C01 Contracting Opportunities Notice of Award JnA Redacted.pdf

Control Number VA-20-00031660

JUSTIFICATION

FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity: Department of Veterans Affairs

Office of Procurement, Acquisition, and Logistics Technology Acquisition Center 1701 Directors Blvd., Suite 600 Austin, TX 78744

2. Description of Action: The proposed action is for a firm-fixed-price (FFP) delivery order to be issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise Wide Procurement (SEWP) V Governmentwide Acquisition Contract (GWAC) for the renewal of brand name Pitney Bowes (PB) Spectrum software suite data subscriptions and software maintenance and support.

Additionally, this action encompasses the procurement of additional software license modules, subscriptions, software maintenance and support, and professional services.

3. Description of the Supplies or Services: VA Profile Program has a requirement for the renewal of brand name PB Spectrum software suite data subscriptions and software maintenance and support. The PB Spectrum software supports Personal Identity Verification authentication through a Single Sign On Internal implementation which aligns to VA’s required access protocol. The PB software is a U.S. Postal Service (USPS) Code Accuracy Support System-certified product, reducing the volume of non-deliverable mail, unsorted mail, and mail that can only be delivered with significant effort due to incorrect mailing data. The proposed action will provide for the renewal of brand name PB Spectrum software data subscriptions and software maintenance and support. The VA Profile program’s existing implementation has been designed and built on the PB Code-1 Application Programming Interface (API) to ensure compatibility and integration with VA applications and systems. The VA Profile program also requires brand name PB Spectrum associated software maintenance and support services which include periodic patches, fixes, updates, enhancements and corrections to the software as well as technical support to ensure the software functions as intended.

Additionally, this action includes six Optional Tasks for the procurement of additional software license modules, subscriptions, software maintenance and support, and professional services that will provide VA with an Enterprise capability for researching data quality issues and reviewing and editing failed addresses.

Specifically, the VA Profile Program requires World Street Geocoding subscription and maintenance, Enhanced International World Bundle subscription and maintenance, Master Location Data for Point Level Geocoding license, subscription, and maintenance, LOQATE license, subscription, and maintenance, Add-On Modules for advanced data integration name management bundle, and global address module, license, subscription, and maintenance. Lastly the optional task for professional services will provide one-month application, architecture, workflow design, error handling, and problem resolution support. These additional licenses, Pitney Bowes Spectrum Software Control Number 20-00031660 subscriptions, maintenance and support, and professional services are needed to enhance VA’s current capability so that VA can ensure a quality postal address and accurate geolocation coordinates are available for the Veteran. This will also allow for the address and geolocation coordinates to be provided to Veteran-facing systems and applications that need to consume this data, such as the Enrollment system, Vets.gov, and Loan Guaranty.

The period of performance shall be a 12-month base period with two 12-month Option Periods for the procurement of Pitney Bowes (PB) Spectrum software data subscriptions and software maintenance and support. The six optional tasks may be exercised at any point during the period of performance; optional tasks for licenses may be exercised once and optional tasks for data subscriptions and maintenance may be exercised up to three times. The total estimated price of the proposed action, inclusive of all options, is $

4. Statutory Authority: Pursuant to Federal Acquisition Regulation (FAR) Subpart 16.505(a)(4), the following brand name requirement is being justified and approved as an exception to fair opportunity under the statutory authority of Section 41 U.S.C.

4106(c)(2) as implemented by FAR Subpart 16.505(b)(2)(i)(B), titled “Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

5. Rationale Supporting Use of Authority Cited Above: Based on market research, as described in section 8 of this document, it was determined that limited competition is available among authorized resellers for this brand name requirement. PB Spectrum suite is the only software that is compatible with the Code-1 JAVA-based API currently in use by various VA projects, including: Veterans Service Network (VETSNET) Compensation and Pension suite of applications, Benefits Gateway Services (BGS) data service platform, Enrollment System, and Identity and Access Management (IAM) Master Veteran Index (MVI) system. These projects currently use PB software, however due to increased demands on these projects and the need for additional accuracy, additional software and data subscriptions are required. The PB code-set is the only geocoding software API that has gone through the rigorous testing process required before any software may be installed on VA computers and infrastructure. The VA Profile program has invested approximately $6 million in purchasing and implementing the PB Spectrum software suite. Using another brand of software, even if another existed that met the Governments requirements, would require a complete infrastructure redesign and code rewrite of the applications and systems listed above, a new address validation tool, and a new management tool that is interoperable with current VA architecture, platforms, applications, and systems. VA estimates it would require $6 million in duplicated costs and approximately 36 months to procure and implement a similar solution that is not based on PB software. This estimate is based on data from prior acquisition history and the time necessary to complete the required testing and geocoding software other than PB installed VA computers . Additionally, the Code-1 JAVA-based API is the proprietary property of PB Software, Inc., and PB has exclusive rights to distribute the software and use the source code. Only PB or an authorized reseller can provide the required software licenses and associated data subscriptions, software maintenance and support, and professional services because of the proprietary source code and the vendor’s agreement to allow the source code to be installed inside the VA Firewall. No other source is capable of providing the required licenses, maintenance and support, that meets VA’s functional requirements and has agreed to allow the source code to be installed inside the VA Firewall. Compatibility with the Code-1 JAVA-based API, provides an Enterprise capability for ensuring a quality postal address can be provided.

Furthermore, integrating multiple commercial software packages to support address validation, geocoding, and business data stewardship would result in the complete redesign of the infrastructure. The current infrastructure consists of PB brand name software and no other software is interoperable and compatible due to the aforementioned proprietary constraints. In conclusion, failure to procure brand name PB Spectrum software licenses and associated data subscriptions, software maintenance and support, and professional services will result in Veterans not receiving VA correspondence related to their health and benefit services which will impact quality and timeliness of Veteran care.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in section 8 of this justification. This effort did not yield any additional sources that can meet the Government's requirements. However, the VA technical representative determined that limited competition is available among authorized resellers for brand name PB Spectrum software suite enterprise licenses and associated data subscriptions, software maintenance and support services, and professional services. In accordance with FAR 16.505(a)(4)(iii)(A)(1), this justification will be provided with the solicitation to NASA SEWP V Group B (2) GWAC holders. Furthermore, in accordance with FAR 5.301, FAR 16.505(b)(2)(ii)(D), and FAR 16.505(a)(4)(iii), the award notice for this action will be synopsized on the Contracting Opportunities website and this justification will be made publicly available within 14 days of award.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be fully competed.

8. Market Research: In March 2020, the Government’s technical experts conducted market research to determine if there are viable sources other than PB who could provide the necessary enterprise licenses and associated data subscriptions, software maintenance and support services, and professional services needed for this requirement. Through technical knowledge and internet research, the technical team analyzed competitors such as Smarty Streets and ARC GIS. Although these sources offer similar products, their products do not provide an avenue for users to research data quality issues or review and edit failed address. Furthermore, none of these other products can work with the currently implemented Code-1 API architecture, which is critical for interoperability and interfacing with partner systems like VETSNET, BGS, and the Enrollment System. In addition, neither vendor allows their software and API’s to be installed inside the VA firewall on VA owned platforms.

Only PB, or an authorized PB reseller, has access to the proprietary source code necessary to provide the required licenses and subscriptions, and perform the required services. The technical team determined these other sources are not able to perform the required services on the proprietary software. PB was contacted in March 2020, to inquire whether its source code was for sale. PB confirmed that the source code is proprietary and not for sale. Additional market research was conducted in April 2020 through the issuance of a Request for Information (RFI) on NASA SEWP V to identify capable vendors. One Service-Disabled Veteran Owned Small Businesses (SDVOSB), Three Wire Systems, responded to the RFI. It was determined that Three Wire Systems was capable of providing the required PB Spectrum software suite enterprise licenses and associated data subscriptions, software maintenance and support services, and professional services. In May 2020, additional market research was conducted using the NASA SEWP V GWAC Provider Look-up Tool which confirmed that there are four federal partners for PB on the NASA SEWP V GWAC, including three SDVOSBs [Four Points Technology, Three Wire Systems, and Thundercat Technology]. Based on the analysis of the RFI response, along with the NASA SEWP V GWAC Provider Look-up Tool results, there is a reasonable expectation that limited competition exists on the NASA SEWP V GWAC for the required PB Spectrum enterprise software suite enterprise licenses and associated data subscriptions, software maintenance and support services, and professional services. As a result of the aforementioned market research, VA intends to issue a Request for Quotation targeted to NASA SEWP V Group B (2) GWAC holders who are SDVOSBs.

9. Other Facts: None.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date: 6/12/2020

Project Manager Signature:

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on competition and price analysis.

Procuring Contracting Officer Signature:

12. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Procuring Contracting Officer Signature:

13. Legal Sufficiency Certification: I have reviewed this justification and find it adequate to support an exception to fair opportunity and deem it legally sufficient.

Legal Counsel Signature:

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the renewal of brand name Pitney Bowes (PB) Spectrum software data subscriptions and software maintenance and support and the acquisition of additional software license modules, subscriptions, software maintenance and support, and professional on an other than fair opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.

Date: 6/16/2020 Signature: _____________________________________

Advocate for Competition Technology Acquisition Center Office of Procurement, Acquisition, and Logistics