Redacted_J A.pdf

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, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number: DHQCSD16MPC0011 Contract Number: TBD Task/Delivery Order Number: TBD Procurement Title: PKWare Annual Software Maintenance Renewal Contracting Office: Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO)/PLD833 Estimated Value: $860,000 (Base + 2 option yrs.)

Statutory Authority: 10 U.S.C. 2304(c)(1)

Justification for OTFAOC Number: JA15-108

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1).

Justification for OTFAOC Number: JA15-108

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Activity: Defense Information Systems Agency (DISA) Implementation and Sustainment Center (ISC/IML24) 1 Overcash Avenue, Bldg 12 Chambersburg, PA 17201

Contracting Activity: DISA / DITCO Scott (PL83)

2300 East Drive Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

This requirement is to procure a firm-fixed-price (FFP) multiple year contract (base plus 2 optional years) for the renewal of software maintenance/licensing for PKWare software, used in the DISA ISC mainframe and server environments in Mechanicsburg, PA, and Ogden, UT. Software maintenance for the last year was provided under HC1028-14-P- 0158. Fiscal year (FY) 16 Defense Working Capital Funds are provided under a Military Interdepartmental Purchase Request (MIPR).

3. DESCRIPTION OF SUPPLIES/SERVICES

The object of this effort is to obtain software maintenance/licensing during FY 2016 through 2018, from the original equipment manufacturer (OEM) for PKZip SE, PKZip Enterprise, SecureZip, and SecureZip zLinux software maintenance. The award will include a surge contract line item number not to exceed 25% of the contract expenditures for each contract year. This will accommodate the potential need for surge Pare licenses due to increased or new customer requirements and increased hardware capacity due to hardware tech refreshes. Software maintenance includes the receipt of new versions and releases of software products. The period of performance for the base year contract is 1 dana.rutledge Highlight

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PKWare Annual Software Maintenance Renewal-JA15-108

October 2015 through 30 September 2016; with optional years covering 1October 2016 through 30 September 2017, and 1 October 2017 through 30 September 2018. The software is incorporated in the Implementation and Sustainment Center Mainframe Environment.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 10 United States Code § 2304(c)(1). (FAR 6.302-1/Defense FAR Supplement 206.302-1)

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

PKWare software has been in use in the DISA Implementation and Sustainment Center (ISC) data centers for at least 18 years. DISA and its mission partners heavily use PKWare products for file compression and encryption. Note that per a letter received from PKWare’s Chief Financial Officer, PKWare has certified that it is the sole source provider for maintenance and support services for the software for which DISA is licensed. PKWare developed and wrote the unique software code. As the software expert, only PKWare can provide the patches, fixes and software maintenance that maintain a secure and stable environment that is most able to thwart the cyber threat or attack.

(b) Justification.

(1) Minimum Government requirements. DISA and its mission partners require the PKWare software and the function it performs. The PKWare family of products that DISA has licensed primarily performs file compression. SecureZip goes one step further and also encrypts the data for further protection. Obtaining replacement software from another software OEMs would result in massive software conversions and would lead to additional costs for the Military Services, Agencies (the DISA mission partners), and central design activities that have developed in-house applications using this commercial off-the-shelf software in their application systems. A competitive functional replacement would result in increased costs to DISA and its mission partners. Based upon research done by Gartner, software maintenance equates to approximately 20 percent of the license cost and would cost the Government at least $1.3M to replace PKWare licenses.

In addition, research shows that the cost to implement a new product in the enterprise ranges from a license ratio of 2:1 to 3:2, which equates to $2.6M to $3.9M. This cost is only indicative of the DISA cost to implement. The cost for our mission partners to implement a new product would be the same or more, depending upon the number of applications that require updating.

(2) Proposed sole source contractor. PKWare, Inc. is the OEM and the only source for software maintenance of the licensed PKWare products. PKWare owns all proprietary rights to the source code and has not released the product source code to any authorized third party vendors to maintain.

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(3) Discussion regarding cause of the sole source situation. A sole source situation has occurred due to the PKWare software being deeply embedded into DISA and its mission partners’ applications. Acquiring a different product would cost DISA and its mission partners a large, unbudgeted financial burden.

DISA’s mission partners (DoD agencies – Air Force, Army, DFAS, DLA, Marine Corps and Navy) require PKWare software. Before DISA can compete this function, all of these mission partners would have to be on board, would have to agree to change all of their applications that utilize PKWare software, would have to provide procurement dollars to buy new software licenses, and would have to have the resources to implement a new product.

Demonstration of unique source.

1. The software OEM (PKWare) owns all proprietary rights to the source code and has not released the product source code to any authorized third party vendors to maintain their proprietary software product. Only the OEM can provide the continued software licenses and maintenance of the proprietary software.

2. Obtaining replacement from other software OEMs, as demonstrated above, would result in massive software conversions and would lead to additional costs for the Military Services Agencies (the DISA mission partners), and central design activities that have developed in-house applications using this software in their application systems. A competitive functional replacement would result in increased costs to DISA and its mission partners, in addition to delays during implementation, extensive re-training, and decreased DISA data center productivity.

3. In 2002, DoD agencies were mandated to consolidate their mainframe software and software management to DISA. Prior to that, each Enterprise Service Center (ESC, formerly Defense Enterprise Computing Center (DECC)) managed their own contracts. Software maintenance for the PKWare software that’s licensed in Mechanicsburg was contracted via the Navy’s contracting office. DISA’s configuration manager, Sheryl Orner, at ESC Mechanicsburg began supporting the ESC in 1994; PKWare was in use in 1994; 21 years ago if not longer.

4. PKWare’s Chief Financial Officer has provided a letter stating they are the only provider for maintenance and support services for this software, which was verified by DISA’s market research.

(4) Procurement discussion.

These PKWare products have been in use in the DISA environment for at least 18 years and are necessary for DISA’s mission partners to continue successful operation.

Software maintenance must continue in order for DISA to continue to support our mission partners.

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(5) Impact.

Obtaining replacement software products from other OEMs would result in massive software conversions and would lead to additional costs for the Military Services Agencies (the DISA mission partners) and design activities that have developed in- house applications using this software in their application systems. A competitive functional replacement would result in increased costs to DISA and its mission partners. Based upon an annual software maintenance and support cost of $262K, it would cost DISA a minimum of $1.3M (reference Gartner research G00219430) to acquire new licensing/entitlements for replacement software. Additionally, a product change-out would require substantial training for both Systems Administrators and our DoD customers, for integration and compatibility testing, as well as an undetermined amount of time for implementation, at a cost of potentially $3.9M to $9.1M (reference Gartner Research G00152089); and an effort that could take five or more years. One time license cost would require Capital funding, which is unplanned and unbudgeted. Therefore, DISA’s only option is to continue supporting the already vetted and implemented PKWare software.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

To ensure that offers are solicited from as many potential sources as is practicable, a synopsis for this requirement will be published to Federal Business Opportunities (FBO) website, as required by

FAR 5.2.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The contracting officer will determine that this contract represents the best value (as defined in FAR 2.101) and result in the lowest overall cost alternative (considering price, special features and administrative costs) to meet the Government's needs. The technical team will perform an evaluation of any other price proposals based on the evaluation criteria of lowest priced technically acceptable. Certified cost and price data is not required for these commercial item acquisitions in accordance with FAR 15.403-1(b)(3). The contracting officer will determine whether the prices for each individual requirement are fair and reasonable based on one, or a combination, of the following:

a. 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. The contracting officer will conclude the prior price was valid for comparison.

b. Comparison with competitive published price list, published market prices of the same commodities.

c. Comparison of proposed prices with the Independent Government Cost Estimate.

8. MARKET RESEARCH:

Market research was completed via internet searches and phone calls during April 2015 by DISA IML24. Market research was based on the prior years’ acquisitions. The software maintenance will continue the annual software renewal of the ISC architecture. Market dana.rutledge Highlight

Page 5 of 7 Pages research showed that this license, maintained since the initial purchase, is commercially available to properly support the operating environment, and is not available on existing Government contract vehicles. The GSA FSS appears to support a limited competition among authorized PKWare resellers. However, further research proved that while software licenses can be purchased from GSA, annual software maintenance cannot be purchased from GSA.

The PKWare software is used widely within the DISA ISC environment. Even if its functionality could be replaced, it would result in the Government losing its investment in the current infrastructure, as well as extensive application re-writing for the supported DISA customer. In addition, extensive re-training of the DISA technicians who support this software would be required even if the software functionality could be replaced.

Decreased DISA data center productivity would be a major negative impact of discontinuing the PKWare software. In summary, no other software product can meet the Government’s technical capability needs in a cost effective manner.

Sources Sought notification posted on 7/9/2015, #DHQCSD16MPC0011, showed that another source was interested in bidding on this requirement. However, no capable parties responded.

9. ANY OTHER SUPPORTING FACTS:

DISA’s installed proprietary software environment limits the ability to pursue competitive alternatives, but has proven successful in the standardization and cost reduction efforts of DISA ISC. ISC Operations is currently working on an initiative to establish an operating environment that will standardize software categories that have proven to be cost effective in managing and maximizing use of available computer resources at DISA facilities.

10. LISTING OF INTERESTED

SOURCES: Vectrus No address given POC: Gregory Wappel DUNS:

079387563 Cage Code: 3U2P7

*None of the above information pulls up in SAM for this company, nor does the name given. This vendor is not considered a capable party for this requirement. Vendor is not registered in SAM and did not provide the required information as directed in the Sources Sought announcement.

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11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME

BARRIERS THAT LED TO THE EXCEPTION TO FULL AND OPEN

COMPETITION:

(a) Procurement History.

HC1028-09-P-2350 – $199,500

HC1028-10-P-2254 – $263,893.60

HC1028-11-P-0367 – $229,571.19

HC1028-12-C-0068 & PC12-CSD-8155 – $241,023.46

HC1028-13-P-0177 – $253,199.36 & HC1028-13-P-0185 - $27,750

HC1028-14-P-0158 - $262,401.90

HC1028-08-P-2303- $207,635.36

HC1013-07-P-2027- $189,024.43

HC1013-06-P-2010- $291,145.48

(b) Full and open competition will be pursued on future requirements if there are no barriers to software requirements. This action is a follow on renewal of support. The needs will be assessed when the current software becomes obsolete and needs to be replaced, to include consideration for use of other contractor’s products. Mission partners determine the mission need and capability of the software requirement.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): N/A

DN: c=US, o=U.S. Government, TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Marie R. Billett SIGNATURE:

TITLE/ORGANIZATION: Systems Analyst/SE231

Digitally signed by

DBNIL:LcE=TUT.SM, AoR=IUE..RS..1G3o6v9e5r5n5m47e9nt, ou=DoD, ou=PKI, ou=DISA, .R.1369555479 cn=BILLETT.MARIE.R.1369555479 Date:2015.06.3013:38:54‐06'00'

PHONE: 303-224-1734 DATE: 30-Jun-15

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Deanna J. Baer SIGNATURE: BAER.DEANNA.J.

Digitally signed by BAER.DEANNA.J.1268317275 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DISA, cn=BAER.DEANNA.J.1268317275

TITLE/ORGANIZATION: Program Analyst/COR, IML24 1268317275 Date: 2015.06.30 15:42:22 ‐04'00'

PHONE: 717-267-9930 DATE: 30-Jun-15

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Digitally signed by

NAME: Cheryl J. Preisler SIGNATURE: PREISLER.CHERY PREISLER.CHERYL.J.1228958731 ou=DoD, ou=PKI, ou=DISA, L.J.1228958731 TITLE/ORGANIZATION: Supervisory Contract Specialist/ISC Contracting a nd Logistics Support Branch DISA/DITCO cn=PREISLER.CHERYL.J.1228958731 Date: 2015.08.05 15:14:12 ‐04'00'

PHONE: (717) 267-9339 DATE: 5 August 2015

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

NAME: Gay Arnold SIGNATURE:

TITLE/ORGANIZATION: PACA/DISA/DITCO

PHONE: 618-229-9517 DATE: August 13, 2015

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Dana Rutledge, (405) 734-5371, dana.l.rutledge.civ@mail.mil.

BILLETT.MARIE

mailto:dana.l.rutledge.civ@mail.mil