AT_21861_LSJ_FINAL_Redacted.pdf

Limited-Sources Justification

AT 21861

1. Contracting activity:

This Limited-Sources Justification (LSJ) supports a procurement action to be conducted under the authority of the Multiple Award Schedule Program (FAR 8.401). The procurement action is generated by the Office of Personnel Management (OPM), Office of Procurement Operations

(OPO).

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

The Chief Information Officer (CIO) Operations Technology Management’s (OTM) Data Center (DC) has a requirement for continued licensing and software support services for IBM Enterprise Servers, specifically annual maintenance renewal for IBM’s Monthly License Charge (MLC)/Work Load Charge (WLC). The renewal of software services needed from IBM entitles DC to new versions of the various operating system software products, assistance with identifying and fixing problems any time of the night or day, seven days per week, and the changes necessary to repair any defect found.

OPM requires IBM MLC/WLC software licensing and maintenance support renewal for a period of performance (POP) of one (1) year (6 month base period and one 6 month option period).

3. Supplies or services required to meet the agency’s needs (including the estimated value):

The inventory of IBM MLC/WLC software licensing and annual maintenance support services are being renewed with a POP of one year (one (1) six-month base period, and one (1) six-month option period), commencing on December 1, 2016. The estimated aggregate value of this procurement is

Renewal of IBM MLC/WLC Licenses is identified in Bill of Materials (BOM) below:

Systems In Report: System Name Machine No. System Serial MSUs Grp.

1. IBM zEnterprise EC12 System01 2827-503 515C7 217

2. IBM zEnterprise EC12 System02 2827-503 515D7 217

Aggregate Totals

PID Software Title SZLC/ZNAL SALC ULC PSLC WLC

System Type LIC LVL GRP QTY MSUs

5605DB2 DB2 10 for z/OS 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 Base 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 DFSMS dsshsm 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 DFSMS rmm 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 DFSORT 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 GDDM-PGF 189

1 AWLC R 189

5650ZOS z/OS V2 HCM 189

1 AWLC R 189

5650ZOS z/OS V2 RMF 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 SDSF 378

1 AWLC R 189

2 AWLC R 189

5650ZOS z/OS V2 Security Server 378

1 AWLC R 189

2 AWLC R 189

5655P97 Encryption Facil dss Encrypt 378

1 AWLC R 189

2 AWLC R 189

5655P97 Encryption Facil Encrypt Ser 378

1 AWLC R 189

2 AWLC R 189

5655R36 WS MQ Base for z/OS 378

1 AWLC R 189

2 AWLC R 189

5655R36 WS MQ Client Attachment 378

1 AWLC R 189

2 AWLC R 189

5655S71 COBOL V4 189

1 AWLC R 189

5655S97 CICS TS for z/OS

1 S R

2 S R

5655Y04 CICS TS for z/OS 378

1 AWLC R 189

2 AWLC R 189

5668806 VS FORTRAN Comp/Lib/Debug V2

1 FWLC B

5694A01 z/OS V1 Base

1 S R

2 S R

5694A01 z/OS V1 DFSMS dsshsm

1 S R

2 S R

5694A01 z/OS V1 DFSMS rmm

1 S R

2 S R

5694A01 z/OS V1 DFSORT

1 S R

2 S R

5694A01 z/OS V1 GDDM-PGF

1 S R

5694A01 z/OS V1 HCM

1 S B

5694A01 z/OS V1 RMF

1 S R

2 S R

5694A01 z/OS V1 SDSF

1 S R

2 S R

5694A01 z/OS V1 Security Server

1 S R

2 S R

5697ENV IBM Tivoli NetView for z/OS

1 S R

2 S R

5697NV6 IBM Tivoli NetView for z/OS 378

1 AWLC R 189

2 AWLC R 189

4. Authority permitting acquisition using limited sources:

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.

4.1. Demonstration that the contractor’s unique qualifications or the nature of the acquisition requires the use of the authority cited:

OPM’s operations can not function without the suite of IBM Systems Software which is being used on the IBM Enterprise Servers. This software is the z/OS operating system and related products which is only available from IBM, as it was developed by IBM, and therefore proprietary in nature.

IBM is the only vendor providing the maintenance and support services for MLC/WLC software.

Without the renewal of support for the z/OS IBM Operating System software products contained within the IBM Systems software account, OPM’s Information Technology staff will not have access to technical support from IBM in the event of system failure and will not allow OPM to continue to operate its mainframe enterprise server environment which currently houses the majority of OPM’s mission critical applications. The MLC/WLC software represents a portion of the mainframe operating system environment. The services are absolutely required by DC to provide timely resolutions of problems or defects which may be found in the various Retirement Services, National Background Investigations Bureau, Merit Systems Audit & Compliance, e-HRI and other OPM business lines’ software applications.

IBM does not authorize resellers for MLC/WLC licensing and maintenance services, and 100% of all services are provided directly by IBM. Therefore, IBM is the only supplier of its proprietary software and the only vendor capable of supporting its products.

5. Determination by the contracting officer that the anticipated order will represent the best value:

Based on the nature of the requirement, the solicitation will be issued to a single source, IBM under GSA Schedule Number GS-35F-4984H. Competition will not be sought. In order to determine that the anticipated order will represent the best value, the Contracting Officer and requesting activity will review previous orders. Additionally, the vendor will be requested to provide any discounts available beyond the published GSA price. Per FAR 8.404 pricing provided for on the Federal Supply Schedule is already determined to be fair and reasonable.

6. Description of the market research conducted and the results or statement of the reason market research was not conducted:

Market research specific to this requirement conducted by CIO and OPO in May and August 2016, identified IBM as the sole source offeror of IBM MLC/WLC and IPLA licensing and annual maintenance support services. IBM does not authorize resellers for this required proprietary software.

7. Other facts supporting the justification.

None.

8. Statement of actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

OPM currently owns and utilizes the IBM Enterprise Servers (Mainframe) which require IBM’s MLC/WLC software licensing and ongoing maintenance support. Market research was conducted to determine if anyone other than IBM could supply the support for its software products. These products are proprietary in nature where patents are held and source code is not in the public domain. Competitive action will be sought should adjustments to OPM’s mainframe systems, resulting in a change to OPM’s software needs, be made.

In accordance with FAR 8.405-6(a)(2)(i)(b) – Limited Sources, within 14 days after delivery order award, a notice shall be posted in accordance with FAR 5.301 and a copy of this justification posted at the GPE http://www.fbo.gov for a minimum of 30 days. Any contractor proprietary data, references and citations, as are necessary to protect the proprietary data, will be removed before making the justifications available for public inspection.

CERTIFICATIONS AND APPROVAL:

9. I hereby certify that the information provided herein to support this Justification is accurate and complete to the best of my knowledge and belief.

10. I hereby certify that the supporting data which form a basis for this justification are complete and accurate.

11. I hereby certify that the requirements identified within this LSJ are applicable to the authority [FAR 8.405-6(a)(1)(i)(B)] cited. My signature signifies approval of this Limited Source Justification.