47QTCA18D0081-002.docx

FedBizOpps Award Notice

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* = Required Field FedBizOpps Award Notice Rev. March 2010 D TAC-18-52053 SAS Server SW 07724 36C10B18Q3107 N 541519 Department of Veterans Affairs Technology Acquisition Center 23 Christopher Way Eatontown NJ 07724 Contract Specialist: Christine Keen-Deputy Phone: (732) 440-9687

47QTCA18D0081 36C10B18F2877

$597,090.29 08-30-2018

EXECUTIVE INFORMATION SYSTEMS, LLC

938289527

6901 ROCKLEDGE DRIVE STE 600

BETHESDA

MD

20817 Christine.Keen-Deputy@va.gov

SAS Software Maintenance Control Number: TAC-18-52053

LIMITED SOURCES JUSTIFICATION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition and Logistics Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: This proposed action is for a firm-fixed price Task Order to be issued under the General Services Administration (GSA) Federal Supply Schedule (FSS) 70, contract number GS-35F-0170K, with Executive Information Systems, LLC (EIS), for renewal of brand name Statistical Analysis System (SAS) software maintenance support services for existing SAS software licenses.

3. Description of the Supplies or Services: VA, Office of Information and Technology, IT Operations and Services (ITOPS), Field Operations Region 5, in support of Veterans Benefits Administration (VBA) Office of Performance Analysis & Integrity (OPA&I), has a requirement for the renewal of the maintenance support services for existing SAS software running on its servers. OPA&I has existing pre-production and production servers running SAS software that are currently used throughout the Veterans Benefits Administration to provide the OPA&I with predictive analytics, simulation, optimization studies, and ad hoc reporting capabilities of current claims processing functions. The SAS software that is currently installed in the production environment provides for advanced analytical tools for predictive analysis, data mining, and claims workload forecasting. In addition, OPA&I has established a SAS-based pre-production environment to replicate the current production environment. In meeting the demands of an often chaotic and unpredictable production software environment, it’s necessary to test new functions within a pre-production environment. When systems are placed in production, their operational characteristics (and flaws) are on display for all users to see and encounter, whether it is an internal information technology product that relies on authentication and profile data, or an externally-facing mission-critical system. This pre-production environment is utilized to test new software features and newly released report; perform software performance and acceptance testing; and test the ability to migrate systems, software and data to new vendor software deployed in support of Veteran claims processing. The pre-production environments are vital to expose the systems, software and data to rigorous testing in advance of deployment to the production systems. This proposed action will renew software maintenance support for existing SAS software licenses on both the pre-production and production servers. Software maintenance support is required for software updates, patches, phone and email support and on-line self-help. The period of performance shall be from August 31, 2018 through August 30, 2019. The total estimated price of the proposed action is

4. Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C.3304(a)(1) as implemented by Federal Acquisition Regulation (FAR) 8.405-6(a) (1)(i)(B), “Only one source is capable of providing supplies or services required at the level of quality required because the supplies and services ordered are unique or highly specialized”.

5. Rationale Supporting Use of Authority Cited Above: The proposed source for this action is Executive Information Systems (EIS), LLC, 6901 Rockledge Drive, Suite 600, Post Office Box 34076, Bethesda, Maryland, 20827-0076. Based on extensive market research, as described in section 8 of this document, it was determined that there is no competition among vendors for the required software maintenance and that EIS is the sole Government provider of SAS software maintenance support. SAS’ software is proprietary in nature and is not released to any other party; only SAS or its authorized resellers have the required access to the source code and other proprietary software data to be able to meet the Government’s needs. No other firm has the capability to develop and issue software updates and fixes for SAS software necessary to support existing Enterprise Operations statistical and analytical requirements without access to SAS proprietary software code. Furthermore, SAS software maintenance will ensure that all support services are performed and properly configured to the VA-owned SAS software which can only be provided by those who have access to the proprietary software code. Replacement of the SAS software licenses and maintenance with a product other than SAS would require VA to procure new analytical software licenses and associated maintenance. Additionally, the time it would take to install, test, and train VA staff on the use of new software would cause multiple project delays. Renewal of SAS software maintenance will ensure that all support services are performed and properly configured to the VA-owned SAS software. If the software should not be properly maintained, the risk of failure would impact hundreds of reports and applications depending on its functionality. If this award is not made, it is impossible to modify the software code as necessary for these patches and updates, degrading the Government’s ability to analyze, visualize, and share data supporting Veteran benefits claims and delay the timely processing of claims to the detriment of Veterans. SAS provides the maintenance to the Government exclusively through EIS, as SAS does not sell its software maintenance through any other resellers. Furthermore, EIS is SAS’ sole Government provider for software and software maintenance and holds a current contract under GSA FSS 70. Only EIS can provide the maintenance and support that meets the Government’s requirements. Therefore, only an award to EIS will satisfy the Government’s requirement for renewal of the maintenance support services for existing SAS software.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in section 8 of this justification. There is no competition anticipated for this acquisition. Based on market research, EIS is the only authorized Government reseller of SAS software maintenance. In accordance with FAR 5.301 and 8.405-6(a)(2), this action will be synopsized and the justification will be posted on the Federal Business Opportunities Page within 14 days of award. Additionally, in accordance with FAR 8.405-6 (a)(3)(i), the ordering activity will post the justification along with the Request for Quotation on the GSA e-Buy site.

7. Actions to Increase Competition: VA has extensive investment into its current implementation and customization of the SAS software licenses used through VA. The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would warrant competition for other software solutions additional resellers in the future. Specifically, the Government will continue to research alternatives to SAS software and services that may provide the required capabilities, and/or research whether SAS will permit future third party access to its proprietary software to provide the required maintenance support.

8. Market Research: Market Research was conducted in August 2018 by Government technical experts by reviewing similar software maintenance plans to ascertain if these items could meet the Government’s requirements. Specifically, the Government technical experts conducted an internet search to determine if there were other software providers capable of maintaining the existing SAS licenses. Though there are firms that offer data visualization and simulation software and maintenance of that software, including The R foundation and Stata Software, those companies do not have access to SAS’ source code. Government technical experts confirmed that as the source code required to issue the updates is proprietary, SAS, or an authorized reseller, is the only source capable of providing the required maintenance and upgrades for SAS software. No other firm has the capability of developing and issuing software updates and fixes for SAS software necessary to support existing OPA&I requirements. Additionally, the National Aeronautics and Space Administration’s Solutions for Enterprise-Wide Procurements V Government-Wide Acquisition Contract Provider Lookup Tool revealed multiple resellers of SAS products; however, further market research via telephone conversation on August 2, 2018 with a SAS sales representative revealed that EIS, a small business, is currently the sole authorized reseller permitted to resell the required SAS software maintenance to Government entities.

VA performed further market research in August 2018 by conducting a search on the GSA e-Library. Market research indicated only EIS has exclusive rights to sell and support all SAS software licenses and maintenance to Government customers. Finally, Government representatives received a sole source letter on July 31, 2018 directly from SAS confirming EIS as the sole authorized reseller for SAS software to Government entities. Therefore, this proposed action will be a sole source task order issued under GSA FSS 70, contract number GS-35F-0170K with EIS.

9. Other Facts: None.

SAS Software Maintenance Control Number: TAC-18-52053