6 SF 1013 - JA for FAR 13.5 Sole Source acquisitions v5-18.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 5/18)

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 (IRS) Criminal Investigation (CI) and the contracting activity is IRS AWSS Office of Procurement.

2.a Nature and/or description of the action being approved:

The purpose of this Justification for an Exception to Fair Opportunity is to obtain approval to award a Firm Fixed Price contract to Paraben Corporation for the purchase of the brand name items described in section 3.a below. Refer to the requisition for a copy of the statement of work.

The need date for these items is within 60 days of the awarded contract. This is a base and three (3) option years with a POP estimated as follows:

Base year: 12/31/2020 – 12/30/2021 Option Year 1: 12/31/2021 – 12/30/2022 Option Year 2: 12/31/2022 – 12/30/2023 Option Year 3: 12/31/2023 – 12/30/2024

2.b Name of the vendor. Paraben Corporation 2.c Requisition No.: 5000112869 2.d Bridge contract: ☐ Yes ☒ No 2.e Brand name: ☒ Yes ☐ No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition is to acquire the following Paraben Corp. brand name products:

Manufacturer Part # Description Qty

Paraben Corp

E3:U UPG

E3 Universal Upgrade - Includes: Updating 12 NEMX, 23 5 Internet Chat and 6 EMX to the full E3 Universal

N/A FREE Online Training and certifications for DSMO - Device Seizure Mobile 23 Operator and P2C0 - P2 Commander Operator

Paraben Corp E3US E3 Universal Yearly SMS - SMS for 2021-2022 23 E3US E3 Universal Yearly SMS - SMS for 2022-2023 23 E3US E3 Universal Yearly SMS - SMS for 2023-2024 23

N/A N/A Shipping 1

3.b Includes IT: ☒ Yes ☐ No NAICS: 334118 and PSC: 7030 3.c IGCE/Estimated dollar value:

The IGCE is $114,891.00, includes Base, OY1, OY2, & OY3 – 12-month term. See IGCE for additional details.

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:

FAR 16.505(a)(4) – The requirement is for an item peculiar to one manufacturer.

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

Digital Forensics examiners are responsible for the acquisition, processing, and analysis of data from various digital devices during the execution of enforcement actions in the field.

Currently, Digital Forensics has the following software licenses from Paraben Corp. (12) Network Email Examiner SMS licenses, (6) Email Examiner SMS Licenses and (5) Chat Examiner SMS licenses. The E3 Universal Forensic Platform upgrade is crucial for the examiners to remain relevant with ever changing digital data interfaces. The E3 Platform processes all types of digital evidence quickly with an easy interface, efficient engines, and effective workflow, while avoiding the need to continuously change tools and platforms when extracting data from multiple sources that include older or out-dates systems as well as most modern systems.

This platform will allow the examiners to properly perform the acquisition, processing, and analysis of digital evidence, seized in the field, ensuring that the analysis is forensically sound and that the acquired data may be used for furthering investigations as well as being used as evidence in criminal court proceedings.

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:

FAR 16.505(a)(4) – The requirement is for an item peculiar to one manufacturer.

The proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of 5.207 with respect to the current proposed contract action.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on a comparison of the proposed prices received in response to the solicitation; a comparison of the proposed prices with the Independent Government Cost Estimate (IGCE).

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:

In October 2020, Analyst Greg Masi obtained a market research quote from manufacturer, Paraben Corporation. According to the Paraben Corp. representative, the E3 Universal Software is not available within the United States from any authorized resellers of Paraben Corp. products and must be purchased directly from the manufacturer. The market research quote is needed to site the proper part number and obtain cost estimates for budget planning purposes.

In October 2020, requisition creator Erin Vail conducted research with the below results.

• Acq. Gateway-Prices Paid Portal – A search using part number and a search using keywords “Paraben, Paraben Corp, Paraben Corporation, E3 & E3 Universal” yielded no results.

• Government-wide Database – A search using part number and a search using keywords “Paraben, Paraben Corp, Paraben Corporation, E3 & E3 Universal” yielded no results.

• FPDS-NG – A search using part number yielded no results. A search using keywords “Paraben, Paraben Corp, Paraben Corporation, E3 & E3 Universal” yielded results for three (3) IRS-CI federal contracts acquiring software licenses and support products directly from the vendor/manufacturer, Paraben Corp. See attached screen-prints.

https://www.acquisition.gov/far/5.207#FAR_5_207

• FAPIIS – No negative responses noted

• SBA Dynamic – Search results recorded in Part III.J below

• NASA SEWP – A search using part number yielded no results. A search using keywords “Paraben Corp” yielded a list of authorized resellers as reflected in Part III.J below and in the attached screen-print.

• GSA Advantage – A search using part number and keywords “Paraben, Paraben Corp, Paraben Corporation, E3 & E3 Universal” yielded no results.

• GSA eLibrary Contractor Listing – A search of the e-Library using keywords “Paraben, Paraben Corp, Paraben Corporation” to locate authorized resellers are listed in Part III.J below and in the attached screen-print.

9.a Any other facts supporting this justification:

Paraben Corporation is the only one who can provide pricing on upgrading software from one platform level to another. They do not allow resellers to quote upgrade pricing to change levels of the tool.

Resellers are only allowed to sell new products and subscription renewals at list prices with no additional multi-license discounts.

We have no other choice other than to purchase the software upgrades from Paraben Corporation.

9.b Attachments: ☒ Yes ☐ No IGCE, SOW, Market Research Summary Report

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

N/A

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:

For future requirements the IRS will continue to conduct market research of the current environment to ensure that competition remains available. Every opportunity will be taken to ensure that fair opportunity is achieved. Future brand name products will be competed either through GSA or NASA SEWP or through open market procedures to avoid limitations of sources.

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: Date:

Signature:

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

Ariel Alexander 12/09/2020

Name: Date:

Signature:

13. Additional Reviews and Approvals (As applicable):

13.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $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. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

13.b Advocate for Competition (if over $700,000, but not exceeding $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.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $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 requirements that are over $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 over $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:

DEPARTMENT OF THE TREASURY

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 of vendor. If applicable, insert the name of proposed vendor. If not applicable, enter “Not applicable”.

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

Section 2.d Bridge contract. Check the applicable box. See DTAP 1017.70 for a definition of bridge contract and other requirements.

Section 2.e Brand name. Check the applicable box.

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 Includes IT. Check the applicable box. If, yes is selected then include the NAICS and PSC.

3.c 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.

See DTAP part 1008, 1010 and 1019 for Treasury Mandatory Sources and small business requirements.

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.a 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.

9.b Attachments. Check the applicable box. Examples of attachments might be a copy of the IGCE, certification from the vendor stating they are other only authorized reseller of the particular item or are the patent holder of the item.

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

INDIVIDUAL SIGN MORE THAN ONE APPROVAL LEVEL.

For justifications that include the purchase of Information Technology (IT) the following apply:

• 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 a separate IT PSC code (see the Treasury IT Acquisition Tracker).

• The Bureau Chief Information Officer (CIO) may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to Associate Bureau CIO(s).

Refer to the Bureau supplement to the DTAP to determine if the Bureau CIO has indeed delegated their authority.

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.

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