FAR-Part16-EFOJ-RM_Online_27_Sept_2016_Redacted.pdf

Contractor: CACI ISS, Inc.

Control No: 17-001

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

Supply/Service: Resource Management (RM) Online Application Support.

Authority: 10 U.S.C. 2304c(b)(2) as implemented by FAR Part 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Amount: $

Prepared by: DSN:

ARNG-RMC-M COR Date: 22 April 2016 Email:

Contracting Officer: DSN:

Systems, IT, E&C Date: 25 Sept 2016 Email:

Technical: DSN:

Chief, Management Branch Date: 25 Sept 2016 Email:

Requirements: DSN:

Chief, Management Branch Date: 25 Sept 2016 Email:

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

Program Manager:

Typed Name:

DSN:

Signature: ____________________ Date: ____________________

Legal Counsel:

Typed Name:

DSN:

Signature: ____________________ Date: ____________________

Department of Army FAR Part 16 Exception to Fair Opportunity Justification

Under Multiple Award Indefinite Delivery Contracts For Actions Exceeding the Simplified Acquisition Threshold (SAT)

1. Contracting Activity: National Guard Bureau, Operational Contracting Division at 111 S. George Mason Drive; Arlington, Virginia 22204.

2. Description of Action: Army National Guard (ARNG)-RMC-M requests Indefinite Delivery/Indefinite Quantity (IDIQ) Task Order for Resource Management (RM) Online application support, consisting of routine maintenance and help desk support. This contract will support ARNG Headquarters (HQs) at Arlington Hall. The contract is estimated to be $ with a one (1) base year period and two (2) one year optional periods. The Government projects an award by 1 December 2016 and will use fiscal year 2017 Operation and Maintenance funds for the base year of this contract. The Contractor is CACI ISS Inc. (CACI), 14370 Newbrook Drive, Chantilly, VA 20151. Their Commercial and Government Entity (CAGE) code is 49DW9.

A formal acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

This action is a follow-on to contract to W91151-13-D-0002-0020 and TO 0024 which were awarded Sole Source to CACI. The ARNG requirement for RM Online Support was expected to be complete in December of 2016, once the General Fund Enterprise Business System (GFEBS) was modified to include modules that would replace the RM Online capability required by ARNG. However, this conversion has been delayed as GFEBS has not been modified to meet all of ARNG’s RM requirements. As of 19 October 2015, Department of Army (DA) confirmed that the transition of the manpower modules from RM Online to GFEBS is still in the planning and approval process and may not occur until FY21. ARNG has no control over this timeline since GFEBS is not an ARNG application. DA controls the priorities and associated schedule for transition of the required RM Online capabilities into GFEBS. Therefore, this J&A will provide continued RM Online application support until GFEBS is modified to meet ARNG’s requirements which is projected to be FY21.

3. Description of Supplies/Services: The required RM Online application support includes maintenance, sustainment of the existing application, and maintenance of the system accreditation. In addition, CACI will be integrally involved in the migration effort to get the overall RM Online application transitioned seamlessly to GFEBS.

a. CACI is currently performing RM Online application support for the ARNG with propriety services under contract W91151-13-D-0002-0020, with the final option period set to expire on 31 July 2016. The Government exercised FAR Clause 52.217-8 to provide an extension of services under W91151-13-D-0002-0024. Therefore, this contract will expire on 30 November 2016.

submissions to DA which effects approximately 5K+ civilian/military positions and are needed in the future until GFEBS or another system provide this data.

(1) Manpower POM (PBG) Module. Allows users to maintain manpower Program Budget Guidance (PBG) (i.e., Requirements, Authorizations and Audits) and to develop manpower Schedule 8 issues for annual Program Objective Memorandum (POM) submissions.

(2) Manpower Documentation Table of Distribution & Allowance (TDA) Module. Allows users to maintain and submit proposed TDA data for the annual Command plan and out-of-cycle submissions. Additionally, RM Online tracks, manages, and reports time sensitive requirements to HQDA for importing into Force Management System (FMS) Web. Lastly, RM Online serves as the interface between Manpower POM (PBG) module & Manpower Documentation (TDA) module to run reports/queries to ensure TDA submissions balance with the PBG.

(3) Personnel Module. Allows users to verify civilian personnel data from DCPDS/HQ ACPERS with TDA Para/Line & AMSCO. Additionally, RM Online interfaces with the Manpower Documentation TDA module to align faces-to-spaces documents and identify records requiring corrections.

4. Authority Cited. 10 U.S.C. 2304c(b)(2) as implemented by FAR 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Reason for Authority Cited. CACI developed the RM Online application in 1999 for AMC and has been the sole source vendor to provide continued RM Online support to DOD, including ARNG, for the past seveteen years. ARNG has determined after conducting market research that no other vendor has the necessary experience and/or qualifications to meet the Government’s requirements or the specified schedule based on the following:

a. As prescribed in FAR 16.505(b)(2)(i)(B), with regard to the current follow on requirement for continued RM Online Support, these services are highly specialized and award to any other source would result in substantial duplication of cost. These costs are further detailed below.

b. Five alternatives were considered before proceeding with this J&A but none meet the needs of ARNG:

(1) Suspension of Services. Impact if not funded: ARNG Program Managers and States will cease to have accesses to their distributed funds. A cessation of services will severely hamper ARNG’s mission since ARNG HQs use RM Online daily for the command’s manpower and force management requirements in response to many DA taskers.

(2) Use of In-House Resources. There are currently no in-house resources that will fulfill the RM Online support requirements of the command until the full implementation of GFEBS.

(3) Availability of support from other, existing Government RM software applications. There are no other Government RM software systems that support ARNG’s manpower requirements.

(4) Competing this requirement as a full and open competition. There are no other vendors with RM Online experience. If CACI does not get the follow-on contract, the Government will lose all of the technical expertise on this contract, experience a very lengthy learning curve, and will incur costs in excess of a million dollars trying to get a new vendor up to speed to decipher the 1,297,000 lines of software source programming code.

(5) Having a contractor write a new code to cover our manpower requirements. The RM Online software has been in place for the last 17 years and is used across DOD. Having a brand new, stand-alone software that will not interface with all of the variety of systems is not an option, especially in light of the plan to transfer all RM Online capability to GFEBS in the next 5 years.

c. Justification. The following reasons are provided to justify an award of the follow-on contract to CACI for these highly specialized services on the RM Online application support contract:

(1) Highly Specialized Services. All DA commands are currently operating on the same version of RM Online, in essence operating as an Army Enterprise Resource Planning system. Although this is a Government-owned system, CACI is still developing it to meet top driven mission requirements for all commands while maintaining the integrity of one single source code. RM Online is a unique software driven system written in Cold Fusion with Java and SQL. Additionally, all commands work with CACI to tailor their RM Online needs to meet their own unique needs.

The RM Online support services provided by CACI are highly specialized in that there are currently no in-house resources that can provide RM Online support requirements and there are no other Government RM software systems that can support ARNG’s current manpower requirements. CACI was the original developer of RM Online and has been the only support contract for this application over the past 16 years. The technical expertise that has been developed over this time period is extensive. Bringing in a new vendor to decipher the 1,297,000 lines of software source programming code that supports RM Online would be a timely and a costly undertaking. Furthermore, market research has confirmed that there are no other vendors with RM Online experience.

(2) Substantial Duplication of Cost. Award to any other source would result in substantial duplication of cost as it is estimated by the Government that it will take a minimum of two (2) years for a new contractor to become slightly proficient on the RM Online application. During these two (2) years, the new contractor would have to review, decipher, evaluate and understand over 1,297,000 lines of code for the current RM Online application, develop a general knowledge of the RM Online system, understand the corresponding ARNG and non-ARNG processes, develop the required infrastructure, fulfill Government training requirements, and meet all of the requirements imposed by DA, DOD, and DISA. Therefore, based on ARNG’s costs under the current RM Online support contract, ARNG projects that it would cost over $800K to get a new contractor slightly proficient on RM Online ($403K estimated annual cost x two (2) years = $806K). Additionally, these cost estimates do not take into account the loss of non-recoverable costs to the Government since the Government would be losing 16 years of RM Online experience.

The costs provided above do not include the loss of the shared program enhancements and features that CACI currently provides to all DOD organizations at no cost to ARNG, which will be an additional cost if the follow-on contract is not awarded to CACI. As organizations develop new functionalities, CACI develops or modifies RM Online to meet that need plus CACI offers this new functionality to the rest of the DA user community at no additional cost. By using the single DOD-wide source provider for RM Online, the Army has been able to recognize efficiencies and cost savings by sharing functionality amongst commands, thereby eliminating duplication of efforts and unnecessary waste in spending costs. These efficiencies would no longer be available if award is made to another vendor because ARNG and other supported customers would be effectively removed from the network of CACI’s DOD-wide RM Online users.

CACI is the single source code provider. The Army has been able to recognize efficiencies by sharing the cost of the Database Administrator function and the help desk support amongst other commands, thereby reducing costs and realizing Army efficiencies. Having different vendors performing system configuration, patches, and/or code changes would eliminate version control and synchronizing opportunities, further reducing cost efficiency. Additionally, having different vendors performing these functions would require separate accreditations to be maintained at a considerable cost to the Government.

Risk Management Framework is the integrated information security framework that is replacing the traditional DIACAP certification process. CACI continues to support RM Online agencies in their ability to maintain certification and accreditation credentials, identify risks to the system, assess those risks, and take steps to reduce risks to an acceptable level through shared lessons learned. Introducing an additional vendor would increase certification costs because two instances of the application would be on different hosting environments and would need independent packets/certification, estimated at $100K. CACI is also integrally involved sustaining application certification for the Defense Information Systems Agency and the Defense Enterprise Computing Center.

(3) In summary, CACI maintains one single source code for the RM Online application which is distributed to all commands to increase efficiencies. No other vendor has the expertise to provide this highly specialized support without substantial duplication of cost. Neither ARNG nor the Government can afford the possibility that these efficiencies will be lost if this effort is competed. Additionally, CACI’s past performance provides a high level of assurance that ARNG and the Government’s needs will be met in a timely and efficient manner.

d. Impact. The ARNG HQs supported by CACI will either experience significant degradation in services or mission failures if this contract is not awarded to CACI on time. RM Online is a Government-owned system that was developed for DOD resource management professionals. It is a vital system utilized by numerous RM offices across 54 states and territories to manage resources. The inability to utilize RM Online will significantly reduce the commands’ efficiencies in the collection, validation, and summarization of programming year requirements for the POM submission to the HQDA staff. It will virtually bring a halt to ARNG’s manpower management because there is not a system in place that offers any of ARNG’s needed capabilities. The ARNG mission depends on the continuity of operations of this RM Online application.

6. Actions to Increase Competition. Considering the history of this requirement and the plan to eliminate RM Online application support completely once the modules are included in GFEBS, no further actions to increase competition would be of any benefit to the Government. There is no known additional action that can be taken to increase competition given that: 1) no other vendor has experience with the RM Online application support as either a developer or service support provider; 2) attempts to identify qualified vendors have been unsuccessful to date; and 3) when GFEBS is modified by FY21 as planned, RM Online application support will be phased out.

7. Market Research. In accordance with FAR Part 10, ARNG G8 has conducted market research for potential alternative sources since April 2015 until present, including engagement with several Contracting Offices/Contracting Officer’s Representatives (CORs) and internet searches, in an attempt to find a vehicle to replicate the ARNG requirements on this contract. Results of June 2016 market research revealed that CACI is the sole source provider for the required NGB customized RM Online further market revealed that CACI is able to provide through CHESS. In the past, Army Material Command (AMC) issued a Sources Sought Synopsis under the Army CHESS program in July 2015 to determine if any vendor under this vehicle could fulfill ARNG’s RM Online application support requirements. As a result of this Sources Sought, AMC determined that only CACI could provide the required support (the results of this sources sought are further discussed below). Since ARNG’s RM Online support requirements are similar to those of AMC, ACC-APG determined that in lieu of issuing an additional RFI due to the minimal responses received on AMC’s RFI, ARNG should conduct additional market research to include contacting contracting offices and other RM online users, researching contracts in some of the contracting databases, searching the web, and contacting AMC. Therefore, based on the COR’s research and knowledge of the other Army and Defense organization users of the RM Online application, there is no other vendor that possesses the skill set and experience to perform the requirements of the contract.

9. Interested Sources. The Sources Sought utilized by AMC was issued on 30 July 2015 thru 7 August 2015 via the CHESS program. Thirteen vendors acknowledged receipt of the sources sought. Six (6) of the eight (8) responses received were no bids.

Two (2) vendors, CACI and HP Enterprise Services (HPES), expressed interest and submitted capability information. However, after AMC’s review of the HPES proposal, it was determined that they were not a viable vendor for this requirement since the vendor did not demonstrate the necessary experience for this requirement and intended to subcontract this effort to CACI. Although HPES appeared to possess information technology experience, they did not demonstrate experience in critical areas essential for the maintenance, sustainment, and specific help desk support required for the manpower modules of the RM Online application.

To date, no other interested sources have been identified. Upon posting of this

J&A, any information submitted from interested sources will be considered.

10. Other Facts.

a. Procurement History.

(1) Task order DATM01-00-F-0071 was awarded on 29 September 2000 for $2,497,613 as a sole source to CACI against the GSA Millennia Lite Contract (GS07T00BGD0058) for the period 29 September 2000 – 10 September 2002 to enhance and upgrade AMC’s existing RM Online system. Sole Source Authority for this time period is currently unknown.

(2) Contract DATM01-02-F-0050 was awarded as a follow-on contract to CACI on 11 September 2002 for the period 11 September 2002 to 30 June 2007 against the GSA Millennia Lite Contract (GS07T00BGD0058) for $7,604,177 for RM Online application support for ATEC and multiple non-ATEC customers. The fourth option year on this contract was not exercised since there was an increasing number of non-ATEC customers who were wanting to get RM Online support under ATEC’s contract. Sole Source Authority for this time period is currently unknown.

(3) Contract W9115U-06-D-0001 was awarded as a sole source to CACI on 30 Jun 2006 for the period 1 July 2006 to 30 June 2011 for $25,292,702 for RM Online application support for ATEC and multiple non-ATEC customers. This contract was extended by 6 months as a result of exercising FAR Clause 52.217-8, thereby expiring 30 December 2011. This contract was modified to add FAR Clauses 52.216-18, Ordering, and 52.216.22, Indefinite Quantity, which allowed task orders to be extended beyond the contract expiration date. The 10 separate task orders under this contract expired on 31 July 2012. Sole Source Authority for this time period is currently unknown.

(4) Due to the need to maintain operational capability of the ATEC RM Online application support while pursuing the next follow-on contract, the following individual awards were issued to CACI under the authority of FAR 6.302-2, Unusual and Compelling Urgency for the period 1 August 2012 - 31 October 2012: W9115U-12-P- 5016 (ATEC) and W9115U-12-P-5017 (ATEC JTB).

(5) The current contract W91151-13-D-0002-0020 was a Task Order that was awarded on 30 July 2015 to CACI, for option year three (3), for the period 1 August 2015 to 31 July 2016. Sole Source Authority for this time period is IAW FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(6) The current Task Order W91151-13-D-0002-0024 was awarded on 1 August 2016, for extension, IAW FAR 52.217-8, for the period 1 August 2016 to 30 November 2016. This contract extension was utilized by ARNG. Sole Source Authority for this time period is IAW FAR 6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

(7) IAW DFARS PGI 208.405-6 Limiting Sources; the planned actions to remove any barriers that led to the restricted consideration(s) cited on the MICC W91151-13-D-0002 justification 12-58 were completed. MICC J & A 12-58 is included in the contract file. The MICC eliminated their RM Online requirement through GFEBS.

However the NGB will not transition this requirement to GFEBS until FY21.

b. Acquisition Data Available. There are 1,297,000 lines of Government-owned RM Online software source programming code that has been developed and maintained by CACI for the past sixteen years. Although RM Online is owned by the Government, another vendor cannot, in an efficient and timely manner for NGB support, compete and be awarded this requirement because the Government will lose all of the legacy technical expertise thus far, experience a significantly lengthy impractical, for immediate use, learning curve, as well as incur significant costs from a responder to decipher and transition for their oversight and management the 1,297,000 lines of legacy and current software source programming code.

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.

Date: _________________

Chief, Management Branch

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.

Date: _________________ _______________________

Chief, Management Branch

13. Fair and Reasonable Cost Determination. I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable in accordance with FAR 16.505(b)(3) Pricing Orders and FAR 15.404-1 Proposal Analysis Techniques. This determination will be made using the following: Cost analysis Price Analysis Should cost IGCE Audit Other.

As a part of this basis, certified cost or pricing data will be required.

Date: _________________ _______________________

Contracting Officer

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

Date: _______________ _____________________

Contracting Officer

Approval Based on the foregoing justification, I hereby approve the procurement of RM Online Application Support using an exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(B), subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Date: _______________ _____________________