D15PS00213_-_OTFOC_-_IBM_SSJ_(final)_-_redacted.pdf

D15PS00213

SOLE SOURCE JUSTIFICATION

TEST PROGRAM FOR CERTAIN COMMERCIAL ITEMS

AUTHORITY: FAR 13.501(a), 41 USC 1901

IBM Accelerated Value Program (AVP) Support Services for Tivoli Endpoint Manager

Solicitation Number: D15PS00213

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY, AND SPECIFIC

IDENTIFICATION OF THE DOCUMENT AS A “SOLE SOURCE JUSTIFICATION:”

This document is a sole source justification for:

Department of the Interior Department of the Interior

Office of the Chief Information Officer (OCIO) Interior Business Center

1849 C Street, NW Acquisition Services Directorate

Washington, DC 20240 381 Elden St, MS 4000

Herndon, VA 20170

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

This is a Justification for Other than Full and Open Competition for the procurement of non-personal services via a Firm-Fixed-Price (FFP) Purchase Order with International Business Machines Corporation

(IBM) for a twelve (12) month Base period and three (3) twelve (12) month Option Years to provide highly specialized 24x7x365 premium level support services for the Department of the Interior’s Office of the Chief Information Officer (OCIO) in support of DOI’s IBM Tivoli Endpoint Manager (IEM) implementation activities across all Bureaus and Offices. IBM Accelerated Value Program (AVP) services include IBM subject matter experts (SME) with direct ties to IBM product development teams.

The SME will work side-by-side with OCIO staff for expedited problem resolution, performance enhancements, architecture design, update implementation and platform maintenance. This service and incumbent SME will allow OCIO to plan, deploy, grow, optimize, and extend its software environment to meet growing DOI needs. Additionally, it will allow DOI to take advantage of proactive planning, deployment mentoring, provide knowledge sharing before DOI expansion projects start, eliminate delays with elevated problem resolution via priority call handling, problem management, and on-site services.

“IBM is the sole supplier of the IBM Software Group (SWG) Accelerated Value Program (AVP)

Services for IBM Software products which is proprietary software support.”

DHS and OMB are trying to drive real-time improvements in IT Security across the Executive Branch

Agencies. Congress has given DHS money to assist Executive Branch Agencies do these improvements. To start this multi-year activity, DHS used Congressional funding to purchase software licenses for DOI to install across the bureau/office environments. The software that DOI chose to meet this need was IBM Tivoli Endpoint Manager (IEM). The OCIO is approximately 90% complete in rolling-out IEM to all of the bureaus and offices and is already seeing some good results from the tool's use.

McCullough, Karen L. (Operations Manager, Accelerated Value Program, IBM Software Group). “Sole Source Letter for IBM

SWG Accelerated Value Program Services.” Letter to: Rutherford, Christopher (Project Manager, Office of the Chief

Information Officer, Department of the Interior). June 4, 2014. 1 page.

D15PS00213 Page 2 of 5

To support the Department’s continued implementation and utilization of the IEM solution, the

Department requires access to highly specialized contractor support for the product. Such support is currently only provided directly through the product’s developer, IBM, through their AVP organization.

The Budget Office has already approved funding for FY15 and beyond to pay for this highly specialized support service.

3. A DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS (INCLUDING

ESTIMATED VALUE):

The object of this acquisition is to secure highly specialized support services from the IBM Accelerated

Value Program (AVP) in support of DOI’s IEM implementation activities. Some of these activities involve the need for Subject Matter Expert (SME) personnel support from the product vendor beyond the capabilities provided by general software support typically included with software purchases.

The technical support services will provide product installation support, configuration/change management support, design support and specialty coding (as needed) for the Department’s IEM solution.

Although DOI personnel will lead work activities regarding many of these activities, more advanced support will be needed. The IBM AVP contractor (contractor personnel) shall recommend options, provide recommendations and assist with actual work activities as needed, based on their knowledge and previous experience.

The period of performance for access to the support is as follows:

Performance Period Start Date End Date

Base Year 3/24/2015 3/23/2016

Option Year I 3/24/2016 3/23/2017

Option Year II 3/24/2017 3/23/2018

Option Year III 3/24/2018 3/23/2019

Estimated Value.

The anticipated base cost for these services is $[redacted]. The total estimated value of the requirement including all option years is $[redacted].

4. A DESCRIPTION OF THE STATUTORY AUTHORITY PERMITTING SOLE SOURCE ACQUISITION:

The statutory authority permitting other than full and open competition under FAR Subpart 13.5, “Test

Program for Certain Commercial Items” is section 4202 of the Clinger-Cohen Act of 1996, the Services

Acquisition Reform Act of 2003 (41 USC 428a), and 41 USC 1901.

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE

NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED:

IBM is the only company to provide the proprietary software support for the IBM SWG Accelerated

Value Program (AVP).

The SME will require direct access to IBM product development teams and source code to provide expedited escalation and resolution of IEM software related issues. Only IBM is able to provide access to the IBM product development team and source code required for software modifications. IBM owns the proprietary rights to the IEM source code, therefore the required software support can only be provided by IBM. This level of support is especially critical for an enterprises the size of DOI as its sheer size, number of network devices (70,000+) and diversity of devices, creates significant complexity.

D15PS00213 Page 3 of 5

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS OR WILL BE

PUBLICIZED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202 APPLIES:

Contracting Officer (CO) will publish the Justification per FAR 5.102(a)(6) “Availability of solicitations” with the solicitation at the GPE www.fedbizopps.gov for a period of fifteen (15) days.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE:

Market research and historical information has proven the anticipated cost is fair and reasonable by reviewing past contracts/orders for similar requirements or scope.

● USGS issued G14PD00247 (NetServices, LLC) against GSA contract G12PC00005, utilizing the Subject Matter Expert (SME)-senior labor category and cost: 1,684 x $[redacted]/hr

($[redacted]/yr) for one (1) FTE.

● The Department of Veteran’s Affairs issued VA118-11-F-0092 (Intelligent Decisions, Inc) against GSA SmartBUY BPA GSQ0009AE0011: the estimated value was $[redacted]/yr for one (1) FTE.

When considering the above information, both contracts were written against GSA schedule contracts, were conducted via full and open competition, and were determined fair and reasonable at the time of award by their respective Contracting Officers/Source Selection Authorities. DOI requires ½ FTE for two

(2) years (Base & OYI) and ¼ FTE for the remaining two (2) years (OYII & OYIII), which is in-line with the cost for the USGS and VA contracts, each containing one (1) FTE. Therefore, it’s determined the pricing proposed for SME support for this action is fair and reasonable.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10) AND THE RESULTS OR A

STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED:

(In accordance with FAR Part 10 and NBCM-ACQ-6900-035) Market Research determined GSA Federal

Supply Schedule (FSS) 70 – General Purpose Commercial Information Technology Equipment, Software, and Services, SIN 132 34 Maintenance of Software as a Service would be appropriate for this requirement. Market research revealed there are 787* contractors available under GSA Schedule 70

(Table I), but none provide the requested proprietary software support.

It was further determined NAICS Code 541512 – Computer Systems Design Services with Business Size

$27.5M and PSC/UPC Codes R499/R4990100 – Other Professional Services appropriate for this requirement. A Dynamic Small Business Search (Table I) revealed a potential number of SB Offerors available via full and open competition, but again, none provide the requested proprietary software support.

THIS SECTION INTENTIONALLY LEFT BLANK (continues)

D15PS00213 Page 4 of 5

Socio-Economic Indicator(s) 132 34 541512

Total Contractors 787 N/A

Small Businesses 624 Greater than 5,000

8(a) Certified Small Businesses 52 2,031

HUBZone 14 783

Small Disadvantaged Businesses (SDB) 136 1,981

Service Disabled Veteran Owned Small Businesses (SDVOSB) 48 2,934

Veteran Owned Small Businesses (VOSB) - 4,909

Woman Owned Businesses (WOB) 114 N/A

Woman Owned Small Businesses (WOSB) 19 4,008

Economically Disadvantaged WOSB (EDWOSB) 5 2,087

Table I: Small Businesses by Socio-economic Indicator by GSA Schedule (SIN) & Dynamic Small

Business Search (NAICS)

*Some contractors may hold multiple GSA Schedule contracts

Based on the market research, due to the fact that IBM is the only vendor who provides the level of service for its products required for this need, a decision for sole source justification approval is being requested.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL & OPEN COMPETITION:

None.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION:

A listing of sources is not available at this time since the justification isn’t required to be posted until solicitation. The CO is cognizant offers of similar items may be received from the solicitation and will be considered appropriately.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SERVICES REQUIRED:

AQD will request IBM Corporation notify the Government should they begin offering the AVP services through authorized resellers and will continue to conduct market research in an effort to identify other vendors.

Furthermore, AQD will post a Sources Sought in the future to ascertain if other companies will offer the

Tivoli Endpoint Manager AVP support services that meet industry standards and Departmental needs.

THIS SECTION INTENTIONALLY LEFT BLANK (continues)

D15PS00213

12. CERTIFICATIONS & APPROVALS:

Technical & Requirements Certification:

I certify that the supporting data under my cognizance that are included in this document are accurate and complete to the best of my knowledge and belief.

/s/ March 3, 2015

Christopher Rutherford, Project Manager Date

Department of the Interior – Office of the Chief Information Officer (DOI-OCIO)

Phone: (202) 208-5433 Email: christopher_rutherford@ios.doi.gov

Contracting Officer Certification/Concurrence:

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

/s/ March 3, 2015

Dana Price, Contracting Officer, Date

Department of the Interior – Interior Business Center – Acquisition Services Directorate (DOI-IBC-AQD)

Phone: (703) 964-3563 Email: dana_price@ibc.doi.gov

Team Lead Concurrence:

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

/s/ March 4, 2015

Kevin Woody, Contracting Officer, NOSIT Team Lead Date

Department of the Interior – Interior Business Center – Acquisition Services Directorate (DOI-IBC-AQD)

Phone: (703) 964-3568 Email: kevin_woody@ibc.doi.gov

Supervisor Concurrence:

/s/ James Troutman (A) for March 4, 2015

Shannon Griffin, Chief, Branch III Date

Department of the Interior – Interior Business Center – Acquisition Services Directorate (DOI-IBC-AQD)

Phone: (703) 964-3682 Email: shannon_griffin@ibc.doi.gov

Chief Approval:

/s/ Greg Ruderman (A) for March 9, 2015

Katherine Valltos, Chief, Division I Date

Department of the Interior – Interior Business Center – Acquisition Services Directorate (DOI-IBC-AQD)

Phone: (703) 964-3695 Email: katherine_valltos@ibc.doi.gov