NNG15SD19B-235.pdf

Control Number: TAC-20-55618

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity: Department of Veterans Affairs (VA)

Office of Procurement, Acquisition, and Logistics Technology Acquisition Center 23 Christopher Way Eatontown, New Jersey 07724

2. Description of Action: This proposed action is for a firm-fixed price delivery order (DO) issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government Wide Acquisition Contract (GWAC) for brand name Sun-Oracle hardware and software maintenance coverage.

3. Description of Supplies or Services: The Department of Veterans Affairs (VA), Office of Information and Technology (OI&T), Information Technology Operations and Services (ITOPS), Infrastructure Operations (IO) has a requirement for brand name Sun-Oracle hardware and software maintenance, and update support consisting of major product and technology releases for software, program updates, fixes and security alerts, general maintenance releases, functionality releases, documentation updates, and upgrade tools/scripts. The Sun-Oracle System is utilized throughout the VA and is critical for the VA payment system via secure communication encrypted channels. The Sun-Oracle System hardware and software maintenance coverage to be provided under the proposed effort will ensure that the system remains operational.

The required hardware and software maintenance consist of repairs and/or replacement of Sun-Oracle equipment components to fully restore the system to operational in the event of a system failure. The software maintenance consists of access to technical experts, backed by industry leading online tools and knowledgebase resources, major product and technology releases for software, program updates, fixes and security alerts, general maintenance releases, functionality releases, documentation updates, upgrade tools/scripts, assistance with service requests 24 hours per day, 7 days a week, access to My Oracle Support, and non-technical customer service. The period of performance shall be October 1, 2019 through September 30, 2020. The total estimated price of the proposed action is $

4. Statutory Authority: Pursuant to Federal Acquisition Regulation (FAR) Subpart 16.505(a)(4), the following brand name requirement is being justified and approved as an exception to fair opportunity under the statutory authority of Section 41 U.S.C.

4106(c)(2) as implemented by FAR Subpart 16.505(b)(2)(i)(B), entitled “Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

5. Rationale Supporting Use of Authority Cited: Based on market research, as described in section 8 of this justification, it was determined that limited competition is viable among resellers for the brand name Sun-Oracle hardware, software maintenance, and update support. The current IO infrastructure is based on existing

Sun-Oracle Hardware Maintenance Control Number: TAC-20-55618

Sun-Oracle hardware and VA requires support compatible with the existing infrastructure protocols and functionality for continued operational availability. VA requires hardware upgrades and updates to include major releases, point releases, service releases of applicable hardware on a quarterly basis, or within 48 hours in cases where a high-risk vulnerability fix becomes available. Only Sun-Oracle or an authorized reseller can provide the necessary hardware and software maintenance coverage because of the propriety source code required to develop and implement hardware updates. Access to this code is also required to ensure all the services provided are properly configured. No other source is capable of providing the required hardware and software maintenance that meets VA’s unique functional requirements. Also, no other brand name replacement hardware can meet VA’s form, fit and functional requirements.

Specifically, no other hardware will communicate or fit in the existing infrastructure due to Sun-Oracle’s proprietary constraints within the existing platform. In addition, a prior implementation of Sun-Oracle hardware and software already exists in IO. In order to utilize any other source, the Government would be required to procure a new hardware and software solution. A purchase of a new Oracle Supercluster would cost approximately $10,000,000. Additionally, re-purchase would result in significant down time of critical VA systems, impacting Veterans ability to receive care and resulting in duplicated costs that would not be recovered through competition. No other maintenance is compatible with or interoperable with the existing Sun-Oracle hardware and software. The brand name Sun-Oracle hardware and software maintenance is the only maintenance coverage that meets the Government’s requirements.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in section 8 of this justification. This effort did not yield any additional sources that can meet the Government’s requirements. It was determined, however, that limited competition is viable among authorized resellers for this required brand name hardware and software maintenance. In accordance with FAR 5.301 and 16.505(b)(2)(ii)(D), notice of award for this action will be synopsized and this justification will be made publicly available on the Federal Business Opportunities Page within 14 days of award.

In accordance with FAR 16.505(a)(4)(iii)(A), this justification will be posted with the request for quotation on the NASA SEWP V GWAC to notify interested parties.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be fully competed.

8. Market Research: The Government’s technical experts conducted market research in March of 2019 to ascertain if any other sources could provide the required hardware and software maintenance. Specifically, the Government’s technical experts conducted web-based research on web sites for other equipment manufacturers such as International Business Machines (IBM) and Hewlett Packard (HP). None of the hardware and software maintenance services offered by these companies can meet the Government’s requirements as outlined in section five of this justification. In addition, IBM and HP’s hardware and software cannot communicate with or through the existing

Sun-Oracle Hardware Maintenance Control Number: TAC-20-55618

Oracle proprietary source code. Based on the above, only Oracle System hardware and software maintenance meets all of the Government’s requirements.

Additional market research was conducted in July 2019 by utilizing the NASA SEWP V Provider Lookup Tool to determine whether the brand name Sun-Oracle hardware and software maintenance is available from NASA SEWP V GWAC holders. This research revealed there are several authorized resellers of the brand name Oracle hardware and software maintenance that hold current GWACs. Of the identified authorized resellers, two are verified Service Disabled Veteran Owned Small Businesses. Therefore, limited competition among these vendors is anticipated.

9. Other Facts: None