1.5.1 JOFOC Final v3 - 6-8-21 for posting_Redacted.pdf

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

Office of the Chief Procurement Officer Version 3.2

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

(a) Requiring Agency:

Federal Emergency Management Agency Logistics Management Directorate 500 C Street SW Washington, D.C. 20472

(b) Contracting Office:

Federal Emergency Management Agency Office of the Component Chief Procurement Officer 500 C Street SW Washington, D.C. 20472

2. Nature and/or Description of the Action being Approved.

(a) Nature of action: The Department of Homeland Security, Federal Emergency

Management Agency, Office of the Component Chief Procurement Officer, proposes to enter into a contract on a basis of other than full and open competition. OCCPO intends to procure on a sole source basis for the Logistics Supply Chain Management System (LSCMS) Operations and Maintenance Support requirement.

The nature of this action is to procure operations and maintenance services that includes system upgrades, Electronic Data Interchange management, training support and the development of training materials in support of FEMA’s LSCMS solution. This procurement is intended to establish a hybrid sole source contract with Manhattan Associates, Inc. The proprietary COTS products include:

• Extended Enterprise Management (EEM) Enterprise License

• Warehouse Management for Open Systems (WMOS) – for 8 Designated

Sites (Atlanta, Ft Worth, Frederick, Moffett, Guam, Puerto Rico, DISC, & Hawaii)

• TMS – Transportation Planning & Execution-Based Shipping (TP&E)

• TMS – Consolidator v4.0

• Supply Chain Intelligence (SCI)

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

• CPLEX

• Distributed Order Management (DOM)

• webMethods

(b) Name and Address of the Contractor:

Manhattan Associates Inc.

2300 Windy Ridge Parkway Atlanta, Georgia 30339

(c) Contract Type: This procurement will be a hybrid Firm Fixed Price contract with Cost Reimbursable travel and Time & Material surge support.

(d) Estimated total value (including options). Provide breakdown as shown below:

Period Total

Base Year 9 mo.

Option Year 1 12 mo. $ Option Year 2 12 mo. $ Option Year 3 6 mo. $

Total $

The period of performance end date for the current contract is June 18, 2021.

(e) Type of Funding: The funding for this procurement is 6R funds.

(f) Year of Funding: Fiscal Year 2021.

(g) Solicitation Number: N/A

(h) Background Information about the Requirement: In response to the Post Katrina Emergency Management Reform Act (PKEMRA) GAO report, the Logistics Systems Division was directed to implement a system to manage, track commodities and assets in response to a disaster. The program office procured LSCMS to meet that requirement.

The LSCMS system was upgraded to the 2011 Manhattan Associates Commercial Off the Shelf (COTS) version. This change added system capabilities to take advantage of supply chain commercial best practices, replaced the un-integrated eTasker request system and the FEMA-IRRIS in-transit visibility system. As a result, the LSCMS was migrated to the DHS Data Center in January 2013.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

FEMA awarded a previous contract to BAE Systems and Solutions, to upgrade the LSCMS solution to version 2016 of Manhattan Associates’ COTS suite of products.

Manhattan Associates was a subcontractor to the BAE contract. The v2016 upgrade, ensures that this new contract will only require operation and maintenance services.

LMD has utilized Manhattan Associates Inc. COTS suite of products at all of its distribution centers and transportation services, while simultaneously implementing upgrades. To accomplish the agency’s mission and to leverage industry best practices, FEMA requires the continued use of the proprietary COTS solution. Manhattan Associates Inc. is the only company that provides this upgrade and the required support.

Manhattan Associates is the sole developer of the COTS products currently in operation for FEMA LSCMS. Manhattan Associates does not authorize other entities to support or resell its solutions. A sole source contract to Manhattan Associates will allow the Government to continue to use existing software and supporting hardware (e.g., scan guns) with no interruption of this mission critical service.

3. Description of Supplies/Services.

FEMA/LMD requires LSCMS-C Operations and Maintenance (O&M) services, including LSCMS-C user training, alternate site and pre-surge support services, and Electronic Data Interchange (EDI) for the LSCMS-C solution. Manhattan Associates Active Service support is also required to maintain LSCMS in the cloud environment for consistent updating of the system to ensure continued operations. The transition to the cloud environment was necessary to meet the requirement of having an alternate disaster recovery site in compliance with DHS guidance.

LSCMS-C supports the FEMA Logistics mission with operational and support capabilities for managing the entire disaster supply chain including FEMA-owned assets and resources as well as those provided by; partners in other federal agencies (OFAs), non-governmental organizations (NGOs), state, local, and tribal governments, and the private sector. This provides both operational support and disaster supply chain visibility to all stakeholders, from managers of distribution points to all levels of the federal, state, local, and tribal governments.

4. Identification of Statutory Authority Permitting Other Than Full and Open

Competition.

The statutory authority permitting other than full and open competition is 41 U.S.C.

3304(a)(1) implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Identification of Exception to the Buy American Statute.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

This section is not applicable for this procurement.

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

(a) Rationale for using the authority cited in section 4 of the J&A;

The LSCMS-C provides a real-time management capability over FEMA’s supply chain and visibility to all stakeholders from the public, to our point-of-distribution managers, to the Secretary of Homeland Security. LSCMS-C provides visibility into the movement of more than 200 assets and commodities, with primary focus on FEMA’s six basic Initial Response Resources (IRR): water, tarps, meals, cots, blue roof sheeting, and blankets. These items are intended to sustain lives and prevent further property damage during an emergency or disaster.

Manhattan Associates has modified its proprietary COTS product to fit FEMA’s business model during the performance of prior issued contracts. Manhattan Associates does not authorize other entities to support or resell its solutions. A COTS item is one that is licensed to the general public by a vendor for profit, is supported by that vendor who retains the intellectual property rights (IP Rights) to that item, is available in multiple identical copies, and used without material modification of the base underlying intellectual property. As stated in a memorandum from the FEMA’s Chief Information Security Officer dated November 27, 2019, “Manhattan Associates, Inc.'s Software Designation as Commercially Available off-the-Shelf Item under FAR 2.101”, the vendor licensed nine (9) Commercial off-the-Shelf (COTS) software products to FEMA that are readily available to the general public and reserves the intellectual property rights.

The COTS software products are as follows:

1. Warehouse Management of Open Systems

2. Distributed Order Management

3. Transportation Planning & Execution

4. SaaS Supplier Enablement

5. Saas Supply Chain Visibility

6. SaaS Supply Chain Event Management

7. SaaS Hub Management

8. Transportation Procurement

9. Manhattan Integration Framework

Procurement of a new COTS supply chain management solution increases the risk of mission failure. There are no other COTS products available that would provide a turn-key solution and fit FEMA’s logistical business model without a substantial cost to the government and duplication of services completed on prior contracts.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition;

A contract was previously awarded to the prime contractor BAE under HSFE30-15-D- 0006 through a DHS Strategic Sourcing Vehicle. Under this contract, Manhattan, serving as the subcontractor, deployed Manhattan’s proprietary COTS solution. This software has been upgraded to continue working in concert with FEMA’s ever-evolving supply chain.

(c) Summarize alternatives considered and why they will not work; and

The Government requires O&M of a COTS warehouse management open solution.

Market research has identified that all COTS warehouse management solutions available in the marketplace are proprietary. Further, no COTS solution is capable of providing customization and interfaces to FEMA’s business systems out of the box.

Under previously awarded contracts, Manhattan Associates modified its COTS product to fit FEMA’s business model. If FEMA awarded this contract to another vendor, the new vendor’s solution would need to have the same customization. FEMA would also need to acquire a new cloud service provider, development of new training materials, retrain FEMA personnel, re-configuration and possibly re-procurement of all warehouse scan guns and printers resulting in increased cost. Manhattan Associates Inc. business model precludes it from authorizing resellers or maintenance partnerships and is the only entity that provides its proprietary COTS software solution which is why other alternatives will not currently work.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided.

The logistics supply chain and warehouse management are critical to FEMA’s mission to prepare for and respond to disasters. Simply put, a lapse in these functions would result in mission failure. Therefore, the current system is required to be maintained until a new system could be deployed. Procurement of a new COTS supply chain management solution at this time would increase the risk of mission failure at significant costs to the Government.

Retaining the current system developed by Manhattan Associates avoids the requirement of going through the Acquisition Lifecycle Framework (ALF) process again. This process would take a minimum of 36 months, cost more than $120 million and require the program to obtain another Authority to Operate (ATO) which could take an additional 12 months. In addition, to avoid mission failure, the program would

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition need to maintain the existing Manhattan COTS solution, at an estimated cost of $20 million a year while procuring a new system and going the ALF process.

A recompete would require the implementation of a new system, the development of new training curriculum and the retraining of all system users (including logistics managers and specialists). If the justification is not approved and continued services are not procured from Manhattan Associates, it would cause serious impact to the FEMA mission, as the agency would lose the ability to provide real-time tracking of commodities.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality

This section is not applicable to this procurement.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential

Sources as is Practicable.

FEMA/OCCPO posted a synopsis for this requirement on beta.sam as required by FAR

5.2. No responses were received. The Contracting Officer will make this justification publicly available pursuant to FAR 6.305 on beta.sam within the appropriate timeframe in Fiscal Year 2021.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

In accordance with FAR 15.404-1, the Contracting Officer will use the described pricing techniques to determine that the anticipated price will be fair and reasonable. The Contracting Officer will compare proposed prices to the historical prices paid, obtain technical advice from subject matter expert(s), compare proposed prices to the Independent Government Cost Estimate (IGCE), and if possible, compare to published commercial price lists.

9. Description of Market Research. Market research is required by FAR Part 10, and the results of the market research should be summarized here. Include the following information:

(a) Describe the market research techniques utilized, the specific results of the market research, the date when the market research was conducted, and how the market research was used by the contracting officer to determine price reasonableness.

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition

From May to August 2020, the internet was searched for contractors that could provide the software or compatible software that would work with Manhattan Associates’ software and products. Market research has identified that all COTS warehouse management solutions available in the marketplace are proprietary. LMD conducted research on the supply chain and warehouse management systems of following vendors: Logistically;

InfoPlus; 3PL Warehouse Manager; Omnna ERP; Oracle; Cadance WMS; and Manhattan Associates. The market research results showed that only Manhattan Associates can provide these turn-key solution services and there are no other resellers or distributors but the manufacturer due to the proprietary nature. FEMA/OCCPO posted a synopsis or an intent to sole source notice on beta.sam to confirm that there are no other potential sources capable of fulfilling this requirement. There were no responses received.

(b) Describe the market research results that support the determination that the items are non-available.

This section is not applicable to this procurement.

(c) If market research was not conducted, a reason for its absence must be cited here.

Not applicable.

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

Not applicable.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

None.

11. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

None.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

OCCPO and Logistics Management Directorate (LMD) will continue to conduct market research for new and improved supply chain and warehouse management systems. LMD intends on releasing a Request for Information/Sources Sought and/or conduct industry day at each option year. This research will either; support the justification for this continued sole source award or, provide insight on the existence of any other turnkey logistics supply

U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition solutions/capable vendors that can provide comparable products and services for the existing requirement.

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U.S. Department of Homeland Security Justification and Approval for Other Than Full and Open Competition circumstances applying to actions above the simplified acquisition threshold that cite FAR 6.302-2 Unusual and Compelling Urgency as the authority.

Head of Contracting Activity Date

Note: The HCA is the approving official when the action exceeds $13.5M but is less than or equal to $75M (less than or equal to $100M for USCG) and must also sign the justification when the contract is awarded under FAR 6.302-7 Public Interest, regardless of dollar amount. The HCA is not required to approve the justification if the Component PAAC meets either of the criteria at FAR 6.304(a)(3)(i) or (ii). However, this exception does not apply to justifications citing FAR 6.302-7 and exceptional circumstances applying to actions above the simplified acquisition threshold that cite FAR 6.302-2 Unusual and Compelling Urgency as the authority.