Appian_JA1_Redacted.pdf

Appian Software Support and Product Updates

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12, FAR Subpart 13.5, and FAR Part 15

Purchase Request Number: CMTSD217007 Contract Number: TBD Task/Delivery Order Number: TBD Procurement Title: Appian Software Support and Product Updates Estimated Value:

Statutory Authority: 10 U.S.C.§ 2304 (c)(1)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number:

Upon the basis of the following justification, I, as Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the statutory authority of 10 U.S.C.§ 2304 (c)(1) and the regulatory authority of FAR Part 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requirements Agency:

Defense Information Systems Agency (DISA) 2300 East Drive Scott AFB, IL 62225-5406

Contracting Office:

Defense Information Technology Contracting Organization (DITCO) 2300 East Drive Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to procure proprietary brand name, commercial off-the-shelf Appian software license support under a new firm fixed-price contract. The Appian software supports the Enterprise Business Modernization (EBM) project including the implementation of the Integrated Defense Enterprise Acquisition System (IDEAS) contract writing system. The current Appian Enterprise software support contract, HC1028-12-C-0064, will expire on 30 September 2016. The recommendation is to solicit an open market proposal from Appian Corporation, the original software developer.

b. The period of performance (PoP) will consist of a 1-year base period, from October 1, 2016 through September 30, 2017 and four 1-year option periods. The estimated life cycle cost is Fiscal year 2017 defense working capital funds provided under Form 9

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(1) Minimum Government requirements. To procure renewal of the 5,000 Appian Perpetual Named User Software License Support currently integrated into the IDEAS infrastructure at DISA.

(2) Proposed sole source contractor. The required software support is peculiar to one manufacturer and uses proprietary software code, and only the Appian brand name software will satisfy the requirement. No other vendor or distributor can legally obtain access to the software nor can they make duplicate copies, since it is protected by copyright and patent laws. Only the OEM provides the maintenance support.

(3) Discussion regarding cause of the sole source situation. To use another product at this development state would be cost prohibitive in manpower, software development, training/knowledge management, and overall impact to current and ongoing software development and platform integration. In order to ensure continuity of operations, integrity, and sustain security of the current EBM infrastructure, it is necessary to renew the maintenance to allow for Government users to continue communicating and processing awards at the enterprise level.

(4) Demonstration of unique source. The proposed acquisition is for continued brand name maintenance and support services in order to maintain uniformity and common troubleshooting and service techniques. Appian is the only brand of software that can interoperate into the current IDEAS infrastructure, and only Appian is authorized to provide the support required for the Appian licenses.

(5) Procurement discussion. Requiring a new software product would result in loss of functionality and performance, creating obstacles and interruptions in essential mission support such as non-availability of the portal or loss of email capability. Therefore, no other procurement option is readily available that can be integrated into the current IDEAS infrastructure.

(6) Impact. If the Appian software license maintenance and support is not continued, the IDEAS solution will become unsupportable and it will result in a work stoppage. The DISA IDEAS program office would have to lead a new project charter for a complete system replacement. The time required to develop the system requirements definition, prepare for and conduct a solicitation, perform an evaluation, and phase in a new enterprise solution is a minimum of two (2) years. In addition, a different vendor’s solution would incur custom system build costs, enterprise architectural costs, information assurance recertification costs, and training costs. The DISA IDEAS program office intends to fully leverage its investment in the current solution. No other software was found that can interoperate into the existing IDEAS infrastructure. The cost to the Government to introduce a vendor with similar capabilities to the Appian Enterprise software solution would result in the loss of the initial DISA EBM capital investment of million in operation cost to date. It would not be advantageous to the Government to replace the application platform and contract writing system which has been used by DISA’s operational telecommunications contracting team since 2009 and it is being developed for DISA’s traditional contracting use in fiscal year 2017.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

To ensure offers are solicited from as many potential sources as is practicable, a synopsis for this requirement will be published to Federal Business Opportunities website as required by FAR 5.2.

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7. DETERMINATION OF FAIR AND REASONABLE COST:

The Contracting Officer will determine that this requirement represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government's needs. DISA will perform an evaluation of the offeror’s technical proposal and proposed costs to ensure the solution costs are reasonable and appropriate. In addition, DISA will determine whether the price is fair and reasonable based on a comparison with the Independent Government Cost Estimate. Certified cost and price data is not required for this commercial item acquisition in accordance with FAR 15.403-1(b)(3).

8. MARKET RESEARCH:

a. Market research was conducted during the period March through July 2016. Market research was conducted by contacting Appian Corporation and reviewing its authorized reseller capabilities, searching the internet, analyzing BPM industry reviews, and reading Gartner’s analyst reports. Gartner is an external Information Technology research firm known for its in-depth research experience.

b. Additional actions taken in conducting market research in support of this project were to determine if there were other software maintenance and support solutions that would meet the Government’s requirements. Initial product research was conducted through the use of websites and downloadable vendor brochures. The viability of a vendor's service offering was based upon the vendor's ability to provide maintenance and support to DISA. Government market research determined that no other software maintenance solution could provide for the Appian Enterprise capability. The market research revealed Appian is the only source that will satisfy the agency’s requirements for IDEAS maintenance and support. Review of other products for functional equivalency was performed based upon the ability of the replacement software products to provide a family of ‘like’ products to support DISA throughout the enterprise.

c. Based upon the market research, it is determined there are no competitor functional replacement products in the market capable of meeting the requirement needs without incurring extraordinarily substantial duplication of costs and time delays that could not possibly be recouped through a full and open competition among all vendors capable of providing potential business process management replacement products and services. None of the systems investigated used an approach for obtaining technical/functional support similar to the current approach for the IDEAS contract writing system. To procure and rewrite applications to function with replacement products throughout DISA at this time would result in substantial work interruptions creating unnecessary obstacles, restraints, and losses in efficiency. In terms of cost, DISA has invested in the software capabilities and the services to support the solution. If the Government were required to replace the existing architecture, the Government would lose its current investment and as a result would be required to fund the installation and deployment of a new system, which would be cost prohibitive. Also DISA’s environment includes proprietary software code and it is not economically feasible, to deviate from the currently installed proprietary software.

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d. Market research supports that the requirement can be fulfilled by Appian Corporation or its authorized reseller, EC America, under GSA schedule. Market research included review of potential small business programs, and none were found. A set-aside in a socio-economic program is not appropriate as market research has confirmed there are no known small, 8(a), HUBZone, Service-Disabled Veteran-Owned, or Woman Owned Small Business programs to compete for this requirement. Even though EC America has an established GSA contract vehicle available for this procurement, it is less costly for the Government to obtain the Appian software licenses, and maintenance and support directly from Appian Corporation, for this approach avoids intermediary reseller cost, for EC America would pass fulfillment to Appian. Based upon market research, the recommended acquisition approach for this requirement is commercial open market procedures.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

Appian Corporation

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a. The Appian Enterprise software maintenance must be met by Appian Corporation. Appian Corporation does not allow for authorized resellers. The Government will continue to search the marketplace to increase competition. If the Government determines Appian or their authorized resellers are no longer required, then the Government will seek competition for the required functionality. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.

b. Procurement history: Initially, the Appian software product was selected as part of a competitive procurement for the EBM acquisition project under contract number HC1013-06-C- 2005, awarded 24 March 2006. Subsequent follow-on maintenance contracts, HC1028-10-P- 2263; awarded 10 September 2010, and HC1028-12-C-0064; awarded 6 September 2012 were sole source action pursuant to the authority of 10 U.S.C. §2304(c)(1).

1. Contract Number: HC1013-06-C-2005 Contractor: Pearson KEI, Inc., name changed to Vangent, Inc.

Contract Period: 37-month base period, 1 May 2006 through 31 May 2009, followed by five one-year options, that were not exercised. Total Estimated Contract Value:

Contract Type: FFP, competitive Objective: Create a single integrated procurement system accessible worldwide to share consistent data and processes and to provide accurate and easily retrievable information for PL/DITCO contracting functions

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2. Contract Number: HC1028-10-P-2263 Contractor: Appian Corporation Contract Period: 4-month base period, 1 June 2010 through 30 September 2010, followed by two (2) one-year options through 30 September 2012 Total Estimated Contract Value:

Contract Type: FFP, sole source Objective: Renew perpetual software licenses and maintenance support for Appian Enterprise

3. Contract Number: HC1028-12-C-0064 Contractor: Appian Corporation Contract Period: 1 year base period, 1 October 2012 through 30 September 2013, followed by three (3) one-year options through 30 September 2016 Total Contract Value:

Contract Type: FFP, sole source Objective: Renew perpetual software licenses maintenance support for Appian Enterprise

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

A written AP is not required for this action, as it does not meet the dollar threshold for an AP.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Ronald J. Anderson SIGNATURE:

TITLE/ORGANIZATION: IT Specialist /SD231

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Dale F. Shelton SIGNATURE:

TITLE/ORGANIZATION: Chief, Program Management / SD21

PHONE: DATE: 3 August 2016

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Betty A. Burris SIGNATURE:

TITLE/ORGANIZATION: DISA/DITCO/PL8321

PHONE: 618-229-9291 DATE: August 24, 2016

BURRIS.BETTY.

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