A04 JA-IRMA-I_FINAL.pdf

CUI

DEPARTMENT OF WAR

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION DIRECTORATE

WHS-2026- 1926 - JA

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION (FAR) 13.5

ENTERPRISE RESOURCE MANAGEMENT DATABASE (ERMD) SUPPORT SERVICES

1. AGENCY AND CONTRACTING ACTIVITY: The Department of War (DoW), Washington

Headquarters Services, Acquisition Directorate and the Office of the Under Secretary of War for War – Intelligence & Security (OUSW(I&S)).

2. DESCRIPTION OF ACTION: OUSW(I&S) requires a new Firm Fixed Price contract award, using O&M funding to procure maintenance and enhancement support services of our Enterprise Resource Management Database capability and application. The name of this application is Internal Resource Management Application – Intelligence & Security (IRMA-I&S or Application) The estimated value of the award is $3,384,301.31.

3. DESCRIPTION OF SUPPLIES/SERVICES: OUSW(I&S) requires Enterprise Resource Management Database (ERMD) Support Services, including a Database Administrator and a Developer, to provide sustainment and enhancement services of current features and testing within IRMA-I&S. The IRMA-I&S application is used to distribute, track, maintain and report the status of multi-million-dollar programs’ resources, including funding and manpower data, across Operation & Maintenance (O&M), Research Development Test & Evaluation (RDT&E), and Procurement appropriations.

IRMA-I&S will be used to respond to data calls, conduct trend analysis, brief leadership and serve as a decision-making tool. The Application will be used to track, maintain, and report an account of all assigned personnel. The Application also contains reference tools for contract documentation templates, site links, and training histories of Contracting Officer Representatives (COR)s.

Performance Periods Performance Period Dates Amount Base Period 19 Jan 2026 – 18 Jan 2027 $574,704.00 Option Period I 19 Jan 2027 – 18 Jan 2028 $591,945.12 Option Period II 19 Jan 2028 – 18 Jan 2029 $609,703.47 Option Period III 19 Jan 2029 – 18 Jan 2030 $627,994.58 Option Period IV 19 Jan 2030 – 18 Jan 2031 $646,834.42 6-month extension IAW 52.217-8 19 Jan 2031 – 18 July 2031 $333,119.72 Base + All Options $3,384,301.31

4. AUTHORITY CITED: This action is under the procedures of under the procedures of Federal

Acquisition Regulation (FAR) 13.5 under the authority of:

☒41 U.S.C. 1901, Simplified Acquisition Procedures ☐41 U.S.C. 1903, Special Emergency Procurement Authority

Controlled by: WHS/Acquisitions Directorate Controlled by: Acquisition Directorate CUI Category: SP-SSEL

Limited Dissemination Control: FEDCON POC: Shacasia King, whs.ncr.ad.mbx.eosd-tab-branch@mail.mil mailto:whs.ncr.ad.mbx.eosd-tab-branch@mail.mil

5. REASON FOR AUTHORITY CITED: A sole source award to QSMI is justified under the authority of FAR 13.106-1(b)(2) for purchases exceeding the simplified acquisition threshold.

The requirements at 13.501(a) apply to sole-source (including brand-name) acquisitions of commercial products and commercial services conducted pursuant to subpart 13.5. Since 2004, when QSMI built this application specifically for I&S, it has competitively won follow-on awards for providing a version of this support. As the original developer of the Application, QSMI is the only responsible source to satisfy the Agency’s requirement to support and maintain it. . QSMI has also developed sister systems for other DoD agencies over the past 20+ years and I&S benefits directly from the ongoing enhancements and shared capabilities across these sister systems. A sole source award significantly reduces the risk associated with transitioning to a new vendor, allows OUSW(I&S) to leverage previous Government investments in the QSMI-developed platform, and ensures continued access to the specialized knowledge and expertise required to maintain and enhance IRMA-I&S’s capabilities.

The determination that a sole source award is based on the following factors:

• Unique Expertise and System Knowledge: As the original developer of IRMA-I&S, QSMI possesses unique and in-depth knowledge to perform sustainment and enhancement support services on that application. Since developing the application, QSMI has continuously maintained and enhanced the application’s capabilities. QSMI’s long-term involvement provides it with an unique understanding of the system's architecture, code base, data structures, and integration points with other DoW systems. A new contractor would require significant time, cost, and resources to acquire this level of expertise (reference the transitions costs below for details).

Given the Administration’s emphasis on efficiencies, it is not prudent for the Government to expend already constrained resources to acquire and train a new contractor to provide these services.

• Proprietary Rights and Data Ownership: IRMA-I&S is comprised of both Government-owned and contractor-owned software and code. While the Government owns several modules and a substantial portion of the application code, QSMI retains the rights to specific modules, capabilities, and code that are critical to supporting and maintaining the functionality and performance of IRMA-I&S. This shared ownership structure is another reason that makes transitioning the support requirement to another vendor extremely complex and potentially cost-prohibitive as it would require disentangling these components and potentially redeveloping key functionalities.

• Mission Criticality and Operational Risk: The delay in full operational capability would negatively impact the ability to meet mission requirements. OUSW(I&S) uses IRMA-I&S daily for essential resource management activities. As such, bringing in a new vendor into the environment for this requirement would disrupt its operations and negatively impact the agency's ability to allocate resources effectively, track spending, and make informed decisions. The Agency also requires 99.9% system uptime and rapid response to outages, further highlighting the sensitivity of the application. QSMI is the only source that can meet this requirement. Alternative sources will more likely than not introduce operational risk due to the Application’s learning curve, the potential for errors if data migration to the new Source’s application is necessary, and the possibility of unforeseen compatibility issues.

• Significant Transition Costs and Delays: Recompeting the contract and transitioning to a new vendor would involve significant transition costs totaling an estimated $502,640.00, including:

• Data migration and validation (estimated timeline of 60 days - $160,680.00)

• System integration and testing (estimated timeline of 30-60 days - $160,680.00)

• User training (estimated timeline of 30 days - $80,340.00)

• Potential for parallel operations during the transition period (estimated timeline of 14-30 days - $80,340.00)

• Ramp-up time for a new vendor to learn the system and the agency's business processes

(estimated 5 days - $20,600.00).

These costs, combined with the operational risks, outweigh any potential cost savings that might be achieved through competition.

6. EFFORTS TO OBTAIN COMPETITION: In an effort to obtain competition, I&S and WHS/AD sent a Sources Sought Notice (SSN) to industry on May 30, 2025, to determine if there were any alternate sources that could successfully perform this work. Four vendors responded and all four were small businesses; two of the four were deemed capable. with one of them being the incumbent, QSMI. The second capable vendor, Altus Engineering’s inexperience with DISA and/or JSP networks posed a risk to the successful implementation and maintenance of the Enterprise Resource Management Database (ERMD). Based on the facts, a sole source contract to QSMI is in the best interest of the Government. See the market research section number 8 listed below for further information.

A special notice was posted on December 2, 2025, on SAM.gov for 15 days for potential contractors/vendors to be made aware of the Government’s intent to award to a single source. The Government received no responses to the special notice. In the notice, the Government identified the applicable North American Industry Classification System (NAICS) code as 541990 - All Other Professional, Scientific, and Technical Services. However, according to the current contract, the services were procured under NAICS code 541512 – Computer Systems Design Services, therefore, the Government changed NAICS from 541990 to 541512 to remain consistent.

7. FAIR AND REASONABLE COST DETERMINATION: The Contracting Officer determines that the anticipated prices will be fair and reasonable following the price reasonable analysis pursuant to FAR 15.404-1, “Proposal Analysis Techniques.” Certified Cost and Pricing Data will not be obtained in accordance with FAR 15.403-1(b)(3).

8. MARKET RESEARCH: A Sources Sought Notice (SSN) was posted on May 30, 2025, on

SAM.gov for 30 days to gather information regarding industry interests and capabilities. In the notice, the Government identified the applicable North American Industry Classification System (NAICS) code as 541990 - All Other Professional, Scientific, and Technical Services. The Sources Sought Notice requested the Contractor’s reply to specific elements such as, (1) Top Secret Facilities Clearance, (2) Number of contracts held with the Government and to identify Federal Supply Schedules under GSA Advantage they hold that are similar in scope, (3) Contracts awarded under NAICS – 541990, (4) Areas of the PWS to collaborate with a subcontractor (small business), (5) Recommended Contract type, NAICS & GWACs similar in scope, (6) Provide specific examples same/similar work as listed Draft PWS, and (7) Business Size and small business category under NAICS 541990.

In response to the SSN, the Government received four capability statements from Altus Engineering, JASINT Consulting and Technologies, LLC, Quality Systems Management, Inc.

(QSMI) and Potomac Wave Consulting, Inc. Three of the four vendors were deemed not capable due to their lack of stated experience working with DISA and/or JSP and/or maintaining as system that must reside on the Government’s networks. This would adversely impact ability to perform tasks 5.2, 5.3, and 5.4 listed in the PWS. Three vendors did not demonstrate they can perform at least 50% or more of the services and, if partnered with a subcontractor, still would not be able to provide at least 50% of the support services.

QSMI is the incumbent on the current contract for this requirement. Therefore, awarding this contract as a sole source to QSMI is in the best interest of the Government because it is the only vendor capable of meeting the specific requirements set forth due to their expertise and knowledge of IRMA-I.

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE: QSMI retains a portion of the data rights associated with the Application. Because of this, QSMI is the only source who can perform the updates. If the requirement is awarded to a different vendor, that vendor would have to either develop a new application or use QSMI to perform the required updates, either option would be unreasonably costly and overly burdensome.

10. INTERESTED SOURCES: N/A

11. ACTIONS TO INCREASE COMPETITION: Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis? A Notice of Intent to Sole Source was posted to SAM.gov on December 2, 2025, with a response due date of December 17, 2025.

Two vendors responded to the Notice but provided no further information regarding their capability to perform the type of services required under this acquisition.

☐Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification ☐ were ☐ were not completed

☒No. The original acquisition was conducted on a competitive basis.

☐Not Applicable. This is a new requirement.

CERTIFICATION

I, hereby, certify that the supporting data under my cognizance included in this justification are accurate and complete to the best of my knowledge and belief.

Marcia Jones, Contracting Officer’s Representative/OUSW(I&S)

Date

Shacasia T. King, Contracting Officer

APPROVAL

A non-competitive follow-on to a previous award for the same supply or service supported by a justification for other than full and open competition citing the authority at FAR 41 USC 1901 or 41 USC 1903, the justification for the follow-on acquisition shall be approved by the approval authority one-level above the approval authority for the previous justification (see FAR 6.304).

This justification is, approved.

David H. Kao, Competition Advocate