Vanguard 2.2.3

LIMITED SOURCES JUSTIFICATION FOR LIMITING SOURCES ON THE FEDERAL SUPPLY SCHEDULE PROGRAM FAR Part 8.4 1. Identification of the agency and the contracting activity: The Office of Acquisition Management (AQM) is conducting this acquisition of other than full and open competition for Global IT Modernization (GITM) Vanguard 2.2.3 IT Services and Program Support on behalf of the Bureau of Information Resource Management (IRM). The contract maximum of the current contract is $165,158,973.09 and will not change during the extension period. The option periods will give the program the flexibility to award a new contract, a transition period during the COVID-19 health crisis, and the possibility of a protest.A determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d) and FAR 8.405-(d). The Contracting Office determines that the anticipated price(s) will be fair and reasonable based on the contractor's past performance and their due diligence in managing their staff and program expenses. The incumbent contractor has been performing the work for over five years and has a qualified workforce to continue to support the services. Many of the contractor employees require top secret clearances and even those employees working in the warehouse require secret clearances. All understand the needs of the operation and the sensitivity of work involved. It would be quite difficult to replace the existing staff in the short term and continue to operate the GITM Program effectively. 2. Nature and/or description of the action being approved. AQM is requesting an extension of the current contract, SAQMMA14F0756, beyond 5 years in accordance with DOSAR 617.204(e) and FAR 17.204(e). The extension request is for an additional twelve (12) months. The extension is necessary to ensure that the Government can continue to conduct essential IT Services and IT Program Support. The extension will enable the Department to replace the current contract with a follow-on contract that will more clearly reflect the new direction of the GITM Program and better align with the most recent strategic goals related to IT modernization. The new contract is expected to be awarded before December 20, 2021. The current ceiling price of the contract is $165,158,973.09 and will not change during the extension period. The follow-on contract was delayed because the program has been asked to take on additional functions which needed to be accounted for as the new contract is re-competed. This contract will allow multiple offices to request logistics services and assist with the expansion of GITM's logistic footprint as it takes on more work after the re-organization of IRM. To account for these changes the government had to do additional market research and has spent the last month negotiating with OSDBU on a path forward to account for small business participation. The program would like to more accurately express the scope of these functions to ensure that the government receives the best possible services while allowing for small business participation. 3. A description of the supplies or services required to meet the Department's needs.The GITM Program, a division within IRM Foreign Operations, is the central point for the design, procurement, and deployment of the IT infrastructure equipment within the Department of State. This includes workstations, monitors, printers, switches, and the Enterprise Converged Platform (ECP). The Vanguard 2.2.3 contract gives the GITM Program the warehouse and ability to perform IT procurement, system integration, receiving, packing and shipping, and the necessary customer support during remote product installations and upgrades. The Vanguard 2.2.3 contract supports customers both domestically and overseas. 4. The authority and supporting rationale and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the supply or services. This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3), and 40 U.S.C. 501), as implemented by FAR 8.4 and substantiated by the following: ? FAR 8.405-6(a)(1)(i)(A) - An urgent and compelling need exists, and following normal procedures would result in unacceptable delays. For this extension period, DynCorp International is the best candidate to continue supporting the Global IT Modernization (GITM) division. They currently hold the lease to the GITM warehouse that is approximately 30,000 square feet. They are also providing warehouse support for IRM/ITI at a second location, SA-21. The GITM warehouse includes office and warehouse space and is wired for OpenNET and ClassNET. It took 18 months to get OpenNET installed, two-and-a-half years to get ClassNET approved and installed, and one year to get the warehouse up to Fairfax county code. For the extension period, it is not possible to move to an operational warehouse in the Springfield area with these requirements. DynCorp is also assisting with the initial remodeling efforts at the SA-21 warehouse. The systems integration and deployment work DynCorp International performs is complex and would not be quickly absorbed by another contractor. If GITM had to train another contractor before the formal awarding of the new contract, this could easily take up to six months with the current COVID-19 work policies in place. During this time GITM's support to the field would be limited or suspended altogether. To sacrifice this time period, and then go through this process again when a new contract is awarded would be extremely burdensome. DynCorp International has done an excellent job at managing costs for the life of this contract as demonstrated by the low burn rate compared to the contract ceiling. In addition, they have been an excellent partner to GITM by working through major changes in IT deployment and inventory management. DynCorp International has consistently looked for efficiencies and tried to keep costs down while tackling new initiatives that the government requested. GITM is pleased with the overall performance of DynCorp during the life of this contract and would like them to help bridge this extension period until the new contract is awarded. A determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d) and FAR 8.405-(d). The Contracting Office determines that the anticipated price(s) will be fair and reasonable based on the contractor's past performance and their due diligence in managing their staff and program expenses. The incumbent contractor has been performing the work for over five years and has a qualified workforce to continue to support the services. Many of the contractor employees require top secret clearances and even those employees working in the warehouse require secret clearances. All understand the needs of the operation and the sensitivity of work involved. It would be quite difficult to replace the existing staff in the short term and continue to operate the GITM Program effectively. By signing the justification, the Contracting Officer makes a determination that the annual cost of $9.6 million to the Government is expected to be fair and reasonable. For comparison, the previous contract held by Mantech averaged $20 million a year. DynCorp International has been managing its hourly labor costs better than some of its peers. For example, Dyncorp International pays the project manager labor category $125 an hour within Vanguard 2.2.3. For comparisons, the Deloitte contract with IRM pays a project manager $175 an hour and the SAIC labor rates within the Vanguard 2.2.1 contract pays a project manager $180. In cases where GITM needs surge support, Dyncorp International gives much better value than the other labor contracts within IRM. 6. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted. The program office is already aware of some contracting companies that would be suitable candidates for the upcoming competition. Two Requests for Information have already been processed and the information is relevant and current. 7. Any other facts supporting the use of this justification. Failure to extend the contract could result in a serious gap in the Department's secure IT supply chain. The GITM program successfully procured a record-breaking amount of IT equipment at the end of fiscal year 2020. This equipment is arriving in batches on a weekly basis now, and all the TEMPEST equipment is expected to arrive later in 2021. Without an extension, GITM cannot take possession of the tens of millions of purchased equipment which will lead to contractual issues with the program not being able to accept deliveries. In addition, the GITM program will no longer be able to prepare and deploy new IT equipment to our overseas posts. This will put the Department in a bad position with increasing equipment failure and the dependence of end-of-life items on the network that seriously impacts our cybersecurity posture. The end result is that our overseas employees will not have the equipment they need to do their jobs. Finally, without an extension, the Department may also lose control of the warehouse in a disorderly manner which is currently leased to the contractor. This extension will enable us to affect a low risk transition of work to the follow-on contract in a more orderly fashion. 8. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. The requiring activity will continue as the Program and Acquisitions Office work towards the award of a new contract before December 20, 2021.