RFI_JA.rtf

Page 2 of 6 Pages

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: $ (Base + 2 option yrs) Statutory Authority: 10 U.S.C. 2304(c)(1).

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number:

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

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

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 is provided under a Military Interdepartmental Purchase Request.

DESCRIPTION OF SUPPLIES/SERVICES

The object of this effort is to obtain software maintenance/licensing during the 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 an unfunded contract line item number for each contract year, to accommodate the potential need for additional PKWare 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 October 2015 through 30 September 2016; with optional years covering 1 October 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.

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)

DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

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.

$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.

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.

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.

These products have been in use in the DISA environment for at least 18 years. Software maintenance must continue in order for DISA to continue to support our mission partners.

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.

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.

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:

Comparison of proposed prices received in response to the solicitation. Adequate price competition establishes a fair and reasonable price (FAR 15.403-1(c)(1)).

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.

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

Comparison of proposed prices with the Independent Government Cost Estimate.

The PKWare software is used widely within the DISA ISC environment. If 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 if the software functionality could be replaced. Decreased DISA data center productivity would be a major negative impact of discontinuing the specific software. In summary, no other software product can meet the Government’s technical capability needs in a cost effective manner

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.

LISTING OF INTERESTED SOURCES:

PKWare, Inc. FEDBIZOPPS

ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

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

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.

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

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.

Digitally signed by

BILLETT.MARIE.R.1369555479

NAME: Marie R. Billett SIGNATURE: BILLETT.MARIE DN: c=US, o=U.S. Government, TITLE/ORGANIZATION: Systems Analyst/SE231 .R.1369555479 ou=DoD, ou=PKI, ou=DISA, cn=BILLETT.MARIE.R.1369555479 Date: 2015.06.30 13:38:54 ‐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:

TITLE/ORGANIZATION: Program Analyst/COR, IML24

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 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.

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: SIGNATURE:

TITLE/ORGANIZATION:

PHONE: DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

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