LIMITED SOURCE JUSTIFICATION

Federal Acquisition Regulation (FAR) PART 8 LIMITED SOURCE JUSTIFICATION One Year Bridge Contract for the DFAS Defense Critical Infrastructure Program (DCIP) 10 January 2013 1. IDENTIFICATION OF THE REQUIRING AND CONTRACTING ACTIVITY: a. Requesting Activity: Defense Finance and Accounting Service ATTN: DFAS-DCIP 8899 East 56th Street Column 316-Z Indianapolis, IN 46249-0301 b. Contracting Activity DFAS Columbus Contract Services Directorate DFAS-CO-CSD-ZECAC 3990 East Broad Street PO box 182317 Columbus, OH 43218-2317 2. NATURE OR DESCRIPTION OF THE ACTION: The purpose of this document is to obtain the necessary approvals for a limited source acquisition in accordance with FAR 8.405-6 (b) (2). "Limited source" in this case pertains to the award of a single logical follow-on task order for the continuation of DCIP systems support to DFAS. The provision for a logical follow-on can be found at 8.405-6(a)(1)(i)(C). DFARS 208.405-70(b)(2) provides for an exception as listed at FAR 16.505(b)(2)(i)(C). This acquisition is being conducted under the authority of the Multiple Award Schedule Program, Title III of the Federal Property Administration Act of 1949 (41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services for Executive Agencies. . 3. DESCRIPTION OF SUPPLIES/SERVICE: The Defense Critical Infrastructure Program (DCIP) is a Department of Defense (DoD) risk management program that seeks to ensure the availability of networked assets critical to DoD missions. DCIP is directed by the Assistant Secretary of Defense (Homeland Defense) [ASD(HD)] and managed by the Mission Assurance Director. DFAS is tasked as the Financial Services Sector Lead Agent (one of 10 Defense Sectors under DoD). In addition, OASD(HD) ensures that related DoD and national programs supporting critical infrastructure protection are leveraged effectively. To accomplish these objectives, the vendor under contract to DFAS, ASD(HD) and the Mission Assurance Director has established a support matrix throughout DoD to ensure an integrated effort that leverages expertise outside of the core staff. The contractor performs work to develop and maintain policy, procedures and guidance related to DCIP; which develops and maintains characterization of the Financial Services sector functions, systems, assets and dependencies; collaborates with other Defense Sector Lead Agents and DoD Components to identify cross-sector interdependencies; analyzes the Financial Services Sector capabilities and develops a prioritized list of critical assets; and provides recommendations for remediation or mitigation of the Financial Services Sector related risks to the Office of the Assistant Secretary of Defense (Homeland Defense & Americas' Security Affairs).The contractor will continue to support DFAS's Financial Services Sector Lead Agent role in achieving these objectives. The contract will be a one-year bridge contract awarded as a logical follow-on to the task orders from the BPA to allow the transition from contractor to in-house fulfillment of the mission requirements. The estimated cost for the contract is $XXXXXXXXXXXXXX. 4. RATIONALE AND PROPOSED CONTRACTOR'S UNIQUE QUALIFICATIONS: The DCIP program was initiated and funded by the Office of the Secretary of Defense who named DFAS as the Lead Agent for the Financial Services Sector. Because DCIP was new and DFAS did not have the personnel or expertise to complete the mission, a contract was sought. At that time, the potential contract was competed within the GSA community of vendors and had 3 responses. Just last year, critical Microsoft Security standards were added to the requirements for all personnel working on the program. A 5-year BPA (HQ0423-07-A-0007) was written against GSA Schedule contract XXXXXXXXXXX(Booz Allen Hamilton Inc.) for a total contract value of $XXXXXXXXXXXX. The last of 6 Task Orders were written on that BPA on 9 January 2012 to fulfill a continuing need to provide support of the DCIP program. Six years ago, DFAS was able to meet it's needs with IT experts in database and systems. However, in the last 6 years, the personnel engaged in the DFAS DCIP operation have developed unique knowledge and expertise and working relationships with all the agencies and 65 DCIP partners throughout DoD. There are also multiple remediation projects in various stages of completion. The contractor has developed the unique knowledge and expertise to perform the tasks in support of the DFAS Lead Agent role, serving the entire Department of Defense. This mission is critical and has undergone a not-quite-completed Business Case Analysis (BCA) to determine if it should be brought in-house. Note that the DCIP Program Office was required to identify the personnel and training requirements to complete the transition. Their analysis noted that they would require a three-month overlap to bring a new staff up-to- speed with the program as it is today. That information makes it critical to put in place a bridge contract. We expect the mission to be brought in-house within the next year. It will take a three-month hands-on training process to effectively transition to another team. Therefore, it would degrade the mission and create a significant additional financial burden to compete the contract in the open market now, pay for and extension to allow the current contractor to transition a new staff, then go through the whole transition process again 6 months. later. Therefore, best action from DFAS is to put in place a Logical Follow-on, one-year bridge contract to allow the BCA process to be completed and the individuals hired and trained so that this mission can continue. 5. DETERMINATION OF BEST VALUE: The award of the initial task order for DFAS DCIP Support was competed on GSA e-Buy under GSA SIN 874-1, MISSION ORIENTED BUSINESS INTEGRATED SERVICES (MOBIS) -Consulting Services. All interested offerors within this GSA SIN of 1,710 vendors had the opportunity to respond to the RFQ. Three quotes were received and Booz Allen Hamilton Inc. (BAH) was awarded the BPA on a Best Value basis. This requirement will be awarded to BAH in accordance with 8.405-6(a)(1)(i)(C) and FAR 16.505(b)(2)(i)(C)); the new work is a logical follow-on to an original Federal Supply Schedule order. 6. DESCRIPTION OF MARKET SURVEY: Some inquiries were made and it is clear that the current team has information, processes and knowledge that are unique to the DFAS DCIP mission so no other firm can perform the mission without a significant transition. This is a Logical Follow-on to bridge from contractor provided to government employee provided support. This Logical Follow-on will allow a smooth transition of the functions to government employees. 7. ANY OTHER SUPPORTING FACTS: This order must be issued on a limited-source basis in the interest of economy and efficiency because it is a logical follow-on to a five-year BPA effectively accomplished by the incumbent. The use of a logical follow-on is justified because the same work requiring significant expertise is continuing and there is a continuing need for the same level of DCIP support during the transition. The inclusion of priced options was not considered since the bridge contract cannot be extended beyond the one-year time frame. 8. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION: DFAS-DCIP intends to in-source this effort at the end of the one-year period of performance of this contract. Thus, additional contract awards are not anticipated.