Tab_6A_-_JA_above_SAT_122018.pdf

U.S. Customs and Border Protection Sole Source Justification (SSJ)

Test Program for Certain Commercial items for procurements exceeding the Simplified Acquisition Threshold (> $150,000) pursuant to FAR Subpart 13.5, including Brand Name

Version 1.0 September 2016

SSJ No.: XXX-XX

Date: 12/06/2018 PR Number: 20110416

Pursuant to the requirements under the authority of the test program for commercial items at 41 U.S.C. 1901 as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2.

1. Agency and Contracting Activity.

U. S. Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Procurement Directorate (PD), Administration and Facilities Contracting Division (AFCD) intends to award a sole source contract to SAP National Security Services, Inc. for SAP software upgrades and maintenance services.

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

CBP intends to award a sole source contract to SAP National Security Services, Inc. , 3809 W Chester Pike Bldg 1, Newton Square, PA, 19073-2331, using Commercial Test procedures without seeking competition for software upgrade and maintenance services for proprietary software. This action is pursuant to FAR 13.501. SAP is the only company that can provide the type of upgrade and maintenance service required to support the agency’s needs.

3. Description of Supplies/Services.

The requirement under purchase requisition 20110416 provides for upgrades, maintenance, and remote ongoing support for CBP purchased software including SAP Procurement for Public Section (PPS) and SAP bundled Budget Solutions (Business Objects – BOBJ, Public Budget Formulation – PBF, Profitability and Cost Management – PCM, and the Business Warehouse Accelerator – BWA). The total estimated cost of this requirement for a base period of 01/01/2019 to 12/31/2019 with four option periods ending 12/31/2023 is for $5,846,135.90.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

This action is being taken in accordance with procedures identified in FAR Subpart 13.501 under the authority of the Test Program for Commercial Items, 41 U.S.C. 1901.

5. Demonstration That the Nature of the Acquisition Requires Use of the Authority Cited.

This acquisition provides for ongoing support of previously purchased software maintenance for licenses being utilized by CBP. SAP is CBP’s financial system of record and is the only solution planned for use at CBP for the foreseeable future. The use of SAP is essential to CBP’s requirements and precludes consideration of any other product provided by any other software vendor. CBP has invested millions of dollars in the SAP software/maintenance for CBP’s financial system. At this time, there are no plans to change to any other software until a long term solution can be planned with CBP and DHS. This requirement provides for ongoing support for previously purchased software, the maintenance of which, patches, upgrades, etc., can only be provided by the original software manufacturer (SAP). The existing software is proprietary and SAP is the only service provider with the technical ability and knowledge to make modifications to meet the requirements of CBP.

In addition, because requirement utilizes legacy software, it is bundled by SAP in such a way that no other company or authorized reseller/partner has commercial pricing for it. Software component names may have changed over time and they are not recognizable for other companies to provide pricing. SAP has provided a letter certifying that is the sole source who can provide for the maintenance of the required software.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

As required by FAR Subpart 5.301, 6.305(a), a notice will be placed on www.fbo.gov specifying that CBP intends to award a sole source contract to SAP Public Services, Inc. A copy of the Justification will be posted.

7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The contracting officer will use cost and price information and historical pricing to negotiate a fair and reasonable price.

8. Description of Market Research.

The maintenance services are only performed by SAP National Security Services, Inc. SAP National Security Services, Inc. does partner with a number of companies to sell maintenance for software, however, the software bundle that is utilized by CBP is not included in any of SAP’s partner portfolios. Previous CBP competition has yielded zero quotes. SAP provided CBP with a letter date February 23, 2014 notifying procurement that SAP Public Services Inc. is the only party authorized to provide support for CBP’s software licenses. A long term solution to replace SAP is only in preliminary discussion phases between and within CBP and DHS. Due to the heightened security requirements requested by DHS and by CBP in the national security field, the previous provided, SAP Public Services, directed CBP to utilize

SAP National Security Services, Inc whose customers include the Department of Defense and Homeland Security.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

The requirement is for the continuation of software maintenance agreements to ensure ongoing support is provided to enable CBP to efficiently and effectively maintain and operate its Enterprise Resource Planning (ERP) system. SAP provides for the transactional processing, data capture and manipulation, and reporting of all financial and associated activity related to the financial, procurement, and property functions at CBP. SAP is the only vendor capable of modifying the software originally purchased by CBP and providing the necessary maintenance and support. Any disruption of this support would severely impact CBP’s ability to accomplish its mission by interfering with the functionality of SAP software previously purchased by the agency.

10. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the

Acquisition.

No other sources have expressed an interest in the procurement. Previous CBP competition has yielded zero quotes. SAP provided CBP with a letter date February 23, 2014 notifying procurement that SAP Public Services Inc. is the only party authorized to provide support for CBP’s software licenses.

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 Supplies or Services Required.

CBP has no intention of changing the financial software system at this time. The status of sole source procurement for this effort will not be changing in the foreseeable future. A long term solution to replace SAP is only in preliminary discussion phases between and within CBP and DHS.

► J&A CERTIFICATIONS

12. REQUISITION/PROGRAM OFFICE CERTIFICATION

I certify that the foregoing justification is accurate, meets the Government’s minimum needs and contains complete information necessary to support the action described in this document and the authority cited.

Office: Office of Enterprise Services Name: (Print): Eric S. Davis

Title: Investment Management Analyst

Signature: _______________________________ Date: _____________

13. CONTRACTING OFFICER CERTIFICATION/APPROVAL*

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Name (Print): Ronie M. Namata Contracting Officer

Signature: ________________________________ Date: _____________

* In accordance with FAR 6.304(a)(1), CO certification of a J&A for a requirement not exceeding $700,000 shall constitute approval of the J&A.

14. SMALL BUSINESS SPECIALIST CERTIFICATION (Per HSAM 3019.501 -

Above the SAT)

I certify that I have conducted a search for small businesses and other socio-economic concerns capable of participating in this acquisition.

If any were found, a list is attached.

Name (Print):

CBP Small Business Specialist

Signature: _____________________________________ Date: _____________

► J&A APPROVALS

15. COMPETITION ADVOCATE (Per FAR 6.304(a)(2) - Above $700,000)

Approved Disapproved

Name (Print): Richard Gunderson Competition Advocate

Signature: ___________________________ Date: _____________