Single_Source_Determination_FAR_13_For_Posting.pdf

SINGLE SOURCE DETERMINATION USING

SIMPLIFIED ACQUISITION PROCEDURES (SAP) UNDER THE

SIMPLIFIED ACQUISITION THRESHOLD (SAT)

AUTHORITY: FAR 13.106-1(b)(1)

Request for Quotation (RFQ)

1. Contracting activity/agency.

Department of the Interior (DOI), Interior Business Center (IBC), Acquisition Services Directorate (AQD), Office of the Chief Information Officer (OCIO).

2. Description of supplies or services required to meet agency needs.

The OCIO has a need for Microsoft Windows Server 2003 SP2 Custom Support.

The Custom Support Essentials shall include paid-for telephone support and security updates rated “Critical” by the Microsoft Security Response Center (MSRC) for two DOI servers.

The estimated value of this requirement is $127,600 with a base period of 3-months, and three (3) 3-month options, for total performance period of one (1) year from date of award, if all options are exercised.

3. Identification of the single source to be solicited.

Vexcel Corporation – A Microsoft Company.

12012 Sunset Hills Road, Two Discovery Square - Suite 100 Reston, Virginia 20190

POC: Kim Pavik, Sr. Finance Manager 703-673-7696 | kimpavik@microsoft.com

4. Reason for authority cited.

The contracting officer has determined the circumstances of the contract deem only one source reasonably available.

The applicable statutory authority permitting other than full and open competition is FAR 13.106-1(b) “Soliciting from a single source.” This justification is to support an Open Market Acquisition under the Simplified Acquisition Threshold.

Hence, FAR Part 13—Simplified Acquisition Procedures are applicable to this requirement.

D15PS00577

5. Rationale.

Microsoft is ending extended support for Windows Server 2003 on July 14, 2015.

After this date, this product will no longer receive security patches that protect PCs from harmful viruses, spyware, and other malicious software. Additionally, assisted technical support will no longer be provided by Microsoft for its software and content updates specific to Windows Server 2003.

The DOI OCIO has encountered unexpected delays with upgrading the applications running on two of its Windows 2003 Servers. As these applications are critical systems which cannot be taken down without significant impact on OCIO’s ability to accomplish its mission, the OCIO requires an extension to extend the current support of these two Windows Server 2003 systems for a limited time. Due to the current cyber-security threats, it is essential that OCIO continue to receive Microsoft Windows Server 2003 support, in the form of critical security patch updates for these two servers.

Currently, Microsoft is offering extended service for the Windows Server 2003 through its Custom Support Essentials program and existing Premier Service that will allow OCIO to safely continue to operate these critical systems until required upgrades can be completed. Microsoft has stated, and additional research has confirmed, customers who purchase Custom Support must already have a Premier Support Agreement. DOI OCIO currently maintains a Premier Support Agreement under Delivery Order D14PD01004, administered in the AQD Denver location.

If the Government were to compete the Microsoft Windows Server 2003 SP2 Custom Support requirement, an additional Premier Support Agreement would have to be purchased at a cost that would be substantially higher than merely purchasing the Custom Support from the existing Premier Support vendor Vexcel. The current Delivery Order for the Premier Support Agreement is approximately $600,000.

Therefore, it is in the best interest of the Government to sole source the Microsoft Windows Server 2003 SP2 Custom Support requirement to Vexcel.

6. Market Research.

Market research was conducted during the initial pre-solicitation stage of this requirement. As discussed above, it was determined that there would be an additional cost of approximately $600,000 to purchase a second Premier Support Agreement if the Government were to compete this requirement and select another Microsoft reseller.

The Government is minimizing the risk by utilizing a sole source Purchase Order as it is in the best interest of the Government.