C04 FAR 6.302 Justification FALCON - SoleSource.pdf

United States Department of Agriculture Justification for Other than Full and Open Competition

Federal Acquisition Regulation (FAR) Part 6.3

1. Identification of the agency and the contracting activity.

United States Department of Agriculture (USDA), Office of the Chief Information Officer (OCIO), Digital Infrastructure Services Center (DISC).

United States Department of Agriculture (USDA), Office of Contracting and Procurement (OCP), Procurement Operations Division (POD), Departmental Administration (DA), 301 S. Howes Street, Suite 321, Fort Collins, CO 80521.

2. The nature and/or description of the action being approved.

The United States Department of Agriculture, (USDA) Office of Chief Information Officer (OCIO) intends to issue a firm fixed price sole source brand-name requirement for Falcon MVS software to Phoenix Software International.

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

The United States Department of Agriculture, Office of the Chief Information Officer (OCIO), Digital Infrastructure Services Center (DISC) requires an alternative software solution for the current IBM mainframe z/OS software called Keyfast, which is being discontinued without a replacement. The government has conducted market research and found that only one software solution is available to replace the existing software. This software solution is called Falcon MVS and is proprietary to Phoenix Software International.

4. The statutory authority permitting other than full and open competition.

41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1, titled "Only one responsible source and no other supplies or services will satisfy agency requirements."

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

This acquisition will replace current mainframe data entry validation software, KeyFast, a mainframe software that allows non-programmers to create data entry forms in CICS and edit checks in a matter of minutes. The validation of user data is validated against master files and databases at time of input to catch errors saving time by reducing the amount of time spent on error-corrections and re-runs. The manufacturer of KeyFast, H&M System Software, will end support of existing KeyFast products effective 31 Dec 2023. As of the end of this year, H&M will no longer be in business as they are a small company and are all retiring. USDA DISC has to replace the software with another software meeting the operating requirement and key functions of KeyFast found here: https://www.hm-software.com/mainframe/keyfast/default.htm for the continued data entry validation of DISC mainframe. The replacement software must meet the USDA DISC current architecture of the application of IBM CICS (Customer Information Control System). CICS is a family of mixed-language application servers that provide online transaction management and connectivity for applications on IBM mainframe systems under z/OS.

The program office conducted market research to seek out a suitable replacement. Phoenix Software International’s FALCON software was identified by the program office as a product that meets the functionality and operation requirements to meet DISC’s operational needs for mainframe data entry validation. An important feature of FALCON is that it can run on CICS and runs under the z/OS operating system. No other suggested sources were provided.

POD conducted additional market research to seek out if there were any other alternative solutions that could meet or exceed the key features of the current but soon to be discontinued KeyFast. A Request for Information (RFI) was posted to SAM.Gov with two responses received: Tano Logistics and Phoenix Software International.

Tano Logistics response included their product called Crowdstrike (Falcon LogScale and Falcon Complete LogScale). Other than “falcon” in the title, the functionality and operating system were completely different than this requirement, thus not a viable solution for a replacement for KeyFast.

Crowdstrike Falcon is a centralized log management strategy that brings together security and observability for SecOps, ITOps and DevOps teams. This type of solution is effective for analyzing historical data from multitudes of systems to identify specific trends and issues. However, it does not offer a z/OS CICS solution that creates data entry forms where entry data is validated ensuring proper formatting which is then sent to the application code for processing. This is upfront data validation versus historical transaction/data analysis, two different sets of software.

Phoenix Software International’s solution offered is their FALCON software. This product is a mainframe data entry validation software. An important feature of FALCON is that it can run on CICS and runs under the z/OS operating system. FALCON meets the functionality and operational requirement to meet DISC’s operational needs and is a suitable product replacement of the discontinued KeyFast.

https://www.hm-software.com/mainframe/keyfast/default.htm https://en.wikipedia.org/wiki/IBM_mainframe https://en.wikipedia.org/wiki/Z/OS

The program office’s market research also identified Phoenix Software International as a potential source. Additional market research was conducted to include internet web searches however no other products were identified.

Phoenix Software International is the only known capable vendor that can provide all versions of the Falcon MVS software and support. FALCON MVS software is proprietary and can only be procured through Phoenix Software International. No other source is authorized to provide the licenses, maintenance, or technical support. This software is the intellectual property of Phoenix.

Therefore, only Phoenix Software International can provide maintenance and support services.

Phoenix is the sole source provider of FALCON and Phoenix does not work with resellers of any kind. Only Phoenix provides all fixes and upgrades to the FALCON software as needed to keep the program current.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

The Contracting Officer posted a request for information (RFI) via SAM.gov utilizing Contracting Opportunities. This posting allowed all interested parties the opportunity to review the requirement.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer has determined that the anticipated cost to the government will be fair and reasonable. Due to the commercial nature of the services to be acquired, FAR 15.403-1(b)(3) prohibits the Contracting Officer from requiring certified cost and pricing data. In the absence of certified cost and pricing data or adequate price competition, the price reasonableness determination will be based on prices paid for the same or similar commercial services under comparable terms and conditions by both Government and commercial customers, including pricing information contained in published price lists and previous contracts for the same or similar services; and comparison to the Independent Government Cost Estimate.

8. A description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

Request for Information (RFI) for a replacement for the soon to be discontinued KeyFast software was posted to SAM.gov on Monday, September 11, 2023. Two responses were received.

Tano Logistics, a certified small, disadvantaged business, responded with a solution called CrowdStrike Falcon Logscale, which implements high performing data logging solutions.

CrowdStrike Falcon LogScale is a log management platform that allows you to aggregate, alert on, and visualize live data as it streams into Falcon LogScale. It provides real-time alerting, search, and visualization. Falcon LogScale allows you to enhance threat hunting with fast search and enrichment across all data. It also provides complete observability across distributed systems.

Falcon LogScale allows DevOps, ITOps and SecOps teams to aggregate, correlate and search live log data with sub-second latency. This technology helps eliminate IT system blind spots and identify potential threats faster.

Phoenix Software International, a small business, responded with their solution called Falcon MVS.

Falcon MVS is a menu-driven data entry system for entering data, managing batches, and managing jobs in a secure, user-friendly environment. Data entry screens and output record layout can be defined in one step and applications can be built by listing formats from anywhere in the system.

Falcon accommodates both keyboard and keyless entry devices. Falcon MVS can run on CICS and runs under the z/OS operating system, a crucial component in meeting the government’s needs for this requirement.

In addition, a representative of the current KeyFast reseller, H&M confirmed that KeyFast is being discontinued with no replacement and that the only viable known solution is Phoenix Software International’s proprietary product called Falcon MVS.

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

N/A

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

Phoenix Software International – FALCON MVS

Tano Logistics – CrowdStrike Falcon LogScale

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

Continued market surveillance for future mainframe data validation software products for competitive sourcing. If new products are identified, market research will be conducted again to determine if other interested sources or service offerings are available. It will assess if it is within the best interest o the government to pursue other options while maintaining the integrity of the platform without incurring substantial duplication of costs or cause a gap in services. Option years provide a fast of-ramp that allows the government to quickly adapt to emerging technologies and make smart business decisions that leverage the competitive marketplace going forward.

Certifications & Approvals

Supporting data that form the basis for and included in this justification are certified accurate and complete.

Digitally signed by DANIAL MC

DANIAL MC CORD CORD

Date: 2023.09.27 14:29:03 -05'00'

Dan McCord Chief, Mainframe Systems

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Digitally signed by CHRISTINE

CHRISTINE LABARR LABARR

Date: 2023.10.10 15:36:18 -06'00'

Christine LaBarr Contracting Officer