06 Justification for an Exception to Fair Opportunity (Redacted)_09052024.pdf

Treasury Standard Form – 1014 (Rev 9/23)

Prescribed by Treasury: DTAP 1016.505

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the Internal Revenue Service Office of Information Technology Acquisition/Telecommunications Branch/Enterprise Network/Voice and Data Section on behalf of the User & Network Services.

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

The proposed requirement to award a new firm-fixed price, delivery order for the purchase of the brand name item described in section 3.a. Competition will be limited to authorized resellers of brand name specific items.

The purpose of this Justification for an Exception to Fair Opportunity is the approval to purchase of brand name QMATIC Orchestra 7 Plus software for IRS legacy systems that provide customer flow management services in 375 Taxpayer Assistance Centers (TAC).

The estimated period of performance for this contract is . The estimated price for the 12 month period of performance is . The ability to extend for an additional six-months under the authority of FAR 52.217-8 will also be included in this acquisition.

2.b Name of the vendor. QMATIC Corporation 2.c Requisition No.:

2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☒ Yes ☐ No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition will the following QMATIC product: Orchestra 7 Plus.

This enterprise software is used in all IRS 375 Taxpayer Assistance Centers nationwide. The legacy, proprietary software allows enables taxpayers to provide necessary communications with IRS tax centers. The customer flow management technology cannot be interwoven with other proprietary software.

3.b Includes IT: ☒ Yes ☐ No NAICS: 541519 PSC: 7A21 3.c IGCE/Estimated dollar value:

The IGCE is inclusive of a period of performance.

Refer to the IGCE for additional details.

4.a Identification of the exception to fair opportunity being used:

☐ FAR 16.505(b)(2)(i)(A) – The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

☐ FAR 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

☐ FAR 16.505(b)(2)(i)(C) – The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

☐ FAR 16.505(b)(2)(i)(D) – It is necessary to place an order to satisfy a minimum guarantee.

☐ FAR 16.505(b)(2)(i)(E) – For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

☒ FAR 16.505(a)(4) – The requirement is for an item peculiar to one manufacturer. (i.e., Brand Name specifications)

4.b Supporting rationale:

This requirement can only be satisfied by a brand name purchase of QMATIC Orchestra 7 Plus. QMATIC products are a proprietary solution that provides customer flow management services via a QMATIC environment in 375 TACs nationwide. The existing QMATIC environment components include, but are not limited to: QMATIC Orchestra software, QMATIC hardware displays, voice units, ticket printers, and dependent applications such as Field Assistance Management Information Systems (FAMIS), and Field Assistance Contact recording (FACR). The QMATIC environment proprietary. Every component and dependent application requires the use of QMATIC Orchestra 7 Plus to work. There is an ongoing need to support the existing QMATIC environment with the purchase of Orchestra 7 Plus. While other customer flow management products are commercially available, they lack the ability to integrate into the existing QMATIC environment. The existing environment and all the components of the environment would have to be replaced in its entirety and is not a cost-effective solution for the Government at this time.

The Government is conducting market research for other commercially available customer flow management solutions to support the TACs in 2025. The purchase of QMATIC Orchestra 7 Plus, will provide customer flow support services until a new contract can be awarded in FY 2025.

5. A determination that the anticipated cost to the Government will be fair and reasonable:

This requirement will be competed among QMATIC resellers under the NASA SEWP GWAC (Government Wide Acquisition Contract) holders. This contract will be competitively awarded on a FFP basis. There is historical contract pricing available from similar requirements and the potential awardee has a NASA SEWP Contract, providing adequate information for the Contracting Officer to evaluate the price for fair and reasonableness. This is a commercial product.

6.a Any other facts supporting this justification:

None 6.b Attachments: ☐ Yes ☒ No

7. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies and services is made:

As for future acquisitions, the IRS is taking the following steps to mitigate the use of brand name products: (1) The Contracting activity will continue to search the marketplace for other customer flow management solutions and issue a Request for Information (RFI) requesting new solutions and the feasibility of utilizing other technologies. (2) IRS Management will develop an acquisition strategy that complies with the requirements to obtain the maximum competition in the future.

8. Certifications and Approvals:

8.a Program Office Certification (Requiring Activity).

I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

Name: Date:

Signature:

8.b Contracting Officer Certification and Approval.

I certify this justification for an exception to fair opportunity is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement based on the authority specified in 4.a above.

Name: Date:

Signature:

9.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity).

I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification based on the authority specified in 4.a above.

Name: Date:

Signature:

9.d Treasury Chief Information Officer (for IT requirements that are over $75 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

9.e Senior Procurement Executive (if over $75 million) (Contracting Activity).

I have reviewed this justification for an exception to fair opportunity and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement executive, I hereby approve this justification based on the authority specified in 4.a above.

Name: Date:

Signature: