DETERMINATION TO CONSOLIDATE AND BUNDLE SAM.GOV PUBLIC POSTING.pdf

DETERMINATION THAT CONSOLIDATION, BUNDLING OR SUBSTANTIAL

BUNDLING IS NECESSARY AND JUSTIFIED

Treasury Standard Form – 1007 (Rev 11/16)

Prescribed by Treasury: DTAP 1007.107

Substantial bundling is necessary and justified (see FAR 7.107-4)

II. SUBSTANTIAL BUNDLING.

This requirement will consolidate eighteen existing procurements, and grow the requirement substantially beyond the current support, into one combined contract action. By leveraging packaged commodities, services and freeing up internal supply stream resources, via a Managed Services approach, PCLM could save on the following;

Onboarding Expense Savings - Based on historical spending trends, the IRS demonstrated that we are spending ~$5.2Million (in FY22/FY21) on resources not fully onboarded. With the implementation of PCLM award, IRS projects to manage contracts more efficiently resulting in 20% cost avoidance/saving going forward.

Multiple Contracts Savings - Efficiencies and cost savings of 3% for the agency ($16 Million savings).

Hardware Savings - The IRS is projecting a $37.6 million of total value of $225M (16.75%) savings on the average PC cost.

Services Savings - The IRS is projecting a $21.2 million of total value of $220M (9.6% savings) on the managed services cost.

A. Identification of the specific benefits anticipated to be derived from bundling.

The IRS requires methods to optimize processes and tools to deliver better value through consistent technical refreshes and new delivery processes. As an outcome of this acquisition, the IRS will leverage the contractor’s experience to become more agile in the end-to-end hardware deployment, support, and retirement lifecycle. Other anticipated outcomes include the improvement of the user experience during initial on-boarding and/or routine workstation refreshment, upgrade, or replacement; increased automation and self-service capabilities; and improvement of the time to market for new or innovative technology solutions – getting new products into the hands of frontline users more quickly and making their migrations more streamlined and self-serviceable.

The goal of this effort is to provide IRS employees workstations in a manner that generates significant cost savings, efficiencies, flexibility and innovation. As an information technology acquisition, the capital planning and investment. control requirements of 40 U.S.C. 11312 and OMB Circular M-16-02 will be met. This will be reported as part of UNS investment. The anticipated benefits for implementing a PCLM Services contract for all of IRS include:

• Improved user experience during initial on-boarding and/or

Treasury Standard Form – 1007 (Rev 11/16)

Prescribed by Treasury: DTAP 1007.107 routine workstation refresh, upgrade, or replacement.

• Increased automation and self-service capabilities.

• Reduced timeline for implementing new or innovative technology solutions – getting new products into the hands of users quicker and making their migrations more streamlined and self-serviceable.

• Increased UNS capacity by leveraging packaged commodity services and freeing-up internal supply stream resources (including deskside support) to address other priority work.

• Increased capacity to meet year-over-year requirements for timely equipment refreshes to maintain status while focusing internal resources on core service delivery.

• Increased IRS use of “best in class” contracts to meet the shared services goals as mandated by various OMB Memorandum.

• Increased spend on Category Management Leadership Council (CMLC) initiatives.

B. Assessment of the specific impediments to participation by small business concerns as contractors that result from bundling.

There will be no immediate affects to Small Business as a result of this BPA. The affects of this BPA will not be within the FY22 or early FY23 due to the Plan, Assess and Design phases which start Date of Award (DOA) and end in the base year. Affects of this BPA are anticipated to be active end of FY23 and beginning of FY24.

There are increased measures within the BPA at the BPA order level – (yearly) and Award Term Years, to increase and maintain small business participation. There are also monitoring guidelines in place to ensure compliance with SBA set goals.

C. Actions designed to maximize small business participation as contractors, including provisions that encourage small business teaming.

To mitigate the impact on small business, the solicitation highly encourages small business participation, it does not preclude small business from participation, rather it encourages any small business contractor interested in proposing to do so as a prime or through teaming. Small business can compete as a prime contractor or participate through teaming, with either arrangement providing small business the opportunity to fulfill the cloud services needs of the Treasury.

Out of the alternatives identified, a GSA Schedule BPA was determined to offer the Treasury the best overall solution for the breadth of scope, flexibility, and terms and conditions. Based on the results of extensive market research conducted, it has been determined by the Contracting Officer: A MAS Program on GSA E-BUY Schedule 70 is the BIC Vehicle for this requirement. The IRS is competing this requirement among GSA

Treasury Standard Form – 1007 (Rev 11/16)

Prescribed by Treasury: DTAP 1007.107

MAS IT Category – Hardware contract small and large businesses under Special Item Number (SIN) 33411 – Purchasing of New Electronic Equipment and GSA MAS IT Category – Services SIN 54151S for all IT Professional Services.

D. Actions designed to maximize small business participation as subcontractors (including suppliers) at any tier under the contract or order that may be awarded to meet the requirements.

The Offeror must complete and submit a Small Business Participation Plan, Small Business Participation Commitment Proposal (SBPCP), and an approved GSA Business Subcontracting Plan to be considered for award. The SP and SBPCP will be assessed in the evaluation process and utilized as a basis of award, according to FAR 52.219-8 Utilization of Small Business Concerns and 52.219-9 Small Business Subcontracting Plan. The Offeror must submit subcontracting goals at the BPA order level (yearly) – to be considered for award. The overall Small Business Minimum Quantitative Requirement (MQR) at the BPA order Level (yearly) are 26%.

The BPA will include an Evaluation Factor for Small Business Participation.

The Government shall evaluate the Offeror’s ability to utilize and incorporate small businesses. The Government shall give an “Outstanding” rating to small business Offerors. The next highest rating, “Good”, will be given to any large business Offerors whose proposed small business participation that exceeds the 26% IRS MQR based on the dollar values and percentages allotted to small businesses. The last rating, “Marginal” to any large business Offeror whose proposed small business participation is less than the IRS’s MQR of 26% based on the dollar values and percentages allotted to small businesses.

E. Determination that the anticipated benefits of the proposed bundled contract or order justify its use.

The PCLM Service Provider will provide automated and integrated solutions for improving and managing PCLM Services in the IRS, thereby potentially reducing the Total Cost of Ownership (TCO). The benefits of using a single award BPA include decreasing overall costs, reducing burden of internal technical support, leveraging buying power through volume discounts, streamlining ordering procedures, reducing lead time to delivery, and reducing required documentation. The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work. The Contractor will be responsible for designing and documenting a new PCLM solution, that shall include an out of the box solution for the IRS that ensures a seamless end-user experience through PCLM services. In collaboration with the IRS PCLM PMO, the Contractor will propose processes and tools to minimize end-user downtime, ensure no data loss during a workstation replacement, and verify all required software following the deployment of the workstation. The Contractor shall design more streamlined processes

Treasury Standard Form – 1007 (Rev 11/16)

Prescribed by Treasury: DTAP 1007.107 and integration to tools that will also provide an improved user experience. The integration of identity and access within the IRS network requires a single source to comply with security requirements and integration needs. The primary objective of this acquisition is to establish a turn-key operation for an end-to-end operational system that is cost-effective, innovative, efficient, and leverages the economies of scale and best practices. The PC Lifecycle supply chain activities as a single ‘Managed Commodity Service’, will free up IRS resource cycles to be able to support other high-priority, critical initiatives. If this is split among multiple vendors, the overhead of collaboration and oversight will result in tying up critical IRS resources. Additional benefits include managing and maintaining a standardized and stable computer workstation environment that maximizes efficient use of resources and helps to promote a productive workforce.

Critical to this requirement is maintaining the absolute least number of different manufacture and models of computers and associated supporting accessories.

Recognizing that across the industry, computer hardware components are constantly changing; therefore, it is paramount for the IRS to pursue an acquisition strategy that promotes the least burden on IT staff and has the least impact on the changes to end users. A multivendor solution will result with different software solutions provided by the vendors. This will have many negative results as it will result in additional resources for integrating each software solution with our internal processes. Additional resources will be needed in managing, testing, training, and compliance measures. Multiple providers are unwieldy to manage, given different platforms with proprietary technology, each requiring separate controls, software and skillsets for monitoring and integration.

Multiple help desk approaches by different vendors could have negative results and additional resources will be needed for integrating the solution with our internal processes. Consequently, additional resources will be needed in managing, testing, training, and compliance measures related to the help desk. A further consequence of a multi-vendor solution will result in data collection coming from at least two different sources. This will require the IRS to manage multiple data points to ensure they are integrated and accounted for properly. Additionally, the IRS will need to manage the incoming data from each vendor interfaces with our collection system to assure that the data points do not denigrate or corrupted our environment. Additionally, the IRS will have to coordinate and monitor across multiple vendors, which will add to operational overhead, instead of having a single point of contact, for any issues. The objective of gaining efficiency and innovation will be lost.

F. Alternate strategies that would reduce or minimize the scope of the bundling, and the rationale for not choosing those alternatives.

1. Split among multiple vendors. The intent is to establish the PC Lifecycle supply chain activities as a single ‘Managed Commodity Service’, provided by a single vendor. This result will free up IRS resource cycles to be able to support other high-priority, critical initiatives. If this is split among multiple vendors, the overhead of collaboration and oversight will result in tying up critical IRS resources. The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work.

The Contractor will be responsible for designing and documenting a new PCLM solution, Treasury Standard Form – 1007 (Rev 11/16)

Prescribed by Treasury: DTAP 1007.107 that shall include an out of the box solution for the IRS that ensures a seamless end-user experience through PCLM services. In collaboration with the IRS PCLM PMO, the Contractor will propose processes and tools to minimize end-user downtime, ensure no data loss during a workstation replacement, and verify all required software following the deployment of the workstation. The Contractor shall design more streamlined processes and integration to tools that will also provide an improved user experience. The integration of identity and access within the IRS network requires a single source to comply with security requirements and integration needs.

2. OEM solution. A single vendor will provide a solitary OEM solution. Thus, managing and maintaining a standardized and stable computer workstation environment that maximizes efficient use of resources and helps to promote a productive workforce.

Critical to this requirement is maintaining the absolute least number of different manufacture and models of computers and associated supporting accessories.

Recognizing that across the industry, computer hardware components are constantly changing; therefore, it is paramount for the IRS to pursue an acquisition strategy that promotes the least burden on IT staff and has the least impact on the changes to end users. Requiring vendors to provide a solution based on minimal specifications allows the IRS to stay ahead of the ever-changing technology landscape.

3. Supporting multiple vendors. This strategy will cause expending an enormous amount of time and resources in image management and compatibility testing that will be counterproductive and inefficient. When new computers and accessories are introduced into the environment, they require the use of image management and compatibility testing resources therefore it will likely eliminate any return on investment or scales of economy. A single vendor that implements the industry best practices as a single solution result will result in a uniform approach throughout the entire IRS. Having a second vendor with a different best practices approach could result in a potential mixed solution with counterproductive outcomes. Feedback from industry did not oppose the single award approach and no alternatives were presented demonstrating the ability to better achieve IRS’s goals. [There is an associated Determination and Findings for a Single Award for this procurement.]

4. A multivendor solution will result with different software solutions provided by the vendors. This will have many negative results as it will result in additional resources for integrating each software solution with our internal processes. Additional resources will be needed in managing, testing, training, and compliance measures. Multiple providers are unwieldy to manage, given different platforms with proprietary technology, each requiring separate controls, software and skillsets for monitoring and integration. A further consequence of a multi-vendor solution will result in data collection coming from at least two different sources. This will require the IRS to manage multiple data points to ensure they are integrated and accounted for properly. Additionally, the IRS will need to manage the incoming data from each vendor interfaces with our collection system to assure that the data points do not denigrate or corrupted our environment.

Treasury Standard Form – 1007 (Rev 11/16)

Prescribed by Treasury: DTAP 1007.107

5. Multiple help desk approaches by different vendors could have negative results and additional resources will be needed for integrating the solution with our internal processes. Consequently, additional resources will be needed in managing, testing, training, and compliance measures related to the help desk. Additionally, the IRS will have to coordinate and monitor across multiple vendors, which will add to operational overhead, instead of having a single point of contact, for any issues. The objective of gaining efficiency and innovation will be lost.

III. DETERMINATION.

Based on the above, I hereby determine that in accordance with FAR 7.107, that substantial bundling, is necessary and justified.