ACC1933.pdf

CMO Control No: 14-155

Department of the Army Limited Source Justification for GSA Purchases above the Simplified Acquisition Threshold

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

2. Description of Action: This limited-source justification authorizes the use of an exception to the fair opportunity process for awarding a new task order for support services under the OMNIBUS III multiple-award blanket purchase agreement (BPA).

The new task order is a logical follow-on to BPA no. W56HZV-09-A-A910, task order 0006, which was awarded to PD Systems, Inc. (CAGE: 4V8V7, DUNS: 806797317) on 29 March 2013, using Federal Supply Schedule (FSS) GS-10F-0078U. The new task order will be firm-fixed price and cover up to 42 months of requirements; broken into a 12-month base period, two 12-month options, and one 6-month option. The base year will be funded with Fiscal Year 2015 Operation and Maintenance – Army (OMA) funds.

The options, if exercised, would be funded with appropriate Fiscal Year OMA funding at the time of exercise.

3. Description of the Supply/Service: These support services are for the Logistics Information Warehouse Integrated-Logistics Analysis Program (LIW-ILAP) effort within the Army’s Integrated Logistic Support Center (ILSC). The LIW-ILAP effort provides vital logistics reporting documentation and capabilities to the various Program Management Offices that the ILSC serves. The service enables the collation of data from multiple disparate Army interfaces and databases. Contractor personnel compile data from these sources into reports, unifying it and enabling product managers for multiple tactical vehicle platforms to plan for spare parts usage, maintenance actions, and other critical activities to keep the vehicle fleet in a state of operational readiness.

The estimated total dollar value, including options, for this action is $1.1M.

4. Authority Cited: This acquisition is conducted under the authority of the Multiple Award Schedule Program, 41 U.S.C. 152(3), Competitive Procedures, and in accordance with FAR 8.405-6, Limited Sources. Specifically, FAR 8.405-6(a)(1)(i)(C) provides that competition may be restricted for orders placed under FSSs where, in the interest of economy and efficiency, the new work is a logical follow-on to an original FSS order, provided that the original order was placed in accordance with the applicable FSS ordering procedures, and the original order was not previously issued under sole-source or limited-sources procedures.

5. Reason for Authority Cited: The proposed logical follow-on extension is the most economical and efficient method of procurement for the Government.

a. Background: At the time of award of the original task order 0006 under BPA

no. W56HZV-09-A-A910, all Omnibus III multiple-award BPA holders were given a fair opportunity to be considered for task order award in accordance with FAR

8.405-3(c), Ordering from BPAs. This follow-on task order is in the best interest of efficiency and economy. The Government does not have experienced personnel available to perform the vital work PD Systems is performing nor does the Government have a system of reports that could be utilized in the place of the existing reports generated by PD Systems. The incumbent contractor has been instrumental in the development of ILAP-LIW documentation and maintaining the logistics reporting schedules for the various ILAP-LIW customers. Any new contractor would not have the knowledge base or experience with the ILAP-LIW program to complete the documents as required, but would have to expend additional time and money develop and implement the necessary information systems infrastructure to allow the multiple databases to have their data collated.

b. Efficiency: The current contractor has developed a system and knowledge in accessing information in the Army databases and compiling reports that is reflected in the speed, accuracy, and proficiency in which they compile reports.

Over the term of the current task order, the contractor has improved the cycle time of reports by more than 25%.

Further, the Program Managers the ILSC supports have come to rely on the improved report cycle times by PD Systems, so a change in contractors would create delays with multiple program offices in planning and assessing maintenance cycles upon which the data provided by the LIW reports is based.

The productivity loss while the new contractor achieves the proficiency by way of the learning curve in report production among the ILSC and its supported Program Offices is estimated at 3,000 man-hours over the first year of contract performance.

The TACOM Integrated Logistics Center (ILSC) had been intending to migrate to a new Army Enterprise System to compile these reports. That system is being developed by another Army entity. The new system was intended to be available prior to the expiration of this task order (originally 30 June 2014), but the ILSC was informed only recently that the system would not be available until the 2017 - 18 timeframe at the earliest. As a result, an extension to the current agreement is the most efficient method to continue performance of this requirement. While a new contractor could implement a system and compile reports, they would be unable to do so for at least seven months leading to a minimum break in service of five months constituting an unacceptable delay in the provision of these reports, which play a key role in projecting maintenance, spare parts and other requirements to maintain critical ground vehicle systems.

In addition, the new contractor’s personnel would have limited time to test the system leading to extended cycle times for report production for at least the first year of contract performance. The estimate is a productivity loss within the ILSC and supported programs of 2,000 man-hours.

c. Economy: A new contractor would have to develop and implement infrastructure to access and compile data from the multiple databases and that would be a duplication of costs already spent by the incumbent contractor.

Based on an analysis of the hardware and software the current contractor has put into place to meet this requirement, the duplicated costs would be approximately $200,000. Any competing offeror would have to propose these costs as well as the training of personnel estimated at $150,000. Additional lost productivity among Government personnel from increased cycle times is estimated at $300,000. Estimates provided using detail received from other Government subject matter experts, to include technical personnel in Huntsville, Alabama as well as the current Contracting Officer’s Representative.

In total, the Government would avoid duplication of $650,000 in costs by remaining with the incumbent because a new contractor would have to purchase the infrastructure, integrate it into the Army’s system and train personnel, costs that have already been borne by the incumbent and recovered through the prior contracts.

6. Market Research: Formal market research was not done for this action. Several vendors meeting basic qualifications are available under the OMNIBUS III BPAs. These are the same contractors that responded to the original, competitive requirement.

However, the required services are most efficiently and economically available from PD Systems as discussed above.

7. Other Facts: To date, PD Systems has performed well on the current contract, including, as discussed above, improving reporting times. Reports have been received in a timely manner.

8. Actions to Increase Competition: TACOM ILSC is working to migrate to a new Army Enterprise System to compile these reports, sometime during the 2017-18 timeframe. That system is being developed by another Army entity.

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

Name: Catherine Jackson Title: C, Readiness Operations and Analysis Directorate Signature: //s// cmj Date: 4 Aug 14

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

Name: Michael Bracket Title: Deputy Director Field Support Operations Signature:

Date: 4 Aug 2014

11. 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. In accordance with FAR 15.403-1(b)(3), certified cost or pricing data is not required based on the commercial item exception.

Name: Gregory S. Donahoe Title: Procurement Contracting Officer

Signature:

Date. 13 August 2014

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

Name: Gregory S. Donahoe Title: Procurement Contracting Officer

Signature:

Date: 13 August 2013

APPROVAL OF

LIMITED SOURCE JUSTIFICATION

Based on the foregoing justification, I hereby approve the procurement to extend continued support services (with a 12 month base period, two 12 month options, and one 6 month option) without fair opportunity pursuant to the authority of 41 U.S.C.

152(3) and FAR 8.405-6, subject to availability of funds and provided that the services described herein, have otherwise been authorized for acquisition. The total estimated value is $1.1M

Date:_14 August 2014 Signature:

ELIZABETH AUGUSTUS

Alternate Competition Advocate