PAX_DD1391_System_Support_EFO.pdf

FOR OFFICIAL USE ONLY Control No. HNC-13-60190

JUSTIFICATION AND APPROVAL DOCUMENT FOR

AN EXCEPTION TO FAIR OPPORTUNITY (EFO)

Procurement Sensitive

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1. Contracting Activity: United States Army Engineering and Support Center (CEHNC), 4820 University Square, Huntsville, AL 35816-1822.

2. Description of Action: This action contemplates the award of a logical follow on task order (TO) under the Computer Hardware, Enterprise Software and Solutions (CHESS) Contract W91QUZ-06- D-0018-ZW01 Computer Science Corporation (CSC) to provide development for maintenance and necessary changes of and to the DD1391 Processor System. Per Army Regulation 25-1 (section 6-2 a), CHESS is the required source for establishing commercial information technology (IT) contracts for hardware and software, and a preferred source for IT services. The Task Order (TO) period of performance will be for twelve (12) months. The task order will be awarded under this proposal using FY13 Army Operation and Maintenance (O&M) funds. The DD1391 forms generated and managed by the processor support all Army Military Construction (MILCON), from the planning stages through budget book generation.

3. Description of Services: The requirement is for System Maintenance and Quality Assurance/Quality Control for Systems Development and Systems Integration for the DD1391 Processor System. The scope of the work will be to maintain the system in accordance with customer and regulatory requirements, including the development of required features, fixes and updates to existing functionality, generation and maintenance of appropriate documentation, correction of system problems, monitoring of the system, and attendance of and input to regular meetings. One year is required to complete this action, due to the timing of the budgetary process. It takes approximately an entire year for the DD1391 processor system to go through its typical cycle; during that time, the contractor will continue to make adjustments based on further analysis of the system and feedback from the customers. Given the nature of this process, this action cannot be completed within a shorter timeframe. Attempting to proceed without a year long period of performance will result in undue risk to the Congressional Budget Book generation process, with possibly severe repercussions. To be clear, there is not a functional changeover from fielding to maintenance during the first year the refreshed system is put into service. The entire one year period is viewed as the initial fielding process.

The estimated value of this sole source task order is $2,210,350. The period of performance will be for twelve (12) months after task order award.

The DD1391 Processor and PC applications which make up the DD1391 Processor System are the MILCON planning tools for the Army. The DD1391 Processor System is an interactive computer system which assists users in preparing, submitting, reviewing, correcting, printing, and archiving the DD Form 1391 and associated data, in accordance with AR 420-1, “Army Facilities Management”. The System currently accommodates projects for the following major programs: Military Construction, Army (MCA); Production Base Support (PBS); Army Family Housing (AFH); Non-Appropriated Funds (NAF);

Maintenance and Repair (MR); Army & Air Force Exchange Services (AAFES); Medical Facilities (MED); Defense Logistics Agency (DLA); Commercially-Financed Facilities (CFF); Re-locatable Buildings (RB); Base Closure, Army (BCA); Barracks Upgrade Program (BUP); Ballistic Missile Defense Organization (BMDO); Defense Finance & Accounting Service (DFAS); Section 6 Schools (S6S); Special Operations Program (SOP); Payment-In-Kind (PIK); Chemical Demilitarization (CHEMD); National Missile Defense (NMD); Theater Missile Defense (TMD); Operations and Maintenance, Army Contingency Construction (OMACC); Energy Conservation Investment Program (ECIP); Military Construction, Army Reserve (MCAR); Military Construction, Army National Guard (MCNG); and Maintenance and Repair, and Army Reserve (MRAR). Additional components of the System include tools for developing cost estimates for information systems, budget estimates, detailed

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cost estimates used in the development of Engineering Form 3086, Economic Analyses, and Budget Books.

The types of tasks to be performed under this contract include:

Business Process Reengineering (BPR) Information Technology Services Enterprise Design, Integration, and Consolidation Program/Project Management Systems Operation and Maintenance

4. Authority Cited: Pursuant to the authority in 10 U.S.C. 2304 (c)(1) as implemented by Federal

Acquisition Regulation (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:

In accordance with the aforementioned FAR authority, the following rationale meets the threshold for granting the exception, as follows:

a. CSC’s technical capability. CSC, a large business, is the only contractor with the technical capability and expertise to field the “Technical Refresh” effort and continue to support and maintain the DD1391 Processor System for the period immediately following the release of an updated and refreshed system. CSC is the sole developer of the refreshed DD1391 Processor System, which is to be fielded in 2013 This initial fielding period maintenance is a logical follow-on to the implementation of the refreshed system. CSC, in addition to developing the refreshed system, provides maintenance to the currently deployed (legacy) system. No other contractor maintains the detailed knowledge of the software, database structures, and system infrastructure to meet the needs of the Government in the timely manner needed without substantial duplication of effort.

b. Impact to schedule. The proposed TO is for the deployment and initial maintenance of this refreshed system, and for implementation of potential new requirements critical to the process of MILCON planning and planned features that have been postponed. Any new requirements will be customer-driven modifications to the software in order to meet new customer needs or better meet existing customer needs, or driven by new Information Assurance requirements, and therefore cannot be anticipated in advance. These features have been postponed to avoid unnecessarily duplicating effort across legacy and refreshed systems which might otherwise have resulted in delaying the Refresh fielding. Delays in implementing these features could result in mismatches between MILCON business rules and the Processor system, or impair the ability of the Office of the Assistant Chief of Staff for Installation Management (OACSIM) to make changes and updates to their processes. The proposed TO is required in order to prevent disruption to the Army’s ongoing mission regarding DD1391 preparation and management tools for MILCON, as well as additional capabilities and programs mentioned above. The alternative of contracting with another vendor will cause delays in fielding the refreshed system, and will cause operational issues with the MILCON planning and budget book process, such as significant delays in the production of Budget Books, unacceptable system downtime, and lack of technical backend support.

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c. Cost considerations. If this TO were awarded to another contractor, an extension to CSC’s current W91QUZ-06-D-0018-ZW01 task order would be required in order to permit a reasonable familiarization period for the new vendor. This would result in duplication of effort and cost, roughly estimated from $119,465 to $564,643 (5 to 25% of the proposed TO value), depending on whether a similar phase would be needed at the end of this proposed TO and depending on the length of such a phase. This familiarization period cannot be performed earlier as it would cause unacceptable delay to the fielding of the refreshed system, resulting in a separate need for a contract extension and a greater cost due to increased duplication of effort. Due to the aged state of the legacy system, delaying deployment of the refreshed system would likely result in additional issues, such as the following: the legacy system is built with components and technologies old enough that they have become unsupported. Finding personnel with the knowledge and skills to continue to maintain the legacy system is a major concern. CSC has the resources to continue this support until the refreshed system is fully deployed, and they have the design knowledge of the refreshed system to minimize any early post-deployment issues.

d. Other risks of switching to another contractor. The risks associated with using a different vendor at this critical fielding point are: delays in fielding the refreshed system; decreased ability to make changes and corrections to the system in use (refreshed or otherwise); increased delays in all capabilities; increased likelihood of inability to handle issues; potential downtime; and potential PAX mission failure. The expected outcomes of these risks include: Army MILCON projects would be negatively affected; the accuracy and generation of the MILCON Budget Books would be jeopardized; the MILCON budgetary process would be negatively affected; and certain other types of projects, Budget Books, and budgetary processes also supported by the Processor System would be subjected to similar risks.

PAX is designated by the Department of the Army Proponent Office as mission critical because the Budget and Accounting Act of 1921 dictates that the President must submit budget documentation by February 1st of each year to Congress. The PAX system produces products on an annual and cyclical basis to generate the required budget books throughout the year for multiple Programs listed below complying with the law, DOD Financial Management Regulation and Army Regulation 420-1.

Military Construction, Army (MCA) Military Construction, Army Reserve (MCAR) Military Construction, National Guard (MCNG) Medical Facilities (MED) Chemical Demilitarization (ChemD) Non-Appropriated Funds (NAF) Army Family Housing (AFH) Base Closure, Army (BCA)

In order to complete one whole cycle it is imperative that this contract task order endure from 22 April 2013 to 21 April 2014 at which time HNC can advertise a competitive task order utilizing the CHESS vehicle. Shorter periods prior to this would jeopardize the Army's ability to produce the Budget Book documentation for the President of the United States because until that time the entire system cannot be completely vetted for system integrity, accuracy and reliability.

6. Efforts to Obtain Competition/Market Survey: Per Army Regulation 25-1 (section 6-2 a), the

Computer Hardware, Enterprise Software and Solutions (CHESS) is the primary source for establishing commercial information technology (IT) contracts for hardware and software, and a preferred source for IT services. The services required for this project are provided by CHESS, as a requirement for the exact same services was previously competed utilizing the CHESS ITES-2S Multiple Award Task Order Contract (MATOC); the solicitation was issued on 06 April 2010 to the following vendors: Apptis Inc., BAE, CACI ISS Inc., General Dynamics, Booz Allen Hamilton Inc., Harris IT Services, HP Enterprise Services, IBM, Lockheed Martin, NCI Information Systems, Northrop Grumman, Perot Systems, Pragmatics Inc., Science Application International Corporation, STG Inc., and CSC. CSC submitted a proposal, while every other firm submitted a “no bid.” The services were ultimately provided under CSC’s contract W91QUZ-06-D-0018-ZW01, one of the contracts in the ITES-2S CHESS pool. This exact same pool is still available. Since these services are provided through CHESS, which has been determined by the Army to be the primary source for IT requirements, the existing CHESS MATOC will be utilized once again. No further market research was conducted.

7. Actions to Increase Competition: As noted above, the requirement for these same services was previously competed under CHESS MATOC ITES-2S in accordance with Army regulations. The solicitation was issued on 06 April 2010 utilizing the CHESS RFQ/RFP tool. Fair opportunity was provided to all contract holders; however, CSC was the only organization to submit a proposal. Since CHESS is a preferred source for Army IT services, and these services are available through CHESS, no action can be taken to increase competition. The implementation of the Technical Refresh to be fielded under this TO is expected to increase the pool of qualified vendors substantially, as it moves the DD1391 Processor System to a platform based on modern technologies currently in widespread use. After the completion of this one year TO, the DD1391 Processor System will be positioned to make use of a large and expanding pool of expertise instead of our current reliance on obsolete technologies with a difficult to locate and dwindling repository of experience. Once this TO is complete, the Government anticipates that many vendors, possibly including small businesses, will be interested in fulfilling this requirement; if possible, the long-term, follow-on contract for maintenance of this system will be restricted to small businesses. In addition, a Request for Information (RFI) for the anticipated follow-on requirement will be issued to the ITES-2S pool and ITS-SB pool of CHESS vendors to determine which vendors are interested. The General Services Administration’s 8(a) STARS II contract vehicle will also be considered for the follow-on action.

8. Market Research: Please see section 6 (Efforts to Obtain Competition/Market Survey) above.

The same rationale and requirements apply to this section.

9. Interested Sources: As noted below, the requirement for these services has been competed twice in the past; each time, fair opportunity was provided to all potential vendors. CSC was the only organization to submit a proposal in response to the Government’s solicitation, and is the only interested source at this time prior to the Technical Refresh.

10. Other Facts:

a. Procurement history.

(1) Contract numbers and dates of the last several awards.

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Current Contract: W91QUZ-06-D-0018-ZW01. Task Order ZW01 required the same DD1391 Processor System refresh/support services that were initiated by task order DAAB07-03-D-B007- 0198 below, and will be continued by this new acquisition. The solicitation was issued on 06 April 2010 to the following ITES-2S vendors: Apptis Inc., BAE, CACI ISS Inc., General Dynamics, Booz Allen Hamilton Inc., Harris IT Services, HP Enterprise Services, IBM, Lockheed Martin, NCI Information Systems, Northrop Grumman, Perot Systems, Pragmatics Inc., Science Application International Corporation, STG Inc., and CSC. Although fair opportunity was given to all, only one contractor submitted a proposal: Computer Sciences Corporation (CSC). As the incumbent contractor, CSC was able to seamlessly continue the support services initiated by the predecessor contract. This contract was initiated on 21 April 2010 and will expire 20 April 2013.

Prior Contract: DAAB07-03-D-B007-0198. Task Order 0198 initiated the DD1391 Processor System refresh/support services required for the PAX program. The tasks required by the order were approved Configuration Control Board. Pre-award functions for this task order were performed by Fort Monmouth, and post-award administrative services were performed by DCMA Springfield. The solicitation was competed under the CECOM LCMC Rapid Response Program contract pool. ARINC Inc., Lockheed Martin, Lear Siegler Services Inc., CSC, Northrop Grumman Corporation, Tamsco, VSE Corporation, and Galaxy Scientific Corporation were all given fair opportunity; however, CSC was the only company to submit a quote, and was subsequently awarded the contract. This contract was initiated on 21 April 2008 and expired on 20 April 2010.

(2) Competitive status of these actions.

DAAB07-03-D-B007, Delivery Order 0198 was awarded via full and open competition.

W91QUZ-06-D-0018, Task Order ZW01 was competed utilizing the CHESS ITES-2S pool in accordance with the guidance of Army Regulation 25-1 (section 6-2 a).

(3) Authority previously used for less than full and open competition.

N/A – Both of the previous actions were competed.

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results.

N/A – Both of the previous actions were competed.

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances.

This acquisition will complete a programming effort that has been ongoing for the last five years.

During this five-year period, CSC is the only contractor who has performed the work necessary to fulfill this requirement. If another contractor were to be selected at this time, there would be significant delays while the new contractor was brought up to speed on the current state of the DD1391 Processor System and the exact accomplishments of the past five years. It is likely that

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duplication of costs would occur as well, as the new contractor would not be familiar with every feature created or changed by the incumbent. In addition, there would likely be instances where the two separately initiated programming efforts would conflict with each other, and additional costs would accrue while these conflicts were resolved.

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys.

No unusual patterns have been reveled by this acquisition’s history.

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes.

N/A – Both of the previous actions were competed.

b. Acquisition data availability. CSC is currently performing services under Contract W91QUZ-06-D- 0018, Task Order ZW01, which will end in April 2013. Under this existing TO, CSC has been developing a technical refresh to the DD1391 Processor System. The refreshed system is developed to update the existing legacy system functionality to modern platforms and technologies, replacing outdated components which have effectively reached their useful end of life. One of the benefits of this refresh effort is to allow increased competition in the future, as the pool of personnel with adequate skills and knowledge to maintain and modify the refreshed system as needed is much larger than that available for the legacy system. Additionally, the refreshed system is to be completely government owned, which will ensure that expanded future competition is possible.

c. Unusual and compelling urgency. N/A

d. Subcontracting competition. This action will be satisfied by issuing a task order against an existing CHESS IDIQ; therefore, subcontracting will be governed by the base CHESS contract which states under special contract requirements that contractors shall comply with meeting the mandatory small business subcontracting goals.

Approval

Based on the foregoing justification, I hereby approve the procurement of “System Maintenance and Quality Assurance/Quality Control for Systems Development and Systems Integration for the DD1391 Processor System” on an other than full and open competition basis pursuant to the authority of 10 U.S.C. (c)(1) FAR 16.505(b)(2)(i)(C), subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Name: Jacqueline C. Woodson Title: Special Competition Advocate Amount: $2,210,350.00

Date: _______________________________

Signature: