C01-JA SAS-Final Fully Executed-Redacted.pdf

Control Number: VA-24-00018853

LIMITED-SOURCES JUSTIFICATION

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

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: This proposed action is for a 12-month firm-fixed price, Delivery Order with three, 12-month option periods for brand name Statistical Analysis System (SAS) Software Annual Maintenance Support Services for existing SAS software licenses. This effort is being conducted under the authority of the Multiple Award Schedule Program; the proposed effort will be awarded under the General Services Administration (GSA) Multiple Award Schedule (MAS), Contract 47QTCA18D0081 to Executive Information Systems, LLC (EIS), 6901 Rockledge Drive, Suite 600, Post Office Box 34076, Bethesda, Maryland, 20827-0076.

3. Description of the Supplies or Services: VA, Veterans Benefits Administration (VBA) Office of Performance Analysis & Integrity (OPA&I) has a requirement for the renewal of brand name SAS software maintenance and support. OPA&I has several existing servers running SAS software that is currently being used by VBA to provide OPA&I with predictive analytics, simulation, optimization studies, and ad hoc reporting capabilities of current claims processing functions. The required brand name SAS software maintenance and support includes access to software updates, patches, phone support, email support, and on-line self-help. The period of performance shall be from August 31, 2024 through August 30, 2025, plus three one year option periods. The total estimated price of the proposed action is .

4. Authority: This acquisition is conducted under the authority of the GSA MAS program.

The specific authority providing for a limited source award is Federal Acquisition Regulation (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.”

5. Rationale Supporting Use of Authority Cited Above: Based on extensive market research, as described in section 8 of this document, it was determined that EIS is the sole Government provider of SAS software maintenance, specifically, Version 8 and later of SAS software licenses. The Government is currently using Version 12 of SAS software and therefore, only an award to EIS can satisfy the Government’s requirement for SAS software maintenance. No other firm has the capability to develop and issue software updates and fixes for SAS software necessary to support existing enterprise operations statistical and analytical requirements without access to SAS proprietary software code. It is impossible for any other vendor to modify the software code as required for patches and updates; and lack of access to patches and updates would degrade the Government’s ability to analyze, visualize, and share data supporting Veteran benefits claims, which would delay the timely processing of claims to the

SAS Software Annual Maintenance Support Control Number: VA-24-00018853 detriment of Veterans. SAS provides software maintenance to the Government exclusively through EIS, as SAS does not sell its software maintenance through other resellers. EIS holds a current contract under GSA MAS.

In addition to EIS’ unique qualifications, replacement of the SAS software maintenance with a product other than SAS would require VA to procure new analytical software.

Procuring another product would involve a substantial duplication of cost (e.g.

solutioning of requirements, research for alternative software, proof of concept, procurement costs, installation, testing, migration, new licenses, maintenance, etc.) that is not expected to be recovered through competition. Additionally, the time it would take to install, test to ensure compatibility with the current servers and train VA staff on the use of new software would cause unacceptable project delays. In total, the estimated time required to put an alternative software in place is 1.5 - 2 years.

The inherent risk of not renewing the SAS software support is continuity of service.

OPA&I utilizes the SAS Data Mining platform to gather critical VBA information, which is reported to VA leadership and to other Government Agencies outside of the VA. If the SAS software support contract is not renewed, continuing to use the SAS platform would jeopardize the Authority To Operate and Security Compliance. A gap in service to OPA&I customers would ensue as there is no alternative platform available today.

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. In accordance with FAR 8.404(a) this requirement is exempted from synopsis. In accordance with FAR 8.405-6(a)(2) this justification will be made publicly available within 14 days of award. Furthermore, in accordance with FAR 8.405-6(b)(3) this justification will be posted with the Request For Quotation.

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

8. Market Research: Market research was conducted in March 2024 by government technical experts reviewing similar software and software maintenance to ascertain if these items could meet the government’s requirements. Specifically, the government technical experts conducted an internet search to determine if there was other software available that could meet the government’s requirements for replicating OPA&I’s current production environment. Although there are firms that offer data visualization and data mining software and maintenance of that software, those companies do not have access to SAS’s source code. The government technical experts confirmed that as the source code required to issue the updates is proprietary, only SAS or an authorized reseller can provide the required maintenance and upgrades for SAS software. No other firm has the capability of developing and issuing software updates and fixes for the SAS software necessary to support existing OPA&I’s requirements. Additionally, the government contacted SAS to determine if there were additional government distribution channels for the required software maintenance. SAS responded with a letter dated April 17, 2024, confirming that SAS Institute Inc. is the sole manufacturer and publisher of SAS software and that currently EIS is SAS’ sole authorized reseller for Version 8 and later of the software and subsequent maintenance. As such, this letter confirmed that EIS is the only reseller that can provide the government with the required SAS software maintenance support, and no other reseller is authorized to provide these services. Finally, a Request for Information (RFI) #1685904 was released on GSA eBuy from March 21, 2024, through March 28, 2024. The RFI closed with a response received from EIS. The Government’s technical experts reviewed EIS’s response and determined that EIS met all of VA’s technical requirements. On March 28, 2024, RFI #303596 was posted on NASA SEWP website to determine if additional resellers were available to meet the government’s requirements. On April 3, 2024, RFI #303596 closed with no RFI responses.

9. Other Facts: None.

10. Technical/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

Product Manager, VD2, VD3 Benefits Integration and Administration (BIA) Product Line Benefits and Memorial Services (BAM) Portfolio SPM, OIT, US Department of Veteran Affairs

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 MAS contract are fair and reasonable. Further price analysis, to include an analysis of historical prices paid by the Government for the same item, will be conducted and subsequent negotiations held as necessary. Additionally, price discounts will be sought.

Contracting Officer Office of Procurement, Acquisition and Logistics Technology Acquisition Center Department of Veterans Affairs

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

Contracting Officer Office of Procurement, Acquisition and Logistics Technology Acquisition Center

5/16/24

5/16/24

Advocate for Competition Approval In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of SAS Software Annual Maintenance Support Services 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.

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