DEBOSS JA Redacted.pdf

CUI

Controlled By: DISA Controlled By: PSD/PL8413 CUI Category: Procure Distribution/Dissemination Control: FEDCON POC: Melyssa Lafontaine, 618-418-6546, disa.scott.ditco mbx.pl84-new-requirements@mail mil

CUI

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 and FAR Part 15

Purchase Request Number: 842366358 Contract Number: To be determined (TBD) Procurement Title: DeCA Enterprise Business Operations Systems Solution (DEBOSS) Estimated Value:

utory and Regulatory Authority: 10 U.S.C. §2304(a)(1) and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

OTFAOC Number: JA23-082

Upon the basis of the following justification, I, as the Senior Procurement Executive, hereby approve the use of name brands in this full and open competition of the proposed contractual action, pursuant to the statutory authority of 10 U.S.C.§2304(c)(1) and regulatory authority of FAR 6.302-1(c)(1).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Defense Commissary Agency (DeCA) 1300 E Avenue Fort Gregg-Adams, Virginia 23801

Contracting Office:

Defense Information Systems Agency (DISA) /Defense Information Technology Contracting Organization (DITCO) 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to maintain brand name hardware and software for DeCA’s

Enterprise Business Solution (EBS) supply chain solution, to include the Commissary Automated Resale Transaction System Replacement / Modernization (CARTS R/M). This requirement consists of NCR Government Systems, LLC (NCR) brand name hardware, software and associated third-party applications (see Attachment 1). These systems include interfaces, hardware and software on various infrastructures and platforms, including VMWare, Microsoft, Linux, Oracle, and SQL. This action is to procure annual hardware renewal warranty support (hereinafter referred to as “support”) and maintenance for previously purchased proprietary, commercial off-the-shelf, brand name hardware already integrated within the DeCA infrastructure. Furthermore, this contracting effort supports the renewal of

DeCA Enterprise Business Operations Systems Solution (DEBOSS) Service and Support JA23-082

Page 3 of 10 Pages operate similarly to commercial grocery stores. The requirement will ensure continuity of mission critical operations to include necessary break/fix solutions, patches, updates, and fixes to mitigate security vulnerabilities. The brand name hardware/software footprint is listed in Attachment 1, DeBOSS Hardware and Software. The contractor shall provide hardware and software support for all equipment listed in Attachment 1 that is installed and operating throughout the Agency’s environment, including store locations, warehouses, data centers, test labs, and other facilities.

b. The brand name software support to be acquired under this action requires renewal to sustain existing infrastructure. The support will include cross cutting capabilities such as help desk support, cybersecurity compliance, system up-keep (preventative and unscheduled maintenance), cloud management, and consumable replenishment. The continuation of brand name sustainment supports the mission-critical modernization to the DeCA Commissary Advanced Resale Transaction System Replacement/Modernization (CARTS R/M) legacy management data server centers, replacement of legacy mobile Point of Sale (mPOS) equipment, increasing self-checkout (SCO) deployments to existing stores, and maintains Operations and Sustainment (O&S). The brand name software support to be acquired under this action requires renewal to sustain existing infrastructure. The DEBOSS environment will include development, test, pre-production, production environments (e.g., store, warehouses, data centers, and other DeCA facilities), and DeCA’s mission support activities. The mission support will provide operational, procedural, and contract management support to assist DeCA throughout the DEBOSS lifecycle. This support will include planning and execution, test and evaluation, and transition of emerging technologies. Furthermore, it will include program management, project management, and contract management to ensure timely and effective performance.

c. Existing Original Equipment Manufacturer (OEM) products are proprietary, and upgrades and support are available from only the existing OEM or its authorized resellers. If the currently installed hardware and software is not renewed, the hardware would not receive the necessary updates, upgrades, and patches upon which the Government depends to provide continuity of operations. OEMs for applicable hardware support and software do not authorize any third-party hardware modifications or patches to their equipment. Existing product OEMs own the copyrighted equipment, with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the hardware, nor would they have access to the equipment schematics or source code to do so, because copyright and patent laws protect it.

DeCA’s minimum needs are to support brand name hardware and software maintenance. This includes all DeCA sites: store locations, warehouses, data centers, test labs, and other DeCA facilities and encompass support for all development, test, pre-production, and production environments and mission support activities such as:

Program management, Risk management (cyber security, and other mandated requirements, such as FEDRAMP, Page 4 of 10 Pages etc.), Help desk support (all tiers), Support for construction projects, Testing and integration support activities, System documentation/FAQs and help guides, Management of the Authorization to Operate, Risk and vulnerability management, IAW DoD, Payment Card Industry, and industry standards, Hardware support, Preventative support, Ad hoc troubleshooting/Break-fix, System updates and patching, Software support, Software as a service (SaaS), Maintain and update DeCA’s SaaS planogram solutions (including but not limited to associated hardware, software, firmware, O/S, utilities and all other elements and interfaces) that support the capability, Electronic Shelf Labels (ESL), DeCA’s Pricer ESL solution support to include updates to server and transceivers, firmware, O/S, utilities and all other associated elements, interfaces, software, peripherals and touchpoints, ESL consumables as needed (e.g., electronic shelf tags, rails, replacement of hardware/software products that have reached end of life), Store level consumables as needed (e.g., receipt paper, printer ink), Support DeCA mission projects which may impact the capabilities and therefore require a level of effort to ensure no interruption of service or function.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements. This acquisition is conducted under the statutory authority of 10 U.S.C.

§2304(a)(1) and regulatory authority of FAR 6.302-1.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events.

Brand name hardware and software are fully implemented and integrated into DeCA’s architecture. DoD’s Cybersecurity regulations require each device operating on the network to have the latest software updates to defend against potential security vulnerabilities, and functional areas require software and hardware replacement if a device fails.

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In 2014, the EBS contract was competed full and open to all large and small businesses.

In 2015, DITCO awarded the EBS contract to NCR with base year of 5 years with five 1-year option periods; the contract ends January 28, 2025. Under this contract, NCR deployed several mission support software solutions (e.g., catalog, ordering and receiving, pricing and promotion, and point of sale). To optimize compatibility, in 2016 a separate full and open competitive contract for NCR point of sale hardware and other necessary hardware (implementation, deployment, and sustainment) was awarded to International Business Machines Corporation (IBM). The software, hardware, and technical support solutions associated with these two contracts is currently installed and operating throughout the Agency’s environment, including store locations, warehouses, data centers, test labs, and other facilities. DEBOSS supports sustainment of the CARTS/RM. It is a new requirement.

Software updates are proprietary in nature and will extend the equipment life cycle by remediating security vulnerabilities or expanding product capabilities. Brand name hardware support can help extend the useful life of its hardware and software capabilities.

The required hardware and software support is essential to the Government’s requirement. Because NCR products are already integrated into the mission partner infrastructure, no other products can seamlessly integrate with the existing infrastructure without making changes to the baseline. Existing equipment were specifically designed to interface and operate with specific OEM products. Other hardware and software brands may provide similar functionality, but without rewriting the application source code and reconfiguration of system connectivity to integrate other OEMs’ solutions into existing OEM-centric environments, the competing programs would not be functional.

Introducing alternative products would not meet the Government’s need for interoperability.

b. Justification:

1) Minimum Government requirements.

The Government’s minimum requirement is the sustainment of its current mission critical environment, comprised of brand name NCR and other third-party hardware and software solutions (see Attachment 1).

2) Proposed sole source contractor.

Not applicable as this requirement will be solicited as full and open to all authorized resellers of the required NCR and other third-party brand name software and hardware to provide the maintenance and sustainment of DeCA’s current commissary solution.

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3) Discussion regarding cause of the sole source situation.

Not applicable

4) Impact.

The current NCR brand name hardware, software and third-party applications provide mission critical functionality to 240 military commissaries worldwide. Nearly 180 stores are CONUS locations, including Alaska and Hawaii, with approximately 60 stores in 12 OCONUS locations. Without the capabilities provided in these solutions, DeCA will not be able to effectively perform day-to-day operations necessary to operate its grocery stores. DeCA’s commissaries support approximately 12 million United States military customers (active-duty military, reserve, National Guard), retirees, and family members. The commissaries are designed and operate similarly to commercial grocery stores. The continued operation of these commissaries is DeCA’s mission. The brand name solutions provide all supply chain functionality from ordering and receiving product, to pricing, marketing, and point of sale activities. If not awarded, DeCA would not be able to provide the DoD benefit to its patrons (military members, family members, military retirees, DoD civilians, and other authorized individuals).

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES:

A synopsis for this requirement, along with a redacted justification OTFAOC, will be published to SAM.gov website, as required by FAR 5.2

7. DETERMINATION OF FAIR AND REASONABLE COST:

A determination will be made by the contracting officer that the contract represents the best value to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price and administrative costs) to meet the Government's needs. The contracting officer will also determine the pricing information valid for comparative purposes.

Certified cost and pricing data are not required for this commercial item acquisition, in accordance with FAR 15.403-1(b)(3). The contracting officer will determine whether the price is fair and reasonable, based on one or more of the techniques described in FAR 15.404-1:

(a) Comparison of proposed prices received in response to the solicitation.

(b) Comparison of the proposed prices to historical and existing prices paid, whether by the Government or other than the Government, for the same or similar items.

(c) Comparison with competitive published price lists, published market prices of the same commodities.

(d) Comparison of proposed prices with the IGCE.

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8. MARKET RESEARCH:

a. Market research was conducted from May 2022 through July 2023. Market research included gathering data from previous acquisitions, reviewing current contracts, internet searches, reviewing catalogs and other contractor literature, contacting manufacturers and authorized resellers, conducting internal discussions, and releasing a Sources Sought Announcement on SAM.gov.

b. First, market research was conducted to determine if another brand name solution could meet the DeCA’s requirements. The DeCA team capitalized on market research to determine if there were alternative solutions for support within DeCA’s current infrastructure.

Market research was conducted with subject matter experts to determine the magnitude of integration or replacement of existing infrastructures. The information received from these sources substantiated the findings from the previous effort. The OEM’s have proprietary rights to the hardware and, only the OEM’s or their resellers can provide the required support.

Furthermore, no other vendor or distributor can legally obtain access to the software, no other vendor can make duplicate copies, and copyright and patent laws protect it.

c. The second step in conducting market research was to determine a method of procurement. Market research reviewed several internal DoD contracts such as Enterprise Software Initiatives, General Services Agency Federal Supply Schedule, National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement V, and Global Solutions Management – Operations II. Based on research of the various procurement options, it was determined that these vehicles cannot meet this requirement.

A Sources Sought Announcement was posted on SAM.gov in May 2022. Four responses were received in total, two from small businesses and two from large businesses. The two responses from small businesses, RV Global Solutions, Inc. and Sentri Corporation did not address the information requested in the Sources Sought Announcement and did not demonstrate an understanding of the requirements. Sentri Corporation discussed how they can modernize the Army and Air Force Exchange Service eCommerce solution, which is not relevant to DeCA’s need. The responses from the two large businesses, IBM and NCR, demonstrated both have a clear understanding of the requirement, an interest in proposing, and validated the proprietary nature of the hardware and software for which they could support. Based on the responses, no small businesses in any of the targeted socioeconomic groups were identified as capable of performing the requirement.

d. No competitor’s functional replacement products exists currently in the market to meet the requirements. The Government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions, e.g., there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of the product, or it is economically feasible to procure a new system.

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9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

The following sources have expressed an interest in the procurement:

a. International Business Machines Corporation (Large Business) 6710 Rockledge Drive Bethesda, Maryland 20817

b. NCR Government Systems, LLC (Large Business) 20370 Seneca Meadows Parkway Germantown, Maryland 20876-70

c. RV Global Solutions Incorporated (Small Business) 247 E Front Street, Suite # 1 Trenton, New Jersey 08611

d. Sentri Corporation (Small Business) 2140 South DuPont Highway Camden, Delaware 19934

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a. Procurement History:

Contract Number: HC102815D0004 Contracting Title: DeCA Enterprise Business Solution Contract Type: Firm-Fixed Price (FFP) Incumbent and their size: NCR Government Systems, LLC – Large Business Method of previous acquisition: Full and Open for the EBS solution Period of performance: January 29, 2015 – January 28, 2025

Contract Number: HC102816D0007 Contract Title: DeCA Commissary Advanced Resale Transaction System Replacement/Modernization (CARTS R/M) Contract Type: Firm-Fixed Price Incumbent and their size: International Business Machines Corporation - Large Business Method of previous acquisition: Full and Open Period of performance: July 1, 2016 – June 30, 2026

Contract Number: HC101306D2005 Contract Title: POS hardware, software, and maintenance

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Contract Type: Firm-Fixed Price Incumbent and their size: International Business Machines Corporation – Large Business Method of previous acquisition: Full and Open Period of performance: December 31. 2005 – December 30, 2015

b. The Government will continue to search the marketplace to determine if alternative solutions exist. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.