B06-JA_Brand_Name_AAPS-PC-Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(J&A)

Army Active Pay System – Personal Computer (AAPS-PC)

January 13, 2020

References:

6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. (a) Authority. (1) Citations: 10 U.S.C. 2304(c) (1) or 41 U.S.C. 253(c) (1).

1. Identification of the Requiring and Contracting Activity.

a. Requiring/Requesting Activity

Defense Finance and Accounting Service

ATTN: DFAS-ZTABD

8899 East 56th Street Indianapolis, IN 46249-0301 DoDAAC: HQ0358

b. Contracting Activity DFAS Columbus Contract Services Directorate 3990 East Broad Street Columbus, OH 43218-2317

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

The purpose of this document is to obtain the necessary approvals for a sole source acquisition in accordance with FAR 6.302-1. Competition is limited to only one responsible manufacturer and no other supplies or services will satisfy agency requirements. The software needed is essential to the Government’s requirements and market research indicates other companies’ similar products cannot meet the needs of DFAS.

This procurement is for the purchase of technical support services for the maintenance of the Army Active Pay System – Personal Computer (AAPS-PC).

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

This requirement is for procurement of technical support services for the maintenance of the Army Active Pay System – Personal Computer, (AAPS-PC). The AAPS-PC software was developed to provide an automated method of providing off line manual pay capability for a specific group of active Army pay accounts because of the nature of their duty assignment. It functions within the military pay and disbursing branches of a Finance and Accounting Office (F&AO) and USAFMCOM. AAPS-PC creates and maintains payment records, structures pay entitlements and deductions as applicable, calculates federal and social security taxes, leave accrual, changes due to unauthorized absences, and prints checks and specified reports. AAPS-PC also provides the option to pay all pay and allowances or to pay specific entitlements only. The AAPS is currently licensed to USAFMCOM, under a contract with the Information and Technology Directorate at DFAS –

Indianapolis. The requirement also includes travel, as necessary.

The total contract value over a five-year period is anticipated to be as follows:

Base Year $123,500.00 Option Year 1 $125,920.00 Option Year 2 $128,388.40 Option Year 3 $130,906.17 Option Year 4 $133,474.29 Total $642,188.86

4. An identification of the statutory authority permitting other than full and open competition:

10 U.S.C. 2304(c) authorizes the Department of Defense (DoD) to contract without full and open competition under certain circumstances. For this acquisition, other than full and open competition is permitted per FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services will satisfy Agency Requirements.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

AAPS-PC software is sole-source proprietary and licensed for limited DOD use by Professional Software Consortium, INC.( PSC). The software provides an automated method of providing off line manual pay capabilities for a specific group of service members due to the nature of their duty. PSC owns the proprietary rights to the software and its code. The Government has invested over $1,361,000.00 in the development, support, maintenance, and licensing of AAPS-PC software under the current and previous contracts. AAPS-PC went from a DOS based system to a Microsoft Windows system. DFAS/USAFMCOM currently owns a license and actively uses the above referenced software. The software is proprietary to PSC, Inc. During the first year of the current contract, the software was re-written to simplify the code, update the operating system, and make the software multi-user. All modules, databases, forms and screens were updated in 2015. Additionally, in 2016, the software was modified to include payroll processing for Air Force service members, expanding the capabilities of the software. The time and expenses it would take to move to another software package that meet the needs of DFAS/USAFINCOM would be detrimental to the Government. No replacement system is on the horizon to replace AAPS-PC at this time. The user base is small and it would be significantly more expensive to develop and maintain a system to handle the workload currently performed by AAPS-PC.

Other DFAS military pay systems do not have the capability to pay service members in the field, in an offline process. No commercial software exists to perform military pay. Off the shelf payroll software cannot handle the complexity of the various payroll situations for the military. APPS-PC creates and maintains payment records, structures pay entitlements and deductions as applicable, calculates federal and social security taxes, leave accrual, changes due to unauthorized absences, and prints checks and specified reports. APPS-PC also provides the option to pay all pay and allowances or to pay specific entitlements only. Due to the nature of these type of entitlements, the software cannot connect to current networks.

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

This is a sole source requirement, for reasons stated in paragraph 5 above. DFAS will post this justification and approval within 14 days after contract award as required by FAR 6.305(a).

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

In determining a fair and reasonable price, the Contracting Officer will evaluate a more detailed breakdown from a formal Independent Government Cost Estimate (IGCE). The Contracting Officer will make a determination of price reasonableness. The order will provide the best value to the Government and result in the lowest lifecycle cost.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Commercial software is not available in today’s market to conduct Military Pay payroll. PSC developed the current software to operate in the field on a stand-alone personal computer with no system inputs or outputs. Other DFAS military pay systems cannot function in an off-line environment. Off the shelve software cannot duplicate the complexity required to meet the needs of USAFINCOM to pay service members in the field. AAPS-PC is proprietary software licensed for limited DoD use. PSC owns the proprietary right to the software, its code and all maintenance to this software. There is currently no replacement system on the horizon to replace AAPS-PC at this time. The user base is small and it would be significantly more expensive to develop and maintain a new system to handle the workload currently performed.

9. Any other facts supporting the use of other than full and open competition, such as:

Nothing to add to this section that has not already been articulated within this justification document.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition. This contract will be awarded as a sole-source contract to Professional Software Consortium INC.

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

This solicitation will be publicized in accordance with FAR Part 5.2 in the interest of locating additional sources.

PANNELL.DONALD.LEWIS.1046079376

E.N.1285855787

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.

Requiring Activity/Program Management Office Certification

Requiring Activity/Program Management Office Certification:

Printed Name: Brian Hirman

Title: DJMS-AC System Manager Org. Code: ZTBB

Digitally signed by

HIRMAN.BRIAN.J.1230051000

Signature: 1230051000 Date: 2020.01.14 13:22:23 ‐05'00' Date: 14 Jan 2020 Phone: 317.212.5570

Technical Certification:

Printed Name: Donald Pannell

Title: Quality Review Analyst Org. Code: US Army Financial Management Cmd.

PANNELL.DONALD.LEWI Digitally signed by

Signature: S.1046079376 Date: 2020.01.21 07:44:38 ‐05'00' Date: Phone: 317-212-4104

Contracting Officer Certification:

I hereby determine that the anticipated cost for this contract action will be fair and reasonable.

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

Printed Name:

Title: Org. Code:

SMITH.STEPHANI Digitally signed by

SMITH.STEPHANIE.N.1285855787

Signature: Date: 2020.01.21 08:17:15 ‐05'00' Date: Phone:

Review For Legal Sufficiency:

Printed Name

Title Organization Code

Digitally signed by

BRECK.APRIL.M.1160852204

Signature.1160852204 Date: 2020.01.21 09:26:43 ‐05'00' Phone Date

HIRMAN.BRIAN.J.

BRECK.APRIL.M

Activity Competition Advocate ($650,000 - $12,500,000)

Printed Name

Title Organization Code

Signature Phone Date