SPECIAL NOTICE
99 -- Sole Source J&A IT Transformation
- Notice Date
- 7/2/2012
- Notice Type
- Special Notice
- NAICS
- 541611
— Administrative Management and General Management Consulting Services
- Contracting Office
- DOI, National Business Center, AQDDivision 1/Branch 1381 Elden StSuite 4000HerndonVA20170
- ZIP Code
- 20170
- Small Business Set-Aside
- N/A
- Description
- LIMITED-SOURCES JUSTIFICATION (IN ACCORDANCE WITH FAR 8.405-6) Task Order D12PD00366, Modification 0002 1.Identification of Agency and Contracting Activity. Requiring Activity: U.S. Department of the Interior Office of the Secretary 1849 C Street NW Washington, DC 20240 Contracting Activity:Department of the Interior National Business Center/Acquisition Services Directorate 381 Elden Street, Suite 4000 Herndon, VA 20170 2.Nature and/or Description of the Action Being Approved. This is a limited sources action to execute a bilateral modification to add a supplemental task to re-examine the Strategic Plan under Task Order D12PD00366 with the Performance Work Statement entitled =BFInformation Technology Transformation Detailed Planning Follow-on Strategic Deep-Dives for the Office of the Chief Information Officer, Department of the Interior.=BF This Task Order is in support of the Information Technology (IT) Transformation initiative in accordance with Secretarial Order #3309-Subject: Information Technology Management Functions and Establishment of Funding Authorities. Task Order D12PD00366 was awarded under the authority of FAR 8.401 Multiple-Award Schedule Program to McKinsey & Company against GSA Schedule GS-10F-0118S, under the Mission Oriented Business Integrated Services (MOBIS) Federal Supply Schedule SIN 874-1 Consulting Services, as a limited sources logical follow-on on February 10, 2012. The period of performance of the Task Order was February 10, 2012 through June 2, 2012, but subsequently extended until June 15, 2012 under Modification 0001. This modification was to allow the Government more time to finalize the requirements document for this supplemental task. The Firm-Fixed-Price of adding the supplemental task is estimated at $900,000.00, which would bring the total price of the Task Order to $3,434,732.60. 3.A Description of the Supplies or Services Required to Meet the Agency=BFs Needs (including the estimated value). The current logical follow-on to the original competitive Federal Supply Schedule Task Order with McKinsey expires on June 15, 2012. The Department has identified a need for an additional supplemental task to re-examine the strategic plan in light of changes in DOI environment and planning process. The objective of this task is to provide necessary strategic planning to the Office of the Secretary and the Office of the Chief Information Officer based on a modified course of action of the IT Transformation initiative. The activities under this supplemental task will facilitate increased stakeholder involvement in the decision-making process related to how the implementation of IT Transformation moves forward. The activities shall be the following: a)Input into developing a modified strategic plan which will serve as a framework for a resolute DOI-wide IT Transformation model; b)Input into developing a modified strategic plan to assist in benchmarking and performance monitoring; c)Input into developing a modified strategic approach related to the potential models for phasing IT Transformation efforts; d)Input into developing a strategic approach in defining and securing leadership capabilities needed for end-state enterprise shared services; and e)Input into developing a strategic approach in defining an on-boarding strategy for a cadre of newly created, key IT leadership positions. The following deliverables will be received upon completion of the activities: a)Recommendations as to what modifications should be made to DOI=BFs strategic roadmap on IT Transformation based on increased stakeholder involvement; b)Recommendations as to what changes should be made to DOI=BFs benchmarking and performance monitoring, based on the newly outlined strategic model; c)Recommendations as to which potential models should and could be pursued under a phased implementation approach to IT Transformation; and d)Recommendations on defining an on-boarding and retention strategy for a cadre of newly developed, key IT leadership positions and on-boarding strategy for new leaders. Note the consulting services provided by McKinsey in support of this IT Transformation shall not include implementation services. The original competitive Task Order D11PD40452, the Request for Quotation and ultimately, the Task Order specifically stated: =BFExclusion from Future Competition: The contractor with the successful quote for this requirement, and any of its employees, affiliates, and related entities may not propose, bid subcontract nor consult on the actual implementation of the recommendations as outlined in this requirement which may result in future solicitation(s).=BF This same language was applicable to the current logical follow-on Task Order D12PD00366 and continues to be applicable to this modification. The estimated amount of this action is $900,000.00 with a period of performance of 6 weeks. 4.The Authority and Supporting Rationale=BFa Demonstration of the Proposed Contractor=BFs Unique Qualifications to Provide the Required Service. Orders placed under Federal Supply Schedules are exempt from the competition requirements in FAR Part 6. However, an ordering activity must justify its action when restricting consideration of federal supply schedule contractors to fewer than required in FAR 8.405-1 or 8.405-2. The applicable authority permitting to limit sources is in accordance with FAR 8.405-6(a)(1)(i)(B). As cited in FAR 8.405-6(a)(1)(i)(B) =BFOnly one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.=BF Additionally, trying to identify any other possible source would result in unacceptable delays in fulfilling this additional requirement. Under GSA Schedule GS-10F-0118S with McKinsey & Company, which includes FAR Clause 52.212-4 (c) Changes, Contract Terms and Conditions-Commercial Items, the changes clause provides the authority to modify the Task Order for this supplemental task and the 6 weeks Period of Performance extension. This supplemental task is to continue the consulting services provided by McKinsey from the start of this complex project, the supporting rationale that demonstrates McKinsey=BFs unique qualifications begins with the award of the initial competitive Task Order which was awarded on a best value basis. As previously stated, on December 14, 2010, the Secretary of the Interior issued Secretarial Order (SO) 3309, which calls for the centralization of all IT management and operations functions, including IT infrastructure assets, and all Clinger-Cohen functions (e.g. Records Management, Enterprise Architecture, Capital Planning, Privacy, and Cyber (IT) Security) under the Department Chief Information Officer (CIO). The primary objective of the new IT organization will be to implement a dynamic new enterprise business model for delivering scalable IT products and services that are transparent and customer and mission focused. The consolidation of IT management, human resources, and Clinger-Cohen functions within the Office of the Secretary was addressed in the first phase of the transformation process. This Transformation is a multi-year program involving every facet of the Department and will realign how information technology is designed, priced, and delivered in support of DOI bureaus, offices, and approximately 80,000 end users. This effort, supported at the Department=BFs highest levels, will result in a 21st century service delivery organization that provides innovative technologies at lower cost to support DOI mission areas. In July 2011 Secretary of the Interior Ken Salazar released DOI=BFs IT Transformation Strategic Plan, a major efficiency initiative that will leverage modern technology to save up to $500 million in taxpayer dollars by 2020. The strategic plan was a high-level roadmap to transform the DOI IT operations for the 21st century, using advances in technology to provide better service for less. The plan identified an initial set of high priority IT services as part of the transformation process. Following the release of the strategic plan, the DOI, Office of Chief Information Officer developed a Performance Work Statement (PWS) detailing the need for contractor support to review the high-level roadmap and make any further recommendations. On July 28, 2011, a Task Order was competitively awarded under the authority of FAR 8.401 Multiple-Award Schedule Program to McKinsey & Company Incorporated, Washington D.C. against GSA Schedule GS-10F-0118S. Two tasks were identified under this acquisition; Task 1 - Develop the detailed project plans and schedules for implementing the DOI IT Transformation Program, and Task 2 - The deliverables identified in the plan from Task 1 were developed. The end result of the initial requirement was a detailed IT Transformation Plan that has assisted DOI to achieve the strategic goal of moving DOI to an IT Service Management (ITSM) model for the delivery of IT services. The contractor awarded the initial requirement was an =BFA-Caliber=BF consulting firm that inspired confidence, and is of the upmost integrity behind the outcomes of the deliverables. Therefore, the technical approach, capabilities and performance of the contractor were critical to the successful completion of that requirement. During the performance of the initial competed requirement DOI and McKinsey identified six (6) specific areas within the deliverables that, with additional analysis, would benefit the Government during the next phases of the transformation. Therefore, on February 10, 2012 a logical follow-on requirement was awarded under the authority of FAR 8.405-6(a)(1)(i)(C) to obtain strategic deep-dive support from McKinsey in six (6) specific areas. During the final weeks of the logical follow-on it became clear to the Government that the course of the IT Transformation initiative, as outlined in the Strategic Plan established in the original Task Order, has shifted. The objective of this supplemental task is to provide necessary strategic planning to the Office of the Secretary and Office of the Chief Information Officer management based on a modified course of action of the IT Transformation initiative. Therefore, this supplemental task will facilitate increased stakeholder involvement in the decision making process related to how the implementation of IT Transformation moves forward. It is projected that the period of time it would take for another Contractor to gain sufficient background regarding DOI=BFs IT Transformation initiatives, its culture, operating parameters and dynamics would exceed the period of performance extension of 6 weeks. This would cause DOI to significantly delay its IT Transformation efforts, duplicate current efforts, and the Government would not expect to recoup the cost associated with a new competition versus adding a supplemental task to the current Task Order with McKinsey as outlined in number three (3) above. This phase of the IT Transformation is integral to the over-arching IT Transformation Strategic Plan which builds on President Obama=BFs Executive Order issued in April 2011 directing Government agencies to leverage technology to strengthen and streamline service and make government work better for the American people. Thus, based on the aforementioned reasons, McKinsey is uniquely qualified to complete this supplemental task under the current logical follow-on Task Order for the IT Transformation Initiative. 5.A Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value Consistent with 8.404(d). The amount for the Period of Performance extension for the supplemental task under the Task Order will be completed on a Firm-Fixed-Price basis estimated at $900,000.00. In accordance with FAR Subpart 8.404(d) =BFGSA has already determined the price of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d)=BF. The Firm-Fixed-Price for this supplemental task will be provided under the GSA Schedule. The price will be determined fair and reasonable via the use of price analysis based on the comparison of the original McKinsey team prices under the Task Order, prior engagements of similar size and scope, and comparing them to the Independent Government Cost Estimate (IGCE), which is documented in the Memorandum for Record for Modification 0002 in the Task Order file. McKinsey=BFs GSA Contract utilizes a Team approach which also draws upon the worldwide resources available from McKinsey affiliates, including a research and information network of 1,200 people and over 20 global functional and industry practices. The proposed teaming approach to support the Firm-Fixed-Price under this limited sources modification will also be analyzed for price reasonableness by drawing from the knowledge gained from previous work under the previous Task Orders. Based on the various tools described and other price analysis tools deemed necessary, a fair and reasonable price determination will be made. Therefore, based on an in-depth price analysis, the anticipated price will represent the Best Value to the Government. 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. Market Research was not conducted because a new competition would be impracticable due to the substantial learning curve involved in obtaining a new contractor who can provide the supplemental task. Obtaining a new contractor would not be a cost effective to the Government as the price to bring in a new contractor for 6 weeks would cost significantly more than the estimated price of $900,000.00. McKinsey will bring the necessary combination of expertise, relevant experience, tools and key personnel that makes McKinsey distinctively and uniquely qualified to meeting the particular needs of this supplemental task. Awarding to a Contractor other than McKinsey could result in substantial duplication of effort and costs to the Government and would cause significant unacceptable delays. These costs would not expect to be recovered through competition. The Government has chosen to minimize its risk for the successful completion of the requirement by determining a limited sources action against the current Task Order would be in the best interest of the Government. 7.Any Other Facts Supporting the Justification McKinsey has provided support for the DOI IT Transformation under two task orders. The competitive Task Order was awarded to McKinsey as their superior technical approach demonstrated a thorough and excellent grasp of the requirement to include the Organizational Health Index and Influence Model that directly supports DOI=BFs goal of performing customer segmentation and targeted change management activities, which includes =BFquick wins=BF and a =BFhuman connection=BF to their process. Even more specifically, McKinsey proposed a holistic approach that focuses on completing draft deliverables early and sharing drafts with stakeholders for input and buy in. Additionally, McKinsey has extensive experience with federal IT Transformations, specifically working with OMB to create the U.S. Chief Information Officer=BFs 25-Point Implementation Plan to Reform Federal Information Technology Management. This plan which was created by McKinsey, and published by OMB helps deliver more value to the American taxpayer by addressing the most pressing, persistent challenges faced by IT professionals. Therefore, the capabilities, performance, and the low risk to the Government provided by McKinsey were critical to the requirement. McKinsey=BFs ability to leverage existing data from listening sessions to help drive remedies with an understanding of the need for quick and early wins that are high touch for end users provide value to DOI. Finally, McKinsey brought the necessary combination of expertise, relevant experience, tools and key personnel that made McKinsey distinctively and uniquely qualified to meet the particular needs of the requirement. It was presumed at the time of award of the logical follow-on, that the government would no longer require contractor support. However, the need continues for this contractor to provide assistance to the Department of the Interior, Chief Information Officer, in support of the Information Technology (IT) Transformation Initiative. McKinsey possesses the specific knowledge required to perform this support successfully as a supplemental task.   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. None, no subsequent sole source acquisitions are anticipated and all deliverables are being provided under this Task Order; if new tasks are identified, it will be determined if a new competitive procurement is appropriate to fulfill any future requirements. A new competition would be impracticable due to the substantial learning curve involved in obtaining a new contractor who can provide the supplemental work as this work will only be provided for an additional 6 weeks. Obtaining a new contractor would not be a cost effective to the Government as the price to bring in a new contractor would cost significantly more than the quoted price of $900,000.00 and significantly delay the IT Transformation.
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