DF - Consolidation - 832469375 - Oracle SW Maintenance Support Renewal - Redacted.pdf

CUI

Reference Number: 832469375 Title of Procurement: Consolidation Determination & Finding for DISA/J6/JSP Oracle Software Maintenance Support Renewal

Controlled By: DISA Controlled By: PSD/PS21 CUI Category: PROCURE Distribution/Dissemination Control: FEDCON POC: David R. Santimaw, 618-418-6538, david.r.santimaw.civ@mail.mil

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DETERMINATION AND FINDINGS CONSOLIDATION OF CONTRACT

REQUIREMENTS

ORACLE SOFTWARE MAINTENANCE SUPPORT RENEWAL

I have reviewed the requirement for Oracle software maintenance support renewal that the Defense Information Systems Agency (DISA) J6/Joint Service Provider (JSP) proposes to solicit as a consolidation procurement action under 15 U.S.C. 657q. My review resulted in the following findings:

FINDINGS

1. The DISA/J6/JSP, through the Defense Information Technology Contracting Organization

(DITCO), plans to solicit quotes for a consolidated order under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V contract vehicle for renewal of brand-name Oracle software maintenance support. Market research efforts and the subject matter expertise of the mission partner, JSP, regarding Oracle software maintenance support requirements demonstrates that consolidation of this procurement is both necessary and justified.

2. Description of the Procurement Action: This procurement is intended to procure proprietary, commercial off-the-shelf (COTS), brand-name Oracle software maintenance support renewals that is currently being utilized throughout the enterprise and consists of product fixes, security patches, and commercially available product updates by consolidating requirements from delivery orders HC102821F0493 and HC102823F0816. Both requirements were solicited via NASA SEWP as small business set-asides and awarded under FAR 16.505(b)(1) Fair Opportunity as firm-fixed-price delivery orders. The software support renewals will mitigate security vulnerabilities in JSP’s Oracle software throughout DISA. The Government will realize monetary savings due to more advantageous pricing based on volume pricing discounts that reduce overall costs for brand-name Oracle software support subscriptions and renewals, and to properly align the licensing periods by consolidating two current contracts and soliciting licenses under one requirement. The consolidated effort will also be solicited against NASA SEWP V for a 12-month base period starting June 15, 2024, in order to align the requirement renewal periods and will also include three, one-year option periods. This procurement will be awarded as a firm-fixed-priced delivery order to an authorized reseller of brand-name Oracle software, the original equipment manufacturer (OEM), utilizing the NASA SEWP V Government-wide acquisition contract (GWAC) vehicle.

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a. Previous Contracts: Two separate delivery orders were previously awarded through NASA SEWP V. Both awards were solicited as total small business set-asides and awarded to Dynamic Systems, Inc., and Affigent, LLC. This delivery order will consolidate the Oracle software maintenance support requirements currently referenced under the following NASA SEWP orders:

Contract/Delivery

Order

Period of Performance

Contractor Name

Business Size Lifecycle Value

HC102821F0493 6/15/2021 –

6/14/2024

Dynamic Systems, Inc.

Women Owned Small

Business

$3,371,573

HC102823F0816 7/19/2023 –

7/18/2024

Affigent, LLC Small Business

$491,812

TOTAL $3,863,386

b. Consolidated Acquisition: The estimated total value for the entire period of performance including options is $6,867,985. This consolidated delivery order will include a base period and three option periods as provided in the below table.

Contract Period

Period of Performance IGCE Amount Description

Base Period

6/15/2024 - 6/14/2025 7/19/2024 - 6/14/2025

$1,643,785 Renews

HC102821F0493

Renews

HC102823F0816

Option Year 1

6/15/2025 - 6/14/2026 $1,693,099 Covers both current orders

Option Year 2

6/15/2026 - 6/14/2027 $1,743,892 Covers both current orders

Option Year 3

6/15/2027 - 6/14/2028 $1,796,209 Covers both current orders

3. Applicable Statues/Regulations: 15 U.S.C. 657q and Federal Acquisition Regulation

(FAR),Subpart 7.107-2, Consolidation.

4. Results of Market Research: Research utilizing the DISA Market Research Repository resulted in 54 market research reports with 30 recommending a small business set-aside. The DoD ESI BPA showed there are several Enterprise License Agreements with the Departments of Air Force, Army, and Navy only and not available for other DoD agencies such as DISA. A Market Research Request - #301217 – was posted on NASA SEWP on March 6, 2024, through March 13, 2024, resulting in one Other than Small Business quote submitted. Research utilizing the General Services Administration (GSA) Advantage Search Tool revealed Oracle resellers with established pricing via Multiple Award Schedule (MAS) Information Technology offerings and Special Item Numbers (SIN). However, competitive

P a g e | 3 pricing using NASA SEWP vendors has historically shown quotes that contain better pricing and more discounts than GSA’s MAS and SINs. NASA SEWP’s Market Research Tool was also utilized resulting in 116 authorized Oracle vendors with 92 of them being small business concerns. NASA SEWP V previous guidance that the NMR was grandfathered has been subsequently updated for brand name requirements over the Simplified Acquisition Threshold with a large business OEM (e.g., Oracle). The Non-Manufacturer Rule (NMR) applies, and requirements must be solicited through full and open competition. Based on this research, it is recommended that this procurement be solicited to all authorized resellers (i.e., large and small businesses) on NASA SEWP for Groups B, C, and D.

5. In accordance with (IAW) FAR 7.107-2 (c), Consolidation this requirement is necessary and justified as the Government will receive substantial benefits.

Substantial benefits of consolidating were identified and include efficiency, cost savings, quality, acquisition cycle, terms and conditions, and any other benefits, as applicable. A consolidation of Oracle software under one contract/order will centralize software management, provide better bargaining power, reduce duplicate contracting efforts, and realize cost savings. Having a consolidation in place simplifies the purchasing, renewal, and deployment process, and provides DISA with a more efficient means of managing its network security expense.

(a) Price Savings: Another benefit of consolidating the two current requirements into a single order will be the likely cost savings to the Government. Currently, the separate Oracle efforts are causing the duplication of administrative and technical efforts. This consolidation will result in a cost-efficient solution and a more streamlined approach to managing the Oracle software support requirements. Managing multiple delivery orders/contracts is a cumbersome and resource-intensive approach to meeting the end user’s needs. Consolidating these efforts will provide efficiencies for both the Government and contractor with respect to resource allocation. Awarding and administering one order (through consolidation, versus smaller orders) streamlines the process by reducing the number of Government employees needed to award and administer the order. Additionally, the consolidated approach will significantly cut down on the time, effort, and costs associated with carrying out the general administration, invoicing, oversight, and management, which would otherwise have to be carried out separately. By consolidating the orders, the mission partner will be required to monitor only one order, which will mitigate risks associated with untimely renewals. Timely renewals prevent the mission partner from incurring reinstatement fees and possible loss of service. The benefits of the consolidated approach exceed those of the alternative to awarding and administering two separate delivery orders.

(b) Quality: Technical benefits, based on this consolidated purchase, directly increase quality improvements in the following:

1) Timely upgrades and patches

2) Centralized management of software requirements

3) Reduced risks of software support interruptions

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(c) Acquisition cycle: The acquisition effort being undertaken is to gain efficiencies in the acquisition process and align multiple periods of performance to mitigate risk in disrupted end-user support and increase costs to the Government. Under the current process, each order is processed as a standalone contract action and collectively adds an increased amount of Government resources. Moreover, the consolidated approach will eliminate many of these redundancies and inefficiencies. From a lifecycle management perspective, the consolidation approach will allow for greater ease in not only the solicitation and award of support, but in contract administration for all parties, bringing together numerous efficiencies (acquisition package preparation, tracking requirements, troubleshooting, invoicing and payment, contract close-out, etc.).

(d) Terms and conditions: The same contractor and Government customer terms and conditions would apply under one contract/order, providing consistency. When consolidating, it also provides the Government with increased bargaining power and time to negotiate more favorable terms and conditions.

This consolidation will continue to help DISA buy and manage software subscriptions in a centralized manner, create accurate inventories, facilitate better purchasing by sharing pricing or terms and conditions across the agency, and manage COTS software in a more coordinated way. The consolidation will help to minimize administrative costs and secure lower prices from suppliers. Finally, an Oracle software consolidation will move DISA towards a more centralized and collaborative software management approach, reduce duplication of efforts, and help DISA to improve its IT management policies and practices.

The alternative approach to consolidating the two current delivery orders would be to allow the current orders to each expire and then solicit and award two separate procurement actions. Awarding two separate orders would essentially double the procurement and administrative workload in comparison to consolidating into a single order. The Government would also not be receiving the substantial savings from the discounts that are only being made available from the OEM on the condition of consolidating both current requirements into one. Additionally, the two separate requirements would add an administrative burden from both the overall technical program management perspective and a contractual management perspective to continuously renew the contracts/orders separately. This option fails to recognize the continuous burden on the finance/payment offices, fails to centralize software management (increasing security risk), fails to provide consistent terms and conditions across DISA, and fails to reduce duplicate contracting efforts. Also, market research indicates larger discounts will be offered to the Government by NASA SEWP V contract holders for the increased volume of sales, thus saving costs.

Because the NMR restricts the ability to set the requirement aside for small business, this is not considered bundling. Small business is still fully capable of performing this requirement, and the Government anticipates numerous small business authorized resellers will submit a quote in response to the solicitation. Thus, this procurement does not involve bundling as defined in FAR 2.101, and a bundling analysis was not conducted pursuant to FAR 7.107.

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6. Impact on Small Business Concerns: Due to updated NASA SEWP guidance, for brand name requirements over the Simplified Acquisition Threshold with a large business OEM (e.g., Oracle), the NMR applies, and requirements must now be solicited through full and open competition. Based on this updated guidance, it is recommended that this procurement be solicited full and open to all authorized resellers on NASA SEWP for Groups B, C, and D, however, the Government fully anticipates numerous small businesses resellers will respond to the solicitation and are still capable of fulfilling the requirement.

7. Steps Taken to Include Small Business Concerns/Maximize Small Business Participation:

As per paragraph 6, it is recommended that this procurement be solicited full and open to all authorized resellers on NASA SEWP for Groups B, C, and D. There are multiple small businesses that can fulfill the Government’s requirements, and as such, small business participation is likely.

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DETERMINATION

Upon the basis of the findings above, I hereby determine, pursuant to the authority of 15 U.S.C.

657q and FAR 7.107-2(b), that the proposed consolidation of the requirements is necessary and justified in that the benefits of the consolidation acquisition strategy substantially exceed the benefits of each of the other possible contracting approaches discussed in paragraph 5 above.

Allison K. Harder Contracting Officer

CONCURRED BY:

Small Business Professional

APPROVED BY:

DOUGLAS W. PACKARD

Head of Contracting Activity