A08 JA Sole Source Bentley FAR 8-405-1 DC.pdf

This acquisition is conducted under the authority of the Multiple-Award Schedule Program (see 8.401).

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

a. Federal agency and contracting activity. HHS/IHS/OEHE

b. Sponsoring organization

Indian Health Service Office of Environmental Health and Engineering, HQ/ESHC 4101 Indian School Road, NE Suite 225 Albuquerque, NM 87113

c. Project Officer information.

• Project Officer name: Andrew Thesing

• Mailing address: See above

• E-mail address: Andrew.thesing@ihs.gov

• Telephone number: 505-934-1849

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

a. Acquisition purpose and objectives.

The objective is to award a single, base plus four option years, BPA off of Carahsoft’s current GSA Contract. Carahsoft is the sole-source authorized GSA Schedule vendor for the required Bentley hydraulic software licenses.

IHS’ Office of Environmental Health and Engineer, Division of Sanitation Facilities Construction (DSFC) manages a Bentley software portfolio consisting of 4 seats of OpenFlows Water Standard, 8 seats of OpenFlows Water Advanced, 1 seat of OpenFlows Water Ultimate, and 1 seat of OpenFlows Sewer Standard valued at over $130,500. This software is utilized by staff located across the continental United States to model water and sewer systems serving the Native American population.

Hydraulic modeling is required to design moderate to large size water systems by calculating water flows, quality, pressures, and fire flows.

Subscription services are required to leverage the Bentley software portfolio investment across our IHS offices and requires an annual contract. This service provides software license distribution to an unlimited number of computers, software usage reporting, access to software upgrades, and 24/7 support. The Learn subscription services provides access to on-demand and web facilitated training to improve modeling accuracy and employee competencies. Market research has shown that Carahsoft is the only source for Bentley software subscription services.

To be clear, the government needs subscription services to leverage the limited number of existing IHS owned software seats across dozens of IHS offices located nationwide. Bentley Systems is the only provider of the software defined in part one above. Should the government opt to eliminate subscription services, the DSFC program would need to purchase software for each hydraulic modeling workstation at an estimated cost of over $450,000 (assumes an additional 46 seats of software required.) Additional fees would also apply to upgrade software versioning every 1-3 years.

b. Project background.

Historically purchased via annual FFP delivery orders. Sole source approved and used in the past. That purchasing method requires resoliciting every year while establishing a BPA IAW with FAR 8.4 allows to streamline the process. Annual acquisition packages, under the current FFP GSA Delivery Orders is inefficient. The process would be more efficient for all parties if Delivery Orders could be placed annually off an established BPA for software license renewal. The current process increases the likelihood that a gap in service will occur. Any gap in service would be a major impediment to IHS users working effectively and best supporting the IHS mission.

There is an extensive background of prior purchases such as:

GSA Contract #: 47QTCA21D00DN:

• 2024-2025

1. Delivery Order:75H70424F80020

a. Req #: IHS1501597

b. $25,709.63

• 2023-2024

1. Delivery Order: 75H70423F80015

a. Req #: IHS1474441

b. $24,424.15

• 2022-2023

1. Delivery Order: 75H701-22-F-80036

a. Req #: IHS1458776

b. $ 23,138.66

• 2021-2022

1. Delivery Order: 75H701-21-F-80003

a. Req #IHS1434023

b. $38,138.66

c. GSA Contract #: GS-35F-0453L

• 2020-2021

1. 75H701-20-F-80004

a. Req #: IHS1407890

b. $36,703.55

• 2019-2020

1. Delivery Order: 75H701-19-F-80002

a. Req #: IHS1387163

b. $38,168.57

• 2018-2019

1. Delivery Order: HHSI-102-2018-00003G

a. Req #: IHS1361393

b. $37,683.82

• 2017-2018

1. Delivery Order: HHSI-161-2017-00005G

a. Req #: IHS1335011

b. $34,233.86

• 2016-2017

1. Delivery Order: HHSI-102-2016-00005G

a. Req#: IHS1303640

b. $26,533.53

• 2015-2016

1. Delivery Order: HHSI-102-2015-00006G

a. Req #: IHS1269204

b. $25,430.20

• 2014-2015

1. Delivery Order: HHSI-102-2014-00021G

a. Req #: IHS1234694

b. $17,640.90

• 2013-2014

1. Delivery Order: HHSI-242-2014-00005G

a. Req #: IHS1216096

b. $5,209.17

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title.

Bentley Hydraulic Software SELECT Subscription Renewal

b. Project description.

The agency currently possesses 14 perpetual licenses to the WaterCAD, WaterGEMS, WaterHAMMER, and SewerCAD software and requires subscription renewal to access the Bentley hosted license server, software upgrades, and training services. The existing subscription goes through September 8, 2025 and the effective start date for the annual subscription(s) purchased under this order shall be September 9, 2025.

Subscription services are needed for the current base year as well as for four (4) option years.

• Base Year: September 9, 2025 — September 8, 2026

• Option Year 1: September 9, 2026 -- September 8, 2027

• Option Year 2: September 9, 2027 -- September 8, 2028

• Option Year 3: September 9, 2028 -- September 8, 2029

• Option Year 4: September 9, 2029 -- September 8, 2030

Perpetual License Software subscription to annually support:

• 4 seats of OpenFlows Water Standard

• 8 seats of OpenFlows Water Advanced

• 1 seat of Open Flows Water Ultimate

• 1 seat of Open Flows Sewer Standard

Services to include individual user portals (up to 250), administrative portal (up to 10 admins) to manage licenses and software access, access to web based software downloads, access to Bentley hosted license server, IHS administrator ability to generate use reports based on product and user, and technical assistance via web and phone.

• Requirement type.

Research & development (R&D) R & D support services Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________

• Type of action.

New requirement Follow-on Other (specify): ______________________

• Proposed contract/order type.

Base plus four Options BPA Bentley Annual Purchase Water Hydraulic Analysis Software Subscription Services. GSA Carahsoft Technology Corporation Schedule contract #

47QSWA18D008F.

Firm-fixed-price (Option prices based on the GSA Schedule published prices) Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___Blanket Purchase Agreement________ Completion Form Term form

• Acquisition identification number.

75H70125Q00028

c. Total estimated dollar value and performance/delivery period.

The expected prices are as follows:

Total: $399,216.74 Base Year: September 9, 2025 — September 8, 2026: $68,049.07 Option Year 1: September 9, 2026 -- September 8, 2027: $73,493.00 Option Year 2: September 9, 2027 -- September 8, 2028: $79,372.44 Option Year 3: September 9, 2028 -- September 8, 2029: $85,722.23 Option Year 4: September 9, 2029 -- September 8,2030: $92,580.01

*additional perpetual license as required may be added via modification.

4. Identification of the statutory authority permitting other than full and open competition.

This acquisition is conducted under

FAR 8.405-1(d): For proposed orders exceeding the simplified acquisition threshold.

(1) Each order shall be placed on a competitive basis in accordance with

(d)(2) and (3) of this section, unless this requirement is waived on the basis of a justification that is prepared and approved in accordance with 8.405-6.

and

FAR 8.405-6((c)(2)(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;

The software has been owned for years, with exclusive licenses whose subscriptions must be renewed annually. Bentley remains the sole source vendor who can provide subscription renewals to its perpetual software licenses.

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s).

This is a proprietary software licensed by Bentley Systems, Inc. and sold to the Federal Government through GSA Advantage only by Carahsoft Technology Corporation

UEI: DT8KJHZXVJH5

GSA Schedule Contract #: 47QSWA18D008F 11493 Sunset Hills Rd, Suite 100 Reston, VA 20190 https://www.gsaadvantage.gov/advantage/ws/catalog/contractor_detail?c ontractNumber=47QSWA18D008F

Carahsoft is the authorized sole-source distributor of Bentley software in GSA Advantage.

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Bentley, either directly or through its authorized Channel Partner, Carahsoft, is the sole source vendor of Bentley software products. It is imperative that the products and licenses purchased be compatible with software currently utilized by IHS users. In order to satisfy these compatibility requirements as well as the functionality requirements needed for IHS users, the awarded vendors’ products must:

Integrate with Autodesk products.

Integrate with ESRI products.

Export in GIS compatible formats.

Have the ability to build multiple scenarios within each model.

Have the ability to analyze hammer, water quality (e.g.

water age), static, time models, fire flows.

Have the ability to convert water model files from other hydraulic modeling formats.

Have the ability to function on water systems with > 5000 pipes.

Have network licenses that can be shared.

Include subscription service for software updates.

Offer training programs for interested IHS staff pertaining to the usage of purchased software.

Market research has shown that Bentley software meets these requirements while other proposed vendors do not. Beside meeting unique compatibility and functionality requirements, significant money and time has been invested into using Bentley software for modeling. This time and money would be lost when purchasing new base software, retraining staff on software usage, and converting historic models over from Bentley software to new software.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

FAR 5.202(4) The proposed contract action is expressly authorized or required by a statute to be made through another Government agency.

Prior purchases were made directly with Bentley Systems, Incorporated, GSA Schedule Contract #: 47QTCA21D00DN but Bentley switched their strategy to make Carahsoft their sole source vendor.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The order will be placed IAW the links for the published Bentley SELECT products on GSA:

https://www.gsaadvantage.gov/advantage/ws/catalog/product_detail?gsin=11000 121014454 https://www.gsaadvantage.gov/advantage/ws/catalog/product_detail?gsin=11000 121014461 https://www.gsaadvantage.gov/advantage/ws/catalog/product_detail?gsin=11000 121014471 https://www.gsaadvantage.gov/advantage/ws/catalog/product_detail?gsin=11000 121014429

The order represents the best value consistent with FAR 8.404(d).

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Searched the GSA Advantage website and contacted Bentley and Carahsoft directly to confirm the sole-source status.

As stated above, this is a proprietary software licensed by Bentley Systems, Inc.

and sold to the Federal Government through GSA Advantage only by Carahsoft Technology Corporation.

9. Any other facts supporting the use of other than full and open competition.

The requirement can only be satisfied by one responsible source for a follow-on acquisition [see FAR 6.302-1(a)(2)(ii)], indicate whether there would be (i) unacceptable delays in fulfilling the agency’s requirements and/or (ii) duplication of cost by award to another organization and, if so, provide an estimate of the cost duplication and how it was derived.

Over $130,000 of Bentley products are currently owned by IHS. Staff are trained to use the products. Ending the use of Bentley software would incur substantial duplication of cost to the government both in terms of rebuying software and licenses (estimated at >$400,000), time needed to retrain employees on the use of new software, and in time and material lost when converting models to new software.

Procuring new software would require a minimum estimated 5000 staff training hours and a minimum estimated 3000 staff hours to convert existing water models in addition to the cost of procurement and subscription services for a new software product. While water models (>500) can be converted from the Bentley file format to other water model formats, the process requires procurement of new software, extensive training, and extensive time to accomplish.

FAR 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 are unique or highly specialized.

As stated above, Bentley Systems is the sole manufacturer of Bentley Software and the sole provider of Select Services. In order to continue to utilize and leverage the existing IHS portfolio of Bentley Software, the government is required to procure Select Services.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

None.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

The use of Bentley modeling software has been a past need for the agency and the Government expects it will only become more of a need moving forward.

12. Program office certification.

This is to certify that the portions of this justification that have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for other than full and open competition, are accurate and complete.

Official Name & Title Signature

Project Officer Andrew Thesing

Project Officer’s Immediate Supervisor

Shari Windt

13. Contracting Officer certification.

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Official Name & Title Signature

Contracting Officer Daniel Cotto