DCIMC46409_CIO_ORACLE_JA_redacted.pdf

CIO Oracle Maintenance Renewal

DCIMC46409

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LIMITED SOURCE JUSTIFICATION & APPROVAL

FAR PART 8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract (MAC) Orders under MAS/General Service Schedules (GSA)/Federal Supply Schedules (FSS)

FAR 8.405-6

Purchase Request Number: DCIMC46409 Contract Number: TBD Task/Delivery Order Number: TBD Procurement Title: Chief Information Officer (CIO) Oracle Maintenance Renewal Contracting Office: Defense Information Systems Agency (DISA) /

Defense Information Technology Contracting Office - National Capital Region (DITCO-NCR) / PL62

Estimated Value:

Limited Source Authority: FAR 8.405-6(b)(1)

LIMITED SOURCE JUSTIFICATION

J&A Number:

Upon the basis of the following justification, I, as _Procuring Activity Competition Advocate_, hereby approve this limited source justification in accordance with FAR 8.405-6(b)(1). The acquisition referenced herein will be conducted under the authority of the Multiple Award Schedule Program.

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE: (FAR 8.405-6(c)(2)(i))

Requiring Agency: Defense Information Systems Agency (DISA), Contract Management and Acquisition Support Branch, CI12, POC: Ft. Meade, Maryland 20755-0549.

Contracting Activity: DISA Defense Information Technology Contracting Office-National Capital Region Code: PL62, P.O. Box 549, Ft. Meade, MD 20755-0549

2. NATURE/DESCRIPTION OF ACTION(S): (FAR 8.405-6(c)(2)(ii)))

a. Type of Action: Firm Fixed-Price Delivery Order

b. Nature of Action: The Acquisition Support Branch, CIO/CI12 has a requirement for a new firm fixed-price delivery order which renews the existing provisions of expiring consolidated software maintenance contract #W91QUZ-06-A-0002-VC03 which provides enterprise licenses and maintenance, critical patches and updates of Oracle brand name proprietary software that DISA currently owns.

c. Period of Performance: 01 December 2013 – 30 November 2014

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d. Amount:

e. Type of Funding: Operations & Maintenance

f. Year of Funding: FY14

3. DESCRIPTION OF SUPPLIES/SERVICES: (FAR 8.405-6(c)(2)(iii))

This acquisition provides Oracle database software licenses and software maintenance support services for DISA-wide users. The required Oracle software licenses and maintenance are as follows.

Line Product Description (P=Processor, N=Named User Plus, and C=Concurrent Device)

Customer System

Identification No. (CSI#)

License Type (P/N/C)

License

QTY

1 Server EE 8.0 1831288 C 572

2 Oracle Database Enterprise Edition 1831288 N 2000

3 Tuning Pack 14275173 P 24 4 Internet Developer Suite 14275173 N 1 5 Diagnostic Pack 14275173 P 24 6 Oracle Database Enterprise Edition 14275173 P 24 7 Programmer 14275173 N 10

8 Oracle Database Enterprise Edition 14628238 N 100

9 Oracle Database Enterprise Edition 14732122 P 15

10 Internet Developer Suite 15696084 N 8

11 Oracle Database Enterprise Edition 16135838 N 150 12 Oracle Database Enterprise Edition 16135838 P 4 13 Diagnostic Pack 16135838 P 8 14 Configuration Management Pack 16135838 P 4 15 Oracle Database Enterprise Edition 16135838 P 8 16 Tuning Pack 16135838 P 8 17 Change Management Pack 16135838 P 8 18 Diagnostic Pack 16135838 P 8 19 Configuration Management Pack 16135838 P 8 20 Oracle Database Enterprise Edition 16135838 P 8

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21 Tuning Pack 16135838 P 8 22 Change Management Pack 16135838 P 8

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION

OF CONTRACTOR’S UNIQUE QUALIFICATIONS: (FAR 8.405-6(c)(2)(iv))

FAR 8.405-6(b)(1), Items Particular to One Manufacturer — the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

Oracle owns all proprietary rights to the source code used to develop, test, and maintain internal DISA applications embedded with Oracle’s Commercial Off-The-Shelf (COTS) relational data base management system (RDBMS) technology. The licensing and maintenance to be acquired under this order will be used to maintain existing DISA applications that rely upon Oracle’s RDBMS technology. A number of authorized Oracle resellers for the required licensing and maintenance are available although Oracle owns the proprietary rights.

DISA’s 15 year plus investment in Oracle RDBMS technology is substantial and has cost the Government over $10 million. Obtaining replacement software products from other sources is not feasible, because it would require every internal DISA program office that utilizes Oracle RDBMS technology to undergo massive software conversions for DISA-developed applications at an estimated cost of over $1 Billion. This estimate is based on the projected level of effort required for each of the DISA organizations to conduct a technical benefits analysis of other COTS RDBMS products to determine if a non-Oracle solution will provide better value to the Government, and purchase a different RDBMS product and the technical support required to potentially redesign, develop, test, secure, train, successfully migrate data, and re-deploy their respective development, test, and production applications.

Moreover, selecting a similar product from another manufacturer would adversely impact the development, testing, production, and maintenance schedules for over 50 internal DISA development, test, and production applications, as well as applications used by external customers such as the Ports, Protocols, and Services Management (PPSM), DISA Direct, Spectrum and Electromagnetic Environmental Effects (E3), and Contingency and Exercise (CONEX). It will also result in a CAT 1 security violation if software products other than Oracle were acquired and installed. Therefore, if other than Oracle products were acquired, all systems that currently rely on the approved Oracle RDBMS software will need to be taken off all of the DISA family of networks. It will take approximately one (1) year to assess other competitive products, make a selection, acquire expertise, test and implement a new solution.

As delineated above, it is economically more advantageous for the Government to continue to maintain the existing Oracle brand products and support rather than replace it with like components. Furthermore, in order to ensure compatibility and continuity of service without

Page 4 of 6 Pages mission impact, it is necessary to renew licenses and maintenance for the current Oracle line of products.

5. BEST VALUE DETERMINATION: (FAR 8.405-6(c)(2)(v))

In accordance with DFARS 208.7402, Departments and agencies shall fulfill requirements for commercial software and related services, such as software maintenance, in accordance with the DoD Enterprise Software Initiative (ESI). The Contracting Officer has examined the agency’s requirement and determined that acquiring the software under one of the available ESI BPAs represents the best value to the Government. Using the procedures set forth under FAR 8.405, a best value determination will be made before placing an order against the successful ESI vendor’s General Services Administration (GSA) Federal Supply Schedule (FSS) contract. The Contracting Officer will determine if the final quoted price 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. Although GSA and the Enterprise Software Initiative (ESI) have already negotiated fair and reasonable pricing under the existing ESI BPAs, the Contracting Officer will make a determination whether the prices are fair and reasonable based on anticipated adequate price competition amongst solicited quotes received, comparison to previously established negotiated prices on the ESI agreements, and a comparison of the Independent Government Cost Estimate (IGCE).

The Government anticipates adequate price competition for this acquisition; however, the Contracting Officer will evaluate quotes to ensure the cost to the Government will be fair and reasonable. Award shall be made to the lowest priced technically acceptable offeror. In accordance with the awardees’ Contract Schedule, additional cost discounts will be sought before placing the order.

6. MARKET RESEARCH: (FAR 8.405-6(c)(2)(vi))

DFARS 208.7402 requires Departments and agencies to fulfill requirements for commercial software and related services, such as software maintenance, in accordance with the DoD Enterprise Software Initiative (ESI). As a result, market research was performed by the DISA CIO office in November 2013 to locate authorized Oracle resellers from the Oracle Smartbuy GSA Blanket Purchase Agreement (BPA) Government-wide Enterprise Software license program. The following authorized resellers with the Oracle ESI BPAs were identified through market research. The Contracting Officer made the determination to compete this requirement through ESI:

Mythics 1439 N. Great Neck Road, Ste. 201 Virginia Beach, VA 23454 DoD ESI BPA # W91QUZ-06-A-0003

Affigent, LLC 13873 Park Center Rd.

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Herndon, VA 20171 DoD ESI BPA # W91QUZ-09-A-0001

DLT Solutions 13861 Sunrise Valley Drive, Ste. 400 Herndon, VA 20171 DoD ESI BPA # W91QUZ-06-A-0004

7. ANY OTHER SUPPORTING FACTS: (FAR 8.405-6(c)(2)(vii))

Not Applicable.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS THAT LED TO

THE RESTRICTED CONSIDERATION: (FAR 8.405-6(c)(2)(viii))

(a) Procurement history.

(1) Current licenses and software maintenance support, Contract # W91QUZ-06-A-0002

VC03, Brand Name Enterprise Software Initiative GSA Schedule procurement, competitively awarded to DLT Solutions on 30 Nov 2012. PoP: 1 Dec 2012 to 30 Nov 2013

(2) Previous licenses and software maintenance support, Contract # W91QUZ-06-A- 0003-VC09, Brand Name Enterprise Software Initiative GSA Schedule procurement, competitively awarded to Mythics, Inc on 15 Dec 2011. PoP: 1 Dec 2011 to 30 Nov

(3) Previous licenses and software maintenance support, Contract # W91QUZ-07-A- 0001-VC02, Brand Name Enterprise Software Initiative GSA Schedule procurement, competitively awarded to Oracle USA on 1 Dec 2010. PoP: 1 Dec 2010 to 30 Nov

(4) Previous licenses and software maintenance support, Contract # W91QUZ-06-A-

0003-VC05, Brand Name Enterprise Software Initiative GSA Schedules procurement, competitively awarded to Mythics, Inc on 18 Dec 2009.

(b) DISA will acquire competition from contractors under the Oracle Smart Buy GSA BPA

Government-wide Enterprise Software license Program. At such time that it becomes economically feasible, DISA will consider full and open competition including both Oracle and non-Oracle products. DISA will continue to examine the marketplace for alternative solutions.

(c) J&A will be posted to FBO within 14 days of award for a period of 30 days. (FAR 6.305)

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9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): (DARS 8.405-

6(c)(2)(S-91) & FAR 7.1)

Not Applicable.