Justification and Approval CT-P FE Redacted

SECTION 4: AUTHORITY AND SUPPORTING RATIONALE

Authority: This action is an order under the Multiple-Award Federal Supply Schedule Program. The Department's FAR Part 8 class deviation adopts RFO FAR 8.401, which directs ordering activities to follow the FSS procedures in GSAR 538.71. GSAR 538.7104-3(b)(1)(i) permits an FSS order above the simplified acquisition threshold to be placed on a sole source basis when the need is of such unusual urgency that following the competitive Schedule procedures would result in unacceptable delay in fulfilling the Department’s needs. The statutory basis is 41 U.S.C. 3302(c)(1)(A)(i), which incorporates the order-level urgency exception in 41 U.S.C. 4106(c)(1).
Development of the urgent need: On July 10, 2026, during a review of task orders in the SBA 8(a) program, it was identified that option period of certain task orders could not be lawfully exercised. This matter could not reasonably have been identified earlier because the regulatory implications only became apparent once later task order actions required legal review, and the documentation available at the time did not indicate that the option structure would trigger 8(a) restrictions.
Operational consequences of delay: A responsible competition for this requirement would require the Department to complete the solicitation package, provide a meaningful quotation period, evaluate technical capability and total price, document the award decision, verify facility and personnel clearances, confirm staffing commitments, provision Government equipment and systems access, transfer active work, and complete transition activities. A competition at this point could not produce an operational contract in time to begin transition on or before September 30. The overall time for a competitive procurement above the simplified acquisition threshold would require approximately six-months, more time is being added because of the potential unforeseen circumstances such as a lapse in appropriations occurring and/or a potential protest further delaying a new competitive contract.
Why the proposed source can meet the urgent need: As documented in Section 6, the market research identified Nakupuna Federal LLC as the only Schedule source able to satisfy the complete revised requirement within the available time. The Department verified the entity's relevant experience; facility security clearance; access and clearance posture for proposed personnel; available staffing; familiarity with Department systems