C01 JA Redacted.pdf

Esri ArcGeographic Information System Control Number VA-25-00021012 Enterprise Agreement

LIMITED-SOURCES JUSTIFICATION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, New Jersey 07724

2. Description of Action: The proposed action is for a sole source firm-fixed-price delivery order for brand name Environmental Systems Research Institute, Inc. (Esri) ArcGeographic Information System (ArcGIS) term and perpetual software licenses, Software as a Service (SaaS), data, services, maintenance, technical support, and virtual training to expand Veteran Health Administration (VHA) current GIS Enterprise Agreement (EA) scope and capabilities. This effort is being conducted under the authority of the Multiple Award Schedule Program (MAS) and the proposed contract will be awarded under the General Services Administration (GSA) MAS GSA# GS-35F253CA to Esri.

3. Description of the Supplies or Services: VA Office of Information and Technology, and VHA Chief Strategy Office is expanding its current ArcGIS infrastructure based on the Office of Inspector General 2021 and 2023 audits, and to ensure compliance with the Geospatial Data Act of 2018. VA requires Category A products consisting of uncapped annual software licenses and subscriptions that allow for unlimited use, Category B, and C products which includes quantity limitations. Specifically, VA requires brand name Esri ArcGIS EA, to include uncapped software licenses, 100 perpetual software licenses for specialized tools, 3,490 term subscriptions and 1,445,000 hosting units for Web-GIS, Esri's Enterprise Advantage Program, Premium (24/7) support, Street-Map Premium Advanced, US Data Only, Navteq version subscriptions and FedRAMP authorized SaaS, data, services, maintenance, technical support, and virtual training. The FedRAMP authorization process requires government agency sponsorship and eight to 24 months to complete. Therefore, SaaS authorization is required by the date of contract award to avoid a National Cemetery Administration (NCA) work stoppage.

VA requires a solution to seamlessly integrate with Python and Microsoft Products, such as Microsoft Office, Microsoft Sequel Server, SharePoint, and Power BI to stakeholders with the use of interactive maps and dashboards, and to automate processes with the use of scripts. The software maintenance and support services are required to ensure the software functions as intended. Software maintenance shall include software updates, patches, bug fixes, and business hour telephone and 24/7 web-based helpdesk support for questions and troubleshooting. Support services shall include access to SaaS portals capable of supporting simultaneous users and virtual training.

The Office of Information and Technology, and VHA Chief Strategy Office requires an optional task for Advanced Professional GIS Services 50-hour, to be exercised if required, for a quantity of 10 each during the base year and option periods, resulting in a total quantity of 30 each. Additionally, this effort requires optional quantities for additional software products that will allow VA to further expand GIS utilization and incorporate new technologies. The optional quantities shall consist of one (1) ArcGIS Enterprise on Kubernetes, one (1) Internet of Things, one (1) ArcGIS Knowledge, one (1) ArcGIS Hub, one (1) ArcGIS GeoAnalytics Server, two (2) each of ArcGIS Indoor Positioning Systems, not to exceed (NTE) 25 each ArcGIS Indoors, and NTE 300 each ArcGIS Online currency.

The proposed action period of performance is 12 months with two 12-month option periods for renewal of term licenses, continued maintenance, technical support, virtual training, one optional task and optional quantities.

4. Statutory Authority: This acquisition is conducted under the authority of the Multiple-

Award Schedule Program. The specific authority providing for a limited source award is Federal Acquisition Regulation (FAR) 8.405-capable of providing the supplies or services required at the level of quality required because the supplies or ser

5. Rationale Supporting Use of Authority Cited Above: Based on the market research as described in Section 8 of this document, it was determined that only one source, Esri located at 380 New York Street, Redlands, CA 92373 can meet the

The expansion of GIS infrastructure will ensure VA fully complies with the Geospatial Data Act of 2018, breakdown silos, promote geospatial data integration, and improve resource allocations to fulfill geospatial data responsibilities, in accordance with the 2021 and 2023 Office of Inspector General audits. The expansion will provide a modern enterprise geospatial system that facilitates accessibility, analysis, data centralization, management, and standardization. VA has one of the largest patient and non-patient record data sets in the United States. VA requires geospatial tools that will enable its staff to efficiently capture, analyze, display, and extract valuable and relevant information from vast and diverse spatial data sets. Only Esri can provide the range of spatial analysis and processing workflows capable of managing VA's volume and diversity of geospatial data, enabling the delivery of necessary analysis to support Congressional mandated initiatives (MISSION, PACT, and Cleland-Dole Act), and VA-wide data driven decisions (e.g., rural health and homelessness programs).

The cornerstone of the VA GIS EA is the uncapped software license, which will grant an agency-wide right to deploy and share ArcGIS Desktop, ArcGIS Desktop extensions, ArcGIS Enterprise, ArcGIS Server, ArcGIS Server extensions, ArcGIS Online (SaaS) user types, and ArcGIS Developer subscriptions. The EA also grants policy makers access to a shared geospatial platform that provides consistent infrastructure for geospatial data development, analysis, cartographic products, and web services to provide for the needs of Veterans. No other GIS software manufacturer offers an enterprise license that enables a shared services platform for an array of seamlessly integrated software products that can be hosted on premise within the VA network. Hosting within the VA network allows staff to effectively manage and enforce data access policies across offices, provide consistency, promote integrity, data security, and ensure alignment with the recently mandated Geospatial Data Act.

Additionally, Esri's suite of product licenses and maintenance support is the only solution that is compatible with the existing VA infrastructure and embedded within VA business systems. The VA GIS infrastructure relies on Esri products, and the surrounding server architecture has been designed to ensure interoperability with Esri's suite of products. VA GIS users have spent years developing workflows, scripts, mobile applications for collecting data, and automated procedures using Esri software products and architecture. Therefore, Esri suite of GIS software and tools that can seamlessly integrate with Microsoft Products to perform the spatial analysis as required by VA. The integration of these products provides a secure, central location for end users to access, design, manage, and share spatial information without requiring additional processing, storage, or network infrastructure.

The use of another product would cause VA to lose years of embedded regional and national workflow data, as well as the ability to interoperate with other software products within its infrastructure. VA would be required to rebuild its current GIS enterprise environment to accommodate a new software and to redevelop workflows, applications, and scripts at a potential cost of over $3 million. Rebuilding the GIS enterprise environment alone would cost approximately $1.5 million, with a timeline of 18-24 months to design, deploy, test, re-establish connections, update documents, and modify the Authority to Operate (ATO) details and artifacts. A new software would require VA to reproduce existing products, update GIS data, applications, dashboards, and scripts. VA processes 50 million drive time and distance calculations annually to identify the closest healthcare sites that can provide care for each Veteran enrollee. The scripts used for batch-processing to geocode drive time and distance to VA healthcare facility locations for millions of Veterans would require rewrite. The Python script that exceeds 1000 lines of code and provides critical functionality to the planning portal application would require replacement. The field data collection application used by 150 NCA staff would require redevelopment, testing, deployment, and staff retraining. The application programming interfaces (APIs) that deliver mission critical spatial data to VA systems would require redevelopment and modifications to the client systems code must be completed to adapt to the new APIs. The VA Risk and Hazard Toolkit would require major modifications to accommodate custom application to a new software.

During the redevelopment period, NCA would incur a work stoppage affecting 150 data collectors who rely on ArcGIS mobile applications. Additionally, hundreds of content contributors, along with thousands of data viewers and consumers from various VA program offices, including those supporting congressionally mandated initiatives, would lose access to the data and tools they have relied on for over a decade to facilitate evidence-based decisions-making.

VA technical experts estimate a timeline of approximately two to three years and a minimum of $1.5M to retrain existing staff, convert data, rebuild applications, web maps, dashboards, published data, automated processes, and workflows that provide business solutions to VA programs. Additionally, the process of rebuilding applications will require contractor assistance, which will result in delays. The implementation of a new software solution will require additional time for an Authority to Operate and FedRamp SaaS approvals. ArcGIS software is widely used across Government agencies (city, county, state, federal), making it easier for VA offices to hire highly qualified geospatial analysts and support staff. Universities and training program graduates, within the geospatial field are familiar with and are trained to use degraded if we move to new software.

The ArcGIS system is integral to property, asset, and space management across VA. Engineers at VA medical centers and NCA cemeteries rely on GIS systems and data to manage and visualize utility networks on VA properties, to identify buried cables/pipes, reducing the likelihood of new construction disruption. The VA Central Office, along with several VA medical center campuses currently use ArcGIS software to optimize the selection of proposed sites of care, to manage space utilization, to repurpose unused space, and coordinate reservations for shared offices and conference rooms. Several VA campuses are preparing to adopt ArcGIS space management solutions within the next 24 months. Delaying those initiatives while deploying a new software system and servers comes at a cost and prolongs the need for leased office space that could otherwise be avoided.

Furthermore, the ArcGIS system provides community care schedulers. This allows schedulers to determine drive time eligibility for community care authorizations and ensure Veterans can receive immediate access to care within close proximity of their residence. The ArcGIS tool used to map and photograph grave markers, helps families locate a deceased Veteran National Cemetery burial site. ArcGIS is used within the Veterans Benefits Administration to identify Veterans eligible for services under the Promise to Address Comprehensive Toxics Act. Without continued use of Esri these essential services would be degraded.

Esri provides a unique service and is the only vendor that can meet all of VA requirements. Esri does not provide its proprietary source code with any of its authorized service partners. While some Esri services can be obtained through an authorized partner, these partners service offerings are limited and cannot provide an Enterprise Agreement or maintenance. Therefore, Esri is the sole provider capable of delivering the specified software licenses along with maintenance services. VA offices and the associated programs that rely on GIS data and analysis for decision-making, improving operations, and eligibility determination would experience an adverse impact. In addition, if an award is not made for this requirement as requested, it will perpetuate the existing siloed GIS, duplicative data and services, non-standardized data and methods, and inefficiency of awarding several GIS contracts across VA.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any

. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 8.405-6(a)(2) 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 competed. Specifically, the Government will continue to monitor the marketplace to determine whether other brand software could integrate into VA's existing GIS suite of tools and applications.

8. Market Research: VA technical experts conducted market research in December 2023 by reviewing similar software solutions that could provide the required spatial analysis tools, work within Microsoft Office Suite of Products, support Python scripting, and include a FedRAMP authorized SaaS product for geospatial analysis and display. In addition, VA performed market research to determine whether replacing the Esri ArcGIS software suite was feasible, and whether there are any vendors other than Esri that can provide an enterprise agreement to seamlessly integrate software and services and are capable of working with the existing GIS tools that were created specifically for VA's integrated geospatial needs. It is essential that prospective vendors have an existing SaaS solution or are capable of establishing an authorized SaaS solution by the date of contract award to prevent a work stoppage in NCA operations, since the SaaS authorization procedure requires Government agency sponsorship and takes eight to 24 months to complete.

VA -

requirements. A GSA e-Buy RFI was conducted and resulted in a single response from Esri. additional market research by reviewing GIS solutions from Bentley Systems, Mapbox, AutoDesk, Harris Corporation, Maxar Technologies, and Precisely MapInfo Pro. While these companies may offer comparable solutions, the range of products and services , as detailed in the following sections.

Hexagon software does not meet VA requirements for seamless interoperability with the existing ArcGIS infrastructure. Hexagon software does not provide for mapping and managing indoor spaces or offer a web GIS SaaS that is FedRAMP authorized.

This solution would require staff retraining and extensive redevelopment of existing workflows and scripted procedures.

does not provide a solution that can manage VA large data sets and does not meet VA's interoperability requirements with the existing ArcGIS infrastructure. It does not provide a solution for mapping, managing indoor spaces, and a FedRAMP authorized web GIS SaaS product. In addition, converting to Maptitude would require a large investment for retraining staff and redeveloping automated processes and scripts that are currently in use.

Trimble does not provide mapping and analysis features that allow VA to collaborate with external partner using interactive maps and dashboards. Trimble does not provide the advanced network analysis tools that VA relies on for determining access to facilities and services. Trimble does not offer an indoor space management software product that will allow VA to evaluate and manage indoor spaces or reserve shared spaces.

Google Maps Platform does not have the required features or functions for indoor mapping and space management, such as space planning, analysis of utilization, and hoteling/reservations. The VA technical expert determined that capabilities and tools for VA medical center campuses and utility networks are does

. The network analysis capabilities in Google maps are not intuitive and will require alternative solutions to work around generating travel time polygons and running nearest facility analysis with 1000+ origins and destinations, which is not optimal for novice users.

Harris Corporation does not offer geospatial analysis software.

Bentley Systems does not provide several tools/capabilities that VA requires, including network analysis, geostatistical analysis, data enrichment (business analysis), and insights. In addition, Bentley systems does not offer a FedRAMP authorized SaaS product.

Orbital Insight does not have a FedRAMP authorized SaaS product. The recent acquisition of Orbital by Privateer was prompted by financial challenges. The Government technical expert determined that utilizing this product would pose a significant risk in transitioning 30 years of work to a vulnerable product line.

Mapbox MapsPeople, MapsIndoor, and Precisely MapInfo Pro software were reviewed. These software products do not provide the required space management, hoteling functionalities, and a FedRAMP authorized SaaS.

AutoDesk does not provide many of the spatial analysis tools (e.g., network analysis, indoor space management and reservations) that VA requires.

Maxar Technologies does not provide many of the software features and functions (e.g., network analysis, modeling, indoor space management) that VA requires. In addition, Maxar does not offer SaaS products that are FedRAMP authorized.

Based on the above, the VA the GIS software are either limited in products or services selection, spatial analytic capabilities, less integrated shared services platform; do not offer an Enterprise Agreement or a FedRAMP authorized SaaS solution. As a result, the VA technical experts determined that only Esri

In July 2024, the Contract Specialist conducted market research by reviewing GSA MAS for ArcGIS which confirmed Esri as the sole provider. Additional market research was conducted using National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government Wide Acquisition Contract (GWAC) Market Research Tool to identify Esri resellers. The search resulted in three Service-Disabled Veteran Owned Small Businesses. However, a solicitation can only be issued to two of three SDVOSB vendors, as one vendor is currently excluded on SAM.gov. To further confirm authorized resellers, the CS contacted Esri directly and requested a list of its authorized resellers. Esri responded with a sole source justification for Geographic Information System Software. The letter stated that Esri is the sole-source provider of its products and maintenance for federal customers. Esri does not have a contractual relationship enabling any third party to resell Esri maintenance to the federal government on a standalone basis. Based on the above market research, it was determined that Esri is the only company that can provide this requirement.

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.

11.Best Value Determination: I hereby determine that the proposed contract action will represent the best value to the Government consistent with FAR 8.404(d). GSA has already determined that the prices on the FSS contract are fair and reasonable.

Further price analysis, to include an analysis of proposed level of effort and mix of labor, will be conducted and subsequent negotiations held as necessary.

Additionally, price discounts will be sought.

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

Office of General Counsel (OGC) Review

I have reviewed this document and find it legally sufficient, based on the representations set forth in the documents and, if any, attachments. The Competition Advocate approval is an independently supported decision not wholly reliant on the legal sufficiency determination.

Advocate for Competition Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of brand name ESRI ArcGeographic Information System (ArcGIS) term and perpetual software licenses, FedRAMP authorized SaaS, data, services, maintenance, and technical support 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.