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FBO DAILY - FEDBIZOPPS ISSUE OF JANUARY 25, 2015 FBO #4810
DOCUMENT

R -- Enterprise Operations Transformation Logical Follow-on - Attachment

Notice Date

1/23/2015
 

Notice Type

Attachment
 

NAICS

541611 — Administrative Management and General Management Consulting Services
 

Contracting Office

Department of Veterans Affairs;Technology Acquisition Center;23 Christopher Way;Eatontown NJ 07724
 

ZIP Code

07724
 

Solicitation Number

VA11815Q0037
 

Archive Date

4/25/2015
 

Point of Contact

James Martin
 

Small Business Set-Aside

N/A
 

Award Number

GS-10F-0118S VA118-15-F-0026
 

Award Date

1/16/2015
 

Awardee

MCKINSEY & COMPANY, INC. WASHINGTON D.C.;1200 19TH ST NW STE 1100;WASHINGTON;DC;20036
 

Award Amount

4,054,978.40
 

Description

LIMITED-SOURCES JUSTIFICATION 1. Contracting Activity: Department of Veterans Affairs (VA) Office of Acquisition Operations Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724 2. Description of Action: The proposed action is for a 13-month firm-fixed price task order (TO) for the implementation of recommendations developed under the Office of Information and Technology (OI&T), Service Delivery and Engineering (SDE), Enterprise Operations (EO) Optimization Study and expand upon the analysis originally conducted under the EO Optimization Study. The proposed effort will be awarded under the General Services Administration (GSA) Mission Oriented Business Integrated Services (MOBIS) Federal Supply Schedule (FSS) 874, contract GS-10F-0118S to McKinsey and Company, Inc. (McKinsey), 1200 19th St, Washington, DC 20036-2412. 3. Description of the Supplies or Services: The proposed action is twofold. First, the Contractor shall expand upon the analysis originally conducted under the EO Optimization Study performed under contract GS-10F-0118S, order VA118-14-F-0268 by McKinsey. Areas of expanded analysis shall include an examination of the SDE domains/activities that precede entry into EO for execution and support. Secondly, the Contractor shall assist the Government in the implementation of recommendations developed under the EO Optimization Study effort. The implementation of these recommendations, along with the deeper analysis of EO and the functions from other SDE entities on which EO is directly dependent, shall further the VA objective of streamlining and improving the cost efficiencies of EO's Data Center and Franchise fund operations. 4. Authority Cited: This acquisition is conducted under the authority of the Multiple-Award Schedule Program. The specific authority providing for a limited source award is Federal Acquisition Regulation (FAR) Part 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 FSS order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures." 5. Rationale Supporting Use of Authority Cited Above: As previously stated, McKinsey was awarded the original competitive GSA FSS 874 TO for the EO Optimization Study effort in June 2014. Awarding the proposed action as a logical follow-on provides significant economic and efficiency value to the Government. Specifically, any source other than McKinsey would be required to re-develop the detail that comprises the EO Optimization Study which McKinsey already has completed under the prior contract. Any other source would have to duplicate the effort already performed by McKinsey in order to successfully utilize the current EO Optimization Study. The portion that would have to be duplicated is a period of 3-months where McKinsey visited all five Data Center sites, conducted numerous customer interviews, and compiled comprehensive research in order to produce the final reports. Any other contractor performing the aforementioned effort would result in an extensive duplication of cost of approximately $800K, which would not be recovered through competition. This estimate was derived based upon prior contract costs for the same effort. Additionally, this redundant effort would take up to 3-months and require Government personnel to redundantly assist on an effort that has already been successfully accomplished. The EO Optimization Study, Data Center Optimization Strategy Report, delivered under the original TO, included recommendations for how EO can improve its Data Center operations, performance, and cost structure in order to achieve significant cost and operational efficiencies. VA requires contractor support that can assist in accelerating the implementation of these recommendations to begin actualizing the cost savings as early as possible within the current budget year. Any delay in the implementation of these recommendations delays realization of any savings. Any other vendor than McKinsey will cause such a delay. Furthermore, EO manages thousands of systems and is preparing for the hosting of several new systems being developed under numerous high profile projects initiated under the Veterans Health Information Systems and Technology Architecture (VistA) Evolution initiatives, as well as solutions supporting the Veterans Access to Choice and Accountability Act of 2014 (VACAA). As these solutions to be hosted by EO will begin deployment within this budget year, it is imperative that these recommendations are implemented as expediently as possible. By eliminating the need for another contractor to redevelop the EO Optimization Study already completed by McKinsey, VA will be positioned to realize cost efficiencies approximately 3-months earlier in FY15, enabling approximately $13.5M in estimated savings and cost avoidance to be actualized and redirected to cover critical unfunded needs within the current budget year. VA also requires an expansion of the analysis conducted under the prior contract. Since the effort is to expand upon the prior analysis, vice executing a new analysis, it is logical and efficient for the same contractor to further expand the prior analysis. The areas of interest are the process domains directly upstream from EO. For example, the areas that provide solutions to EO that are required to be "production ready" in order to streamline EO's intake and time to implement production solutions, and the primary domains interacting with EO to manage production operations. As previously stated, through its initial study McKinsey obtained knowledge of these SDE domains, namely Engineering, Testing Services, IT Service Management, and Field Operations. McKinsey's completion of the expanded EO Optimization Study will enable more rapid completion of the analysis of these interacting domains to ensure products are provided to EO in a production ready state, posturing SDE to achieve the desired efficiencies and realize cost savings as soon as possible within the current budget year, enabling millions of dollars in estimated savings and cost avoidance to be actualized and redirected to cover critical unfunded needs. 6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government's requirements. There is no competition anticipated for this acquisition. 7. Actions to Increase Competition: No barriers to future competition are anticipated. This effort expands the analysis completed under the prior contract, and implements its recommendations. It is the Government's intent that any new analysis of EO will be competed. 8. Market Research: The Government's technical experts conducted market research in November 2014 by researching various contractors currently on the GSA MOBIS contract that have conducted organizational study and analysis services similar to this proposed action. No other source, other than McKinsey, was found that previously or currently provides services for EO level requirements. 9. Other Facts: McKinsey has no contractual interest in the outcome of strategic decisions associated with this work or in downstream production solution implementations that could create a potential organizational conflict of interest (OCI). McKinsey will be able to accelerate SDE's implementation of their recommendations provided to improve EO while also completing the expanded EO analysis to examine and improve the domains that interact directly with EO without conducting the initial data and information gathering that would be required from another contractor.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/071a5fd5091c605c6f2b76b2eeea5a2f)
 

Document(s)

Attachment
 

File Name: GS-10F-0118S VA118-15-F-0026 GS-10F-0118S VA118-15-F-0026_1.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=1826795&FileName=GS-10F-0118S-000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=1826795&FileName=GS-10F-0118S-000.docx

 

Note: If links are broken, refer to Point of Contact above or contact the FBO Help Desk at 877-472-3779.
 

Record

SN03623807-W 20150125/150123235103-071a5fd5091c605c6f2b76b2eeea5a2f (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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