Approved SSJ - Redacted.pdf

SOLE SOURCE JUSTIFICATION (SSJ)

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY

Agency: Social Security Administration (SSA or agency)

Contracting Office: Office of the Deputy Commissioner for Budget, Finance, and Management

Office of Acquisition and Grants Office of Information Technology Acquisition Division of IT Support Services

Contracting Officer (CO): Molly Seipp 410-965-2605

Contract Specialist (CS): Evan Aston 410-965-1288

Program Office: Office of the Chief Information Officer Office of Systems Operations and Hardware

Engineering Division of Resource Management and Acquisition

Contracting Officer’s Representative: Justin Herman

410-965-4740

Project Title: International Business Machines Corporation (IBM) Mainframe Software and Hardware Consulting Services

Proposed Contractor: SZS Consulting Ltd. (SZS)

Tracking Information: Advanced Procurement Plan (APP) #: DCS-25-267B0

Relevant current/previous order #: 28321320P00050036 Purchase Request # 3365-25-1120

Period of Performance: 12/31/2024 – 12/30/2029 (provided all option periods are exercised)

2. NATURE OF ACTION BEING APPROVED

Type of Action:

X New award

Contemplated Contract Type:

X Firm fixed-price

The agency seeks approval of an SSJ to obtain the following:

X_ Support Services

“Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).”

The basis for restricting competition is that a reasonable basis exists for concluding that the agency’s minimum needs can only be satisfied by unique supplies or services available from only one source or only one supplier with unique capabilities. SZS is the only open market authorized provider of services specific to what the agency requires.

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS

IBM has made mainframe software pricing an extremely complex endeavor, without many potential avenues for cost savings, favorable terms and pricing, and discounts from economies of scale. As such, the only individuals with specific knowledge of how IBM will discount its mainframe software are current and former employees of IBM.

SZS is uniquely qualified to provide these services to SSA based upon the following:

a. David Wilson, who is a retired IBM Executive with 30 years of experience, founded SZS;

b. SZS has intimate knowledge of the unannounced special terms and exceptions to IBM’s standard licensing and pricing policies; and

c. SZS, by virtue of experience within IBM, has an informed view of all license models announced by the major vendors in the mainframe software and hardware area, as well as the available special business or transaction-oriented models implemented for specific situations.

6. EFFORTS MADE TO SOLICIT FROM AS MANY POTENTIAL SOURCES AS IS

PRACTICABLE

A synopsis of proposed contract action, notice of intent to sole source, was posted to Contract Opportunities at SAM.gov, from 11/19/2024 to 11/26/2024, and a copy will be included in the contract file. As the notice of intent to sole source has not yet ended, the agency will continue to review any capability statements it received from vendors.

Based on the results of the posting, as well as market research described in item 8 below, the agency does not believe there are any entities other than authorized resellers with similar capabilities at this time.

7. DETERMINATION BY THE CO THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE PRICE

In accordance with FAR Part 13.106-3(a), the CO will perform a final price analysis in order to determine the eventual awardee’s proposed price is fair and reasonable.

8. DESCRIPTION OF MARKET RESEARCH

See Section 6 above. The agency used market research conducted within 18 months of the anticipated award date. In accordance with FAR 10.002(b)(2)(i), the agency contacted knowledgeable individuals in government and industry regarding market capabilities to meet the agency’s requirements. Therefore, the agency considers the information still current, accurate, and relevant.

9. ANY OTHER SUPPORTING FACTS

The agency contacted other experts in this area, such as ISAM and I/S Management, but neither has the detailed knowledge that SSA requires in this area, nor did they express interest in providing for the requirements in this acquisition. Attempts to find additional sources to provide this service were not successful. SZS has been supporting the agency since 2016 and has a depth of knowledge working with the agency.

In accordance with FAR 4.1102, 4.1201, and 9.401, upon selection of an awardee, the CO will examine the System for Award Management in order to make an affirmative determination of the contractor’s responsibility.

10. LIST OF SOURCES EXPRESSING INTEREST IN THE ACQUISITION IN

WRITING

No other sources have expressed an interest in this acquisition.

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

COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION IS REQUIRED

The agency will continue to survey the marketplace by synopsizing its requirement and reviewing product literature and capability statements submitted by the vendor community.

CONTRACTING OFFICER’S REPRESENTATIVE (COR) AND PROGRAM

OFFICIALS’ RECOMMENDATION

AND CERTIFICATION

The COR and other program officials hereby certify that the information provided in support of the sole source justification, and which forms the basis for this justification, is accurate and complete.

RECOMMEND: 10/10/2024

Justin Herman Date

COR

Information Technology Software Contracts Branch (ITSCB) Division of Resource Management and Acquisition (DRMA)

Office of Systems Operations and Hardware Engineering (OSOHE) Office of the Chief Information Officer (OCIO)

10/10/24

CONCUR: _______________________________ _______________

Anthony W. Denikos Date Chief

ITSCB, DRMA, OSOHE, OCIO

CONCUR: 10/10/2024

Mark Irwin Date Director

DRMA, OSOHE, OCIO

CERTIFICTION BY THE CONTRACTING OFFICER AND

OTHER CONTRACTING OFFICIALS

The contracting officer and other contracting officials hereby certify that the information provided in support of this sole source justification is accurate and complete to the best of their knowledge and belief.

RECOMMEND: ______________________________ 10/17/2024

Evan Aston Date Division of IT Support Services (DITSS) Office of Information Technology Acquisition (OITA) Office of Acquisition and Grants (OAG)

CONCUR: 11/12/2024

Molly Seipp Date Contracting Officer

DITSS, OITA, OAG

APPROVE: 11/22/2024

Joe Speca Date Division Director

DITSS, OITA, OAG