ESD3.26.08_SALESFORCE CONSOLIDATE MEMO_redacted.pdf

Source Selection Information-See FAR 2.101 and 3.104

DETERMINATION TO CONSOLIDATE REQUIREMENTS INTO A SINGLE

CONTRACT

(SUBSTANTIAL QUANTIFIABLE BENEFITS)

Determination for the U.S. Coast Guard (USCG) to Consolidate all Salesforce licenses from the four (4) current contracts providing licenses for NavitaTM, AuxData, Gangway, Marine Information for Safety and Law Enforcement-Marine Enforcement and Adjudication Module (MISLE-MEAM), and Vessel Documentation System (VDS) into a Single Contract.

This determination is made pursuant to Revolutionary FAR Overhaul (RFO) 7.107-1.

The total value, including all options, of all actions covered by this determination is estimated to be $48,372,820.83.

FINDINGS

1) Description/Background The USCG is currently procuring Salesforce licenses by application, under four separate contracts. Three of the four contracts were for the design, deployment and maintenance/sustainment of modern efficient, effective, and affordable information technology (IT) solutions, and included Software as a Service (SaaS) licenses. One of the contracts was for SaaS licenses. All four contracts were competed brand agnostic and the SaaS licenses under each contract are Salesforce. With this current strategy, the USCG is paying for licenses for the same users multiple times across different, decentralized contracts/orders. The current strategy has created duplicative licenses and increase in cost to the Government. To address this, the USCG intends to procure the licenses as a consolidated enterprise procurement. By having a consolidated enterprise procurement for Salesforce SaaS licenses, the Government is able to benefit from cost savings through economies of scales, eliminate duplicative licenses, and create efficiency in meeting the needs of the USCG. As a result, the USCG intends to consolidate a small portion of three (3) of the contracts (i.e., only remove the Salesforce licenses) and one (1) contract into a single Task Order against the Army CHESS Salesforce Enterprise Contract (EC) Decentralized Indefinite Delivery/Indefinite Quantity (IDIQ) to provide the Command, Control, Communications, Computers, Cyber, and Intelligence (C5I) Program Executive Office (PEO) with Salesforce Enterprise Licenses and supporting license maintenance. These are required for sustainment of existing systems, supporting system modernization and upgrade projects, and supporting new capabilities implementation to address future Information Technology (IT) needs and known IT capability gaps. Solutions available under this Task Order shall be pre-approved and certified at Defense Information Systems Agency (DISA) Impact Level (IL) 2, 4, and 5 for implementation within contractor hosted DISA IL 2, 4, or 5 clouds. Salesforce Enterprise Licenses and supporting maintenance services that are incidental to the software license include but are not limited to troubleshooting, helpdesk, and backend support for the selected solutions. This procurement will utilize North American Industry Classification System (NAICS) Code 513210 – Software Publishers and Product Service Code (PSC) Code DA10 – IT and Telecom- Business Application/Application Development Software as a Service.

Contracts to be Consolidated:

Contract No. 70Z0G325FOIPL0028 70Z0G325FMSPL0011 70Z0G322FESD30017 70Z04425FOIPL0005

Contractor

(CTR)

Stealth Solutions, Inc. Acumen Solutions, Inc. Govsmart, Inc. Stealth Solutions, Inc.

NAICS 518210 541519 541519 518210

Description NavitaTM Gangway & AuxData MISLE-MEAM Vessel Documentation

System (VDS)

Place of Performance

Contractor Site (Government Site as needed) Contractor Site N/A

Contractor Site (Government Site as needed)

Pd. of Performance (incl.

Options)

9/15/2025 – 9/14/2026 9/24/2025 - 9/23/2026 8/4/2022 – 8/3/2027 6/30/2026 – 12/29/2028

Set-Aside Type

8a N/A HUBZONE 8a

CTR

Currently Small?

Yes No Yes Yes

Total Amount Obligated

$3,806,921.86 $5,031,156.85 $2,256,818.31 $2,789,557.83

Total Potential Contract Value

$3,955,067.58 $8,321,750.71 $2,256,818.31 $28,717,377.22

Total Value of Licenses

$182,758.77 $6,245,030.41 $2,256,818.31 $756,283.54

The two calls under the single award Blanket Purchase Agreement (BPA) with Stealth Solutions included “The Government may choose to acquire Cloud Hosting and/or SW licenses through a different contract vehicle, if available, at any time or at the discretion of the Government” at time of solicitation. This was also included during the solicitation phase which put all vendors and the awardee on notice.

The final deliverable of the Stealth NavitaTM Call is the Minimum Viable Capability Release (MVCR), which is a production ready application, with future support in a future Call. This Call ends 14 September 2026, and the Call planned for award 5 September 2026 will support sustainment and additional development releases but does not include the licenses.

The Stealth VDS Call only included licenses for up to 7 months (2-month base to align with the NavitaTM licenses, and an optional 6 months in case the Salesforce Enterprise License was not awarded on time.

2) Market Research

Market research for this requirement was conducted between March 2026 and May 2026. The team examined existing Government-Wide Acquisition Contacts (GWACs), DHS, and Coast Guard strategic sourcing vehicles and determined that Salesforce licenses are available under National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V and Army CHESS. Additional review of GWACs identified that Salesforce licenses are commercially available directly from Salesforce and through multiple resellers on the Continuous Diagnostics and Mitigation (CDM) Interagency Reimbursable Work Agreement (IRWA) vehicle and Government Services Agency (GSA) Multiple Award Schedule (MAS). However, CDM IRWA is not presently accepting USCG orders due to limited ceiling. NASA SEWP V and GSA MAS would require payment of a Contract Access Fee (CAF) and/or include additional reseller markups.

Additionally, the market research team confirmed with GSA’s Office of Information Technology Category that Salesforce SaaS licenses must be procured under NAICS 513210 as subscription licenses and, consistent with Small Business Administration (SBA) regulations is a service.

Under the correct NAICS, it was confirmed that there are no small business resellers of Salesforce SaaS licenses. The Army CHESS only has a single award IDIQ for Salesforce SaaS licenses to a large business and thus has no small business resellers.

As SaaS licenses from the OEM are considered a service, there is no way for a small business to meet the Limitations on Subcontracting as there is no service needed beyond the licenses which Salesforce provides.

The requirement was coordinated with the Small Business Specialist and the Office of the Small and Disadvantaged Business Utilization.

Based on this research, the Army CHESS Salesforce Licenses IDIQ was identified as the most advantageous vehicle because it provides the required Salesforce license types with Department of the War wide tiered pricing that is more favorable than GSA MAS at the lowest tier and does not charge a CAF. Collectively, these efforts demonstrate that while Salesforce licenses are available on multiple commercial and governmentwide vehicles, the Army CHESS Salesforce Licenses IDIQ offers the best pricing and most efficient means to fulfill the brand name Salesforce requirement.

3) Contracting Alternatives

The alternative approach considered was to maintain the status quo, which at minimum is to compete separate contracts/orders. Continuing to procure SaaS licenses individually by application (e.g., NavitaTM, AuxData, Gangway, MISLE- MEAM, and VDS) was considered. As detailed in Section 5 – Benefits, the decentralized model forces the USCG to pay for duplicative user licenses, missed economies of scale and sustains an unnecessary administrative burden across four separate contracts. Maintaining the status quo perpetuates these documented financial and operational inefficiencies; therefore, it is not a viable strategy.

4) Small Business Participation The acquisition strategy does not involve substantial bundling in accordance with

(IAW) RFO 7.107-1(b)(3). This consolidation will remove a single prime small business opportunity, as the awardee for the MISLE-MEAM licenses would not be eligible to compete. However, it is important to note that the MISLE-MEAM award was conducted under an inappropriate NAICS, resulting in a 100% pass through where the Contractor provided no additional services. The other two awards to small businesses have minimal if any impact because the licenses were a nominal amount and not the primary scope of the awards. The primes in this case will not be displaced as they will continue to provide the development and sustainment support.

Salesforce SaaS licenses are a service, which means the Software is a subscription service, inclusive of cloud hosting on the servers and networks of a party other than the U.S. Government.

Limitations on Subcontracting: The Salesforce Saas license requirements, when acquired as stand-alone requirements, are not suitable for award to a small business because a small business would not be able to comply with the appliable limitation on subcontracting. Under 13 CFR §125.6(a)(1), for service contracts, a small business must ensure that no more than 50% of the contract amount paid by the Government goes to firms that are not similarly situated. In this instance, there is no additional value-added work associated with the stand-alone license requirements that could be performed by a small business prime. Therefore, a small business acquiring any of the SaaS license requirements individually would be unable to satisfy the applicable 50% limitation on subcontracting. This limitation exists independently of the proposed consolidation and is not created by combining the SaaS license requirements into a single acquisition.

Based on the findings above this requirement is unsuitable for a prime small business and cannot be set aside for small business.

5) Benefits

A. Cost savings or price reductions:

The Government’s analysis of anticipated costs for the consolidated contract identified expected savings of approximately $30,315,268.46 (63%) compared to maintaining four separate contracts. Administrative cost savings, including costs for establishing new procurements, option modifications, supplemental modifications, funding modifications, and other contract administrative actions, total $2,740,591.05. Pay rates for this calculation were based on the 2026 General Schedule (GS) Locality Pay Table for Washington-Baltimore-Arlington, as published by OPM. Additionally, when comparing the prices USCG currently pays for Salesforce licenses to the prices available through the Army CHESS IDIQ on a consolidated purchase, further savings of $4,563,694.04 can be achieved.

Significant cost savings are expected to accrue over the life of the contract as a result of:

i. License Cost Savings. The Government’s quantitative analysis of Salesforce licensing estimates that consolidating all current and planned Salesforce requirements under the Army CHESS IDIQ will result in substantial cost savings due to pre-negotiated, volume-based pricing.

For the existing deployments (e.g., Gangway, AUXDATA, MISLE, NavitaTM, and related add-on products), the current annual license profile is approximately $8.94 million. With the expected savings, a consolidated order under Army CHESS IDIQ the current license profile will be approximately $4.4 million. For planned modernizations and new implementations (including Vessel Documentation System (VDS), and related Salesforce components), the workbook projects a significantly larger license footprint. The existing contracts do not account for the significant increase in licenses needed for NavitaTM to move to production or for the modernization of VDS. When these licenses are consolidated and priced using the Army CHESS IDIQ, the total cost for these

New Procurement 297,360.00$ Modifications 1,054,731.54$ Contract Admin 1,388,499.51$

Total Cost Savings - Gov't Admin 2,740,591.05$

TOTAL EST License savings (for current licenses) 4,563,694.04$ TOTAL EST License savings (for planned licenses) 27,574,677.41$

Total Cost Savings Combined 30,315,268.46$ Total Planned Contract Value 48,372,820.83$

Percentage of Benefits 63%

SUMMARY OF TOTAL QUANTIFIABLE

BENEFITS

FAR 7.107-2(d) licenses is $48,372,820.83 (inclusive of optional quantities), with the expected significant higher-volume discounts will result in a savings of $27,574,677.41.

Although this action establishes only a single base year, the IGCE includes optional license quantities sized to accommodate anticipated changes in license needs for NavitaTM, AUXDATA, MISLE, VDS, and modernization efforts. By pricing these optional quantities under the Army CHESS tiered discount structure within a single consolidated task order, the USCG can flexibly add licenses as needs evolve while still realizing significant cost avoidance compared to acquiring additional licenses under separate, system-specific contracts.

These license cost savings are the primary driver of the overall quantified benefits of consolidation.

ii. Procurement Cost Savings. Consolidation will also reduce Government pre‑award and modification workload and associated costs. The cost of conducting a full and open competition for a new contract action, including Contract Specialist (KS), Contracting Officer (KO), Legal Counsel, Program Management, Technical lead/Contracting Officer Representative (COR) participation, and associated fringe, is estimated at approximately $99,120.00 per procurement. Under a non‑consolidated strategy, these activities would be repeated for multiple separate actions; the analysis is based on consolidating four such actions into a single procurement.

By performing one consolidated procurement instead of four separate procurements, the Government avoids approximately 2,643 hours of pre-award effort (combined technical and contracting) and an associated $297,360.00 in “New Procurement” cost savings.

Modification Cost Savings. In addition to savings realized at initial award, consolidation generates significant savings associated with contract modifications that would otherwise be processed across multiple separate awards. When supplemental modifications and funding-only or administrative modifications are centralized under a single enterprise vehicle, the Government avoids duplicative review and approval cycles by Contracting, Legal, Program Management, and COR staff.

Taken together, estimated cost savings from reduced pre-award procurement and modification actions total approximately $1,054,731.54 over the life of the consolidated acquisition.

B. Reduction in acquisition cycle times:

i. It is anticipated that consolidation will lead to significant improvements in acquisition cycle times both pre-award and during contract administration. The anticipated 75% reduction in both pre-award and contract administration hours will greatly reduce the acquisition cycle time needed to support what are currently four separate contracts in comparison to the current approach of separate contracts.

C. Other benefits:

i. Divesting development from platform acquisition and purchasing the licenses separately from the sustainment and development services provides two distinct benefits beyond cost savings. Separating the licenses from the service allows the Government to decide the best Salesforce Enterprise Licenses for a specific application need without undue influence from OEM partners. It also allows the Government to manage all software application sustainment and development services in a standard way, rather than the Government adjusting to each Contractor’s proposed method for an individual application. This benefits the Government by reducing the tools and requirements for managing backlog, maintaining security standards, and coordinating release schedules. This also aligns with the USCG Chief Information Officer (CIO)’s strategic intent to reduce solution ‘sprawl’, promoting efficiencies and cost savings in implementation and sustainment through the use and reuse of limited catalog of pre-competed solutions.

ii. Contract Oversight/Administration:

(a) A consolidated contract will provide the Government with the opportunity to maximize license usage through its unified view of users. Salesforce Enterprise Licenses are provided on an individual internal user basis, meaning one license per person. That license is sufficient to support the individual’s use of any application built on the respective platform.

Managing these licenses at an enterprise level rather than by system will allow the USCG to accurately determine the number of licenses needed.

This approach will also enable proper management of access without duplicative efforts across the enterprise.

(b) Contract Admin Cost Savings. A consolidated contract requires only one KO, one KS, and one COR vice four per each contract as currently administered.

This reduces the Government workload by eliminating redundancies created by additional monitoring, performance assessment documentation, and monthly performance assessment summary meetings of separate contracts since all Salesforce Enterprise Licenses will be centrally managed under the Army CHESS IDIQ. This results in a more consistent, higher-quality product from Government personnel assessing performance. Appointing one COR to the consolidated requirement will improve contract oversight and administration and allow for more consistent communication between the customer, contractor, and contracting office. The total Contract Admin Cost

Savings is $1,388,499.51.

The total benefits quantifiable in dollar amounts are over $30.3 million.

DETERMINATION

I hereby determine that the benefits of this consolidated acquisition substantially exceed the benefits of alternative contracting approaches, and that this strategy is necessary to meet the agency’s mission requirements.

Brenda E. Oberholzer Date Procuring Contracting Officer U.S. Coast Guard

CONCURRENCE: COCO Small Business Specialist submit for Director, Strategic Programs & Career Management Division (CG-HCA-PPO-3) review/concurrence to smallbusiness@uscg.mil.

Maria L. Kersey-Robinson Date Director, Strategic Programs & Career Management

Shreena L. Morris Date Head of the Contracting Activity

APPROVAL:

Date Chief Procurement Officer, or designee