P03 - JA - BPA Server Relocation - Peraton -Redacted.pdf

Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C77625AP0125

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C77625AP0125

(1) Contracting Activity: Department of Veterans Affairs, Veterans Health Administration, Program Contracting Procurement Central, on behalf of Veterans Health Administration, Healthcare Environment and Facilities Programs, Special Engineering Projects (VHA HEFP SEP). A 2237 will not be provided to establish a BPA, but each order will have a 2237.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). This action is to establish the single award Blanket Purchase Agreement for Data Center Peraton Infrastructure as a Managed System (IaaMS) rack and equipment relocations and requires the contractor to provide onsite technical support to relocate contractor owned equipment within VA Medical Center Data Centers.

Order against: FSS Contract Number: _GS-35F-694GA______

Name of Proposed Contractor:

Peraton Inc.

Street Address: 12975 Worldgate Dr. Ste 7322

City, State, Zip: Herndon, VA 20170-6008

Phone: 301-256-0388

(3) Description of Supplies or Services:

The estimated value of the proposed action is

IaaMS is a solution for storage and computer infrastructure that includes hardware, software, and solution services that are currently provided by Peraton at VA facilities across the United States and its territories under Contract 36C10B21C0014. In accordance with the first paragraph in Section 3.0 of the IaaMS contract software which comprises the IaaMS solution as the Contractor retains ownership to the IaaMS sol However, this contract does not cover server rack moves and reconnection of the equipment.

VHAPG Part 808.405-6 Limiting Sources Page 2 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C77625AP0125

VHA HEFP SEP requires the services of Peraton for the relocation of the contractor-owned, contractor-operated equipment contained within contractor-provided server cabinets and deployed throughout VHA under the IaaMS contract. Downtime for relocation will be scheduled after normal working hours due to the operational nature of the equipment and supported facilities. The required services are to move Data Center IaaMS cabinets and equipment to new locations in support of current construction activities.

(4) Identify the Authority and Supporting Rationale:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; Peraton was the awardee in 2021 to provide VA with IaaMS for storage and computing infrastructure facilities across the enterprise. They are responsible for the on-premises infrastructure required to support the latest cloud based clinical imaging initiative.

the responsibility for this critical node remains within their agreement. It should be noted that Peraton both owns the equipment being moved and has the service agreement to maintain it.

Having Peraton as the sole source service provider is critical to prevent escalating technical, cost, and scheduling risks that are inevitable if a third-party service provider is utilized.

/ operator of the IaaMS equipment is both unique to the product line as well as site specific. Peraton engineers have the certification, experience, and contractual support structure to mitigate any issues that could increase technical risk. Introducing a third party would impose an increase on technical risk as Peraton is the current owner / operator. A third-party could not match

, experienced professionals with hands-on knowledge of the equipment or site-specific details.

Technical issues that may arise from disconnection and reconnection of IaaMS equipment, to include but are not limited to hardware failure, software conflicts, and network conflicts would only be able to be resolved by existing assigned Peraton provision of service under the contract and create liability for the VA and / or the

VHAPG Part 808.405-6 Limiting Sources Page 3 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C77625AP0125 contractor engaged to perform the move. Should damage occur, Peraton would need to be engaged as part of the repair / reinstallation process, and there is no provision currently under contract to compensate Peraton for these services or for the replacement equipment itself.

equipment, whether that damage was caused by Peraton or another party. In the event Peraton damaged the equipment during a move, Peraton would be required to cover the costs of making repairs and/or replacing equipment. As the IaaMS contract is a managed services contract, damage to equipment would likely also cause issues with service interruptions and service level attainment; any damage to equipment caused by a third party would also create liability in this regard. In researching if a third-party company could perform the required relocation services Peraton indicated that they do have a Service-Disabled Veteran Owned Small Business (SDVOSB) subcontractor on the IaaMS program, but they are not engaged in data center move services. Due to the using their own existing staff.

It is likely that the use of a company other than Peraton for relocation of IaaMS equipment could violate current contractual obligations with Peraton and introduce further issues creating additional cost and prolonging scheduling requirements.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

The prices on the GSA schedule were determined fair and reasonable by the GSA contracting officer. Additional discounts will be sought as well.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

As described above, and in accordance with FAR 8.405-6 Limiting sources, Peraton has been determined to be the only firm that can provide the services needed under this proposed single source BPA.

A GSA Advantage search was conducted on November 21, 2024, for companies that could perform a similar service for Peraton. The search terms for services were both

. No companies were listed that could provide similar service.

A VetCert search for Peraton Inc. was performed on November 12, 2024, showing no results in concurrence with their large business classification. A VetCert search was also performed for NAICS code 541519. The search yielded 4,752 results, Peraton was not listed in the search.

VHAPG Part 808.405-6 Limiting Sources Page 4 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C77625AP0125

A Contractor Performance Assessment Reporting System (CPARS) was examined and Peraton was assessed as having acceptable past performance with 100% of their applicable ratings being satisfactory or higher. The CPARS report is attached as

P02 -

A PCAC email inquiry was answered by Peraton giving three significant statements to consider. First, that a subcontractor on the IaaMS program is utilized but that subcontractor is not utilized in data center move services and that due to forecast, frequency, and size of services Peraton intends to use their existing staff for future services. Second, additional cost, liability and service interruptions could be introduced to Peraton if damage to the IaaMS equipment were to happen with a third party as the existing maintenance / warranties do not cover accidental damage to the equipment.

Third, risk of additional cost, liability and service could be introduced to the government if a third party were to be used as the equipment to be moved is owned by the Peraton and a managed service to the VA, any damage to the equipment would interrupt party contractor. Additionally, Peraton would need to be engaged as part of the repair/reinstallation process that is not covered under current contract.

(7) Any Other Facts Supporting the Justification: N/A

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

If subsequent contracts are needed, market research will be conducted to see if small businesses are able to perform these services.

(9) Requirements Certification:

I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to

VHAPG Part 808.405-6 Limiting Sources Page 5 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C77625AP0125 fewer than the number required by FAR Subpart 8.4. I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

c. Director of Contracting (Required for orders over $750,000):

d. VHA RPO HCA Review and Approval (over $750,000 to $75 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

ATTACHMENTS

Attachment 1 - P03 - Peraton Email Attachment 2 - P03 - Peraton CPARS Reports