WMS Bridge LSJ_Redacted.pdf

FOR OFFICAL USE ONLY (FOUO)

SOURCE SELECTION INFROMATION - SEE FAR 2.101& 3.104

DEFENSE LOGISTICS AGENCY (DLA)

DLA CONTRACTING SERVICES OFFICE-PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111-5092

LIMITED SOURCE JUSTIFICATION

(For Acquisition Conducted Under the Authority of the Multiple Award Schedule Program)

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

REQUIRING AGENCY:

Defense Logistics Agency (DLA) Information Operations (J6) 8725 John J. Kingman Road Fort Belvoir, VA 22020-6220 POC: Jessica A Thomas Telephone: 717-770-6992 Email: jessica.thomas@dla.mil

CONTRACTING ACTIVITY:

DLA Contracting Services Office Philadelphia (DCSO-P) 700 Robbins Ave.

Philadelphia, PA 19111-5096 Contracting Officer: Patricia Greensweig Telephone: 215-737-3789 Email: Patricia.Greensweig@dla.mil

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

In accordance with FAR 8.405-6, this limited source justification authorizes and approves award of a task order to Advantaged Solutions, Inc. (ASI) on a sole source basis for SAP Support Services to continue support to DLA’s Warehouse Management System (WMS) implementation project and to ensure the Vendor Shipment Module (VSM) and Virtual Item Manager (VIM) planning and research project begins.

The resultant order will be placed against a General Services Administration (GSA) Federal Supply Schedule (FSS) Multiple Award Schedule contract and may use Department of Defense Enterprise Software Initiative (ESI) agreements.

Task order SP4701-19-F-0078 for SAP WMS Support Services was competitively awarded on May 22, 2020 to Alamo City Engineering Services, Inc. and the period of performance began on May 24, 2020.

On June 1, 2020, ASI filed a post-award protest to the Government Accountability Office (GAO), docketed as B-418790.1. The Contracting Officer issued a Stop Work Order on June 2, 2020 in accordance with the Competition in Contracting Act (CICA), which requires a mandatory stay of performance.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY'S NEEDS/ESTIMATED DOLLAR AMOUNT:

J6 is responsible for supporting the Distribution Standard System (DSS), which is a globally fielded information technology capability, supporting inventory status and orders from the warfighter, among other functions. The DSS program office has been tasked to perform a technical refresh of some DSS capability and tightly integrate DSS with the remainder of DLA's Enterprise Resource Planning System (ERP), which uses SAP software. DLA has a requirement for firm-fixed price SAP integration and support services to support and assist DSS capabilities with platform configuration development on the Government’s existing SAP software. The scope includes:

Administration and Technical Services Knowledge transfer and on-the-job training to the Government staff as laid out in this PWS Lifecycle development for the pilot of SAP applications at the pilot locations of DLA Distribution

Corpus Christi, TX, and at both DLA Disposition Services Training Operations and Simulation Center (TOSC) Battle Creek, MI and DLA Disposition Center, San Antonio TX.

Lifecycle development for the site-specific capability required at the DLA Distribution Centers in Sigonella.

Sustainment of the environment and application Deployment specific to DLA Distribution Corpus Christi, TX location

In addition to the modernization of DSS into WMS, DLA has a requirement to modernize the Vendor Shipment Module (VSM) and Virtual Item Manager (VIM) into the SAP suite of applications. The scope of this work under the current action is limited to requirements analysis and identifying standard process and procedures for Government consideration for business process reengineering.

VSM is a distribution and transportation system that DLA utilizes to support global warfighter efforts.

Suppliers access VSM through a web-based portal and registered login information. VSM provides DLA the ability to more effectively have in-transit visibility on assets as they move from the vendor to various DLA destinations, ports, and ultimately to customers. VSM provides efficient distribution and tracking both physically and fiscally for DLA. Vendors utilizing the system process shipments, print forms, and create DoD standard Electronic Data Interchange (EDI) transactions to notify stakeholders and destination distribution centers of shipments.

VIM is the Web-based interface to connect the wholesale, retail and manufacturing segments of the supply chain and provide decision support for wholesale inventory management. It interfaces with the DSS warehouse management system. VIM is used by DLA Troop Support (C & T), Military Services, Recruit Training Command (RTC) personnel to access various inventory functions and reports. It provides access to various reports and information based on the privileged role assigned to an individual user’s account. VSM and VIM are a part of the WMS requirement. They both currently exist within the DSS system and must exist within WMS in order to decommission DSS. In addition to decommissioning DSS, key business processes would not be functional if VSM and VIM are not included in WMS. During the bridge period, there are activities that must occur in order to meet critical milestones that include VSM and VIM. If these critical milestones are not met, DLA would lose the capability to ship medical supplies.

The task order will have a base period of performance of two months, four 1-month option periods, a 30-day transition optional task, with six additional optional CLINs for Development Lifecycle Support, Pre- Deployment Planning, and Deployment Support for a maximum total period of performance of 7 months. The travel CLIN has a not to exceed dollar value of . The total estimated dollar value is .

CLIN WMS Bridge Task Order

0001 Base Period (2 months)

0002 Travel (total PoP of 7 months)

1001 Option Period 1 (1 month)

2001 Option Period 2 (1 month)

3001 Option Period 3 (1 month)

4001 Option Period 4 (1 month)

5001 Transition (1 month optional CLIN)

6001 Development Lifecycle Support (1 month optional CLIN)

6002 Development Lifecycle Support (1 month optional CLIN)

6003 Development Lifecycle Support (1 month optional CLIN)

7001 Pre-Deployment Planning (1 month optional CLIN)

7002 Pre-Deployment Planning (1 month optional CLIN)

7003 Deployment Support (1 month optional CLIN)

TOTAL

4. THE AUTHORITY AND SUPPORTING RATIONALE AND, IF APPLICABLE, A

DEMONSTRATION OF THE PROPOSED CONTRACTOR'S UNIQUE

QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR SERVICE:

The authority permitting other than full and open competition is FAR 8.405-6(a)(1)(B), only one source is capable of providing the required services at the level of quality required because the services are unique or highly specialized, and FAR 8.405-6(b)(1), items peculiar to one manufacturer. The requirement relates to SAP software, currently in use for various DLA Enterprise systems. The ability to perform the required services in relation to this brand name software is essential to the Government's requirements.

This requirement involves providing SAP support services as detailed in Sections 2 & 3 above. Only one source is capable of providing the services at the level of quality necessary in the required timeframe. ASI is the only vendor who has the DSS program knowledge required to meet DLA’s immediate requirement for SAP support services under a short term bridge action. SAP support services must continue without interruption in order to support vital DLA services and ensure timely implementation of the pilot production environment in order to maintain continued support of warehouse management and medical supply support services. While the competitive award to Alamo would have allowed for successful performance in the required timeframes, the GAO protest has already delayed performance by two weeks.

The need for immediate resumption of these services will not allow time for another competitive award for the bridge period. As the incumbent, ASI is the only vendor capable of seamlessly assuming performance of the task to ensure continued performance and adherence to necessary timeframes. Award of this bridge to any other vendor would require some level of transition, and also include a reasonable learning curve as performance begins. While this type of transition time is acceptable in the case of a long term task order, it is not acceptable for the purpose of a bridge contract which is designed to seamlessly meet DLA requirements while the issues are resolved before the GAO. Therefore, award of this bridge action to ASI is essential to the continuation of the WMS program.

Due to the aforementioned protest, and the Stop Work Order issued on June 2, 2020, DLA needs to award a sole source bridge to the incumbent. A competitive action will cause an unacceptable break in service.

The decision from GAO is not due until September 9, 2020. Therefore, this sole source bridge action is required until the resolution of the current protest. The option periods will only be exercised if the need for the bridge continues, either during the pendency of the protest or if the agency is required to take corrective action, in the event GAO issues a decision sustaining the protest on one or more grounds.

DLA has determined that a two month base period with four (4) one month option periods for the SAP support services will strike the necessary balance. This will ensure that the task order can be allowed to expire as soon as the protest is fully resolved, but will also allow for short extensions of the period of performance if additional time is needed for corrective action. Additionally, a one month Transition-out period may be necessary to ensure a smooth transition to the long-term competitive award following the disruption of the Protest and Stop Work Order.

If the current action is not approved, the schedule of the deployment of WMS to the pilot site in Corpus Christi, TX as well as the release schedule of WMS to the rest of DLA will be adversely impacted. The current work includes adding interfaces to internal DLA applications such as EBS and the implementation of ITS Mobile that interfaces with the Radio Frequency (RF) Handhelds that are used to track the movement of inventory in warehouses. This work is critical as the existing RF Handhelds are unable to interface with WMS until this upgrade is put into place, which will impact the productivity of the workforce. In addition any further delay in the overall implementation results in more adverse ramifications for DLA. Continued performance will ensure the Government has the capability to handle known and unknown security vulnerabilities and also replace the aging infrastructure. Any additional gap in performance will result in a delay in the improvement of handling of known and unknown security vulnerabilities and the inability to maintain an experienced workforce that is proficient in maintaining an increasingly obsolete hosting environment (also known as “cobol”).

Failure to implement the obsolete hosting environment replacement will continue to represent an increased cost to DLA of $27,000,000 per year in hosting costs alone. These potential cost savings accrue from moving from a mainframe DISA-based mid-tier hosting to SAP Cloud Hosting. The schedule for completion of the implementation will help DLA realize these cost savings as early as FY23. For these reasons, it is critical to continue the development and implementation of this system as expeditiously as possible, minimizing any further delays.

Continued performance under a short term bridge will also address a critical requirement for the DLA Troop Support Medical Directorate. If this requirement is not complete prior to July 2021, this will result in mission failure for the Medical Prime Vendor program. Failure to execute the Medical Supply Mission of DLA will render DLA unable to respond to the medical threat of COVID-19. The addition of Medical functionalities to the legacy DSS system, and then later to the WMS system, would result in paying for the inclusion of these functionalities twice.

SAP support services are required for the configuration of existing SAP software products in the DSS lifecycle refresh project. The existing SAP software modules fall under the DLA Enterprise Resource Platform (ERP) umbrella, and the original competitive source selection for that effort was the Enterprise Business Systems (EBS) procurement. At that juncture, SAP was selected as the DLA ERP provider;

Warehouse Management is a module of that platform.

The services within the scope of this justification are limited to SAP brand name software for the following reasons. The SAP software currently in use by DLA must seamlessly interact with any new software acquired for use in EBS. SAP owns the proprietary data for the software currently in use. Only SAP software is capable of operating fully within the current ERP infrastructure due to the current implementation of other SAP software throughout the system, which cannot seamlessly interact with any other company's software. An alternate company's software cannot be modified by the Government or another offeror to operate acceptably in the current ERP infrastructure since SAP owns the proprietary data needed to modify any other company's software for functional use within the ERP environment. A complete revamp of the EBS infrastructure would be required in order to use another company's software in this environment. DLA is deeply integrated with the EBS infrastructure and is developing 96 specific interfaces, so a major revamp of the EBS infrastructure would be extremely disruptive. This would result in multiple issues including the need for extensive retraining and recertification of the SAP and DLA administrative staff, extensive recoding of software by the application staff, and extensive application and database downtime to implement the new database solution. Non-SAP software cannot be modified to enable integration into the existing SAP ERP operation, therefore it has been concluded that SAP products are currently the only compatible products that will meet DLA’s needs, and therefore the required services relate solely to SAP products.

The required services relating to this SAP brand name software are limited to SAP Public Services Inc.

and its authorized service providers. Support services provided by any other source would not meet the Government's service requirement and would not be authorized by SAP as it is a proprietary platform.

SAP Public Services Inc. and its authorized service providers are the only companies that are certified and have the required training and expertise to provide specialized information technology support services on SAP software modules.

5. DETERMINATION BY THE ORDERING ACTIVITY CONTRACTING OFFICER THAT

THE ORDER REPRESENTS THE BEST VALUE CONSISTENT WITH 8.404(d):

The Contracting Officer will determine that the acquisition represents the best value to the Government consistent with FAR 8.404(d). In making this best value determination, the Contracting Officer will perform a price reasonableness analysis utilizing the techniques found at FAR 15.404-1, including: (1) Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items (FAR 15.404-1(b)(2)(ii)); (2) Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements (FAR 15.404-1(b)(2)(iv)); and/or (3) Comparison of proposed prices with the Independent Government Cost Estimate (FAR 15.404-1(b)(2)(v)).

6. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE

HOLDERS AND THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH

WAS NOT CONDUCTED:

In accordance with DFARS 208.7402, departments and agencies shall fulfill requirements for commercial software and related services in accordance with the DoD ESI. ESI promotes the use of enterprise software agreements with contractors that allow DoD to obtain favorable terms and pricing for software and information technology support services. ASI is an ESI holder for SAP IT support services. This bridge action is required due to the circumstances described in section 4 above. As a result of the need to continue performance as soon as possible, additional market research could not be conducted. However, DLA used the market research conducted for the long term competitive buy, which was completed less than 6 months ago.

7. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

N/A

8. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO THE RESTRICTED

CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES

OR SERVICES IS MADE.

SAP software is so imbedded in DLA's systems that this barrier to competition cannot be removed absent a replacement of the current IT infrastructure. At this time, only brand name SAP support services meet the Government's needs. In addition, this sole source bridge action is required until the resolution of the current protest. The option periods will only be exercised if the need for the bridge continues, either during the pendency of the protest or if the agency is required to take corrective action, in the event GAO issues a decision