JA DVM_ JB-S.pdf

VA-24-00070442

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, NJ 07724

2. Description of Action:

The proposed action is for the issuance of a firm-fixed price (FFP) delivery order under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise- Wide Procurement (SEWP) V Government-Wide Acquisition Contract (GWAC) for IBM Data Virtualization Manager (DVM) for Z/OS software licenses, installation and maintenance support.

3. Description of the Supplies or Services:

The Department of Veterans Affairs (VA), Office of Management, Debt Management Center requires IBM DVM perpetual software licenses that consists of 106 units, this will allow DMC to simplify the bi-directional update process of our Centralized Accounts Receivable System (CARS) application which runs on the VA’s existing IBM Z/OS mainframe in Austin TX. This technology will allow existing external DMC systems to update the CARS application’s master debt record directly without performing multiple extract, transform and load processes. With DVM, DMC’s existing modern Application Programming Interface (API) platform will be used as a consolidated entry point for all interfaces to the CARS system eliminating significant amounts of antiquated custom Common Business Oriented Language (COBOL) software that perform the master debt record update processes today. DVM software will allow DMC to make the existing master debt record available to the DMC API platform as a standard Java Database Connectivity (JDBC) data source. This is the first step to reduce the existing COBOL software footprint to encompass only debt aging, Treasury debt referral, and correspondence generation. Once that consolidation has occurred DMC will re-platform those remaining functions to a non-mainframe environment. Additionally, this acquisition shall include four years of reoccurring software maintenance to ensure the software purchased in the base year is supported and remains operational.

The period of performance shall be 12 months from date of award, with four 12-month option periods. The total estimated value of the proposed action is $775,668 inclusive of the option periods.

4. Statutory Authority:

Pursuant to Federal Acquisition Regulation (FAR) 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

IBM Data Virtualization Manager Software VA-24-00070442

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 Above:

Based on market research, as described in Section 8 of this justification, it was determined that limited competition is viable among authorized resellers of brand name IBM DVM for Z/OS software and support services.

DMC requires a solution that will allow existing DMC systems to update the existing CARS master debt record directly without performing multiple extract, transform and load processes via the established DMC Application Program Interface (API) infrastructures. In order to communicate with the existing DMC mainframe application from the API’s, a middleware product is required to be installed on the Z/OS mainframe to manage the access to the underlying mainframe records and ensure the interfaces are secure and seamless. Based on the governments research, IBM is currently the only vendor that provides this type of tool for the Z/OS mainframe due to the proprietary nature and compatibility requirements of the IBM Z/OS environment.

During the Government’s research it was discovered that IBM offers the only two proprietary mainframe middleware solutions that would allow DMC to simplify the bi-directional update process of our IBM COBOL code bases system. Of the two IBM software products, the IBM DVM Z/OS was the least complex and more economical of the software solutions IBM offers as a product to communicate with our IBM mainframe and the external DMC environment. IBM’s Z/OS Connect tool, although technically compatible and interoperable with the existing API environment after modifications, was far more expensive and complex than the DVM Z/OS tool solution. The alternative IBM solution would require extensive configuration changes and modifications to the DMC’s existing Cobol environment and would lock the DMC into spending extensive resources in terms of software licensing for the alternative tool, as well as, a significant investment in developer resources to rework the existing code base.

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. However, the undersigned VA technical representative determined that limited competition is available from the brand name IBM resellers. In accordance with FAR 16.505(a)(4)(iii)(A)(1), this justification will be provided with the solicitation to all appropriate NASA SEWP V GWAC holders. In accordance with FAR 5.301, 16.505(b)(2)(ii)(D), and 16.505(a)(4)(iii), notice of award of the resulting order will be synopsized on the SAM.gov Contract Opportunities website and this justification will be made publicly available within 14 days of award.

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 competed.

8. Market Research:

VA technical personnel conducted market research in August and October of 2023 and again in January of 2024 with both MuleSoft and IBM vendors to research potential technical solutions. Mulesoft was consulted with to ensure compatibility of any potential solution becaue our API environment, that will interact directly with the mainframe , is built on the Mulesoft Anypoint Platform. Specifically, the Government's technical experts met face to face and virtually with industry partners to research methods to make VSAM datafiles on the IBM mainframe available over a network connection to external applications without copying data to another location external to the mainframe. At this time VA determined software was required that could run natively on Z/OS that could make the mainframe VSAM datafiles available to an external application. DMC considered alternative data virtualization solutions such as Denodo and TIBCO Data Virtualization but these data virtualization solutions cannot run on our existing IBM Z/OS mainframe infrastructure located in Austin, TX.

It was determined that only IBM offers compatible solutions that could interact with the DMC’s Mainframe VSAM records. Of these tools both IBM’s DVM and IBM’s Z/OS Connect software were looked at. The end result of the market research confirmed that of the two solutions from IBM, only the DVM tool could meet the VA’s complexity, cost and interoperability requirements as outlined in Section 5 of this document.

As a result of the above, the Contract Specialist conducted additional market research in May 2024 by utilizing the NASA SEWP V GWAC Market Research Tool by searching for the provider listing for IBM. The search revealed that there are 18 contract holders that are resellers for the brand name IBM including 21 SDVOSBs, 4 VOSBs, 12 Historically Under-Utilized Business Zones, 10 Women-Owned Small Businesses, 49 Small Businesses, and 9 Large Businesses.Furthermore, NASA SEWP has a dynamic catalog where line items can be added based on customer requests provided the required item or service is within the scope of the NASA SEWP V contract suite;

therefore, additional competition may be achieved.

On June 6, 2024, the Contract Specialist emailed an IBM representative asking if the subject solicitation was issued as a SDVOSB Set-Aside, would a SDVOSB reseller be able to comply with the limitations on subcontracting and certify against VAAR 852.219- 75 VA Notice Of Limitations of Subcontracting – Certificate of Compliance for Services and Construction (JAN 2023) (DEVIATION). On June 6, 2024, the IBM representative stated that, “The VA may award an SDVOSB partner, but the RFQ must be full/open for IBM to provide pricing to resellers.” On June 12, 2024, the Contract specialist requested more information on why IBM would not provide pricing if this acquisition was set-aside. On June 12, 2024, the IBM representative stated that they cannot quote on set-asides under SEWP because of the value added reseller requirements. He stated that the Non-Manufacture Rule does not apply under SEWP, however, the requirement under NAICS 541519 (IT VAR) footnote 18 which states 15% to 50% of the value of any effort using 541519 must be for value added services; therefore IBM will not provide pricing if the solicitation is issued as a SDVOSB/VOSB set-aside.

Based on the above, there is not a reasonable expectation that competition exists amongst SDVOSB, VOSB or any other socio-economic group resellers if the RFQ was issued as a set-aside. Accordingly, the subject solicitation shall be issued unrestricted for consideration of quotes from NASA SEWP V Prime Contract holders listed under Groups B1- Historically Underutilized Business Zones Small Businesses, B2-SDVOSBs, C-Small Businesses and D-VARs on the NASA SEWP V GWAC under the NAICS code 541519.

9. Other Facts: NA

10. Technical/Requirements Certification

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Joseph Veit, ITD Chief Date

11. Fair and Reasonable Cost Determination

I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on anticipated limited competition. Additionally, NASA SEWP V has already determined the prices on contract to be fair and reasonable and more competitive pricing may result from competition. Finally, the successful quote may be compared with the Independent Government Cost Estimate.

Christopher Minetti Contracting Officer Date

12. Contracting Officer Certification

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Christopher Minetti Date Contracting Officer

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of IBM DVM software on an other than fair opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.

Jason Bullen Date

Advocate for Competition Technology Acquisition Center Office of Procurement, Acquisition, and Logistics Department of Veterans Affairs