1E_-_LSJ_-_SAMS_FINAL.pdf

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

· For orders or BP As exceeding the Simplified Acquisition Threshold

LSJNo.: FY19-0176

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.

I. Agency and Contracting Activity. Identification of the agency, contracting activity, and specific identification of the document as a "Limited-Sources Justification."

The Department of Homeland Security (OHS), Office of Procurement Operations (OPO), Departmental Operations Acquisitions Division proposes to award an order pursuant to FAR 8.405-6(a), only one source.

2. Nature and/or description of the action being approved. Describe the action being approved, and include the name and address of the proposed contractor(s).

OPO intends to limit the number of sources solicited pursuant to FAR Part 8.405-6(a) for the procurement of technical support services and subject matter expertised associated with the operation, maintenance, and enhancement of the Office of the Chief Readiness Support Officer's (OCRSO) asset management system: Sunflower Asset Management Systems (SAMS).

A hybrid labor hours/firm-fixed-price task order will be awarded to Annams Systems Corporation dba Sunflower Systems located at 2420 Camino Ramon #130, San Ramon, CA 94583.

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Provide the estimated total value (including options, if any).

The Office of the Chief Readiness Support Officer (CRSO) at OHS provides oversight of several lines of business functions, including personal property, real property, and mobile assets. SAMS is enabled by the Sunflower Assets software suite and data model to include the backend database and the front end Oracle-based Sunflower forms and reports. OHS requires technical support services and subject matter expertise associated with the operation, maintenance, and enhancement of the existing system. The services procured under this task order will support the continued customizazation of the system, the incorporation of new component assets into SAMS, support for existing and new users of the solution, and transition support.

In addition to system modifications and support, the Contractor will continue to support DHS's asset management mission including the 100% asset accountability requirement, asset lifecycle management, and asset re-utilization or disposal.

The estimated cost for the continued operation, maintenance, and configuration is $7,522,080 for five (5) years, should all available options be exercised.

LSJ Template > SAT LSJ No: FYI9-0176

Rev. 2.5 .2016

For orders or BP As exceeding the Simplified Acquisition Threshold

Period Base Year Option Period l Option Period 2 Option Period 3 Option Period 4 Option: Tranistion Support Services Total Cost:

Period of Performance Jul. t,2019-Dec.31,2019 Jan. 1, 2020 - Dec. 31, 2020 Jan. 1, 2021-Dec.31, 2021 Jan. 1, 2022 - Dec. 31, 2022 Jan. 1, 2023-Oec. 31, 2023 Last six (6) months of task order

4. Authority and supporting rationale.

Cost $1,396,200 $1,423,050 $1,449,900 $1,503,600 $1,530,450

$218,880

$7,522,080

8.405-6( a)(l )(i)(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.

In 2015, a Limited Sources Justification (LSJ No. FY16-0034) was executed to continue the use of SAMS. A OHS enterprise license for SAMS was purchased under a separate task order, HSHQDC-16-F-00010, awarded to Annams Systems Coproration (Annams) for the period of December 5, 2015 through December 4, 2020. This system has been heavily and significantly customized and tailored over the years to meet the needs of several OHS components and over 2,700 users spread across the United States and worldwide. The system hosts and enables the tracking and management of personal property, aviation, and mobile assets data. Interfaces exist between the asset management system and other federated systems for the sharing of information and optimization of business processes.

Because SAMS has been significantly tailored to meet the needs of OHS property managers across multiple DHS components using proprietary code developed by Annams Systems Corporation (Annams), they are the only vendor capable of providing technical support services for the solution. Annams is the only vendor authorized to modify their system and the underlying code that it is built upon. Annams has expressed an unwillingness to sell their proprietary code to the Government, or another vendor;

therefore, the Government would need to replace the solution if it does not continue working directly with the incumbent.

OHS invested $450,000 to acquire the Sunflower Assets Management System enterprise license in 2003, which was originally a commercial off the shelf (COTS) solution. Since that time, OHS has spent nearly $20 million to maintain, operate, evolve, customize and mature the software to meet specific OHS property management needs and to comply with specific OHS regulations and mandates in property management requirements. The acquisition of a new COTS solution would require significant tailoring or the development of a non-commerical solution to meet OHS mission needs which would result in a significant investment of time and funding to make it operational. Operating and

LSJ Template > SAT LSJNo: FY19-0176

Rev. 2:5.2016

For orders or BP As exceeding the Simplified Acquisition Threshold maintaining SAMS is the only option available under the present circumstance that satisfies the DHS's property management needs.

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

The contracting officer has determined that issuing the proposed task order to Annams Systems Corporation for the continued operation, maintenance and configuration of SAMS represents the best value to meet the Government's needs. This order will be placed in accordance with FAR 8.404, "Use of Federal Supply Schedules." The General Services Administration (GSA) has already negotiated fair and reasonable pricing rates with Annams Systems Corporation. Discounts to these GSA schedule rates will be requested. Additionally, prior to issuance of the task order, the ordering activity will consider the level of effort and the mix of labor proposed to perform the specific task being ordered in order to determine that the total price is reasonable. The Contractor's labor mix and level of effort will also be compared to the Independent Government Cost Estimate (IGCE).

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 was conducted with several schedule holders; however, none of the other vendors are authorized to provide the technical support services related to the proprietary coding owned by Annams Systems Corporation. Annams was contacted to discuss the opportunity for the Government to purchase the coding or collaborate with another vendor to provide technical support services, and Annams responded that the company was unwilling to pursue either approach.

7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

No additional facts are required.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited-sources) before any subsequent acquisition for the supplies or services is made. Include a statement of actions taken or that will be taken to increase competition for future acquisitions of the same item/service (e.g., the government intends to revise overly restrictive technical specifications, acquire data rights, or pursue some other means to increase future competition).

The government intends to evaluate the lifecycle of the current SAMS system and initiate discussions about possible replacement solutions suitable for OHS in the event that SAMS is no longer a viable option in the future. OCRSO will continue to evaluate the technical capabilities of SAMS to ensure that it has maintained current levels of

LSJ Template > SAT LSJ No: FY19-0176

Rev. 2.5.2016

For orders or BP As exceeding the Simplified Acquisition Threshold technology comparable to other products in the marketplace. OCRSO will initiate conversations about contingency planning in the event that the SAMS system were to become unavailable in the future .

OCRSO continually conducts market research to understand the availability of comparable asset management systems to SAMS. When SAMS reaches the end of its operational life cycle, OCRSO will use the market research to identify other tools that can be used to replace the system. When replacing the system, the requirements will be developed to eliminate the use of proprietary software creating a barrier to competition.

9. OHS intends to post this requirement on FedBizOpps.gov pursuant to FAR 8.405-6(a)(2)(i).

LSJ Template > SAT LSJ No: FY19-0l76

Rev. 2.5.2016

For orders or BP As exceeding the Simplified Acquisition Threshold

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.

Digitally signed by Gus Jabbour

Gus Jabbour '.;~~~o,9.os.2910,41:0s

Gus Jabbour Date Contracting Officer's Representative/Program Manager Office of the Chief Readiness Support Officer

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:

Ronald Jean-Baptiste Contracting Officer Departmental Operations Acquisitions Division Office of Procurement Operations

12. Approval.

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.

Kelly Curtin Procuring Activity Advocate for Competition Acquisition Management Support Division Office of Procurement Operations

LSJ Template > SAT LSJ No: FYI 9-0176

Date

. Rev. 2.5.2016