in schedule. Therefore, it is estimated that Options 1 and 2 stated in Paragraph 3 of this LSJ will not need to be exercised. However, this option has been included in the event that slippage does occur so that the SCRS requirements will be fully supported until the new GSA contracts are in place. As these dates are only estimates, the incumbent contractor currently providing support across the breadth of the SCRS requirements is the only source capable of providing the supplies or services at the level of quality required, thus ensuring continuity of services if the dates are not met. An Acquisition Strategy is no longer required due to an update to the Army Federal Acquisition Regulation Supplement (AFARS) 5137.590-2(d), and the Acquisition Plan is being coordinated for final signatures by GSA.

8. Market Research: Market Research has been performed in accordance with FAR 10. 002.

On 8 April 2016, this effort was published in the CASL (record number 111385), and Market Research Report/Commerciality Determination (MRR-CD) record number 161291 was submitted to procurement but was not signed by the Contracting Officer. The CASL was later revised on 3 November 2016 to update the dollar value and on 1December2016 to clearly state the Task Order number and Period of Performance. MRR-CD record number 162296 was generated using the same information as the original MRR-CD record number 161291 and was signed by the Contracting Officer on 17 August 2016. MRR-CD record number 170149 updated the dollar values on 3 November 2016, and MRR-CD record number 170274 added the number of labor hours and period of performance on 1 December 2016. Market Research was conducted by senior engineers within the requiring organization, to include, a Division Chief, and a Business Analyst (Procurement). The market research was conducted during the December 2014 through March 2016 timeframe. The efforts delineated in paragraph seven above were considered in the market research to support the increases for this action. The purpose of the research noted above was to analyze if the current requirement could be competed under a new strategy that would improve competition. This included an IPT, a Greybeard Panel, DAU and

GAO.

The government considered other potential sources on the AM COM EXPRESS Technical Domain BP As, but no other sources possessed the necessary management, supervision and labor forces to successfully continue performance without interruptions while meeting the need within the budget and time constraints. When the SCRS work was re-competed in 2014 and W31P4Q-05-A-003 l 0037 was awarded, only one proposal was received in response to the Task Order Request for Quote indicating that SAIC was the only Prime BP A holder in the EXPRESS Program with the capability to perform the services.

With regard to the ceiling and period of performance increase supported by this LSJ, both program experience and personal knowledge of the contracting and requirements personnel

Control Number: W3 l P4Q-05-A-003 l TO 0037 supporting the acquisition substantiate that no other source is capable of mobilizing in time to meet this requirement in the time frame allocated.

9. Interested Sources: In accordance with FAR 5.202(a)(l l), the proposed contract action is made under the terms of an existing task order that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207 with respect to the current proposed contract action; therefore, this requirement will not be synopsized. However, under FAR 8.405-6(a)(2)(i) and (iii), a redacted version of the limited source justification will be posted within !4days after executing the action. Any bids or proposals received shall be considered.

10. Other Facts:

a. Procurement History

W3 !P4Q-05-A-003 l <Blanket Purchase Agreement) TO 0037, Systems and Computer Resources Support, was awarded a ceiling increase 18 August 2015 on Modification BS in the amount of $757,800,000.00 from $836,092,366.16 to $1,593,892,366.16 on a sole source basis under the authority of Section 803 of the National Defense Authorization Act of 2002 (PL I 07-107) as implemented by FAR 8.405-6(a)(l )(i)(B).

The period of performance was through 20 February 2017, and an extension to the period of performance was not required with this action. After the ceiling increase was approved TO 0038 was initialized for administrative necessity due to the depletion of all available Accounting Classification Reference Numbers (ACRNs) on TO 0037. During this time BPA W31P4Q-15- A-0024 was created to replace W3 IP4Q-05-A-003 ! due to GSA schedule migration from Professional Engineering Services GS-23F-0107J to Professional Services Schedule GS-OOF- 002CA. Upon use of all ACRNs on W3 IP4Q-05-A-003 l TO 0038, TOs 0001 and 0002 under new BPA W3 IP4Q-l 5-A-0024 were initialized for continued administrative purposes.

TO 0037, Systems and Computer Resources Support, was awarded to SAIC with an effective date of21February2014 and a period of performance through 20 February 2017. The task order has a ceiling of 8,404,577 labor hours, $795,492,366.16 labor dollars, $36,000,000.00 travel dollars, and $4,600,000.00 material dollars, resulting in a total ceiling amount of $836,092,366.16. The TO was awarded using fair opportunity procedures under AMCOM EXPRESS (a suite of Multiple Award BP As); however, only one quotation was received.

The EXPRESS program utilizes FAR 8.4, entitled Federal Supply Schedules. EXPRESS utilizes previously awarded GSA schedules which have already been determined fair and reasonable by

GSA and further competed and discounted at the BPA level.

Action to ensure competition for follow-on procurements has been taken as described in section

7.

This list below contains previous task orders competed under the AM COM EXPRESS Program BP A for the same requirement. The periods of performance overlap on these task orders to allow for orderly transition from one task order to the next as ceiling is exhausted. Once a new task order is in place, new work is placed on the new task order and ceases to be placed on the prior task order. Prior task orders remains active only to allow for completion of ongoing efforts or non-severable services.

(1) TO 0032, Systems and Computer Resources Support, was awarded to SAIC with an effective date of 14 February 2012 and a period of performance through 13 February 2015. The task order was awarded with a ceiling of 8,325,414 labor hours, $788,144,602.86 labor dollars, $18,600,000.00 travel dollars, and $13,430,333.33 material dollars, resulting in a total ceiling amount of$820,174,936.19. The TO was awarded using fair opportunity procedures under AM COM EXPRESS; however, only one quotation was received.

(2) TO 0025, Systems and Computer Resources Support, was awarded to SAIC with an effective date of 30 September 2009 and a period of performance through 29 September 2014. The task order was awarded with a ceiling of 8,381,180 labor hours, $799,338,632.68 labor dollars, $42,000,000.00 travel dollars, and $26,997,000.00 material dollars, resulting in a total ceiling amount of $848,335,632.68. The TO was awarded using fair opportunity procedures under AM COM EXPRESS; however, only one quotation was received.

(3) TO 0008, Systems and Computer Resources Support, was awarded to SAIC with an effective date of7 July 2005 and a period of performance through 6 July 2010. The task order was awarded with a ceiling of7,726,824 labor hours, $633,810,079.75 labor dollars, $12,618,210.00 travel dollars, and $60,564,904.00 material dollars, resulting in a ceiling amount of $706,993,193.75. The TO was awarded using fair opportunity procedures under AMCOM EXPRESS; two quotations were received.

DAAHOl-OO-D-0013 (Blanket Purchase Agreement)

TO 0010, Systems and Computer Resources Support, was awarded to SAIC with an effective date of 27 September 2000 and a period of performance through 25 April 2005. The task order was awarded with a ceiling of 6, 181,689 labor hours, $392,396,060.52 labor dollars, $10,094,569.00 travel dollars, and $48,239,163.00 material dollars, resulting in a ceiling amount of $450, 729,792.52. The TO was awarded using fair opportunity procedures under AM COM EXPRESS; four quotations were received.

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.

12. Requirement 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.

13. Fair and Reasonable Cost Determination: I hereby detennine that this modification represents the best value to the Government in accordance with FAR 8.405-6(c)(2)(v).

Additionally, I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable, based upon price history experienced on the existing contract and independent Government estimates of the work needed during the interim time period preceding award of the next competitively placed contract.

14. Contracting Officer Certification:

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

Approval

Based on the foregoing justification, I hereby approve the ceiling increase for Systems and Computer Resources Support to the Software Engineering Directorate, Aviation Missile Research, Development and Engineering Center, from Science Applications International Corporation, Commercial and Government Entity code 6XW AS, under Blanket Purchase Agreement W31P4Q-05-A-0031, Task Order 0037, on an other than full and open competition basis pursuant to the authority of Title III of the Federal Property and Administrative Services Act of 1949 (Title 41 United States Code (U.S.C.), Section 251, et Seq.) and Title 40 U .S.C, Section 501, Services for Executive Agencies, as implemented by Federal Acquisition Regulation 8.405-6 (a)(l)(i)(B), "Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized." A bilateral modification will be issued to increase the Task Order ceiling by

· $398, 185,619.92, with an addition of 3,866,382 labor hours and a period of performance extension from 20 February 2017 to 20 February 2018. The approval is subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.