842267407 FY22 ATICTS JA signed redacted_Redacted.pdf

Automated Tool Inventory Control and Tracking Systems (ATICTS) Software Maintenance Support Renewal

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, and FAR Part 15

Purchase Request Number:

Contract Number:

Task/Delivery Order Number:

Procurement Title: Automated Tool Inventory Control and Tracking System (ATICTS) Software Maintenance Support Renewal Estimated Value:

Statutory Authority: FAR 6.302

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number:

Upon the basis of the following justification, I, as Contracting Officer, hereby approve this limited source justification in accordance with FAR 6.302 as the particular brand-name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs. The acquisition referenced herein is conducted under the authority of the MAS Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Head Quarters, Army Material Command G3 Supply Chain Management Directorate Logistics Information Systems Division - Industrial Base Operations Branch Redstone Arsenal, Alabama 35898-5110

Contracting Activity:

Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO) – PL8413 2300 East Drive Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The Government’s need is to procure proprietary brand-name, commercial off-the-shelf software ATICTS support renewal for U.S. Army Material Command (AMC) maintenance depot datacenters. The procurement will be awarded as a firm-fixed-price (FFP) delivery order to the original equipment manufacturer (OEM), Data Enterprise of the Northwest, Inc., and sole provider of the ATICTS software support, through the open market. Data Enterprise of the Northwest, Inc., indicated as of 1 August 2019, ATICTS software and maintenance support renewals were removed from their respective GSA

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FSS contract vehicle. Currently Data Enterprise of the Northwest, Inc., does not have ATICTS on a government contract vehicle therefore, the renewal of support will be renewed as an open market.

b. The period of performance for this requirement shall be 1 May 2022 through 30 April 2023. The total estimated life-cycle value is . Fiscal year 2022, Army Working Capital Funds (ACWF) will fund this procurement, utilizing the Military Interdepartmental Purchase Request (MIPR) . The applicable North American Industry Classification System code is 511210, Software Publishers, with a sales size standard of .

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The objective of this contracting effort is to procure software support for the ATICTS software that is currently in use within the datacenters and depots worldwide. The support includes access to an ATICTS technician that can provide 24x7 remote support for ATICTS software. Additionally, this support will ensure Logistics Management Program (LMP) and the Army receive version upgrades and security patching, which enable the software to maintain its compatibility and operational integrity.

b. This software provides real-time view of calibration scheduling, measure and test equipment usage, kitting and reservations features, screening for licensing and qualification to issuer, repair history and cost tracking, weld wire and rod tracking, instant and accurate data entry without keying, graphical user interface, structured query language compliance, and contains multi-level security. Additionally, the software enables the Army to prepare, plan, and execute operations by having the ability to review all Army asset status throughout the world in a moment’s notice.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

a. This acquisition requires brand-name ATICTS software support to sustain Army depot logistics software systems worldwide. This software support will ensure the Army depots remain fully mission capable without interruptions to daily mission, which is critical to supporting the warfighters around the world. Continual support will ensure that the Army and LMP remain in compliance within Information Assurance Vulnerability Alert (IAVA) standards as well as ensuring the software is up to date and compatible within the existing environment. Only the ATICTS brand-name software support described above can fulfill the Army’s requirement. The ATICTS support is proprietary and available only from the OEM, Data Enterprises of the Northwest, Inc.

Data Enterprises of the Northwest, Inc. does not authorize any third-party software modification or patches to its software. Data Enterprises of the Northwest, Inc. owns the copyrighted source software with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the software, nor would they have access to the source code to do so.

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b. ATICTS software is essential to the Government’s requirement. ATICTS software is already integrated into the current infrastructure, and no other brand-name software can interoperate with the ATICTS infrastructure, nor meets the requirements or the functionality of the ATICTS software. This software must support the Government’s continuity of operations mission and possess the capability to ensure seamless interoperability. In order to sustain the current operational software infrastructure, only the identified ATICTS software support will satisfy the requirement. Market research confirmed that the similar products could not be integrated into the Army enterprise without a major cost-prohibitive and time-consuming re-engineering of the LMP and the Army applications, which is beyond the scope of the Government’s need at this time.

c. In order to provide continuity of services and support for the ATICTS software, ATICTS support must be renewed. ATICTS software and support is a vital mission essential and fully integrated component of the Army’s maintenance depot environment.

The Army has a total investment exceeding in ATICTS software and support, which would all be lost if required to seek an alternative software. Additionally, a lack of compatibility will result in the software becoming non-compliant with current IAVA requirements, which will force the Army to halt current inventory systems, which will result in displaying improper data, delayed data transmission or failing to report the movement of materials in and out of the depots.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. The brand name COTS software support renewal is needed to continue to meet the Army’s missions, including sustaining Army logistics, supply, and repair, maintenance, and replacement tracking software systems worldwide.

Brand name procurement history is outlined in section 11a.

b. Justification.

1. Minimum Government requirements. The minimum requirements are identified in section 3.

2. Proposed sole source contractor. The sole source for the ATICTS software support renewal is the OEM, Data Enterprise of the Northwest, Inc. There are no authorized resellers. Only the ACTICTS requirement items identified in Section 3 will satisfy the needs of the Army, maintaining compliance with IAVA standards and securely sustaining the existing Army infrastructure for the logistics and supply software systems throughout the world. This procurement is necessary to ensure continuity of operations, integrity, and security sustainment of the existing Army infrastructure and Army depots.

The OEM owns the copyrighted source software with all legal rights, privileges, and ownership control of the software source code. No other source may legally modify or change the software, nor would they have access to the source code to do so.

3. Discussion regarding cause of the sole source situation. The ATICTS software is integrated into the current infrastructure with the Army having invested in excess of in the ATICTS software and support. Only the

Page 4 of 7 Pages identified ATICTS software renewal support will satisfy the requirement of sustaining the current software infrastructure. Only the ATICTS software possesses the capability of seamlessly operating with the currently installed infrastructure and sustaining the Army’s mission. Other brands of software do not meet capability and compatibility requirements. No other brand-name software can seamlessly operate with the currently installed infrastructure, nor meet the requirements or the functionality of the ATICTS software identified in Section 3.

Market research confirmed that no other products could seamlessly integrated into the Army enterprise. Replacing the infrastructure would require re-engineering of the LMP and the Army applications, which is not in the interest of the Government at this time.

4. Impact. The brand name ATICTS software support renewal is needed to sustain logistics and supply management tools and systems used at Army depos worldwide. Non-compliance with current IAVA mandates would result without this procurement. Automated operations of Army inventory systems would be at a work stoppage without the ATICTS software renewal support of this procurement. The Army needs current accurate data. Improper or delayed capturing of the movement of materials in and out of the depots would jeopardize the Army mission. At this time, the Government has determined that the brand name requirement must be procured to sustain the Army infrastructure. If the brand name software support renewal is not procured, then the flow of critical information for warfighter needs will be jeopardized. The loss of this critical information could endanger the Army mission.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A combined synopsis/solicitation for this requirement will be published on the Contract Opportunities (beta.sam.gov) website, as required by FAR 5.2. A redacted copy of this J&A will also be posted to the Contract Opportunities (beta.sam.gov) website.

7. DETERMINATION OF FAIR AND REASONABLE COST:

A determination will be made by the contracting officer that the contract represents the best value to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price, special features, and administrative costs) to meet the Government’s needs. The contracting officer will also determine the pricing information valid for comparative purposes. Certified cost and price data is not required for this commercial item acquisition, in accordance with FAR 15.403-1(b)(3). The contracting officer will determine whether the price is fair and reasonable, based on comparison of the proposed prices to the commercial price list, the independent Government cost estimate, and applicable historical prices.

8. MARKET RESEARCH:

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a. Market research was conducted during the period of 13 December 2021 through 15 January 2022, to determine availability of ATICTS support, which was conducted by reviewing results of recent similar market research performed, and reviewing similar contracts recently awarded for similar or identical requirements: Computer Hardware Enterprise Software and Solutions (CHESS), GSA, and Department of Defense, Enterprise Software Initiative (ESI). The ATICTS maintenance support is not available under a DoD ESI and/or no longer available through the GSA FSS contract vehicles.

ATICTS software support renewal is available via the sole holder and OEM, Data Enterprises of the Northwest, Inc., a registered small business under open market. Data Enterprises of the Northwest, Inc. does not authorize any resellers to provide the required product or support, therefore a sole source procurement shall be sent directly to Data Enterprises of the Northwest, Inc. Market research supports that this requirement meets the definition of a commercial item in accordance with FAR 2.101.

b. Based on current market research, it was determined that only the aforementioned brand-name product and/or product support, ATICTS, can fully support the Government’s need. No competitor functional replacement products exist in the market at this time to meet the Government's need. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions, e.g. there are similar products and/or product support in the marketplace that provides the same functionality, the OEM releases ownership rights of product, or it is economically feasible to procure a new system.

9. ANY OTHER SUPPORTING FACTS:

None

10. LISTING OF INTERESTED SOURCES:

(a) Data Enterprises of the Northwest, Inc.

12819 S.E. 38th St. #22 Bellevue, WA 98006 POC: Lisa Peterson O: 425-688-8805 Email: lisa@aticts.com

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION: (FAR 6.303-

2(b)(11))

a. Lifecycle of the current architecture. The brand-name ATICTS support was previously procured via open market from Data Enterprises of the Northwest, Inc., the sole provider, under order HC1024-21-P-0003 in the amount of . The ATICTS software is currently the only available software that can provide the specific features the Army requires to operate the Army depots data systems worldwide. The Army continually conducts software reviews to determine effectiveness and operational stability to ensure

Page 6 of 7 Pages the Government is not only maintaining the most up to date software, but ensuring the best value of the products.

b. Actions to remove barriers. The Government will continue to conduct market research to ascertain if there are any changes in the marketplace that would enable future actions to be competed without restriction. In the future the Government will determine if evaluation, testing and qualification of alternative products are prudent with respect to prior investment costs, pending end of service dates for existing products, man-power availability, and the total cost to the Government and budgetary allowances. However, until that time, it is anticipated that any additional increase of the existing ATICTS products and support will need to be conducted on a limited sources brand-name basis.