JOFOC-Derdack__Redacted.pdf

As prescribed by FAR 6.3 3/2018

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC)

FAR SUBPART 6.3

I recommend the use of other than full and open competition for the acquisition of the following supplies or services. If this acquisition is to be made with only one source or a limited number of sources, negotiations will be conducted with the indicated proposed supplier(s).

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY:

Agency: Treasury, IRS, User and Network Services

Contracting Activity: Treasury, IRS, Office of Procurement, Enterprise Systems Support Branch

2. NATURE/DESCRIPTION OF THE ACTION BEING APPROVED:

Request for a Brand Name firm fixed price contract for Derdack Enterprise ArcSight software maintenance.

3. DESCRIPTION OF SUPPLIES OR SERVICES

The Internal Revenue Service (IRS) Department of Treasury Office of User and Network Services, Of needs to purchase: 24x7 Support and Maintenance incl. Update Assurance ▪ Enterprise Alert Enterprise Hub Edition Site License Enterprise package XL for (one) 1 base year and 1 option year.

The period of performance is:

Base Year:09/01/2019-08/31/2020 Option Year 1: 09/01/2020-08/31/2021

4. REQUISITION NO.

5000071270

5. NAME(S) OF PROPOSED SOURCE(S)

To Be Determined

6. COST ESTIMATE

$560,000.00

CERTIFICATION OF TECHNICAL OR REQUIREMENTS PERSONNEL

I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

7. PROGRAM OFFICE

(Requiring Activity) (Name & Title) Dana Knobloch, I.T. Specialist

(Signature)

(Phone No.)

202-306-5397

(Date)

SMALL BUSINESS CERTIFICATION

I have reviewed this justification, including any attached documentation, if applicable, and concur / do not concur with the findings.

8. SMALL BUSINESS

SPECIALIST

(Name and Title)

PROCUREMENT OFFICE CERTIFICATION

> This requirement [ ] will, [ X ] will not, provide for a bridge contract

I certify that this submission is accurate and complete to the best of my knowledge and belief. This certification will serve as approval, unless action exceeds $700K.

9. CONTRACTING OFFICER

(Name) Kelven D. Jones

240-613-5139

Before requesting this procurement, state one statutory authority for this procurement to be conducted under “other than full and open competition” procedures. Provide narrative justification associated with the respective state authority in block number 17.

THE COMPETITION IN CONTRACTING ACT OF 1984 (P.L. 98-369)

(place “X” in appropriate box).

10.

X

41 U.S.C. 3304(a)(1), FAR 6.302-1– Only one responsible source; or brand name specification

11.

41 U.S.C. 3304(a)(2), FAR 6.302-2 – Unusual and compelling urgency

12.

41 U.S.C. 3304(a)(3), FAR 6.302-3 – Industrial mobilization, engineering, developmental, or research capability; or expert services

13.

41 U.S.C. 3304(a)(4), FAR 6.302-4 – International agreement

14.

41 U.S.C. 3304(a)(5), FAR 6.302-5 – Authorized or required by statute

15.

41 U.S.C. 3304(a)(6), FAR 6.302-6 – National Security

16.

41 U.S.C. 3304(a)(7), FAR 6.302-7 – Public Interest

17. JUSTIFICATION (ADD PAGES IF NEEDED)

A. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED.

UNS has developed a strategic vision, called a Virtual Government Operations Center (VGNOC) for distributed network management, which defines the functionality and life cycle management processes to be used to ensure that network resources continually meet business system and security requirements. Over the past 8 years, the IRS has used a similar Enterprise Alert software for automated network management of critical event notification and escalation to the NOC technical staff, Enterprise Service Desk, UNS management and executives.

The use of Enterprise Alert Software is a critical requirement in high priority incident resolution.

Incidents requiring a STR, managed by ITOCC (Information Technology Operations Command Center), range from mission critical systems outages such as IDRS, ACA and MEF to real time disaster response for extreme weather events or physical security incidents. Maintaining a highly available and redundant enterprise alert management system is vital to incident management, event management and problem management. ITOCC is a 24x7x365 Level 1 & 2 monitoring and triage for the IRS enterprise which depends heavily upon enterprise alerts solutions to operate and have allowed IT to provide mission critical event notifications and dramatically reduced incident resolution times. The currently deployed xMatters premise based alert management system is no longer being supported, with the company only offering cloud only based solutions, which Cyber Security has determined to be an unacceptable security risk; it is critical to acquire this alternative alert management solution. The Derdack software is only available directly from the Derdack Corporation or through their authorized resellers, the SHI International Corporation and Invoke.

B. DESCRIBE THE EFFORTS TAKEN TO ENSURE OFFERS WERE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR

WILL BE PUBLISHED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION

UNDER 5.202 APPLIES.

Jeremy Fetzner of the NMCC program group conducted market research from March – December 2018 on the internet and via discussions with vendors and internet searches for third party resellers of Alert Management Systems. While conducting market research, the following vendors were considered. AtHoc Alerts, xMatters, Attention Software, TelAlert, and Derdack. AtHoc and Attention Software were disqualified quickly due to lack of integration with HP OM which is a critical component interface to the IRS alert management system. xMatters, the current Enterprise Alert Management software vendor, was eliminated due to their company’s direction to no longer provide premise-based solutions and move all operations to cloud based solutions. TelAlert was eliminated by 1. Not having existing key features relied upon by the IRS for Alert Management and 2. For not having the capabilities for future alert management priorities such as HP Service Manager integration, text-based alerting, direct incident resolution through message and an API to allow extending data enrichment beyond the basic event stream. Derdack is currently the only brand specific vendor that can cover the existing vendor’s (xMatters) requirements and position the IRS for future growth and success. The results indicated that the Derdack is not available on either GSA Advantage/Ebuy or on NASA SEWP and is only available directly from the Derdack Corporation or through their authorized resellers. Dana Knobloch conducted market research on GSA (www.gsaadvantage.gov), NASA SEWP (http://www.sewp.nasa.gov/index.shtml) in May 2019, to determine available resellers of the Derdack product, without success in locating any resellers. Market Research was also conducted in May 2019 on both the Acquisition Gateway and OPE’s Treasury Mandatory Portal without success in locating a contract vehicle that included the Derdack product

C. DETERMINATION THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR

AND REASONABLE.

The Contracting Officer will determine the prices to be fair and reasonable in accordance with FAR Part 15 by utilizing competition between the Original Equipment Manufacturer and authorized resellers. A comparison of past purchases of this product will also be utilized to determine price fair and reasonableness. Award will be made using the Lowest Priced/Technically Acceptable (LPTA) evaluation factor

D. DESCRIBE THE MARKET RESEARCH THAT WAS CONDUCTED AND THE RESULTS OF

THAT SURVEY. IF ACTIONS WERE TAKEN BY PROCUREMENT PERSONNEL TO SATISFY

THIS REQUIREMENT SUCH AS A GPE SOURCES SOUGHT SYNOPSIS, PLEASE SPECIFY.

Market research was conducted by the procurement office on June 22, 2018 by contacting the Original Equipment Manufacturer to provide a list of authorized resellers of the Derdack Enterprise Alert Datacenter Site License. The authorized resellers are Derdack, SHI, and Invoke.

E. DESCRIBE ANY OTHER FACTS TO SUPPORT THE JOFOC.

In addition, the market research conducted concludes there isn’t any software available on the market with the same salient characteristics of Derdack that is compatible with integration of the IRS system.

F. LIST SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION.

No sources expressed, in writing, an interest in the acquisition

G. LIST THE ACTIONS THE BUREAU WILL TAKE TO REMOVE OR OVERCOME ANY BARRIERS

TO PROMOTE THE COMPETITION ON ANY SUBSEQUENT ACQUISITIONS FOR SIMILAR

SUPPLIES OR SERVICES.

The IRS will continue to investigate the market place for the best products to meet the customer’s technical requirements. In addition, the IRS will continue to conduct market research and solicit multiple quotations for the purchase of products and for maintenance of the current environment to ensure that if competition is available, every opportunity will be taken to ensure that multiple quotations will be received and evaluated.

H. STATEMENT THAT REQUIREMENT DOES NOT RESULT FROM A LACK OF PLANNING OR

THE EXPIRATION OF FUNDS.

These licenses are required to provide alerts of automated network management of critical event notification and escalation to the NOC technical staff, Enterprise Service Desk, UNS management and executives. This is new requirement and does not result from a lack of planning or the expiration of funds.

ADDITIONAL APPROVALS

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18. BUREAU CHIEF

INFORMATION

OFFICER (for IT only) (Name & Title)

(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).)

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[ ] APPROVE

[ ] DISAPPROVE

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19. BUREAU COMPETITION

ADVOCATE (Name &

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20. HEAD OF THE

PROCURING ACTIVITY

OR AUTHORIZED

DESIGNEE (Name & Title)

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22. SENIOR

PROCUREMENT

EXECUTIVE (Name &

NOTE: Each review must be preceded by lower level approval(s). e.g., over $68 million all approvals are required. IN NO CASE WILL AN INDIVIDUAL SIGN MORE THAN ONE APPROVAL LEVEL.

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21. TREASURY CHIEF

INFORMATION

OFFICER (for IT only) (Name & Title)