SSJ_MS_D365.docx

SOLE SOURCE JUSTIFICATION (SSJ)

UNDER THE SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY

Agency: Social Security Administration

Project Title: Subscription for Microsoft Dynamics 365

Proposed Contractor: Authorized resellers of Microsoft, Inc.

Tracking Information: Advanced Procurement Plan (APP) #: _ITS-19-0001 Relevant current/previous order #: 28321318P00051088 Purchase Request # _3303-19-1096_______

Period of Performance: 02/01/2019 to 01/31/2022

2. NATURE OF ACTION BEING APPROVED

Type of Action:

__x_ New award ____ Modification of existing award, number ______________________

Contemplated Contract Type:

__x_ Firm fixed-price ____ Time and materials/labor hour ____ Combination

We seek approval of a SSJ to obtain the following:

____ Expansion of mainframe software licensing required for compliance with our license agreement, due to agency mainframe hardware capacity increases. Since commercial mainframe software companies commonly license software based on the capacity of the mainframe hardware on which we install software, we are responsible for expanding our mainframe software licenses commensurate to the hardware capacity each time we upgrade mainframe hardware.

__x_ Subscription of Dynamics 365 software manufactured by Microsoft, Inc.

We will solicit a proposal and award a single firm-fixed-price award to any authorized reseller of Microsoft Inc. for the base year and two one-year option periods.

Procedures in FAR 13.5 are being used, in accordance with 41 U.S.C. 1901.

3. DESCRIPTION OF SUPPLIES/SERVICES AND ESTIMATED VALUE

Estimated Value: $460,000

Dynamics 365 is distributed subscription-based software used by the Office of the Inspector General (OIG) to support an Investigative Case Management System and a Call Center solution.

We currently deploy Microsoft Dynamics 365 for the following projects:

· OIG Investigative Case Management System.

· OIG Call Center solution

The subscription for Microsoft Inc. software includes access to the software itself, as well as updates, fixes and patches, as well as online and telephone technical support, allowing the software to remain operational in a changing environment.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901, as implemented by the Federal Acquisition Regulation (FAR) 13.5—“Simplified Procedures for Certain Commercial Items.”

The acquisition is “commercial” in nature, as defined at FAR Section 2.101, and will be solicited using FAR Part 12, as well as the procedures outlined at FAR 13.106-1(b)(1)(i) (i) Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).

The basis for restricting competition is that a reasonable basis exists for concluding that the agency’s minimum needs can only be satisfied by:

____ (1) Unique supplies or services available from only one source or only one supplier with unique capabilities __x_ (2) The existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material; or similar circumstances, make the supplies and services available from only one source

Please note:

____ is the only Open Market authorized provider of Microsoft Inc. licenses and maintenance subscription.

____ There are several authorized Open Market resellers of Microsoft Inc. licenses and subscriptions.

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS

Microsoft, Inc. is the copyright holder for Dynamics 365 software. Only Microsoft, Inc. has the right to issue an enterprise license for this software. Furthermore, while Microsoft Inc. does not sell directly to the government, the company requires agencies to purchase through authorized resellers, since Microsoft and its authorized resellers have legal access to the proprietary source code necessary to provide subscription licenses, including software maintenance. Subscription licenses include a subscription to the license itself, as well as version upgrades, updates, fixes and patches, as well as telephone support for resolving issues.

Continued subscription to these products is essential. Access to the software itself, as well as upgrades, updates, and fixes and patches ensures software continues to be compatible with the operating system and is in good working order. Without maintenance, there is potential for a major workload disruption to ongoing OIG investigations. Microsoft Inc. provides unique patches and technical assistance necessary to support all the OIG Case Management System and Call Center solutions. Any interruption to the subscription can severely affect our service to the public.

6. EFFORTS MADE TO SOLICIT FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

___ FedBizOpps Sources Sought posted from XX/XX/XXXX to YY/YY/YYYY, and a copy is included in the contract file.

__X_ FedBizOpps Synopsis of Proposed Contract Action posted from 01/16/2019 to 01/25/2019, and a copy is included in the contract file.

____ Responses received listed under item 10 below.

____ No responses received.

Based on the results of the posting, as well as market research described in item 8 below, we do not believe there are any entities other than authorized resellers with similar capabilities at this time.

7. DETERMINATION BY THE CO THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE PRICE

In accordance with FAR Part 15.404, the CO will perform a final price analysis in order to determine the eventual awardee’s proposed price is fair and reasonable.

8. DESCRIPTION OF MARKET RESEARCH

See Section 6 above.

These software products are proprietary products licensed to the agency. Market research has confirmed that Microsoft Inc. is the copyright holder of this software; therefore, the only known source capable of providing the required software subscription is Microsoft, Inc. and its authorized resellers.

Additionally, __x_ We used market research conducted within 12 months of the anticipated award date. Therefore, we consider the information still current, accurate, and relevant.

____ When examining whether this is a requirement for Commercial vs Non-Commercial items, market research helped determined that this requirement involves ____ A) Items of a type customarily available in the commercial marketplace;

____ B) Items of a type customarily available in the commercial marketplace with modifications; or ____ C) Items used exclusively for governmental purposes (i.e. not commercially available).

____ Market research helped determine ____ Customary practices regarding customizing, modifying, or tailoring of items to meet customer needs and associated costs;

____ Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products or services are made;

____ Requirements of any laws and regulations unique to the item needed;

____ Availability of items that contain recovered materials and items that are energy efficient;

____ Distribution and support capabilities of potential suppliers, including alternative arrangements and cost estimates; and ____ Size and status of potential sources (see FAR Part 19).

__x_ Techniques for conducting market research include any or all of the following:

__x_ (i) Contacting knowledgeable individuals in government and industry regarding market capabilities to meet requirements.

____ (ii) Reviewing the results of recent market research undertaken to meet similar or identical requirements.

____ (iii) Publishing formal requests for information in appropriate technical or scientific journals or business publications.

__x_ (iv) Querying the government-wide database of contracts and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ and other government and commercial databases that provide information relevant to agency acquisitions.

____ (v) Participating in interactive, on-line communication among industry, acquisition personnel, and customers.

____ (vi) Obtaining source lists of similar items from other contracting activities or agencies, trade associations or other sources.

____ (vii) Reviewing catalogs and other generally available product literature published by manufacturers, distributors, and dealers or available on-line.

____ (viii) Conducting interchange meetings or holding presolicitation conferences to involve potential offerors early in the acquisition process.

____ Additional information, sources, comments

9. ANY OTHER SUPPORTING FACTS

Microsoft, Inc. does not sell directly to the government, instead making products available through authorized resellers.

In accordance with FAR 4.1102, 4.1201, and 9.401, upon selection of an awardee, the CO will examine the System for Award Management in order to make an affirmative determination of the contractor’s responsibility.

10. LIST OF SOURCES EXPRESSING INTEREST IN THE ACQUISITION IN WRITING

No other sources have expressed an interest in this acquisition.

11. ACTIONS AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION IS REQUIRED

We will continue to survey the market place by synopsizing our requirement and reviewing product literature and capability statements submitted by the vendor community.