04 Gurobi Optimizer - JOFOC signed.pdf

Justification for Other than Full and Open Competition (JOFOC) – Sole Source

FCC ENTERPRISE ACQUISITION CENTER

1 Identification of the agency and contracting activity.

Federal Communications Commission (FCC), Office of the Managing Director (OMD), Enterprise Acquisition Center (EAC)

1.1 Federal agency and contracting activity: FCC/EAC.

• James Batten

• 445 12th St SW Washington, DC

• William.Levenson@fcc.gov

• 202-418-1971

1.2 FCC Requiring Activity.

FCC OMD Information Technology Center (ITC)

1.3 Program Office information.

• Marcy Schirloff

• 445 12th St SW Washington, DC

• Marcy.Schirloff@fcc.gov

• 202-418-2821

2 Nature and/or description of the action being approved.

2.1 Acquisition purpose and objectives.

The purpose of the Gurobi Software License Maintenance requirement is to provide ongoing maintenance support to the system. This system is critical to the FCC in that is helps the Commission to implement an allotment optimization model used for the incentive auctions.

The software analyzes the offers made and attempts to find the lowest costs means of clearing a given amount of spectrum usage while respecting interference constraints, incumbent users, and minimizing moving costs.

2.2 Project background.

The Gurobi software was originally purchased in 2012 under Contract FCC12P0078 and has been supported on a number contracts since then; to include FCC15P0015, FCC15P0079, FCC16P0060, FCC17P0036, and 273FCC19P0001. These contract actions were awarded to Gurobi Optimization Inc. based on of Houston, TX. A summary of these contracts is provided below. This contract action specifically supports the renewal of software licenses from contract FCC19P0088 highlighted in gray below.

Contract # Vendor POP Total Dollars Acquisition FCC12P0078 Gurobi 6/1/12 – 5/31/13 $20,400 Unrestricted FCC15P0015 Gurobi 11/14/14 – 11/13/15 $325,481 Unrestricted, Awarded Small

Business

Federal Communications Commission Justification for Other than Full and Open Competition mailto:William.Levenson@fcc.gov mailto:Marcy.Schirloff@fcc.gov

Contract # Vendor POP Total Dollars Acquisition FCC15P0079 Gurobi 7/1/15 – 6/30/13 $12,000 Unrestricted FCC16P0060 Gurobi 6/1/16 – 5/31/17 $2,400 Unrestricted, Awarded Small

Business FCC17P0036 Gurobi 7/1/17- 6/31/18 $17,030.14 Unrestricted 273FCC19P0001 Gurobi 7/1/18 – 6/30/19 $11,200 Unrestricted 273FCC19P0088 Gurobi 7/1/19 – 6/30/20 $12,000 Unrestricted

This software is providing a mission critical service to the Commission by supporting the Incentive Auction program. Without this software, the Commission will experience a significant degradation in service and processing delays as the optimization team will not be able to sufficiently implement the FCC’s allotment optimization models used to repack TV broadcasters for incentive auctions.

3 Description of the supplies or services required to meet the agency’s needs (including the estimated value).

3.1 Project title.

Gurobi Software License Maintenance

3.2 Project description.

The purpose of this requirement is to renew the FCC’s agreement for the software license maintenance of the Gurobi software. The Gurobi software helps the Commission’s optimization team to implement FCC’s allotment optimization model used to repack TV broadcasters for incentive auctions. The software analyzes the offers made by broadcasters and attempts to find the lowest costs means of clearing a given amount of spectrum usage while respecting interference constraints, incumbent users, and minimizing moving costs. This support is for routine software license maintenance. This contract will consolidate multiple, previous Gurobi maintenance contracts into one requirement.

3.3 Requirement type.

Check the appropriate box:

Research & development (R&D) R & D support services Support services (non-R&D) Supplies/equipment X Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify):

3.4 Type of action.

Check the appropriate box:

New requirement – consolidation of two contracts listed in Section 2.2 X Follow-on

Other (specify): This requirement is to sustain the system that is currently deployed at the Commission to support the Incentive Auction Program. This contract will consolidate multiple license contracts (FCC15P0079 and FCC16P0060) that support the same mission critical system.

3.5 Proposed contract/order type.

Check all that apply:

X Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee):

Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee):

Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements):

Other (specify):

3.6 Acquisition identification number.

PRO ITC2000200

3.7 Total estimated dollar value and performance/delivery period.

This requirement will be re-competed prior to the expiration of this contract, which will include an analysis and competition of other open market COTS products; to include analyzing Gartner reports including Market Guide for Optimization Solutions published 28 May 2015 (provided as an attachment). This system will not be under maintenance support starting on July 1, 2020.

This contract is important to ensure maintenance services are provided to this mission critical system supporting the Incentive Auction Program.

4 Identification of the statutory authority permitting other than full and open competition.

X This acquisition is conducted under the authority of 41 United States Code (U.S.C.)

3304(a)(2) (formerly subsection 253(c)) as set forth in Federal Acquisition Regulation (FAR) 6.302-1 Only One Responsible Source and No Other Supplies or Service Will Satisfy Agency Requirements1.

This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of 1996 (41 U.S.C. 1901).

This acquisition is conducted under the authority of the Services Acquisition Reform Act of 2003 (41 U.S.C. 1903).

5 Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

Provide the following information, as applicable:

1 Market research was conducted utilizing the NASA SEWP and NIH CIO-CS GWAC’s and no other vendor sources were identified for the Gurobi Software

5.1 Name and address of the proposed contractor(s).

Gurobi Optimization Inc. located at 3733 Westheimer Road, Suite 1#1001, Houston, TX 77027

5.2 Nature of the acquisition and proposed unique qualifications of the contractor(s).

Eight years ago, the FCC Information Technology Center deployed the Gurobi software to the enterprise to support the Incentive Auction Team. As the only source providing full Gurobi software license maintenance support in the United States, the FCC awarded a sole source award to Gurobi in 2012 to provide this information technology software support.

This technology supports the Commission’s optimization team to implement the FCC’s allotment optimization model used to repack TV broadcasters for the Incentive Auctions Program. The software analyzes the offers made by broadcasters and attempts to find the lowest costs means of clearing a given amount of spectrum usage while respecting interference constraints, incumbent users, and minimizing moving costs. This support is for routine software license maintenance and is mission critical to the Commission.

This technology is intimately integrated with FCC’s current IT infrastructure in support of the Incentive Auction Program. If Gurobi is not utilized to continue to support the information technology system, the FCC will risk the deployment of a new technology that will create new interfaces, develop new business workflows, and develop new software workflows which will add timely deployment periods and additional financial costs that have already been realized by the agency.

Gurobi Software is currently deployed within the enterprise to support the mission critical Incentive Auction Program. Through market research, it was concluded that Gurobi Optimization Inc. is the only known source of the required support services for this requirement. A direct award to Gurobi Optimization Inc. represents the most cost effective approach for the FCC and will ensure continuity of operations without any disruptions to the enterprise.

5.3 Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR

5.202 applies.

The FCC procurement team conducted market research reviewing contract vendors available on the NASA SEWP and NIH CIO-CS GWAC’s. The market research identified zero vendors that are capable of providing the services desired with this acquisition. It is the recommendation of this analysis that the FCC awards a contract directly to the proposed vendor.

A notice will be posted within two weeks indicating the intent of the FCC as required by FAR Subpart 5.2. It is also recommended that the contracting office solicit a Sources Sought notice on FedBizOpps to validate the approach of this requirement. If no responses are received, the award of the re-competed effort will be completed prior to the end of this new contract period.

5.4 Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The quotes provided by the incumbent vendor are the same rates the government has been paying for the same licenses since approximately 2016. These original rates were deemed fair and reasonable. The fact that the rates have not increased in over three years, in an industry that typically has at least a 5% yearly escalation rate for software, supports the fact that the current and proposed new rates are fair and reasonable.

5.5 Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Ideally, maintenance on any software product should be provided by an authorized / certified vendor of the product. Market Research was conducted reviewing the NASA SEWP and NIH CIO-CS GWAC’s, as well as the vendor’s website. The research included reviewing contract vendors and value added resellers (VARs) available on the identify GWAC’s as well as contacting procurement support personnel for each GWAC to verify search results. The market research efforts to identify Gurobi authorized / certified vendors has concluded that there is not sufficient authorization / certification vendors of the Gurobi product in the United States to meet the needs of the Commission and guarantee competition during the procurement process.

5.6 Any other facts supporting the use of other than full and open competition.

The Justification is based on FAR 6.302-1 Only One Responsible Source and No Other Supplies or Service Will Satisfy Agency Requirements. The period of performance will provide a minimal acceptable period to continue vital services that manage maintenance for the Gurobi Software System. This maintenance is vital to the ITC to maintain the current functionality of the Gurobi system as well as all dependent systems, including Incentive Auction Program, and processes across the Commission.

5.7 Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

One additional source has expressed interest, in writing, to a similar acquisition in the past. This vendor is PCM-G located at 14120 Newbrook Drive, Suite 100, Chantilly, VA 20151. PCM-G submitted a price quote for a previous Gurobi requirement in 2014. It was concluded that the price quote included price markups that were above and beyond Gurobi’s pricing. It was concluded in 2014 to award a contract directly to Gurobi.

6 Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

The FCC ITC team plans to continue the Gurobi software support for the near future to ensure continuity of operations during this critical phase of the Incentive Auction Program. Before a new contract is considered in the future, the FCC ITC team will review the marketplace for commercially available COTS products that provide similar functionality as the current software product; to include reviewing Gartner reports such as the Market Guide for Optimization Solutions published 28 May 2015 (provided as an attachment). A best value determination will be made and an ensuing competition will take place.

7 Program Office Certification.

The program officials cited shall complete the information required below and sign the certification in the blocks provided. The Contracting Officer’s Representative (COR), formerly known as the COTR, is typically the “Project Officer” at the FCC.

This is to certify that supporting data (such as minimum needs statements, schedule requirements, or facts in support of the justification) contained or relied upon in this JOFOC that were developed by, or that are the responsibility of, the program office or technical personnel signing below, are complete and accurate.

Official Name & Title Signature Date Project Officer or COR Marcy Schirloff Marcy Digitally signed by Marcy Schirloff

DN: cn=Marcy Schirloff, o=Federal Communications Commission, ou, Schirloff email=marcy.schirloff@fcc.gov, c=US Date: 2020.06.26 14:45:32 -04'00'

6/26/20

Project Officer’s/COR’s Immediate Supervisor

Head of the Sponsoring Program Office

8 Contracting Officer Certification.

This is to certify that the justification for the proposed acquisition is accurate and complete to the best of my knowledge and belief and that it has been reviewed and certified by the appropriate program or technical personnel as to supporting data for which they are responsible.

Official Name & Title Signature Date FCC Contracting Officer

9 Head of the Contracting Activity Concurrence/Approval.

Official Name & Title Signature Date FCC Head of the Contracting Activity

Sunny Diemert

HCA

10 Competition Advocate Concurrence/Approval.

Approving Official up to $12.5M

Name & Title Signature Date

FCC Competition Advocate

Mindy Ginsburg Competition Advocate

11 FCC Senior Procurement Executive Concurrence/Approval.

Second Approving Official

Name & Title Signature Date

FCC Senior Procurement Executive

Dawn DiGiorgio

SPE

James Batten