SF_1014_(JEFO)_-_VMWare_Promise.pdf

DEPARTMENT OF THE TREASURY

SF 1014 - JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

Treasury Standard Form – 1014 (Rev 5/18)

Prescribed by Treasury: DTAP 1016.505

Tracking No.

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

Requiring Activity: Treasury/Cybersecurity/ Government Security Operations Center (GSOC) Contracting Activity: IRS Procurement, OITA/Modernization Acquisition, OS:PR:I:J 2.a Nature and/or description of the action being approved:

The U.S. Treasury currently has a need to acquire new brand name VMWARE licenses as well as extend maintenance/license subscriptions for existing Promise equipment and VMWARE licenses respectively to an authorized reseller under NASA SEWP V.

2.b Name of the vendor. TBD – (Competed on NASA SEWP among Resellers) 2.c Requisition No.: 18PRSSPDIR0461; PPS SC# 5000050687 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 purpose of this requirement is to purchase new brand name specific VMWARE software licenses and well as extend maintenance/subscriptions for existing brand name Promise and VMARE products needed in support of the ACIO/CS GSOC mission. Products being acquired are as follows:

-vSphere 6 Ent + Production Spt: Extend Software License/Former Contract # TIRNO-17-K-00278 -vCenter 6 Standard Server Production Spt: Extend Software License/Former Contract # TIRNO-17-K-00278 -vSphere 5 Essential: Extend Software License/Formerly purchased using a government purchase card -vSphere 6 Essential: Extend Software License/Formerly purchased using a government purchase card -VMWare Workstation Lic: Extend Software License/Formerly purchased using a government purchase card -vSphere 6 Enterprse Plus: New Additional Licenses -vCenter 6 Standard: New Additional Licenses

- Promise vTrack 4U RAID Subsystems: Extend maintenance/Former Contract # TIRNO-15-K-00453

- Promise vTrack 4U Expansion Chassis: Extend maintenance/Former Contract # TIRNO-15-K-00453

A detailed list of specifications of this requirement is provided in RFQ.

Estimated delivery of equipment and software is 30 days from receipt of award and period of performance for software, installation, and maintenance is:

Base: 09/28/2018 – 09/27/2019 OP1: 09/28/2019 – 09/27/2020

OP2: 09/28/2020 – 09/27/2021 OP3: 09/28/2021 – 09/27/2022

OP4: 09/28/2022 – 09/27/2023

3.b Includes IT: ☒ Yes ☐ No PSC: J070-Promise, 7030-VMWare, NAICS: 334112-Promise 518210-VMWare (VMWare is primary cost of acquisition) 3.c IGCE/Estimated dollar value: The IGCE for the contract in total is $164,694.62.

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.

4.b Supporting rationale:

In accordance with FAR 6.302-1, this acquisition justifies a brand name restriction for the Promise and VMWare products (refer to section 3.a) being acquired. The Treasury GSOC infrastructure currently consists of Promise hardware and VMWare software. The majority of this procurement is for maintenance or license renewals of existing products. Acquiring alternative products would require the procurement of not only maintenance, but new products as well.

Additionally, The standardization of one of a vendor platform whenever possible is vital for effective management, applying configuration standards, IT security compliance, troubleshooting, and repair efforts. Interconnectivity between the various systems is an extremely complex configuration and requires that the systems be fully compatible with one another. Troubleshooting efforts are extremely time-sensitive when dealing with the mission essential IT systems running at the GSOC. When original equipment manufacturer (OEM) support is required, the ability to speak with one vendor about an issue involving servers, storage, switches, etc. allows for more expeditious troubleshooting and support efforts.

Further, the stability and dependability that comes with working with industry leaders can provide value, especially when mission essential systems are involved. Both Promise and VMWare are an industry leaders that have proven their ability to provide dependable products and services to GSOC for many years. This has played a major role in allowing the GSOC to maintain an extremely stable IT environment in support of their mission

In summary, it would add a significant burden to the GSOC if alternative products are required. There would be an increased workload in all aspects of the IT infrastructure lifecycle including the acquisition process. Due to this additional burden, a staffing increase would be required to have the GSOC IT infrastructure maintain its current levels of a stable, available, and secure IT environment. Keeping the existing brand name hardware and software within the infrastructure reduces the need to have multiple OEM tools and utilities, hiring additional IT technical staff, reduces maintenance and repair times, reduces the number procurements, reduces network complexity, saves government resources and directly supports the overall mission of the GSOC in an efficient and reliable manner. Therefore, this acquisition must be restricted to Promise and VMWare brand name items only

*Please refer to the IGCE for a full list of products and complete descriptions.

*The procurement of the brand name products listed above is not limited to a single vendor;

any reseller can fulfill the requirement.

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

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on adequate competition with NASA SEWP V vendors.

6.a Any other facts supporting this justification:

Other supporting documentations for this requirement are available upon request. Those documents include but are not limited to: draft RFQ, IGCE, and Market Research.

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:

This action is being competed amongst qualified vendors on NASA SEWP. The IRS will take every action to remove or overcome any barriers by investigating the market place for the best hardware maintenance and license renewal options available for future support. For future requirements, the IRS will continue to conduct market research of the current environment to ensure that competition remains available. Every opportunity will be taken to ensure that fair opportunity is achieved. Future brand name requirements will be competed either through the GSA, NASA SEWP V, or through open market procedures to avoid limitation of sources.

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: 09/24/2018

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: Shontae Harley Date: 9/24/2018

Signature:

6. Additional Reviews and Approvals (As applicable):

9.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). 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. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

9.b Advocate for Competition (if over $700,000, but not exceeding $13.5 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 ordering activity’s Advocate for competition, I hereby approve this justification based on the authority specified in 4.a above.

Name: Date:

Signature:

9.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 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 $68 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 $68 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:

INSTRUCTIONS FOR

SF-1014- JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

I. General Instructions. Each Justification for an Exception to Fair Opportunity shall contain sufficient information and data to justify the proposed action, thereby be able to stand on its own.

This type of detail is critical in order to enable a reviewer and/or approver to clearly understand the requirement and the rationale for supporting the justification. Simply copying and pasting information from a vendor’s website or marketing literature fails to support the use of such justification. Market research performed by the Requiring Activity and Contracting Activity should be used to support this document.

Given the majority of the information and data necessary to support this type of action resides with the Requiring Activity, they are the primary party responsible for completing this form.

However, the Requiring Activity shall seek assistance and input from the Contracting Activity/Contracting Officer (preferably in advance of submission of the procurement request).

It is also recommended the justification is not signed by the Requiring Activity until such time the Contracting Officer has had an opportunity to review, make necessary revisions and to include other necessary information or data to support the justification.

For Brand-name acquisitions keep in mind the justification is to cover only the portion of the acquisition which is brand-name and that that the document approval requirements only apply to that portion. However, it does not mean that details regarding the overarching requirement (i.e.

in the instance where the brand name is only a portion of an overall requirement) aren’t to be included in the document.

In the event of conflict between this form and applicable regulatory coverage (i.e. FAR and DTAR), the more stringent requirement shall be followed.

If the requirement involves classified or sensitive information ensure the proper steps are taken to protect the information (e.g. labeling and marking).

Prior to distribution for signature: (i) retain only those signature blocks applicable to the dollar value of the items covered by this justification, (ii) delete all green text (which are examples), and (iii) consider converting the document to .pdf to support electronic signature and ease of retention.

The fields within this form are fluid and will change based upon input, therefore individuals completing this form need to be mindful of formatting prior to converting the document to pdf and submitting it for signature.

II. Field specific instructions.

1. Identification of the requiring activity and the contracting activity. Provide the name of the name of the actual requiring activity (e.g. Treasury’s Washington, DC Office – Central IT Division). Provide the name of the contracting agency and the name of the actual contracting activity (e.g. BFS’ West Virginia Office – Contracting Division for IT).

2. Nature and/or description of the action being approved. Describe the type of action being issued (e.g. new award, contract modification or brand name). Identify the contemplated contract type (e.g. firm fixed price). If known, include period of performance. Also, when processing a class justification, include the effective period the justification will be in effect.

If modifying a contract or order thereby requiring a justification or a modification to the initial justification then ensure to include the contract no., task/delivery order number (if applicable), proposed contract modification number, nature of why the modification is required and, if applicable, a copy of the initial justification.

If brand name, ensure to mention this justification is covering only the portion of the acquisition which is brand-name.

Section 2.b Name of vendor. If applicable, insert the name of proposed vendor. If not applicable, enter “Not applicable”.

Section 2.c Requisition Number. If known, include the requisition number. If not applicable, enter “Not applicable”.

Section 2.d Bridge contract. Check the applicable box. See DTAP 1017.70 for a definition of bridge contract and other requirements.

Section 2.e Brand name. Check the applicable box.

3.a A description of the supplies or services required to meet the agency’s needs. Provide a clear, concise description of the supplies or services to be procured. Include a statement regarding the delivery schedule and/or the period of performance, inclusive of all option periods and award terms. If applicable, state the associated contract line or subline items the supplies or services are being procured against. For supplies, include details such quantity and a brief description of the items (e.g. twelve (12) laptops).

For brand name, provide the name of the brand, model number and other specific details associated with the brand name item(s) being procured; name(s) of known sources that can provide the brand name.

For modification describe the purpose of modification, including details such as proposed extension to the period of performance as well as the purpose of and type of the contract.

3.b Includes IT. Check the applicable box. If, yes is selected then include the NAICS and PSC

3.c IGCE/Estimated dollar value. Provide the IGCE/estimated dollar value of the anticipated award, inclusive of all options, award terms and any other monetary incentives. If applicable, provide separately for each option, award term and other monetary incentive a general description (e.g. option period 1 – April x, 201x through March x, 201x) and the associated individual dollar amount. These separate dollar amounts should add up to the total estimated dollar value; however if there is a difference then provide a discussion as to why they don’t.

For brand name also provide the IGCE/ estimated dollar value of the portion of the order, inclusive of all options, award terms and other monetary incentives, that is brand name.

For modifications provide the IGCE/estimated dollar value of the proposed modification, the current total dollar value of the contract.

4.a Identification of the exception to fair opportunity being used. Check the applicable exception being used for this justification.

4.b Supporting rationale. Provide a clear and concise description of the rationale for the use of the authority being cited above, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. The following provides additional insight for purposes of completing this field:

• FAR 16.505(b)(2)(i)(A) Describe the nature or circumstances of the urgency surrounding the agency’s need; how any follow-on work will be competed or how such urgency will be mitigated in the future; describe the extent and impact of the unacceptable delay (e.g.

quantitative data, dollars that would be lost, the impact to schedule) if fair opportunity was provided. Provide supporting rationale and a concise description of the extent, nature, and impact of the potential harm to the Government.

• FAR 16.505(b)(2)(i)(B) Describe what makes this contractor the only responsible source.

For example, (i) does the proposed contractor have facilities or equipment that are specialized or unique that are vital to the effort?; (ii) Is the proposed contractor the only one that can meet critical schedule(s) required by the Government?; (iii) Does the proposed contractor have prior experience or expertise of a highly specialized nature that is vital to the effort?; (iv) Does the contractor have an exclusive licensing agreement?. Fully explain why any other supply or service provided by another vendor will not satisfy the Government’s need. Also, describe any type of market survey and analysis efforts conducted to support this conclusion.

• FAR 16.505(b)(2)(i)(C) If the logical follow-on exception is used, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g., in terms of scope, period of performance, or value). Provide the estimated cost and/or time savings that will result from the non-competitive award, and explain the basis for the estimate.

• FAR 16.505(b)(2)(i)(D) If the satisfy a minimum guarantee exception is used, specify the amount of that guarantee, and, if applicable, the amount that has been ordered to date.

Discuss why the minimum was not otherwise met and any actions the Government took to meet that minimum.

• FAR 16.505(b)(2)(i)(E) If the statute exception is used, cite the statute along the specific language from the statute and how it applies to this order.

• FAR 16.505(a)(4) State the brand name product’s unique attributes (be specific and use technical terms, if necessary), provide an explanation of the proposed brand name item(s) unique qualifications and why no other similar product will suffice, including why other companies’ similar products lacking the particular feature do not meet, or cannot be modified to meet, the agency’s needs; why (if applicable) the nature of the acquisition requires the use of the brand name product. Provide an estimate of the cost and/or delay the Government would incur if other than the brand name item is used for this requirement.

Do not simply take information from a vendor’s website or other such marketing information to use as the basis as to why they are unique. Also, describe any type of market survey and analysis efforts conducted to support this conclusion.

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

Provide a clear and complete description of the contracting officer’s determination that the anticipated cost or pricing the Government will be fair and reasonable. This might include things, such as consideration of commercial pricelists or prior acquisition history.

6.a Any other facts supporting this justification. Additional examples beyond those provided in the form itself are:

• If the justification is based on an urgent and compelling need, there may be additional data or estimated costs that further support the extent and nature of the harm to the government in delay in award will cause or

• If the justification is based on a need to purchase a patented or copyrighted product that has not been licensed for resale obtain some type of documentation from the vendor demonstrating they are intellectual property holder and there are no authorized resellers.

6.b Attachments. Check the applicable box. Examples of attachments might be a copy of the IGCE, certification from the vendor stating they are other only authorized reseller of the particular item or are the patent holder of the item.

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 restricted consideration before any subsequent acquisition for the supplies and services is made. Describe actions taken, or that may be taken, to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required (e.g. overcoming challenges to restrictive data markings, data rights, preparation of a performance based work statement). If planning or in the midst of a competition, include information regarding this action (e.g. estimated date when the competitive procurement will occur or award to be made). Refer to the language in green text for an example.

8. and 9. Certifications, Reviews and Approvals. Each review must be preceded by lower level approval(s), e.g., over $68 million all approvals are required. IN NO CASE SHALL AN

INDIVIDUAL SIGN MORE THAN ONE APPROVAL LEVEL.

For justifications that include the purchase of Information Technology (IT) the following apply:

• The IT signature reflects only the portion of the acquisition that is IT. This can be important when dealing with an acquisition where IT does not represent the predominate value of the acquisition (i.e. therefore it is not assigned an IT PSC code (see the Treasury IT Acquisition Tracker).

• The Bureau Chief Information Officer (CIO) may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to Associate Bureau CIO(s).

Refer to the Bureau supplement to the DTAP to determine if the Bureau CIO has indeed delegated their authority.

FAR 16.505(b)(2)(ii)(C) uses the terms “head of the procuring activity” which has the same meaning as head of the contracting activity (HCA).

https://thegreen.treas.gov/do/ope/ITAcqTracker/Pages/Treasury-IT-Acquisition-Tracker---Home.aspx https://thegreen.treas.gov/do/ope/ITAcqTracker/Pages/Treasury-IT-Acquisition-Tracker---Home.aspx

A supplemental justification is required if any of the following revisions occur between approval of the original justification and actual award of the contract or modification of the award: an increase in dollar value beyond the authority approved in the justification; a change in the competitive strategy that further reduces competition; or any type of change in requirement that affects the basis of the justification.

Additional. Tracking No.: This field is completed as prescribed by Bureau procedures.