Issuance of a sole source modification to Contract N00189-16-C-Z077 with Morgan Business Consulting LLC (MBC) to extend the period of performance through 31 March 2018 inclusive of three one-month options. Due to the progress that the Navy has made along the financial statement audit continuum over the past year, the scope and complexity of audit findings, and subsequently, the quantity and complexity of the type of evaluation support provided by MBC has increased substantially. The estimated amount for this modification (CPFF) to potentially extend the term for twelve months is 55,544 hours (41,966 hours at for nine months and 4,526 hours for each of the three one-month options). This contract is for Evaluation Services for The United States Navy’s financial statement audits. Contract N00189-16-C-Z077 was issued pursuant to 10 U.S.C. 2304(c)(l) and expires 31 March 2017. It is noted that this effort was previously obtained under a Seaport-E task order (N00178-09-D-5576-EX04) that was competitively awarded to MBC. The purpose of the Evaluation Program is to provide audit remediation and sustainment support for internal and external audits to develop, implement, and sustain a framework to conduct scheduled and special request internal review evaluations. This Evaluation process tracks and manages corrective action plans (CAPS), validates the results in central repository, coordinates with the Regions and Budget Submitting Offices (BSOs) on metrics and reporting, tracks all data elements (e.g., critical path, material weakness crosswalk) for external reporting (e.g., FIAR Governance Board and FIAR plan status reports), and establishes communication with the Independent Public Auditor (IPA) to provide CAP and validation updates. The services that MBC were awarded under N00189-16-C-Z077 and N00178-09-D-5576-EX04 are specifically related to the FY15 Schedule of Budgetary Activity (SBA), and the FY 16 Statement of Budgetary Resources (SBR) audits due to commonality in the issued Notices of Findings and Recommendations (NFRs) from the Independent Public Accounting (IPA) auditors. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements as implemented by FAR 6.302-l(a). In this case, the services are deemed to be available only from MBC, the original source, as this is a follow-on for the continued provision of highly specialized services and it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and would also result unacceptable delays in fulfilling the agency’s requirement. MBC began the evaluation process under a Seaport-E order in September 2014. Since that time MBC has garnered specialized expertise and experience that would not be able to be duplicated by another contractor without significant duplication of effort and cost, and significant time delays. Having received the issued and reissued NFRs in FY15 and FY16, the DON, with MBCs support, is continuing to remediate and close the findings. Continuous support is needed to close these NFRs in short timelines and at high velocities in preparation for the Navy’s FY17 SBR with beginning balance audit. Only MBC can provide the required expertise for these highly specialized services under the required timeframe. Award to any other source would likely result in substantial duplication of cost to the Government and unacceptable delays. If a new vendor were to provide these services, it would necessitate a lengthy transition time of at least six months in order to bring the new contractor up to speed on work already completed by MBC. Due to the increased complexity of Navy audit and NFRs, this would prevent successful response and completion of the FY17 SBR and beginning balances audit. Also, it would result in an unacceptable delay to the progression and readiness for the Navy’s FY18 full financial audit. In addition, transitioning the work to a contractor other than MBC to perform these services would also involve time lost to government personnel who would have to familiarize the new contractor personnel in their duties and also provide an increased level of oversight until the new contractor was sufficiently transitioned into the efforts. The actions and processes of the audit environment as well as this program are of a time sensitive nature as DON is working to comply with the Department of Defenses (DOD’s) Financial Improvement and Audit Readiness (FIAR) Plan and the congressionally mandated deadlines for audit readiness set forth in the 2010 National Defense Authorization Act. Therefore, award to any other source at this time would cause delays that would severely hinder the progress of the program. Based on the foregoing, pursuant to FAR 6.302-1(a)(2)(iii), the services are deemed to be available only from MBC, the original source, because the award of these highly specialized services to any other source would result in substantial duplication of cost to the Government that would not be recovered through competition, and unacceptable delays in fulfilling the agencys requirements. The NAVSUP FLC POCs for this synopsis are Mrs. Rose McWilliams, Code 260.1. Phone: 215-697-9740; Email:
[email protected] and
[email protected].