A04_-_Redacted_Brand_Name_LSJ_ServiceNow.pdf

1 EITSD ServiceNow IT Management Suite Software

July 9, 2015

LIMITED SOURCES JUSTIFICATION--BRAND NAME

FAR PART 8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract (MAC) Orders under MAS/General Service Schedules (GSA)/Federal Supply Schedules (FSS)

FAR 8.4

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Requiring Agency:

Department of Defense (DOD) Washington Headquarters Services - Enterprise Information Technology Service Directorate

(EITSD)

1155 Defense Pentagon Room 3B288 Washington DC 20301-1155

Contracting Activity:

DOD

WHS – Acquisition Directorate (WHS/AD) 1225 S. Clark Street, Suite 200 Arlington, VA 22202

2. NATURE/DESCRIPTION OF ACTION BEING APPROVED:

This Limited Sources Justification requests approval to non-competitively issue a call order, in accordance with ordering procedures in FAR 8.4, to Carahsoft Technology Corporation, against their DOD Enterprise Software Initiative (ESI) Enterprise Service Agreement (ESA), N00104-13-A-ZF47, for the procurement of ServiceNow Information Technology (IT) Management Suite Software, installation support, and system administrator training. The Period of Performance for software support is 12 months from the date of award; installation support and system administrator training must be completed by 31 Oct 2015. ServiceNow is the only Enterprise Service Management (ESM) software available on DOD ESI that can meet the Government’s requirements as described herein. Pursuant to Defense Federal Acquisition Regulation Supplement (DFARS) Procedures, Guidance and Information (PGI) 208.7403, after a determination that DOD ESI ESA terms, conditions and prices represent the best value to the Government, the contracting officer or requiring official shall fulfill the requirement for software or services through the ESA. The contracting officer has determined that the terms, conditions and prices offered under Carahsoft Technology’s DOD ESI ESA represent the best value to the Government. Carahsoft Technology is the only DOD ESI ESA contract holder for ServiceNow software; therefore, the requested action is a non-competitive call order under Carahsoft Technology DOD ESI ESA N00104-13-A-ZF47.

DDEPARTMENT OF DEFENSE

WWASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

Acquisition Directorate

2 EITSD ServiceNow IT Management Suite Software

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY’S

NEEDS:

EITSD requires ServiceNow Information Technology (IT) Management Suite Software li-censes, software support, installation support and system administrator training for 900 IT system administrator fulfillers and 80,000 discovery configuration items (CI). The estimated cost for this requirement is . The required software licenses, software support, in-stallation support and system administrator training will provide an Enterprise Service Man-agement (ESM) system that integrates both Information Technology Service Management (ITSM) and Information Technology Asset Management (ITAM) into a single system for EITSD’s WHS and Office of Secretary of Defense (OSD) customers.

EITSD requires an integrated ITSM and ITAM system to track and manage its IT services, support and assets across the enterprise in direct support of its core mission. It is critical that EITSD have a reliable, secure, process-based tool and approach to align the delivery of IT services with the needs of DOD. Specifically, an integrated ITSM and ITAM will improve end-to-end visibility into IT processes and infrastructure, optimize resource utilization, im-prove the quality of IT services, reduce cycle time for system changes and upgrades, and en-hance operational security.

EITSD requires an ITSM solution that is 1) scalable across the enterprise, 2) capable of rapid customization, 3) quickly and easily upgraded with minimal downtime and customer impact,

4) adaptable to the environment, and 4) capable of integration with existing architecture, tools, and applications; specifically, the EM7 network monitoring tool. The integrated ITSM and ITAM system must support Information Technology Infrastructure Library version 3 (ITIL v3) IT processes including: incident management (IT help desk tickets), problem man-agement, change management, knowledge management, reporting and dashboards, IT asset discovery, IT configuration management, IT asset management, IT service catalog and cus-tomer-facing IT self-service portal. The ITSM and ITAM system must support agile software development and short delivery times (less than 30 days) for software version upgrades;

software releases and patches should not require software development and configuration changes to the system.

Specific outcomes for implementation of an integrated ITSM and ITAM system, in align-ment with EITSD’s IT Roadmap1, include end-to-end visibility into processes and infrastruc-ture through a single system of record for IT, which enables consolidation and automation of service management processes, increased efficiency, lower costs, and the ability to devote more time to innovating and creating customer-focused solutions.

The Government’s minimum needs are for ESM software that:

a) Integrates both IT services (Help Desk ticketing) and IT asset management (tracking and provisioning IT equipment, software, etc.) in a single system platform, and minimizes the number of physical and virtual servers required for production implementation.

1 DoD IT Enterprise Strategy and Roadmap, 6 September 2011, http://dodcio.defense.gov/Portals/0/Documents/Announcement/Signed_ITESR_6SEP11.pdf

3 EITSD ServiceNow IT Management Suite Software

b) Provides clustered application and database server architecture to support scalability for large datasets (millions of rows) and large transaction volumes (million updates per day).

c) Provides most functionality out-of-the-box, but permits configuration by system adminis-trators without support of vendor or third-party consultants.

d) Utilizes standard programming language such as JavaScript and does not require proprie-tary programming.

e) Provides customer service catalog out of the box which is a consumer like storefront for users to request self-help, to request IT line-of-business services, and to check progress on requests.

f) Provides reporting, charts and dashboards out of the box. Allows users to build personal dashboards through drag-and-drop.

g) Provides drag-and-drop workflow to support customization and integration with existing architecture.

h) Provides mobile-enabled ESM applications out of the box, including Android and Apple tablets and smartphones.

i) Is certified as cyber-secure, with Government-wide Federal Information Security Man-agement Act (FISMA) Moderate Authority to Operate (ATO) including 252 controls based on National Institute of Standards and Technology (NIST )800-53 Rev 4.

4. AUTHORITY AND SUPPORTING RATIONALE AND DEMONSTRATION OF

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS:

The statutory authority permitting the limitation of sources is implemented by FAR 8.405-6.

The specific rationale for this justification is based on FAR 8.405-6(b), which pertains to lim-iting sources for items peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer. Brand name specifica-tions shall not be used unless 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 ServiceNow IT Service Management Suite is the only ESM software solution available on DOD ESI that can meet EITSD’s minimum requirements for an integrated ITSM and ITAM system that does not require proprietary programming and provides drag-and-drop workflow. No other software manufacturers provide these capabilities in a single ESM soft-ware solution. Specifically, ServiceNow is the only supplier to offer all of the following benefits:

4 EITSD ServiceNow IT Management Suite Software

a) Single platform for ITSM with a single architecture - ServiceNow is built on a single platform enabling the use of shared services with a core set of functionality available to every instance; resources include: graphical workflow, native reporting, service level management, and notification engine.

b) Enterprise application consolidation – discovery tools, data repositories, and business object are all part of the basic ServiceNow functionality. ServiceNow utilizes ITIL v3 industry standard processes for out of the box configuration for common IT services. The majority of required capabilities are available out of the box and do not require extensive customization.

c) Scalability - ServiceNow supports clustered application and database server architecture which enables enterprise scalability, failover, and continuity of business.

With a clustered application and database server architecture there is no known limit to the scalability of the ServiceNow implementation.

d) Modularity - ServiceNow suite of applications is completely modular, with all modules available on a single platform facilitating ease of use when developing or modifying IT business processes, action plans, and standard operating procedures (SOPs) to create, modify, and administer processes within any of the applications.

e) Graphical workflow editor - ServiceNow has a single workflow editor for all processes that spans the entire platform’s capabilities. The workflow editor is graphical with simple drag and drop templates for non-developers to configure and modify processes.

f) Non-proprietary extensions using JavaScript - ServiceNow can be customized using non-propriety JavaScript programming, enabling agile software development. Ser-viceNow does not require use of a proprietary programming language.

g) Smooth transitions between software releases - ServiceNow object-oriented architec-ture retains system configurations and customizations during software upgrades which accelerate smooth transitions for customizations between software version re-leases. The upgrade process allows the application of product releases, patches and hotfixes without negatively affecting configuration, helping ensure the long-term sta-bility of any customized changes made by the customer.

h) Net-native Web 2.0 Technology - ServiceNow is 100% net-native and uses modern Web 2.0 technologies which provide familiar look-and-feel for website functionality.

i) Reporting/dashboard functionality available to all users - ServiceNow provides detailed IT performance metrics via out of the box reports that can be a list, chart, or calendar-based view of data in a particular table. IT performance metrics can display key information for different users.

j) 100% Thin Client - ServiceNow is 100% thin client, requiring only a web browser to access, and supports functionality on mobile devices, allowing mobile users to remotely access their ServiceNow instance to perform common tasks. ServiceNow is also client device neutral.

5 EITSD ServiceNow IT Management Suite Software

k) Software as a Service (Saas) - ServiceNow can be deployed as software as a service (SaaS) via a Government community cloud or as a Government on premise implementation which enables system use on closed networks.

l) Integration with DOD Data Sources - ServiceNow integrates with authoritative data sources that reside in other organizations within DOD.

The ServiceNow Information Technology (IT) Management Suite Software is the only ESM solution available on DOD ESI that will support an integrated ITSM and ITAM system that is scalable across the enterprise, capable of rapid customization, quickly and easily upgraded with minimal downtime and customer impact, adaptable to the environment, and capable of integration with existing architecture, tools, and applications. Carahsoft Technology is the only contractor with a DOD ESI ESA for ServiceNow software.

5. DETERMINATION OF BEST VALUE:

Pursuant to DFARS PGI 208.7402(d), if an ESA’s terms and conditions and prices represent the best value to the Government, the contracting officer or requiring official shall fulfill the requirement for software or services through the ESA.

A comparison of the terms and conditions and prices offered by Carahsoft Technology under DOD ESI ESA N00104-13-A-ZF47 to the terms and conditions and prices under their GSA contract shows that the acquisition of the required software and services under Carahsoft Technology’s DOD ESI ESA N00104-13-A-ZF47 represents the best value to the Government. The estimated cost for an order placed through DOD ESI is less than Carahsoft Technology’s published GSA pricing under GSA Contract GS-35F- 0119Y. Carahsoft Technology is the only ServiceNow reseller with a DOD ESI ESA and the only ServiceNow reseller that is a GSA contract holder.

Furthermore, the WHS Acquisition Directorate Contracting Officer will ensure that the final negotiated price under this award is fair and reasonable in accordance with FAR 15.404-1 procedures and DPAP Deviation 2014-O0011 dated March 13, 2014.

6. DESCRIPTION OF MARKET RESEARCH:

EITSD prepared a list of 71 software requirements based on experience using ITSM and ITAM products. EITSD compared software features to software requirements for ITSM and ITAM software available on DOD ESI software agreements and contracts. ServiceNow was the only ITSM and ITAM software to meet more than 75% of EITSD requirements out of the box. EITSD prepared a business case analysis which addresses requirements, costs, and risks for implementing ServiceNow or other ITSM and ITAM software. The business case analy-sis demonstrates that ServiceNow provides the most opportunity and likelihood to realize fu-ture cost savings through process efficiencies for IT system administrators.

Market research of this requirement has validated that this requirement can only be satisfied by ServiceNow or its authorized resellers and that Carahsoft Technology is the only author-ized ServiceNow reseller with a DOD ESI ESA.

6 EITSD ServiceNow IT Management Suite Software

Pursuant to DFARS PGI 208.7403, “The requiring official shall review the information on the ESI website to determine if the required commercial software or related services are available from DOD inventory. If the software or services are available, the requiring offi-cial shall fulfill the requirement from the DOD inventory. If the required commercial soft-ware or related services are not in the DOD inventory, and not on an ESA, the contracting of-ficer or requiring official may fulfill the requirement by other means.” As required, this pro-curement will be solicited and awarded via DOD ESI.

A notice of the Government’s intent to limit sources to a specific brand name item was issued on Federal Business Opportunities (FBO) on 22 June 2015, allowing for a response. Four responses were received by the closing date, 26 June

None of the four respondents are DOD ESI BPA holders. Carahsoft Technology is the only ServiceNow service provider with a DOD ESI BPA.

7. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

EITSD’s Business Case Analysis on IT Service Management Software demonstrates that implementation of the ServiceNow solution will reduce status quo IT service management costs in the first year as a result of increased efficiencies, productivity and simplicity of upgrades. These savings are anticipated to come from:

Lower management overhead: fewer administrators are needed for the ServiceNow platform.

Lower infrastructure costs: hardware and software infrastructure is at least 50% less for ServiceNow’s customer-hosted, on premise systems.

Training and education: due to easy configuration and lack of need for customization, training and education for administrators is less costly and requires less time.

Upgrade cost avoidance: upgrades are expected to take days instead of weeks or months and are included as part of the subscription cost which will reduce costs for software upgrades.

8. STATEMENT OF ACTIONS AGENCY MAY TAKE TO REMOVE BARRIERS

THAT LED TO RESTRICTED CONSIDERATION:

EITSD will continue to search the marketplace for other available ITSM and ITAM solutions that meet EITSD requirements. It is anticipated that as the technology for ITSM grows additional firms will be able to offer competitive solutions that meet EITSD’s requirements.

All future requirements for ITSM and ITAM solutions will be procured on a brand-name or equal basis. The evaluation for brand name or equal software tools may include a benefits analysis examining of the additional costs for switching tools (e.g., the time and costs involved with bringing the software fully on-line as well as the time and costs of training government employees.

7 EITSD ServiceNow IT Management Suite Software

9. CONTRACTING OFFICER CERTIFICATION:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature:

Florence Kasule Contracting Officer WHS-AD

Name and Title Organization

10. TECHNICAL REQUIREMENTS CERTIFICATION:

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Signature:

Patrick Hummel Technical POC EITSD

Name and Title Organization

11. AGENCY COMPETITION ADVOCATE APPROVAL:

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, as required by FAR 8.405-6(d)(2).

Signature:

Wendy Schermerhorn Alternate Competition Advocate WHS-AD

Name and Title Organization

KASULE.FLO

RENCE.N.13

68762039

Digitally signed by

KASULE.FLORENCE.N.136876203

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=WHS, cn=KASULE.FLORENCE.N.136876 Date: 2015.07.09 13:13:22 -04'00'

HUMMEL.PATRIC

K.H.1230860200

Digitally signed by

HUMMEL.PATRICK.H.1230860200

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=WHS, cn=HUMMEL.PATRICK.H.1230860200 Date: 2015.07.09 14:17:55 -04'00'

SCHERMERHORN.WEN

DY.R.1459625441

Digitally signed by SCHERMERHORN.WENDY.R.1459625441 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=WHS, cn=SCHERMERHORN.WENDY.R.1459625441 Date: 2015.07.09 15:07:38 -04'00'