2018.05.24_Oracle_JOFOC_final_v4_signed.pdf

JUSTIFICATION FOR OTHER

THAN FULL AND OPEN COMPETITION

41 U.S.C. 3304 and 10 U.S.C. 2304(c)

In accordance with 41 U.S.C. 3304(a)(1), which has been implemented by FAR 6.302-1, I hereby determine that the Oracle maintenance support listed on quotes 1954882 and 12305718 is required through a sole source procurement and competition is precluded for the reasons indicated below.

Please select the appropriate statutory authorities in accordance with FAR Part 6.302, Circumstances Permitting Other Than Full and Open Competition:

X FAR 6.302-1 Only one responsible sources and no other supplies or services will satisfy agency requirements;

1. Identification of the Agency and the Contracting Activity:

This requirement is in support of the General Services Administration (GSA), Chief

Information Officer (CIO), GSA IT Vendor Management Office and the GSA Acquisition

Services Division, 1800 F Street, NW Washington, D.C. 20005. The Contracting Activity is General Services Administration (GSA), Public Building Service (PBS), Acquisition

Services Division, 1800 F Street, NW, Washington, D.C. 20005.

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

As part of an ongoing GSA goal to consolidate any existing Oracle purchases and support amongst the GSA organizations, GS-P-00-15-CY-0006 was awarded on behalf of the GSA

IT Vendor Management Office for maintenance services related to GSA’s Oracle software licenses. The licenses for which maintenance support is required were purchased over the past ten years by multiple GSA organizations. Oracle software is installed to support mission critical agency business operations. Maintenance services include staffing a help line desk, providing update security patches as available, etc. The Task Order was awarded to a certified small business distributor of Oracle software on Schedule 70 for a base year and two - one year option periods. On November 30, 2017, the period of performance ended on the Task Order.

Throughout the entire period of performance GSA-IT and Oracle negotiated unresolved issues regarding the actual number of Oracle licenses in use by GSA. Prior to the end of the period of performance, on November 22, 2017, Oracle agreed to continue providing maintenance services under the standard commercial practice known as a "grace period" while negotiations continued between GSA and Oracle. Oracle has provided maintenance services under the "grace period" and GSA has had constant access to the help desk and other maintenance services December 1, 2017- March 31, 2018. The GSA CIO has been in discussions with Oracle to switch the Agency to an Oracle Enterprise License Agreement

(ELA), and as part of that new ELA was to include paying for the prior “grace” periods. In

February 2018 negotiations broke down and the GSA Administrator decided to transfer the completion of the ELA to Fedsim and that PBS would finalize the “grace” period payment under a separate modification through March 31, 2018. GSA provided a modification for

$1,977,672.14 under immixTechnology contract GS-P-00-15-CY-0006 to cover the “grace” period under that contract’s terms and conditions. ImmixTechnology and Oracle refused the modification stating that the “grace” could not be an extension because immixTechnology’s

Schedule 70 reseller agreement with Oracle was expired and Oracle would not agree to an extension. On May 8, 2018, Oracle stated that the only way left for GSA to pay for the

“grace” period is directly to Oracle with new open market terms and conditions. GSA legal and Oracle legal have attempted to reach acceptable terms and conditions to apply to a new award for this payment, but GSA is not accepting any new terms and conditions for services already rendered. Due to an inability to agree upon terms and conditions with Oracle, GSA and Oracle agreed that a direct order with Oracle with no new terms and conditions would be the only way to pay for the “grace” period. Oracle provided a quote to GSA on May 23, 2018, to allow for an open market contract award to Oracle to pay the previously quoted amount of $1,977,672.14 for maintenance services during the "grace period", with no new terms and conditions, just to provide the payment. GSA legal and Oracle legal agree this is the last possible path. If these services are not paid for by May 31, 2018, Oracle will not allow the new ELA contract award. The estimated new ELA date is June 1, 2018, but GSA will not have maintenance services until the new ELA is in place. Reinstatement of services will be included in the new ELA as the “grace” period ended March 31, 2018.

3. A description of the supplies or services required to meet the agency’s needs

(including the estimate value)

GSA has a need for continued maintenance services for Oracle software in use at GSA. To support this need, GSA has determined it is in the best interest of the agency to issue an award to Oracle to provide fair and reasonable payment for the services provided under the

“grace period.” Due to the proliferation of Oracle based software in use at GSA it is not cost effective to change software products and the maintenance of Oracle based software is proprietary in nature limiting the use of another vendor.

The total estimated value for the services is approximately $1,977,672.14, which is consistent with the amount we were paying on the prior contract and what they have already provided in a quote.

4. An identification of the 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), which has been implemented by FAR 6.302-1. GSA has determined that the procurement requires a sole source award in order to satisfy the Agency’s need.

Specifically, the basis for other than full and open competition is that the maintenance services for Oracle license could only be provided by Oracle due to the inability to come to an agreement on terms with the 3 rd party reseller.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited

GSA staff relies heavily on Oracle software to perform day to day operations. The majority of GSA’s purchased Oracle products are installed on over 500 servers throughout the agency. Several additional Oracle management packs and software options (e.g. Tuning

Management Pack, Real Application Clusters, etc.) are also installed to support the functionality of the aforementioned software. Follow on maintenance services for the software in use by GSA was essential during the “grace period” while discussions regarding a new requirement were ongoing between Oracle and GSA. This acquisition will allow GSA to award a contract to Oracle for maintenance services during the “grace period.”

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. Including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies

There is no applicable exception to the notice requirements under FAR 5.202 and therefore a notice of intent to award a sole source contract will be published on Federal Business

Opportunities (FBO).

7. A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable.

The following IGCE $1,977,672.14 represents a fair and reasonable value to the government based on market research, historical procurement data, and/or specific industry knowledge by the technical representative.

8. A description of the market research conducted (see part 10) and the results or a statement of the reason market research was not conducted

Market research was conducted with a review of GSA Advantage online catalog and the

Oracle web site. Market research revealed that there are no current resellers of Oracle products on the GSA Schedule 70. Market research also revealed that there are a limited number of authorized resellers available that can sell maintenance under NASA SEWP or open market reseller agreements, but this service can only be purchased from Oracle directly if it is the only item being purchased. A direct order for maintenance services with

Oracle was determined to be the only avenue to resolve this in the best interest of the government.

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

The relevant Oracle Customer Service numbers #1954882 and #12305718 are associated with this “grace” period.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition

Due to the nature of the software maintenance renewals being granted via “grace periods”

GSA does not intend to seek a new vendor for theses support services. The new requirement for Oracle software and license is being procured at this time, with an expected award of June 1, 2018.

11. A statement of actions, if any, that agency may take to remove or overcome any barriers to competition before any subsequent for the supplies or services required.

A new procurement is being completed allowing for competition among authorized resellers of Oracle support. GSA will provide opportunity to the maximum extent available on all new procurements.

Contracting Officer’s Certification

I hereby certify that the information contained in this Justification for Other than Full and Open

Competition, is accurate and complete to the best of my knowledge.

Laurie Schimmel 5/29/2018

Laurie Schimmel

Contracting Officer

Approval

X Lydia Domenech