PWZ003_REdacted.pdf

Sole Source Justification FAR 13.501

Pursuant to FAR Subpart 13.5 and in accordance with the requirements of FAR 13.500 and FAR 13.501(a)(1)(ii), this commercial item acquisition is exempt from the requirements of FAR Part 6 but must nevertheless include a sole source justification utilizing the format prescribed in FAR Part 6.303‐2, modified to reflect this is an acquisition conducted under the simplified procedures for certain commercial items authorized by FAR Subpart 13.5. Use of this authority is justified as follows:

(1)Agency and the Contracting Activity: The Department of Homeland Security (DHS), United States Coast Guard (USCG), Operations Systems Center (OSC), Kearneysville, WV 25430 proposes to enter into a contract for commercial items on a basis of other than full and open competition.

(2)Nature and/or Description of Action Being Approved: USCG has a brand name requirement for commercial items for which it will utilize simplified acquisition procedures for certain commercial items in accordance with FAR 13.500(a). It is the Government’s intent to issue a firm‐fixed price purchase order for twelve (12) months of software maintenance. The proposed purchase order has an estimated price of $XX. This brand name requirement is for the renewal of software support for commercial off‐the‐shelf (COTS) FUND XPEDITE (Checkfree) software for the USCG FINCEN and Payroll Personnel Center (PPC).

The recommendation is to acquire the software application maintenance support from:

Fiserv Federal Systems, Inc.

255 Fiserv Drive Brookfield, WI 53045

(3)Description of the Supplies/Services:

FUND XPEDITE (Checkfree) is a real‐time, web‐based office reconciliation software application that addresses the needs of Government entities for automating their reconciliation workflow.

This software maintenance is in support of the FISERV application utilized by the USCG Finance Center for Core Accounting System (CAS) financial reconciliation and USCG PPC for payroll processing. The software application is also used to reconcile General Ledger (GL) accounts, treasury reporting for USCG and Transportation Security Administration (TSA) and creating file exports between PPC and CAS. The FUND XPEDITE (Checkfree) software application is exclusive and proprietary to FISERV. There are no re‐sellers for the FUND XPEDITE (Checkfree) software product.

(4) Identification of Statutory Authority Permitting Other Than Full and Open Competition:

The authority permitting sole source acquisitions is FAR 13.501(a) and FAR 13.106‐1(b).

(5) Demonstration That the Nature of the Acquisition Requires Use of the Authority Cited:

FISERV is the sole proprietor and vendor of the FUND XPEDITE (Checkfree) software product.

No other vendor can provide this service and FISERV has no re‐seller agreements. The decision to utilize FISERV FUND XPEDITE (Checkfree) Software was made within the framework of a long term strategic initiative for the USCG approximately 12 years ago by CG‐8. Software of this nature, and its associated infrastructure and compatibility, take a long time to implement and to become proficient and functional for the business strategy associated with USCG financials and payroll processing. FISERV is currently the only source available that can provide this required software support to the USCG.

Only one responsible source and no other supplies or services will satisfy agency requirements.

Market research revealed that no other product can be modified or customized to meet the USCG financial reconciliation requirements. The replacement of USCG Financials has a long and storied history. The current plan is to consolidate USCG Financials under the DHS financial umbrella with a target date of December 2020. Until the current CAS suite is replaced, consideration of any other software product other than FISERV for reconciliation of global pay and CAS support would require an entire technical refresh of the CAS suite with an estimated cost of $22M.

(6) Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable: A sole source purchase order awarded to FISERV for the renewal of the FUND XPEDITE (Checkfree) software maintenance is the only option available to the Government. The Contracting Officer confirmed that FISERV is the sole source provider of FUND XPEDITE (Checkfree) software and all associated maintenance and support through written correspondence dated 29 November 2017.

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer determined that the anticipated price for the required software and software support is fair and reasonable based on the comparison with the Independent Government Cost Estimate (IGCE) and historical pricing data. Although the price for maintenance support has increased by 5%, the increase is reasonably justified considering expected annual inflation.

(8) Description of Market Research: The Contract Specialist issued a RFI to all DHS First Source II vendors on November 21, 2017. The responses were all no bid. It was determined after follow‐up by the Contract Specialist that the DHS First Source II vendors were informed that FISERV has no authorized resellers. An email from FISERV confirmed this fact.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition:

Not applicable.

(10) A Listing of the Sources, if Any, That Expressed, in Writing, an Interest in the Acquisition:

In accordance with FAR 5.207(c)(15), an announcement of the Government’s intent to issue a sole‐source Purchase Order to FISERV for a period of twelve (12) months was placed in Federal

Business Opportunities (FedBizOpps) from 29 November 2017 through 5 December 2017. No responses were received.

(11) A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition Before any Subsequent Acquisition for Supplies or Services is Made:

After the USCG Financial application is replaced under DHS, FUND XPEDITE (Checkfree) may no longer be required and eventually will be phased out. The Government will seek competition for the new required product functionality. Every effort will be made to compete the Government’s requirements to the maximum extent practicable based on the circumstances existing at that time.

(12) Contracting Officer’s Certification:

I certify that the data supporting the recommended use of other than full and open competition for brand name specific software support is accurate and complete to the best of my knowledge and belief.

Kathy P. Klein Contracting Officer, OSC C4IT, USCG, Department of Homeland Security

(304) 264‐2566

(13) Technical/Requirements Personnel Certification:

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

LT Travis Russell USCG Asset Line Manager (CGFixIT), OSC C4IT, USCG, Department of Homeland Security

(304) 433‐3970

REVIEWED BY:

Office of Procurement Law