SPECIAL NOTICE
99 -- Limited Sources Logical Follow-On Task Order
- Notice Date
- 2/21/2012
- 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
- Synopsis: This notice is being posted in compliance with FAR 8.405-6(a)(2), within 14 days after awarding a limited sources logical follow-on Task Order in accordance with FAR 8.405-6(a)(1)(i)(C). Justification: LIMITED-SOURCES JUSTIFICATION(IN ACCORDANCE WITH FAR 8.405-6) Solicitation D12PS00053 1.Identification of Agency and Contracting Activity. Requiring Activity: U.S. Department of the InteriorOffice of the Secretary1849 C Street NWWashington, DC 20240 Contracting Activity:Department of the InteriorNational Business Center/Acquisition Services Directorate381 Elden Street, Suite 4000Herndon, VA 20170 2.Nature and/or Description of the Action Being Approved. This is a limited sources action to award a sole-source logical follow-on of the requirement for contractor support to conduct strategic deep-dives in support of the Department of the Interiors effort to develop and refine the detailed plan for the Information Technology (IT) Transformation. 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 will be 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 Departments highest levels, will result in a 21st century service delivery organization that provides innovative technologies at lower cost to support DOI mission areas. This follow-on procurement will move DOI to an IT Service Management model for the delivery of IT services for the Information Technology Transformation Plan which will reflect a four-year implementation period. Competition was sought and a Task Order awarded to McKinsey & Company Inc. Washington D.C., hereto after known as McKinsey, for contractor support to develop and refine the detailed plan that will ultimately achieve the DOI strategic goal to fundamentally restructure the way that IT services are delivered. The Task Order was issued against GSA Schedule Contract GS-10F-0118S under MOBIS Federal Supply Schedule SIN 874-1 Consulting Services. The DOI currently has a sole-source logical follow-on requirement for McKinsey under GSA Schedule Contract GS-10F-0118S to conduct strategic deep-dives in areas identified in the deliverables provided by McKinsey in the initial development of the detailed plan for the DOI Information Technology Transformation. This sole-source logical follow-on action will result in awarding a Firm-Fixed-Price Task Order for the estimated amount of $2,500,000 and; therefore, requires Competition Advocate concurrence in accordance with policy number NBCM-ACQ-6900-015. 3.A Description of the Supplies or Services Required to Meet the Agencys Needs (including the estimated value). 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. The Department of the Interior, Office of Chief Information Officer required a contractor to review the current general Information Technology (IT) Transformation Plan and make any further recommendations, and support the Government in the development of a detailed IT Transformation Plan that will achieve this strategic goal by moving DOI to an IT Service Management (ITSM) model for the delivery of IT services. Task 1 - Developed the detailed project plans and schedules for implementing the DOI IT Transformation Program. The project plan provided a significantly more detailed view of the tasks, milestones, predecessors, interdependencies, critical path and resource requirements required to achieve the objectives of the DOI IT Transformation Program. Task 2 - The deliverables identified in the plan from Task 1 were developed. The eleven (11) deliverables under Task 2 were as follows: 1.Initial IT Service Portfolio and IT Service Catalog2.Process and Criteria for Identifying and Prioritizing New Elements of the IT Service Catalog3.Detailed IT Services Lifecycle and Governance Model4.Financial Modeling Templates and Chargeback Models5.Management Structure, Roles, and Responsibilities6.Enterprise Asset Management Implementation Plan7.Enterprise Service Desk Implementation Plan8.IT Transformation Communications Strategy9.Organization Change Strategy10.Data Center Consolidation Strategy11.Sourcing and Acquisition Strategy that supports the OMB Cloud First Directive The purpose of this logical follow-on requirement is to obtain strategic deep-dive support from McKinsey & Company in six (6) specific areas. The Department of the Interior is seeking a deeper assessment of opportunities that were identified in McKinseys initial deliverables. Specifically, McKinsey will conduct deep-dives into the following areas: 1.Management structure including roles and responsibilities: Additional development and refinement of the next level of roles and responsibilities for Service Delivery, and Support functions;2.Sourcing and acquisition strategy: Build-out of cloud-specific sourcing and acquisition strategy and requirements definition in the context of a refined hosting strategy;3.IT Services Lifecycle and Governance: Strategic deep-dive on performance management strategy, including roles/responsibilities and tools/dashboards; 4.Financial modeling templates and chargeback model: Detailed refinement of pricing and roll-out strategies for financial chargeback model including development of simplified intermediate chargeback strategy;5.IT Transformation communications strategy: Development of the next level of communications strategy detail for IT management community and senior Departmental leadership in the context of an updated detailed IT Transformation plan; and 6.Datacenter consolidation strategy: Detailed strategic recommendations in the context of greater applications and data collection efforts and needs.The estimated amount of this logical follow-on requirement is $2,500,000. 4.The Authority and Supporting Rationale. Orders placed under GSA 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 GSA Federal Supply Schedule contractors to fewer than required in FAR 8.405-1 or 8.405-2. The applicable authority permitting to limit sources for this follow-on procurement is in accordance with FAR 8.405-6(a)(1)(i)(C). As cited in FAR 8.405-6(a)(1)(i)(C) In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under a sole-source or limited-sources procedures. The original Task Order was competitively awarded under the authority of FAR 8.401 Multiple-Award Schedule Program to McKinsey & Company against GSA Schedule GS-10F-0118S on July 28, 2011. The competition under the original Task Order included ten (10) vendors under SINs 874-1 Consulting Services and SIN 132-51 Information Technology Professional Services were solicited. Five (5) quotes were received and thus, adequate competition was obtained. McKinseys quote was determined to be the best value to the Government. This determination was based on McKinsey being the vendor whose quote, in conforming to the Request for Quotation, provided the overall best value to the Government, technical and price considered. McKinseys quote met the Governments objective in obtaining the highest technical quality considered necessary to fulfill the Governments requirement within a realistic and reasonable price. It resulted in the best overall technical approach considering McKinseys management approach and technical capabilities, personnel qualifications, organizational experience, past performance and price to meet the Governments needs and with minimal to none performance risk to the Government. As stated in support of the award decision to McKinsey for the original Task Order, the end result of the initial requirement was to be a detailed IT Transformation Plan that will achieve the strategic goal of moving DOI to an IT Service Management (ITSM) model for the delivery of IT services. The contractor awarded this requirement must be an A-Caliber consulting firm that inspires confidence, and of the upmost integrity behind the outcomes of the deliverables. Therefore, the technical approach, capabilities and performance of the contractor are critical to this successful completion of the requirement. This rationale is the same for this logical follow-on requirement and thus, a sole-source award to McKinsey for the deep-dive in six (6) areas as indentified in the deliverables to the original Task Order is appropriate. 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 full Period of Performance of the follow-on award is estimated to be $2,500,000. In accordance with FAR Subpart 8.404(d) GSA 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). The Firm-Fixed-Price for these deliverables will be provided under the GSA Schedule. At a minimum the price will be determined fair and reasonable via the use of price analysis based on the comparison to prior engagements of similar size and scope, and comparing the price to the Independent Government Cost Estimate (IGCE), which will be documented in the Award Summary in the file. Based on this price analysis, the anticipated price represents 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. This requirement is suited to a logical follow-on in accordance with FAR 8.405-6(a)(1)(i)(C) as awarding to another source is likely to result in the disruption of the development of the detailed plan for the Information Technology (IT) Transformation. Through work on the original Task Order McKinsey has gained a unique insight and working knowledge of the DOIs IT Transformation Roadmap, and current state. Additionally, McKinsey has extensive experience with federal IT Transformations, specifically working with OMB to create the Federal CIOs 25-Point Implementation Plan to Reform Federal Information Technology Management. This plan which was created by McKinsey, and published by OMB and helps deliver more value to the American taxpayer by addressing the most pressing, persistent challenges faced by the Federal Government IT. Finally, 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 requirement. Awarding to a Contractor other than McKinsey could result in substantial duplication of effort and costs to the Government and would cause 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 logical follow-on to the original Task Order would be in the best interest of the Government. 7.Any Other Facts Supporting the Justification. McKinsey previously provided support under Task Order D11PD40452 with the Performance Work Statement entitled Information Technology Transformation Detailed Planning, for the Chief Information Officer, Department of the Interior from August 2011 through February 2012. The period of performance for Task Order D11PD40452 presumed that the government would no longer require contractor support. However, the need continues for this contractor to conduct a number of strategic deep-dives as a follow-on requirement. The Department was unaware that such opportunities for the additional strategic deep-dives would be identified during McKinseys performance of the original Task Order. McKinsey possesses the specific knowledge required to perform this additional analysis successfully as a follow-on requirement to what was originally competed. 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 Acquisitions are anticipated and all deep dive subject areas currently identified are being provided for under this task order; if new areas are identified, a new competitive procurement will be conducted to fulfill any future requirements.
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