ATTACHMENT_B_NGCE_ESRI_LMTD_SOURCE__Final.pdf

LIMITED SOURCE JUSTIFICATION

(For BPAs placed against Federal Supply Schedules Exceeding the Simplified Acquisition

Threshold under FAR 8.405-6 (a) (1) (B) (C)) Acquisition of ESRI Products and Professional Services for the National Geospatial Center of Excellence, Fort Worth, TX

1. Agency and Contracting Activity

The contracting organization responsible for this action is Natural Resources Conservation Service, National Geospatial Center of Excellence (NGCE), Fort Worth, TX.

2. Description of the Action Being Approved

The NRCS – NGCE intends to place a Blanket Purchase Agreement against Environmental Systems Research Institute (ESRI) GSA Schedule GS-35F-253CA for products and services for a period of one year with up to 4 option years not to exceed $10,000,000.

3. Description of Supplies and/or Services

The mission of the Natural Resources Conservation Service (NRCS) is "Helping People Help the Land." The National Geospatial Center of Excellence (NGCE) manages and delivers geospatial data for various disciplines in support of NRCS’s mission. To this end, the ESRI

Products and Professional Services will be utilized to support and enhance the previously deployed ArcGIS Desktop and Server applications with continued improvements, upgrades and training required to meet the agency’s demands. A detailed statement of work will be prepared for each call order placed against this BPA.

4. Statutory Authority

41U.S.C. 253 (c) (1) and 41 U.S.C. 253 (d) (1) (B) (i) (ii) and FAR Part 8.405-6 Limiting Sources (a) (B) (C).

5. Applicability of the Authority

The NGCE has spent millions on the implementation of their ArcGIS Desktop and Server applications to meet the agency’s demands using ESRI’s proprietary software and enhancements to that software and applications using ESRI’s professional services. Due to the proprietary nature of the software and the enhancements previously performed in conjunction ESRI’s professional services it is deemed that the authority at 41U.S.C. 253 (c)

(1) and 41 U.S.C. 253 (d) (1) (B) (i) (ii) and FAR Part 8.405-6 Limiting Sources (a) (B) (C) provides for the limiting of sources as ESRI is the only company that can sell their highly specialized products and unique services to further the development of NGCE’s customized ArcGIS Desktop and Server systems.

NGCE- ESRI LIMITED SOURCE JUSTIFICATION cont.

6. Description of Efforts to Obtain Competition

As previously stated the products are proprietary and must be purchased from ESRI, however professional services can be obtained from numerous sources. However due to the highly technical and sensitive nature of these applications and the time and money invested in these systems to include custom features and upgrades it is deemed that this is also a logical follow-on in the interest of economy and efficiency since there have been numerous custom modifications to existing systems that would require a new vendor a great deal of time and money just to get up to speed on the current system’s issues, features and functionality.

This justification and a notice of intent to sole source will be placed on FBO.gov for all vendors in the same NAICS code to see and if they have an interest and feel they could provide these products and services. If a prospective vendor has interest they will be encouraged to notify the contracting officer of their capabilities and to stress their interest in future opportunities.

7. Determination the Anticipated Price to the Government will be Fair and Reasonable

This BPA is being placed against a previously competed GSA Federal Supply Schedule and all cost are spelled out in the schedule. This schedule has also been compared to the scheduled prices of other companies that offer products and services of a similar nature such as ERDAS, ONIX, and PLANET ASSOCIATES. As the FAR notes comparison to company pricing of like products and services can be considered in the evaluation of fair and reasonable prices, it is also understood that competition can be used as the basis for a determination and since the GSA Schedule was competed these prices are considered fair and reasonable. ESRI has offered an additional discount from 2-4% based on the size of the call order.

8. Market Research

In considering this acquisition other companies like ERDAS, ONIX, and PLANET ASSOCIATES, Inc. GSA schedules were reviewed and used in the determination of a Fair and Reasonable pricing. However due to the proprietary nature of the products only one company can provide the products and since the professional services are to upgrade, customize or train on those products it is in the best interest of the government to continue to work with ESRI (manufacturer) as the sole provider. The other companies have GIS systems and provide professional services but the NRCS-NGCE has already made a significant investment in the ESRI ArcGIS Desktop and Server Application that it only makes sense to continue this development with ESRI. To award this to any other company would increase cost, effort and time thus slowing the development and the NRCS-NGCE’s ability to deliver on its mission.

9. Other Facts Supporting the Use of Other than Full and Open Competition The NRCS-NGCE has invested millions of dollars in the purchase and development of their ESRI ArcGIS Server and Desktop Application. This is a commercial off the shelf product however much of the professional services have been to develop custom features to fit the needs of the agency. The proprietary nature of the product and the close relationship of the individuals providing the professional services allows for quicker response to the issues, upgrades or changes required as they can work directly with the program authors saving the government both time and money. Although this is done under the authority of FAR Part 8.405-6 Limiting Sources (a) (B) (C) because we are placing a BPA against a GSA schedule, the competition requirement of 6.302-1 (a) (ii)-- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements states: “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in --(A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or(B) Unacceptable delays in fulfilling the agency’s requirements. (See 10 U.S.C. 3304 (b) (2)) or 41 U.S.C. 253 (d) (1) (B).)” This BPA is a logical follow on for the continued development and production of a major system and any other sources would require a substantial non-recoverable cost and unacceptable delays.

10. Interested Sources

This is a sole source of a BPA against a GSA schedule under the authority of FAR Part 8.405-6 and therefore the notice of intent to sole source has not been posted yet. It will be posted on FBO.gov and interested source will be noted in the file if in fact anyone stresses an interest.

11. Barriers to Competition

It is near impossible to remove the barriers because the products are proprietary and outside services could void any warranties or responsibilities of the manufacturer for the performance of the product.

12. Technical Requirements Personnel

NRCS has an existing Enterprise License Agreement with ESRI for ArcGIS Desktop and Server products and extensions which are utilized throughout the agency. Applications and services developed and published by NGCE must maintain compatibility with the current installed base and ensure interoperability.

NGCE supports over 7,000 installed users of ArcGIS Desktop throughout NRCS with geospatial applications and data produced using ESRI products, developmental tools, and technologies.

NGCE publishes and manages enterprise geospatial services built around the ESRI ArcGIS Server platform. These services are utilized by NRCS ArcGIS desktop users and other production web based geospatial applications used throughout NRCS and by the public.

Requirements or Technical Representative Certification I hereby certify requirements and/or technical supporting data relied upon for this justification is accurate and complete to the best of my knowledge and belief.

Paul Fukuhara USDA-NRCS-NGCE National Geospatial IT Innovation Leader

__________________________________ 06/24/2015 Signature Date

Contracting Officer’s Certification-Buyer I hereby certify this justification is accurate and complete to the best of my knowledge and belief.

George D. Wilson USDA-NRCS-NCSU Contracting Officer

__________________________________ 06/24/2015 Signature Date

Contracting Officer’s Certification I hereby certify this justification is accurate and complete to the best of my knowledge and belief.

Shaukat Syed USDA-NRCS-NHQ Contracting Officer

_________________________________ 06/24/2015 Signature Date

Approval of the Justification – Agency Competition Advocate I hereby certify this justification is accurate and complete to the best of my knowledge and belief.

Edward Biggers USDA-NRCS-NHQ

__________________________________ 06/24/2015 Signature Date