SPECIAL NOTICE
99 -- Limited Source Justification
- Notice Date
- 1/20/2012
- 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 D11PD40452, Modification 0003 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 execute a bilateral modification for additional work under Task 2; Recommended Management Structure of Task Order D11PD40452 with the Performance Work Statement entitled Information Technology Transformation Detailed Planning, for the Chief Information Officer, Department of the Interior. Task Order D11PD40452 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 with a period of performance of August 8, 2011 through December 23, 2011. The period of performance was subsequently extended until January 20, 2011 under Modification 0002 to allow the Government more time to evaluate the need for this additional in-scope work. The Firm-Fixed-Price of adding the supplemental in-scope work for this requirement is $544,090.04, which would bring the total price of the Task Order to $2,527,160.92. The purpose of Modification 0003 under Task Order D11PD40452 is to provide additional in-scope assessment work under Task 2. Specifically, to conduct a deep-dive on the Information Technology Transformation Office (ITO) portion of the management structure to refine roles and responsibilities. The Department of Interior is in the process of fundamentally restructuring the way that Information Technology (IT) services are delivered to internal and external constituents. This requirement was for McKinsey & Company to develop a detailed plan for Information Technology (IT) Transformation in order to create a modern, consolidated IT Service Delivery organization that will support all Department of the Interior (DOI) bureaus, offices and approximately 80,000 end users. McKinsey & Company has recently completed all of the deliverables outlined in the Performance Work Statement for that requirement, but the DOI seeks a deeper assessment of opportunities that were identified in the initial work under Task 2. To complete this additional in scope requirement, McKinsey will need an additional four (4) weeks of performance. A notice to proceed was issued January 5, 2012 by the Contracting Officer, with the verbal authorization from the Competition Advocate, and Division Chief, to allow the Contractor to start work January 9, 2011. Therefore, the Period of Performance of the Task Order will be extended from August 8, 2011 through January 20, 2012 to August 8, 2011 to February 3, 2012. This modification will result in a Firm-Fixed-Price increase of $544,090.04 to the Task Order 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). 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 - Develop the detailed project plans and schedules for implementing the DOI IT Transformation Program. The project plan provides 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 shall be developed and delivered by the contractor within the period of performance of this requirement. The eleven (11) deliverables under Task 2 of this requirement are 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 current modification, Modification 0003 is to obtain additional support from McKinsey & Company under Task 2, the Recommended Management Structure. The Department of the Interior is seeking a deeper assessment of opportunities that were identified in McKinseys initial work. Specifically, McKinsey will: 1.Provide recommendations on optimizing ITO in the transition state including detailed roles by leveraging external benchmarks and catalog of best-practice management structures,2.Refine detailed listing of ITO responsibilities as related to reporting and tracking; change management and communications; portfolio and project management; and interdependency and issue resolution The amount of this additional in-scope work is $544,090.04. For this additional requirement, McKinsey & Company will provide a deliverable which will design the roles and responsibilities of the ITO and develop the tools/templates that will allow them to function effectively. 4.The Authority and Supporting Rationale. 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) Only 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. Additionally, trying to identify any other possible source would result in unacceptable delays in fulfilling this additional in-scope 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, provides the authority to modify the Task Order for this additional in scope requirement and the Period of Performance extension. The extension is for an additional two (2) weeks. The price to conduct the deep-dive and extend the period of performance is $544,090.04. 5.A Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value Consistent with 8.404(d). The additional in-scope requirement is to conduct a deep-dive on the ITO portion of management structure to refine roles and responsibilities. Under this modification, additional assessment work will be provided under Task 2, Management Structure, Roles, and Responsibilities. The amount for the Period of Performance extension for the additional assessment work under the Task Order will be for a firm-fixed-price of $544,090.04. 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). 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 additional assessment work. 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 $544,090.04. All deliverables for this requirement will be complete once this two (2) week extension for additional work under the Task Order is completed. At this time, the DOI does not anticipate any additional extensions or additional work for in scope activities will be required. 7.Any Other Facts Supporting the Justification. Under this Task Order, McKinsey & Company, in their initial work, created eleven (11) deliverables under Task 2. However, a deeper assessment of the management structure, roles and responsibilities is needed to help position the DOI for success during the course of this multi-year transformation. The Department was unaware that such an opportunity for the additional deep-dive would be identified during McKinseys performance of the requirement. However, a more in-depth assessment of this opportunity as sought by DOI is within scope of Task 2 Recommended Management Structure. As McKinsey has performed the initial work, the Government requires a further analysis of this opportunity to optimize the transition state structure, and focus on change management and communications, portfolio management, and interdependency/issue tracking and resolution. As McKinsey has performed this assessment from the beginning and identified this opportunity during the course of performance, only McKinsey & Company can perform this additional in scope work because they possesses the specific knowledge required to perform this analysis successfully. 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. All deliverables for this requirement will be complete once this two (2) week extension for additional work under Task two (2) is completed. At this time, the DOI does not anticipate any extensions or additional work for in-scope activities will be required. A new competition would be impracticable due to the substantial learning curve involved in obtaining a new contractor who can provide the additional work as this work will only be provided for an additional two (2) 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 $544,090.04.
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