2032H5-22-F-00036 SAS JOFOC.pdf

IRS Form (Rev. 6/21)

IRSAP 1006.3

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:

Internal Revenue Service (IRS) Office Information Technology Acquisition (OITA)

2. NATURE/DESCRIPTION OF THE ACTION BEING APPROVED:

The purpose of this sole source justification is to award a firm-fixed price contract for statistical software support for Internal Revenue Service (IRS) Federal Information Processing (FIP) resources directly to Statistical Analysis System Institute, Inc (SAS) for the brand name items described below in Section 3 for Statistical Analysis System Licenses and Maintenance. The software is proprietary information to the Statistical Analysis System Institute, Inc. SAS is a statistical and analytical software package that supports IMF, BMF, AFS, CADE, e-SVRS, Mef, IRFOF and various other modernization projects. The contractor shall furnish, as required, the software and technical support services required for the support of all items supplied under this contract. Such software license renewal and technical support services shall be supplied in conformance with the terms and conditions of the SAS License Agreement No. 02725. The period of performance is for a (12) month base and three (12) month option periods. The need date for this award is 6/30/2022.

3. DESCRIPTION OF SUPPLIES OR SERVICES:

The Contractor shall provide software license and technical support of all software that will be covered under this contract. The proposed acquisition is to acquire the brand name products listed in the below chart.

Projections based on potential capacity increases through June 29, 2026

See attached Period of Performance Requirement Table.

4. SHOPPING CART

NUMBER:

5. NAME OF PROPOSED SOURCE(S):

Statistical Analysis System Institute, Inc. (SAS)

6. COST ESTIMATE:

7. CERTIFICATION OF TECHNICAL OR REQUIREMENTS PERSONNEL

I hereby certify that any supporting information and data provided, which form the basis for this ·ustification, are accurate and com lete to the best of m knowled e and belief.

PROGRAM OFFICE (Signature) (Phone No.) (Date)

8. PROCUREMENT OFFICE CERTIFICATION

This requirement [ ] will / [ ] 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 a roval unless action exceeds $750K.

CONTRACTING OFFICER (Signature) (Phone No.) (Date) (Name)

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 res ective state authorit in block number 10.

X

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

(place "X" in aooropriate box)

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

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

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

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

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

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

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

IRSAP 1006.3

IRSAP 1006.3

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

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

The SAS Institute, Inc., developed and owns the propriety and patented software and algorithms that are used in these products and support the services specifically required for this acquisition; thereby the SAS Institute, Inc., has the sole unique technical and other resources required for this acquisition. This acquisition provides the necessary maintenance to keep the software and hardware needed up to market version. It would affect the entire service if the software maintenance was not awarded. The research is proprietary information to SAS Institute, Inc. The software is used by various organizations throughout the IRS that is responsible for developing, testing, and maintaining statistical applications. The software is used in the development of both large-and small-scale systems for Statistics of Income (SOI) research, capacity studies, and planning groups. SAS software is also used to support the reliability of the Integrated Financial System (IFS). The IFS supports all of the financial functions of the IRS. Hundreds of users throughout the IRS use SAS PC software, in both DOS and Windows format, to interface with the mainframe computers at ECC-Martinsburg. SAS software is licensed for use rather than purchased.

SAS licenses are a critical component to mainframe filing season processing. SAS automates every aspect of analytics data management regardless of the source application, originating platform, storage medium, or report format. This is a highly embedded set of features in IRS IBM z/OS mainframe operations and would not be feasible to remove and replace without substantial financial investment and time.

SAS solutions for use in mainframe processing is critical to tax filing season processing. This particular SAS solution collects and transforms IBM mainframe data streams, avoiding the need for custom code. This is a highly embedded solution which would require substantial financial investment and time to replace in an upward cost of roughly $5 million dollars which includes software installation, training, approval by the Enterprise Architecture board, Enterprise Services for analysis, testing/implementation, and overall staffing that we are currently lacking.

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 FAR SUBPART 5.2 AND, IF NOT, WHICH

EXCEPTION UNDER FAR 5.202 APPLIES.

IRS procurement issued a Sources Sought Notice associated to a Statement of Work (SOW) to industry through the government point of entry, SAM.gov, GSA, and NASA SEWP in May 2022.

From this Sources Source Notice, no vendors responded to the IRS indicating that they could provide the SAS products or anything similar to the SAS products requested.

To satisfy FAR 5.203(a), the notice will be posted to SAMs. gov.

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

AND REASONABLE.

The Contracting Officer will ensure that the anticipated cost to the Government will be fair and reasonable based on the following methods: proposal analysis techniques; a comparison with contractor’s published price list, and a comparison of proposed prices with Independent Government Cost Estimates.

IRSAP 1006.3

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.

As mentioned above, procurement issued a Sources Sought Notice through SAM.gov, GSA, and NASA SEWP which yielded zero (0) responses.

E. DESCRIBE ANY OTHER FACTS TO SUPPORT THE JOFOC.

The nature of the products to be purchased requires that this be a brand name acquisition. The requirements implicitly dictate that only SAS products can be used as only the SAS Institute, Inc., can provide the licenses and provide Software Assurance for existing SAS products and technologies.

The risk of deviation is that the IRS will be unable to efficiently receive and process taxpayer information. No other software is compatible with the SAS product.

Statistical Analysis System (SAS) Institute submitted a sole source letter to the government indicating that the SAS Institute Inc. (“SAS”) is the sole manufacturer and publisher of SAS® software (the “Software”) in the United States. Per this documentation, this new contract must be awarded to SAS for these products..

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

ACQUISITION.

N/A

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.

In the event the SAS Institute, Inc., no longer has market exclusivity to sell SAS software services to the federal government, the IRS will compete this requirement. IRS will engage industry in order to determine accessibility to direct SAS software and maintenance services in order to compete the requirement.

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

THE EXPIRATION OF FUNDS.

This requirement is a known requirement and this JOFOC is not a result from a lack of planning or the expiration of funds.