LSJ_No._FY18-0315_-_Redacted.pdf

OPOAM 3008.405-6(a)(2) Limited-Sources Justification (LSJ)

For orders or BPAs exceeding the Simplified Acquisition Threshold

LSJ No: FY18-0315 Page 1 of 5

LSJ No.: FY18-0315

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C. 152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Office of Procurement Operations (OPO), Departmental Operations Acquisition Division (DOAD) proposes to award a Task Order pursuant to FAR 8.405-6, Limiting Sources. This Task Order will be established against a General Services Administration (GSA) Federal Supply Schedule (FSS) utilizing the procedures outlined in FAR Subpart 8.405.

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

DHS/OPO intends to limit the number of sources solicited pursuant to FAR Part 8.405-6(a) for the procurement of Executive Premier Maintenance for Enrollment/Issuance Workstations (EIWS), Identity Management System/Credential Management System (IDMS/CMS) and Hardware Security Module (HSM) servers in support of DHS Homeland Security Presidential Directive 12 (HSPD-12). The proposed contractor is:

XTec, Inc.

5775 Blue Lagoon Drive, Suite 280 Miami, FL 33126 GSA Contract No.: GS-35F-0615S

3. Description of Supplies/Services.

The requirement is to provide Executive Premier Maintenance for Government-owned EIWS and servers at a total estimated cost of . DHS requires its Government-owned EIWS and servers be placed under an executive premier maintenance agreement in order to ensure that downtime to the critical equipment is minimized. Executive Premier Maintenance supports DHS and Component requirements 24 hours a day, 7 days a week for software/hardware technical support and replacement of Government-owned EIWS and servers that includes computers, keyboards, mouse, monitors, document scanners, fingerprint scanners, fingerprint authenticators, SCM card readers, cameras, Personal Identification Number (PIN) pads, PIV card printers, backdrops, and battery backup sources.

Period of Performance Total Base Year Option Period 1 Option Period 2

Total

LSJ No: FY18-0315 Page 2 of 5

4. Authority and supporting rationale.

This acquisition is conducted under the authority of Multiple-Award Schedule Program, 41 U.S.C. 152(3), Competitive Procedures and 40 U.S.C. 501, Services for Executive Agencies in accordance with FAR 8.405-6, Limiting Sources. In accordance with FAR 8.405- 6(a)(1)(i)(B), the circumstances restricting competition for this acquisition is “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.”

In February 2014, DHS competitively awarded a single-award performance-based Indefinite Delivery/Indefinite Quantity (IDIQ) contract to XTec, Inc. for HSPD-12 Products and Services utilizing the procedures outlined in FAR Part 12 (contract number HSHQDC-14-D- 00002 consisting of a one (1) year base period followed by nine (9), one (1) year option years with an overall period of performance 02/28/2014-02/27/2024). Under this IDIQ, XTec, Inc.

provides related DHS HSPD-12/ IDMS services. However, since awarding the XTec HSPD- 12 IDIQ contract which included Premier Maintenance support DHS now has an enhanced requirement for Executive Premier Maintenance support for all equipment and systems. This enhanced maintenance requirement will potentially coincide with the full term of IDIQ, expiring 02/27/2024. While the IDIQ contract does allow for Premier Maintenance support, DHS Components’ needs have grown to require Executive Premier Maintenance currently covered under HSHQDC-16-F-00112; this is because the majority of the 300 plus DHS PIV Card Issuance facilities have a single issuance workstation supporting mission critical functions that require the use of the PIV card for logical and physical access. The Executive Premier Maintenance provides server system support 24 hours a day, 7 days a week to the Component and field locations with on-site repair or overnight swap replacement service and access to replacement equipment within 24-hours after confirmation of a DHS diagnosis of a hardware problem within a 25-mile radius of XTec offices and 48-hours for all others.

Premier Maintenance does not provide for server down support and only 48 hour on-site repair, which is insufficient for DHS Componenet HSPD-12 continuity of operations. It is essential to have the EIWS systems and servers operable with as little down time as possible.

This support will reduce the critical EIWS and server downtime and allow the Government to utilize replacement systems within that 24 to 48 hour timeframe while the inoperable equipment is returned for repairs opposed to waiting for the repaired equipment to be returned for operational use. The Executive Premier Maintenance also allows for phone support in addition to the web-based and email support, whereas the Standard Premier Maintenance does not. It is essential to be able to place service calls via phone support in the event of network outages or computer problems.

The IDMS is the most critical enterprise service for the HSPD-12 program. All EIWS, which encode and print HSPD-12 PIV Cards, and servers supporting the system must connect to the IDMS for the purposes of PIV card enrollment and card issuance. The EIWS and servers provide services to 245,000 DHS employees and contractors. The operational impacts of not awarding a task order will compromise the ability of the program office to

LSJ No: FY18-0315 Page 3 of 5 maintain the EIWS and servers in the required 24/7 environment thus impacting the physical security posture and access to network system (logical access) nationwide. Only Executive Premier Maintenance provides the required server system support 24 hours a day, 7 days a week. Currently, DHS mission areas to include, but not limited to, airports, borders, ports, disaster centers and, in some cases, remote areas are dependent on a single EIWS to issue the DHS PIV Card.

Should the EIWS and servers not be available due to software and/or hardware failure, DHS security badging services would be hampered should there be a gap in services at the DHS mission area until repairs and/or replacement equipment are provided. Such a cessation in services would impact the immediate mission area and significantly hamper the ability of the DHS workforce to continue services in support of the mission. DHS mission areas will be immediately challenged with providing DHS PIV Cards to its employees and contractors that are using the card to gain access to DHS facilities thus compromising the physical access posture or preventing the logical access login to systems/applications (i.e., WebTA, IDMS, email, etc.).

Uninterrupted card issuance services are critical to DHS’s mission. This task order is required to ensure there is not a gap in the required EIWS services. As the current owner of the DHS IDMS and provider of the EIWS and servers, XTec is uniquely positioned to effectively provide the required maintenance support for the proprietary software, hardware, and replacement(s) of EIWS and server equipment within 24-hours after confirmation of a DHS diagnosis of a hardware problem within a 25-mile radius of XTec offices and 48-hours for all others.

DHS currently owns 548 EIWS units that utilize the ASA 2000 computer/processing unit (“black box”) and 40 servers (34 IDMS/CMS servers and 6 HSM servers) which utilize XTec proprietary operating systems. All of these units will need both software and hardware maintenance. While other vendors may be able to provide the hardware support, i.e., keyboards, mouse, etc, they are not able to provide the software support as the operating system utilized in all of these units are proprietary to XTec. Since maintaining these units will require both hardware and software fixes, it is imperative for one vendor to be able to provide both the hardware and software to alleviate any unnecessary down time. To establish alternative maintenance service agreements with multiple vendors could create an administrative burden across the Department which effectively negates the services afforded therein.

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

This order will be placed in accordance with FAR 8.404 “Use of Federal Supply Schedules”, and will be issued against XTec’s GSA FSS GS-35F-0615S. The Contracting Officer has verified the required services are on XTec’s GSA FSS GS-35F-0615S. GSA has already determined the prices of fixed price services under schedule contracts to be fair and

LSJ No: FY18-0315 Page 4 of 5 reasonable, however; the Contracting Officer will make a serparate determination of fair and reasonable pricing for this task order. Additionally, the Contracting Officer will seek a discount from the Schedule prices. Prior to issuance of the task order, the Contracting Officer will conduct a best value determination and conduct an analysis to determine that the total price is fair and reasonable considering available historical data and comparative analysis of services to the Independent Government Cost Estimate.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

Market research does show that several companies can provide EIWS and servers standard maintenance services or GSA approved products/hardware components of the DHS EIWS and servers such as keyboards, mice, monitors, document scanners, fingerprint scanners, and associated power and data cords. As mentioned previously, all DHS owned EIWS utilize the ASA 2000 operating system which is proprietary to XTec. In addition, XTec does not utilize authorized resellers for the Executive Premier Maintenance. As such, market research shows that only XTec is able to provide the specific maintenanceDHS requires. DHS will continue to monitor the commercial market to determine whether other manufacturer products and services can meet DHS’ needs.

7. Any other facts supporting the limited-sources justification.

N/A

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies or services is made.

In addition to reviewing the IDIQ on an annual basis and prior to exercising each option period for the purpose of determining its continued best value to the Government, DHS will conduct an analysis to determine if the Government’s requirement has changed to allow for Premiere Maintenance offered through the competitively awarded IDIQ verses the Executive Premiere Maintenance support required herein. Furthermore, should data rights for the proprietary software become available for purchase, DHS will pursue a competitive, best value or DHS managed maintenance service solution.

LSJ No: FY18-0315 Page 5 of 5

9. DHS intends to post this requirement on Fedbizopps pursuant to FAR 8.405-6(a)(2)(i).

10. Technical/Requirements Personnel Certification.

Pursuant to FAR 8.405-6(c)(2)(x), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the Limited-Sources Justification, are accurate and complete.

in Date

Technical Representative/COR

11. Contracting Officer Certification

Pursuant to FAR 8.405-6(c)(2)(ix), I certify that the Limited-Sources Justification is accurate and complete to the best of my knowledge and belief:

Bryan J. Harden Date Contracting Officer

12. Approval.

Pursuant to FAR 8.405-6(c)(2)(xi), I hereby determine that in accordance with FAR 8.405- 6(a)(1)(i)(B), the circumstances restricting competition for this acquisition is “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.”

Procuring Activity Advocate for Competition Date Office of Procurement Operations

Digitally signed by

Date: 2018.07.02 13:29:26 -04'00'

BRYAN J HARDEN Digitally signed by BRYAN J HARDEN Date: 2018.07.02 13:31:19 -04'00'

CATHERINE M BASKIN Digitally signed by CATHERINE M BASKIN Date: 2018.07.05 08:59:14 -04'00'