TAB_-_06_COMPLETED_CO_SIGNATURE_REVISED_SF_1013_-_Sole_Source_acquisitions.pdf

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

Treasury Standard Form – 1013 (Rev 10/17)

Prescribed by Treasury: DTAP 1013.501

Tracking No.

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the Internal Revenue Service IT Office of Acquisition Strategy and the contracting activity is the Internal Revenue Service Midstates Procurement Office 2.a Nature and/or description of the action being approved:

The purpose of this sole source justification is to obtain approval to award a firm fixed price contract with Audimation Services, Inc. for the purchase of the brand name items described in section 3.a below. The period of performance will be for 02/12/2018 – 02/11/2019. See to Shopping Cart #500001950 for a copy of the performance work statement.

2.b Name and business size of the vendor. Audimation Services, Inc. SMALL BUSINESS 2.c Requisition No. Shopping Cart #500001950 3.a A description of the supplies or services required to meet the agency’s needs:

IDEA Software Annual License Renewal 3.b IGCE/Estimated dollar value:

IGCE for the annual renewal is $76,110.00

4. Identification of the authority being used (Check the box that applies):

☒ 41 U.S.C. 1901 – Simplified acquisition procedures.

☐ 41 U.S.C. 1903 – Special emergency procurement authority.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

Audimation Services Inc. is the sole source for sales and distribution of IDEA – Data Analysis Software, IDEA Dart Import utility, its related products, upgrades, support and maintenance in the United States.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies:

As previously stated, Audimation Services Inc. is the sole source for sales and distribution of IDEA – Data Analysis Software, IDEA Dart Import utility, its related products, upgrades, support and maintenance in the United States at this time. The Government will continue to seek competition for these services when this changes.

In accordance with FAR subpart 5.2, a notice of intent to award a sole source contract under the authority of FAR subpart 13.5 will be posted on the Government Point of Entry. This notice will afford an opportunity for all responsible sources to submit a capability statement which shall be considered by the Government.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable: The CO has determined that the anticipated cost to the Government will be fair and reasonable when compared to last year’s price of $76,110.00.

The same price has been offered by Audimation Services Inc. for the POP of this acquisition.

http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1901 http://www.gpo.gov/fdsys/granule/USCODE-2011-title41/USCODE-2011-title41-subtitleI-divsnB-chap19-sec1903

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8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

No market survey was conducted; there is no other source for this software in the United States. This vendor is the sole provider of this software licensed by CaseWare IDEA Inc to sell and distribute this software in the United States.

The IDEA software is mission critical and is used by the CFO staffs who work on the ongoing GAO financial statement audit. It is used to format data for submission to GAO.

This software is mandated by GAO and is critical to the continued success of the IRS financial statement audit. No other software will meet the requirements for completing the GAO financial statement audit

9. Any other facts supporting this justification:

N/A

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

No sources expressed interest because this software is proprietary to IDEA Inc. No other sources are authorized to sell or distribute this software.

11. A statement of the actions, if any, the Requiring Activity or Contracting Activity may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

The IDEA software is mission critical and is used by the CFO staffs who work on the ongoing GAO financial statement audit. It is used to format data for submission to GAO.

This software is mandated by GAO and is critical to the continued success of the IRS financial statement audit. No other software will meet the requirements for completing the GAO financial statement audit.

Once this is no longer a GAO requirement, other software packages will be considered.

12. Certifications and Approvals:

12.a Program Office certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Shane Storley Date: December 13, 2017

Signature:

12.b Small Business Specialist determination (Contracting Activity). I have reviewed this justification, including any attached documentation and ☐ concur / ☐ do not concur.

Name: Date:

Signature:

12.c Contracting Officer certification and approval. I hereby determine the circumstances of

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Typewritten Text this acquisition support the justification to acquire the item(s) on a sole source (including brand name) basis under the authority of FAR subpart 13.5. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve this justification.

Name: YVETTE TERRELL Date: 2-7-18

Signature:

13. Additional Approvals (if applicable):

13.a Advocate for Competition (if >$700,000 and <=$13.5 million) (Contracting Activity).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the Advocate for competition, I hereby approve this justification.

Name: Date:

Signature:

13.b Bureau Chief Information Officer (for IT only) (if >$5 million and <=$68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.c Head of the Procuring Activity or Authorized Designee (if >$13.5 million and <=$68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT only) (if >$68 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.e Senior Procurement Executive (if >$68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date:

Signature:

INSTRUCTIONS FOR SF-1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART

13.5 SOLE SOURCE (INCLUDING BRAND NAME) ACQUISITIONS

I. General instructions. Each Justification & Approval for FAR subpart 13.5 Sole Source (including brand name) acquisitions shall contain sufficient information and data to justify the proposed action, thereby be able to stand on its own. This type of detail is critical in order to enable a reviewer and/or approver to clearly understand the requirement and the rationale for supporting the justification. Simply copying and pasting information from a vendor’s website or marketing literature fails to support the use of such justification. Market research performed by the Requiring Activity and Contracting Activity should be used to support this document.

Given the majority of the information and data necessary to support this type of action resides with the Requiring Activity, they are the primary party responsible for completing this form.

However, the Requiring Activity shall seek assistance and input from the Contracting Activity/Contracting Officer (preferably in advance of submission of the procurement request).

It is also recommended the justification is not signed by the Requiring Activity until such time the Contracting Officer has had an opportunity to review, make necessary revisions and to include other necessary information or data to support the justification.

For Brand-name acquisitions keep in mind the justification is to cover only the portion of the acquisition which is brand-name and that that the document approval requirements only apply to that portion. However, it does not mean that details regarding the overarching requirement (i.e.

in the instance where the brand name is only a portion of an overall requirement) aren’t to be included in the document.

In the event of conflict between this form and applicable regulatory coverage (i.e. FAR and DTAR), the more stringent requirement shall be followed.

If the requirement involves classified or sensitive information ensure the proper steps are taken to protect the information (e.g. labeling and marking).

Prior to distribution for signature: (i) retain only those signature blocks applicable to the dollar value of the items covered by this justification, (ii) delete all green text (which are example), and

(iii) consider converting the document to .pdf to support electronic signature and ease of retention.

The fields within this form are fluid and will change based upon input, therefore individuals completing this form need to be mindful of formatting prior to converting the document to pdf and submitting it for signature.

II. Field specific instructions.

1. Identification of the requiring activity and the contracting activity. Provide the name of the requiring activity (e.g. BFS’ –IT Office). Provide the name of the contracting agency and the name of the actual contracting activity (e.g. BFS’s – Contracting Office for IT).

2. Nature and/or description of the action being approved. Describe the type of action being issued (e.g., new award, contract modification, or brand name). Identify the contemplated contract type (e.g. firm fixed price).

If an existing contract is being modified, thereby requiring a justification or a modification to the initial justification then ensure to include the contract no., task/delivery order number (if applicable), proposed contract modification number, nature of why the modification is required) and, if applicable, a copy of the initial justification. If known, period of performance. When processing a class justification, include the effective period the justification will be in effect.

If brand name, state this justification & approval is covering only the portion of the acquisition which is brand-name.

Section 2.b Name and business size of vendor. If applicable, insert the name of proposed vendor and the vendor’s business size (large or small business). Vendor information can be obtained from the SAM database. If not applicable, enter “Not applicable”.

Section 2.c Requisition Number. If known, include the requisition number. If not applicable, enter “Not applicable”.

3.a A description of the supplies or services required to meet the agency’s needs. Provide a clear, concise description of the supplies or services to be procured. Include a statement regarding the delivery schedule and/or the period of performance, inclusive of all option periods and award terms. State the schedule and associated schedule category(ies) the supplies or services are being procured against. For supplies, include details such quantity and a brief description of the items (e.g. twelve (12) laptops).

For brand name, provide the name of the brand, model number and other specific details associated with the brand name item(s) to be procured; name(s) of known sources that can provide the brand name.

For modification describe the purpose of modification, including details such as proposed extension to the period of performance as well as the purpose of and type of the contract.

3.b IGCE/Estimated dollar value. Provide the IGCE/estimated dollar value of the anticipated award, inclusive of all options, award terms and any other monetary incentives.

For brand name provide the IGCE/estimated dollar value of the portion of the proposed acquisition, inclusive of all options, award terms and other monetary incentives, that is for the brand name item and the full IGCE/estimated dollar value of the acquisition.

For modifications provide the IGCE/estimated dollar value of the modification and the current total dollar value of the contract.

4. Identification of the exception to fair opportunity being used. Check the applicable exception being used as the authority for the justification.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited. Provide a clear and concise description of the rationale for the use of the authority being cited above, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited. The following provides additional insight for purposes of completing this field:

• If using the proposed contractor’s unique qualifications then describe what makes the proposed contractor the only source. For example, (i) does the proposed contractor have facilities or equipment that are specialized or unique that are vital to the effort?; (ii) Is the proposed contractor the only one that can meet critical schedule(s) required by the Government?;

(iii) Does the proposed contractor have prior experience or expertise of a highly specialized nature that is vital to the effort?; (iv) Does the contractor have an exclusive licensing agreement?. Fully explain why no other supply or service provided by another vendor will satisfy the Government’s need. Also, describe any type of market survey and analysis efforts conducted to support this conclusion. Do not simply take information from a vendor’s website or other such marketing information to use as the basis as to why they are unique

• If using urgency describe the nature or circumstances surrounding the urgency of the agency’s need; how any follow-on work will be competed or how such urgency will be mitigated in the future; describe the extent and impact of any unacceptable delay (e.g. quantitative data, dollars that would be lost, the impact to schedule) if award is not made in the timeframe needed;

provide supporting rationale and a concise description of the extent, nature, and impact of the potential harm to the Government.

• If using brand name state the brand name product’s unique attributes (be specific and use technical terms, if necessary), provide an explanation of the proposed brand name item(s) unique qualifications and why no other similar product will suffice, including why other companies’ similar products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs; why (if applicable) the nature of the acquisition requires the use of the brand name product. Provide an estimate of the cost and/or delay the Government would incur if other than the brand name item is used for this requirement. Do not simply take information from a vendor’s website or other such marketing information to use as the basis as to why they are unique. Also, describe any type of market survey and analysis efforts conducted to support this conclusion.

• If the logical follow-on exception is used, the rationale shall describe why the relationship between the initial award and the follow-on is logical (e.g., in terms of scope, period of performance, or value).

• If authorized or required by statute is the supporting rationale behind the nature of this acquisition, cite the statute along with the specific language from the statute and how it applies to this acquisition.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies. Provide a clear and concise description of the efforts taken to solicit from as many potential sources as is practicable (include the names of the vendors that responded to the notice or that were contacted or expressed interest).

Keep in mind, if a notice was or will be published, include the date that it was published or anticipated to be published along with any other pertinent information regarding the notice.

And if a notice was not published as required by FAR subpart 5.2, state the FAR exception that was used and how it applies to this acquisition.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. Provide a clear and complete description of the contracting officer’s determination that the anticipated cost or pricing the Government will be fair and reasonable. This might include things, such as consideration of commercial pricelists or prior acquisition history.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted. Issuance of a synopsis as required in FAR part 5 does not satisfy the requirement of conducting market research. Market research requires collecting and analyzing product/service information on the technical capabilities and prices/costs within the marketplace to satisfy agency needs. Altogether, describe the market research performed along with the results. Note: If a market research summary report (e.g. SF 1010) was completed, provide a summary of the findings/determination along with a citation to that document so that a reviewer can refer to that document for greater detail.

If market research was not conducted, provide a complete discussion of the rationale and, if applicable, the circumstances supporting why market research was not conducted.

9. Any other facts supporting this justification. In addition, to the examples provided in the form itself and listed in FAR 6.303-2 other examples are:

• If acquisition of a patented or copyrighted product is based on the representation of the intellectual property holder that has not been licensed for resale.

10. A listing of sources, if any, that expressed a written interest in the acquisition.

Provide a listing of sources, if any that expressed a written interest in the acquisition (inclusive of the circumstances) or if no sources expressed interest provide a statement describing the reason. Do not use “Not Applicable”.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. Describe actions taken, or that may be taken, to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required (e.g. overcoming challenges to restrictive data markings, data rights, preparation of a performance based work statement). If planning or in the midst of a solicitation (i.e.

competitive or sole source), include information regarding this action (e.g. estimated date when the solicitation will be issued or anticipated date of award). If a sole source requirement is being contemplated, state the reasons why it will be sole source.

12. and 13. Certifications and Approvals. Each review must be preceded by lower level approval(s), e.g., over $68 million all approvals are required. IN NO CASE WILL AN

INDIVIDUAL SIGN MORE THAN ONE APPROVAL LEVEL.

For justifications that include the purchase of Information Technology (IT), the IT signature reflects only the portion of the acquisition that is IT. This can be important when dealing with an acquisition where IT does not represent the predominate value of the acquisition (i.e. therefore it is not assigned an IT PSC code (see the Treasury IT Acquisition Tracker).

https://thegreen.treas.gov/do/ope/ITAcqTracker/Pages/Treasury-IT-Acquisition-Tracker---Home.aspx

A supplemental justification is required if any of the following revisions occur between approval of the original justification and actual award of the contract or modification of the contract: an increase in dollar value beyond the authority approved in the justification; a change in the competitive strategy that further reduces competition; or any type of change in the requirement that affects the basis of the justification.

Additional. Tracking No.: This field is completed as prescribed by Bureau procedures.