USCIS Cisco Consolidation DF signed 1.23.2025 Redacted_Redacted.pdf

DETERMINATION TO CONSOLIDATE REQUIREMENTS INTO A SINGLE

CONTRACT

Determination for USCIS to Consolidate brand-name Cisco hardware and software maintenance into a Single Contract.

This determination is made pursuant to FAR 7.107-2.

The total value of all actions covered by this determination is estimated to be .

FINDINGS

1) Description/Background

The Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS), Office of Contracting (OCON), on behalf of Office of Information Technology (OIT), Resource Management Division (RMD), proposes to contract for brand-name Cisco hardware and software maintenance by consolidating multiple brand-name Cisco hardware and software offerings into a single delivery order (DO), referred to herein as the Cisco Enterprise Agreement (EA). The goal of the EA is to have one contract vehicle that encompasses the entire Cisco requirement.

USCIS/OIT utilizes Cisco as its enterprise network infrastructure solution. USCIS utilizes DHS Software-Defined Wide Area Network (SDWAN) for its underlying network connection, and SDWAN is built on Cisco infrastructure. As such, Cisco was implemented by USCIS to enable informational communication between the department and component.

Maintenance is needed for Cisco devices located in eight USCIS call and data centers, approximately 300 field sites, five service centers, and to support the USCIS networking platform. Continued maintenance is needed for Cisco devices, including both hardware and software support. USCIS uses Cisco to deploy software to desktops and servers over the network.

Currently, the hardware and software maintenance for Cisco is being performed under 70SBUR24F00000033, referred to as Cisco SmartNet. Cisco SmartNet includes the following Cisco branded products, amongst other software and hardware maintenance services provided: StealthWatch, Security, Flex, and Digital Network Architecture. In its current arrangement, the Cisco contract, SmartNet, does not include the features and benefits of an Enterprise Agreement, discussed herein, and is treated as an annual renewal. Cisco EA will also include two other products already included in our Cisco portfolio, Meraki and WebEx. Meraki is currently performed under 70SBUR24F00000271. WebEx is currently performed under 70SBUR24F00000072. As stated above, both Meraki and WebEx do not include the feature and benefits of an Enterprise Agreement and treated as an annual renewal.

In establishing the Cisco EA, the Cisco requirements being consolidated into the Cisco EA requirement are as follows:

Current Contracts being Consolidated

Order Number 70SBUR24F00000072 70SBUR24F00000271 70SBUR24F00000033 Name of Contract Cisco WebEx

Conferencing Software Cisco Meraki Software Subscription

Cisco SMARTnet Hardware Support and Software License Maintenance and Support

Contractor Name THUNDERCAT

TECHNOLOGY, LLC

ANACAPA MICRO

PRODUCTS, INC.

DH TECHNOLOGIES,

INC.

Product Description 7A21 7A21 7A21 NAICS Code 541519 541519 513210 Contract Type FFP FFP FFP Contract Value $215,673.32 $116,150.93 $11,331,578.78 Period of Performance/Delivery

3/15/2024 - 3/14/2025

10/01/24 - 09/30/25 2/01/2024 – 1/31/2025

Competitive/Non- Competitive

Competitive Competitive Competitive

Current Vehicle First Source II First Source II Army CHESS ITES-SW2 Set-aside, type SDVOSB Set Aside -

Total HUBZone Set-Aside Small Business Set Aside

Cisco EA is a pre-packaged maintenance solution to ensure the Cisco equipment already owned by USCIS remains operational with minimal disruption. Cisco EA provides equipment updates/replacement, security patches, and firmware updates. This support through Cisco is essential for the continuous operation of this critical equipment.

The RMD requires maintenance for USCIS-owned perpetual licenses of Cisco software, subscription-based Cisco software and maintenance of Cisco hardware devices. Cisco EA Maintenance assures that the enterprise’s network infrastructure, based on Cisco technology, always remains active and secure by quickly identifying and resolving any problems and preventing downtime.

Cisco Discovery Protocol (CDP) is an essential Cisco technology. The CDP protocol links Cisco devices, both hardware and software, that allows the sharing of operation systems and IP information. Every 60 seconds, CDP sends announcements on the enterprise network on devices that support Subnetwork Access Protocol headers. CDP is an essential set of rules that determine how data is transmitted and needed by OIT administrators to map out the entire enterprise network for centralized management and monitoring. USCIS requires updates to the CDP as well. OIT also requires maintenance that supports Cisco Internetwork Operating System (IOS).

Maintenance will include different Cisco products including, but not limited to, StealthWatch, Security, Flex, Digital Network Architecture, Meraki, WebEx and will include in the hardware portion, routers, switches, and other Cisco hardware assets. The EA contract will start when awarded, if there are any overlap, credit is given for Meraki or WebEx. EA support will begin for those Meraki or WebEx at the onset of the EA contract, the price difference is already built into the EA prices. The Cisco support services included in the pre-packaged maintenance solution will assist USCIS with actions requiring proprietary knowledge, such as installation of Cisco replacement parts implementing new configurations and transferring knowledge concerning Cisco equipment currently installed within the USCIS network. These security tools can identify threats in real time. Maintaining USCIS’s existing infrastructure will provide USCIS with greater visibility to recognize the threats and quickly respond. This system will be utilized by OIT’s Security Engineering Branch and Security Operations Branch (the Security Operations Center Technical Operations Center, Enterprise Engineering Implementation, Enterprise and Cloud Services) to provide comprehensive visibility to the network for threat detection, network traffic analysis and incident response that uses enterprise telemetry from the existing network infrastructure. The proposed Cisco EA has a required delivery date of 2/1/2025 with the support service base period for the licensing from 2/1/2025 through 01/31/2026, followed by two (2) twelve-month option periods. The NAICS and PSC are 541519 – Information Technology Value Added Reseller and 7G21–/IT & Telecom, respectively. The Acquisition Planning Forecast System (APFS) number is F2024067883.

2) Market Research

Recent market research was conducted from March 2024 to October 2024. USCIS currently has a mature Cisco enterprise network solution, which consists of Cisco products. This solution meets the security guidance laid out in the DHS Sensitive Systems Security Architecture as well as the DHS 4300A Sensitive Systems Policy. This solution consists of Cisco components that are designed to work together and are interoperable. Cisco products are not compatible with other products due to proprietary reasons, and other products do not provide the degree and broadness of capability, functionality, interoperability, and maintenance that Cisco offers. This solution provides a stable network platform as is required and currently in use by USCIS in the complex enterprise network infrastructure.

Over the last nine (9) years, 2015 to present (excluding this procurement), USCIS has spent over $75M on continued Cisco SMARTnet services. Purchasing Cisco EA services is significantly less expensive than redesigning the USCIS infrastructure. Even if the redesigning of the USCIS infrastructure was accomplished, only a limited pool of original equipment manufacturers (OEMs) offer products and services that would meet the needs of USCIS; resulting in little competition/savings and would result in network dependence on these OEMs as the customary commercial practice is to only allow compatibility with OEM software and hardware.

Cisco is a large business; however, there are authorized resellers available of various small business and socioeconomic statuses. Cisco equipment is proprietary to Cisco and maintenance is proprietary to Cisco. Only Cisco or its authorized resellers can offer Cisco maintenance. Other competitors such as Juniper and Palo Alto make similar products, but they offer Juniper and Palo Alto maintenance on their own products and do not offer Cisco maintenance due to the proprietary nature of Cisco technology.

Disadvantaged Business Utilization (OSDBU)

The proposed consolidation of these requirements and this Determination and Findings has been coordinated with the USCIS Small Business Specialist (SBS) and the Office of Small and Disadvantaged Business Utilization (OSDBU).

5) Negative Impacts to Small Business Participation

Consolidating these requirements means fewer separate opportunities to compete for the various Cisco elements being included. However, there is likely no impact to the pool of capable vendors as all Cisco authorized resellers are able to provide the full range of Cisco products and are therefore able to meet the requirement. The requirement for Cisco hardware and software maintenance support will continue as a small business set-aside and utilize small business resellers of the Cisco hardware and software maintenance.

6) Benefits

The pricing of Cisco hardware and software maintenance has increased over the previous year. As Cisco products become prone to threats to their equipment, Cisco will offer security patches and upgrades to Cisco products through their maintenance program. Cisco increases their pricing quarter over quarter based on support cases opened on any given product worldwide. Trade tariffs have also caused an increase in prices. Per the OEM, a typical yearly inflation can range from 5-15% annually. Procuring the products under the current structure as three separate requirements would not allow us to lock in the cost savings seen in the Cisco EA. Licenses are now based on technology, features, and quantity criteria. The renewal includes products that were purchased over a year ago and had more than a 1-year maintenance warranty upon initial purchase.

Additional Benefits:

In the new EA term, OIT will have the ability to download the new software, use it and pay for it at the next period of performance. This give OIT great flexibility to address networking and security issues immediately. This model meets OIT’s growth model expected over the next few years. The EA contract covers the software portion, each hardware device has an one-for-one software license attached to it. The EA contract is more suited for the software security license growth.

Each time an asset is added to the network, the agency is covered through the EA contract. Coverage begins when the device is connected to the network, not at the purchase sale.

True Forward is Cisco’s billing process to account for any overconsumption during a Cisco® Enterprise Agreement (EA), Service Provider Network Agreement (SPNA), or Managed Service Enterprise Agreement (MSEA) term. Unlike other enterprise license agreements that require a “true-up” every year that charges you for past use, Cisco’s program allows you to grow without a retroactive, surprise bill. Instead, your growth is reviewed against entitlement and included in the next True Forward event, where you pay only on a going- forward basis as part of your predictable billing period.

Other Cisco products under contract by USCIS OIT include Splunk, Meraki, and WebEx; only Meraki and WebEx are included in the new Cisco EA contract beginning February 2025. A credit is given to any existing licenses that fall within the period of performance to upgrade the performance to the EA contract.

Better visibility with the EA Workspace and Cisco Smart Account. The EA dashboard aides in viewing the number of licenses consumed. The Asset Management Team can predict licenses that will go into “True Forward” state. Rate of consumption and central management tool are benefits of the EA.

Co-termination of SW licenses and services.

Significant Cost savings of $6,945,424 over three years. Prices are locked for the 3 years with no added inflation. This is a unique feature of Cisco EA and is not available under the current purchase structure.

Below is a chart of the expected savings:

Projected Savings Annual Year

EA Percentage Savings Approach vs Doing

Business As-Is $1,484,966 Base Year 11% $2,298,569 Option year 1 16% $3,161,889 Option year 2 21% $6,945,424 Total saving for contract

Estimated price of Cisco EA approach vs. doing business the same as the previous year, assumes a 5% inflation year-to-year in line with OEM provided estimates.

Service renewal 1-year terms each renewal window 0% Growth LDoS attrition is accounted

The financial benefits of consolidating the Cisco requirements into the Cisco Enterprise Agreement are substantial as the financial benefits exceed 10% of the estimated contract or order value. If the Cisco requirements are purchased doing business as-is, as shown in the table above, USCIS will forego an estimated $6,945,424 in savings over the next three years.

Additionally, the benefits identified herein are critical to OIT’s mission success as it is essential for OIT to manage USCIS’s Cisco enterprise network infrastructure in an efficient manner that aligns with best industry practices by establishing the Enterprise Agreement. OIT has determined that this would be the most efficient and effective use of federal staff and funding to include all Cisco products from several requirements, into one agreement. Meraki is not a candidate for a standalone EA. While WebEx is a candidate, if OIT were to have a separate contract for Meraki and/or WebEx, OIT will have increased contract administration, additional COR/CS/CO staffing and hours, contributing to inefficient human resources and operations.

Meraki under the EA will help OIT enhance Catalyst Center features, and those benefits will be lost if not included in the EA contract. Meraki and WebEx are small contracts compared to the larger EA expected award, and does not have a huge impact on the total EA savings, but both products under the new Cisco EA will give OIT more benefits than a contract without EA. This procurement strategy provides for maximum practicable participation by small business as there is not impact to the small business strategy as a result of this consolidation.

DETERMINATION

I hereby determine that this procurement meets the requirements of FAR 7.107-2. It is necessary and justified as the benefits are critical to mission success and the benefits of consolidation would substantially exceed the benefits that would be derived from the alternative contracting approaches identified.

Danielle Hubbard Date Component Small Business Specialist USCIS Office of Contracting

Gregory Schroeder Date Contracting Officer USCIS Office of Contracting

Amanda K. Duquette Date Head of the Contracting Activity USCIS Office of Contracting

APPROVAL:

Chief Procurement Officer, or designee Date Department of Homeland Security

DANIELLE L

HUBBARD

Digitally signed by DANIELLE L

HUBBARD

Date: 2025.01.15 12:03:53 -05'00'

GREGORY D SCHROEDER Digitally signed by GREGORY D SCHROEDER Date: 2025.01.15 12:11:14 -05'00'

AMANDA K DUQUETTE Digitally signed by AMANDA K DUQUETTE Date: 2025.01.15 12:27:37 -05'00'

ANN F VAN HOUTEN Digitally signed by ANN F VAN HOUTEN Date: 2025.01.23 08:03:01 -05'00'