LSJ_Final_10DEC18_Redacted.pdf

Limited-Sources Justification (LSJ)

For orders or BPAs exceeding the Simplified Acquisition Threshold

1- 1 - LSJ No.: FY19-0037

LSJ No.: FY19-0037

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), Information Technology Acquisition Center (ITAC) proposes to award an order pursuant to FAR 8.405-6(a) Limiting Sources.

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 services to renew software maintenance and licensees for proprietary correspondence tracking application entitled “Intranet Quorum” (IQ) for the DHS and its components. IQ software application is used for the Enterprise Correspondence Tracking (ECT) system which is used extensively within the Department to improve its business processes. The proposed contractor is Leidos Solutions, Inc., 2700 Prosperity Avenue, Fairfax, VA 22031.

3. Description of Supplies/Services.

The requirement is to provide continued software maintenance updates for 820 users of the IQ/ECT for the Office of Chief Information Officer (OCIO), Information Sharing and Services Office (IS2O) by leveraging the existing ECT system and its infrastructure. The IQ software allows DHS Headquarters and components to track, monitor, manage and respond to time sensitive correspondence received by public and private agencies, state and local governments, congressman, senators, etc. in a coordinated, agile and timely manner. Leidos is the manufacturer and proprietary owner of the IQ software and is the only source that can provide application licenses and maintenance support services being acquired. The estimated total cost is . The period of performance for this renewal is from January 1, 2019 to June 30, 2019.

Period Unit Price Total Base Period: (6 Months)

4. Authority and supporting rationale.

This acquisition is being 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, in accordance with FAR 8.405-6(a), Limiting Sources. An award will be made pursuant to 8.405-6(a)(1)(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 http://uscode.house.gov/ http://uscode.house.gov/

1- 2 -are unique or highly specialized.” The circumstance restricting competition for this acquisition is the need to maintain continuity with DHS’ correspondence system. DHS currently owns the Leidos IQ software and licenses. This task order is only to contract for the maintenance and updates. At this time, only Leidos can provide the maintenance due to the proprietary nature of the software. DHS already purchased the software and at this time, continuing to procure maintenance and licenses. Market research indicates IQ is proprietary software developed by Leidos and there are no authorized resellers or distributors available to provide the maintenance/upgrade subscription services for IQ software in the marketplace.

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 Leidos for the need to maintain continuity with DHS’ correspondence system IQ software represents the best value and will result in the lowest overall cost, considering price and administrative costs, 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. 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) and historic information.

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.

The Market research was conducted and due to the proprietary nature of the software none of the vendors on GSA schedule 70 can perform these services. Leidos does not authorize other companies to perform maintenance on this software. Leidos has a GSA schedule 70, SIN 132-34 and 132-51, for which this requirement can be purchased against. In order to obtain maintenance from another source, DHS would have to purchase new software which would include the purchase of licenses and maintenance. This would cost more than this requirement as DHS already owns the Leidos IQ software and only requires maintenance.

The existing software also has several unique features and functions that are not presently available in the marketplace and represent the proprietary nature of the software:

a. IT Services Workflow and Management features;

b. Detailed dashboard presentation layer;

c. Complete workflow: General Consul – Public Affair – Executive Secretariat –

Legislative Affair – Inspector General;

d. Track any repeatable workflow feature;

e. Track any complex requests like FOIA or Public information requests;

f. Provides total transparency and accountabilities.

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7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section.

There are no additional facts present.

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 within the next 24 months to perform market research and to procure new software to replace the current product. This action is intended to be competed.

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.

Technical Representative/COR Date

11. Contracting Officer Certification and/or 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:

Contracting Officer Date Department of Homeland Security Office of Procurement Operations Information Technology Acquisition Center

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*Note: In accordance with FAR 8.405-6(d)(1) for BPAs with an estimated value exceeding the simplified acquisition threshold, but not exceeding $700,000, the ordering activity contracting officer’s certification that the justification is accurate and complete to the best of the ordering activity contracting officer’s knowledge and belief will serve as approval.