RedactedACC9AA904.pdf

Limited Source Justification

W56HZV-09-A-A904 0032

DEPARTMENT OF THE ARMY

Omnibus III Task Order: W56HZV-09-A-A904 0032

1. Contracting Activity: The United States Army Contracting Command -Warren (ACC-WRN) is the procuring activity for this action.

2. Description of Action: ACC-WRN proposes a logical follow on direct award to Jacobs

Technology as a modification under task order number W56HZV-09-A-A904 0032. Jacobs

Technology is a Blanket Purchase Agreement (BPA) holder under the OMNIBUS III Multiple

Award Task Order (MATO) Contract.

The period of performance of the current task order will be increased by one 12 month ordering period and one 6 month option period, increasing the total contract period of performance from a total of 3 years to a total of 4 years and 6 months. In accordance with the Independent

Government Cost Estimate (IGCE), ACC-WRN estimates the total contract value to increase by

$603,319.40 from $3,148,334.92 to a total of $3,751,654.32.

The logical follow on effort will be a continuance of the current contract type; a Firm-Fixed

Price (FFP), Level of Effort (LOE) type contract utilizing discounted fixed labor rates from the contractor’s General Services Administration (GSA) schedule.

3. Description of Services: The contractor is a subject matter expert who provides program support and recommendations to the Department of Army System Coordinator (DASC), Program

Manager Armored Brigade Combat Team (PM ABCT) and Assistant Secretary of the Army for

Acquisition, Logistics, and Technology (ASA (ALT)) leadership regarding cost, schedule, risk, economic, and technical issues affecting successful PM ABCT program execution. The contractor establishes, facilitates, and maintains close coordination with the Program Executive

Offices (PEOs), Major Army Commands (MACOMs), supporting staffs, and systems contractors; consulting with ASA(ALT) Senior Leadership to provide recommendations to resolve conflicting issues between Headquarters, Department Of The Army (HQDA) and PM

ABCT for the purpose of ensuring aligned and synchronized positions on acquisition issues.

Additionally, the contractor ensures programmatic and budgetary information is properly communicated and supported. Expertise is also provided in a support capacity for the following on-going projects:

a. Combat Vehicle Industrial Base Realignment:

Preparation of white papers/briefings and other staffing actions for Secretary of The

Army and senior staff within Office of The Secretary of Defense (OSD) on the realignment of the combat vehicle industrial base, including depots. Initial reports to

Congress are due in June 2013 and are currently in the process of being prepared for

Congress. Briefings and follow-up actions to all of the Professional Staff Members

(PSMs) will continue for at least 12 – 24 months afterwards. The contractor also supports maintaining and advising senior leadership and congressional staff on ongoing and potential Foreign Military Sales (FMS) and its impact on workload within the Industrial

Base.

b. Budget Analysis and Staffing:

The contractor supports the development of detailed program planning through Fiscal

Year (FY) 14 in order to advise Resource Management (G8) on budget requirements and budget reduction impacts. The budget uncertainties and the effects of sequestration require alternative scenarios to be developed on an on-going basis. Many of these budget drills are “close hold” within ASA(ALT) requiring independent detailed knowledge of the program. Such budget gyrations are expected to continue through FY14.

c. Army Force Structure Planning and Impact Assessments:

Efforts continue to assess alternatives for the Abrams program against various Army force structure alternatives. Detailed knowledge of “close hold” Army plans along with program knowledge is necessary to continue Course of Alternatives (COA) development efforts, including working with the Readiness Integration Directorate (Operations and

Plans) (G3) to staff new Analysis of Alternatives (AOA) for the tank fleet.

d. Special Armor:

Significant efforts are on-going and expected to last through FY15 on the future of the

Special Armor Facility, a Classified Program requiring Special Access Clearance.

4. Authority Cited: This acquisition is conducted pursuant to the authority of FAR Part 8.405-

6(a)(1)(i)(C) “Limited Sources” pertaining to Multiple Award Schedule Program; in the interest of economy and efficiency as a logical follow-on.

5. Reason for Authority Cited: In accordance with FAR 8.405-6(c), Limited Sources, extending the existing sole source task order via a logical follow-on is in the best interest of the

Government to preserve economy and efficiency. The original Blanket Purchase Agreement

(BPA) W56HZV-09-A-A904 was issued on a competitive basis in accordance with Federal

Supply Schedule ordering procedures. The current contract vehicle, Omnibus III, approved for use in the awarding of commercial services for PM ABCT is set to expire 31 December 2013.

From this point forward, task orders awarded competitively until the end of Omnibus III will only receive an 18 month total period of performance versus the standard and more economical 3 year period of performance.

ACC-WRN does not anticipate award of the Strategic Service Solutions (S3) contract, the successor to the Omnibus III, until April 2014. An average of 6 to 8 months to compete and award a task order would result in the earliest possible task order awards on the S3 contract occurring in the October-November 2014 time frame. An 18 month extension to the current task order, ending in June 2013, would provide a bridge to the S3 contract and create a reasonable time frame to construct the next competitive action in a more efficient and economical manner than is currently available.

Due to the complexity of the requirement and the knowledge required to be assimilated by the contractor it is estimated, by Government subject matter experts, that it would take a minimum of 1 year in order for a new contractor to effectively perform this effort. The abbreviated period of performance available for new competitions on Omnibus III would only allow for six months of effective performance before the requirement would have to be awarded again. This would create a duplicative training cost of approximately $400,000, based on current labor rates. For the PM ABCT program, this lag in effective service would result in operational disruptions in

Afghanistan and Iraq, which would have a direct effect on the soldier. Duplicative costs of

$400,000, which are more than the estimated cost of this procurement, make it highly unlikely or likely impossible that the Government will recover the costs through subsequent competition.

6. Market Research: The logical follow-on exception, FAR PART 8.405-6(a)(1)(i)(C), Limited Sources, permits the continuation of services to the incumbent on the basis of economy and efficiency. Other sources are capable of doing this work. However, market research has indicated that no other contract mechanism is available to accommodate this requirement for the required period of performance without incurring a duplicative cost of approximately $400,000 which is highly unlikely to be recovered through competition.

7. Other Facts: Jacobs Technology has been performing this effort successfully since December

2008 and has been intricately involved with the development of PM ABCT programs. Jacobs

Technology has a level of expertise in three critical areas: the complexity of fiscal rules and processes; in depth involvement in the evolution of the program requirements since its inception;

and in depth knowledge of key personnel involved in the processes. Jacobs Technology also possesses the Special Access Clearance required to support the Special Armor efforts, which would take a new contractor 6-9 months to obtain.

8. Actions to Increase Competition: Duplicative training and procurement costs and a shortened period of performance on the currently available contract mechanism necessitate the extension of this task order in the interest of economy and efficiency. However, competition will resume on this requirement when the S3 or other approved contract vehicle is available.

9. Technical/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.

Name: Patrick Macheske

Title: Director, Acquisition Management Division, PM-ABCT

Date: 3 May 2013

Signature: //s//

10. Contracting Officer’s Best Value Determination: I hereby determine that this order represents the best value consistent with FAR 8.404(d) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the

Government’s needs.

Name: Raena R. Swanson

Title: Contracting Officer

Signature: //RRS// 13 May 2013

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

Name: Raena R. Swanson

Title: Contracting Officer

Signature: //RRS// 13 May 2013

Approval of Limited Sources Justification

Based upon the foregoing justification, I hereby approve the procurement of PM ABCT program support by Jacobs Technology, Inc. with a total estimated dollar value of $603,319.40 (inclusive of one base year and one six month option) pursuant to the authority of 40 U.S.C. 501 and FAR

8.405-6(a)(1)(i)(C), subject to availability of funds, and provided that the supplies or services herein described have otherwise been authorized for acquisition.

Date: _11 Jun 13____________ Signature: _________________

Raena R. Swanson

Contracting Officer