20170721_FBI_DOJ_Cisco_IDIQ_JA_17-8815_FBO.docx

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FAR Part 6 Requisition Number: Insert Requisition Number

FEDERAL BUREAU OF INVESTIGATION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION IN ACCORDANCE WITH

41 U.S.C. § 3304 (a)(1) Requisition Number: DJF-17-2500-PR-0008815

Date: July 21, 2017 Estimated Contract Dollar Value: $250,000,000.00

1. Identification of the agency and contracting activity.

The U.S. Department of Justice (DOJ), Federal Bureau of Investigation (FBI), Information Technology Acquisition Unit (ITAU), has prepared this Justification for Other than Full and Open competition for the procurement of Cisco “Smart Net” hardware and software maintenance, “Advanced Services” engineering support, and “Software Support Services” (SWSS) on behalf of the FBI Office of the Chief Information Officer (OCIO), Enterprise IT Management Section (EITMS), Enterprise License Agreement Management Unit (ELAMU).

2. The nature and/or description of the action being approved, i.e., sole source, limited competition, establishment of a new source, etc.

The proposed action is a Brand Name Competition for hardware and software maintenance and engineering services for the DOJ’s installed base of Cisco Network hardware and software licenses. The contract length will be a base plus three (3) option years and one (1) 13-month option commencing 01 September 2017 and ending 30 September 2022. The planned procurement is for a Lowest Price Technically Acceptable (LPTA) Indefinite Delivery Indefinite Quantity (IDIQ) competition among eligible Cisco “Gold Partner” Value Added Resellers (VARs) via Open Market. The FBI is the lead acquisition activity, as it represents over 50% of the total DOJ installed base of Cisco equipment and required engineering services.

3. A description of the supplies or services required to meet the agency’s needs.

The FBI and DOJ Components jointly participate in a Base plus four (4) option years NASA SEWP IV Delivery Order with Options (DOWO) contract vehicle that expires on 29 September 2017. The expiring DOWO allows all DOJ components to purchase on a Brand Name basis:

1. Cisco network hardware

2. “Smart Net” maintenance for that Cisco equipment, as well as Cisco equipment purchased outside that DOWO agreement

3. “Advanced Services” engineering support

4. “Software Support Services” (SWSS) software upgrades and support services

The Cisco products and services the FBI and DOJ Components require under the proposed IDIQ are as follows:

“Smart Net” Maintenance Hardware Support IOS Software Updates “TAC” Technical Assistance Center “CCO” Cisco Connection Online

“Advanced Engineering” (Cisco Badged Personnel) “NOS” Network Optimization Services “GSE” Government Solutions Engineering Test Lab “CNS” Classified Network Support “HTTS” High Touch Technical Support Unclassified Network Support

“Software Support Services” (SWSS) Software upgrades and support services

The overall IDIQ has the following Period of Performance (POP):

4. The statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. § 3304 (a)(1) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1(c)(1) entitled, “An acquisition or portion of an acquisition that uses a brand-name description or other purchase description to specify a particular brand-name, product or feature of a product, peculiar to one manufacturer).”

5. Demonstrate the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

As discussed above, this is a limited competition among resellers of Cisco-brand products and services, as Cisco does not sell products and services directly to the Government. Cisco, as the Original Equipment Manufacturer (OEM) of the hardware and software for which the FBI and DOJ are requiring the subject products and support services, is the only manufacturer of those products and services.

The FBI has over 23,000 priced line items of Cisco proprietary hardware and over 200,000 line items that are subassemblies to those line items. It is estimated the rest of DOJ has over 15,000 priced line items and over 150,000 line items that are subassemblies to those line items. All of those line items, priced and unpriced, require both hardware replacement maintenance and software updates with associated security patches. Cisco “Smart Net” maintenance provides those two primary functions, typical of all network equipment manufacturers which provide those two functions as part of network equipment maintenance. There are two primary reasons the FBI and DOJ require Cisco to provide both hardware and software maintenance:

1. The FBI and DOJ require Cisco manufactured hardware parts to maintain Secure Supply Chain Management and to preclude introducing aftermarket manufacturer parts into the FBI and DOJ networks.

2. Cisco owns the intellectual property rights to its “IOS” software that runs on its hardware, typical of the network equipment industry. Therefore, only Cisco can provide the software updates and security patches to its own software via its authorized resellers.

The FBI and DOJ require two basic types of Cisco engineering services on a decreasing basis over the life of the proposed IDIQ:

1. The FBI and DOJ require limited Cisco badged engineers to provide advanced engineering technical services with access to Cisco design engineers to optimize network configurations and resolve certain network configuration problems.

2. The FBI requires those same Cisco badged engineers’ capabilities on a Top Secret basis, which Cisco provides via its “Classified Network Support” (CNS) service at a Raleigh North Carolina “SCIF” with secure access into the FBI’s classified networks. Inherently, only Cisco can provide that service with its badged personnel.

If the FBI and DOJ were to use another vendor to provide the engineering services, the Government would not be able to resolve technical issues such as problems involving Cisco proprietary protocols only Cisco hardware and software engineers have the ability to identify and resolve with the OEMs developers and test engineers.

The FBI and DOJ require software maintenance for its Cisco software licenses, which only Cisco can provide because it owns the intellectual property rights to the source code.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

For this requirement, a solicitation will be posted on Fedbizopps. The Government requires “Gold Partner” Cisco VARs to ensure the Government receives the level of support needed to manage the size and complexity of the IDIQ, and to provide certified secure supply chain management.

7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The NTE is $250,000,000.00. The acquisition cost is derived from detailed inventory files used to establish the “Smart Net” commercial list prices, and extensive historical files on prior Cisco Smart Net procurements to establish reasonable discounts for similar sized procurements. The FBI has also conducted market research with independent commercial sources that have extensive experience with Cisco product pricing in the commercial and government sectors, including advanced engineering services. The Contracting Officer will make a final determination of price fairness and reasonableness based upon the comparison of previous procurements and the Independent Government Cost Estimate (IGCE). The Contracting Officer may also seek additional discounts prior to placing an order.

8. A description of the market research conducted and the results.

In accordance with FAR 10.002 (b)(2)(vii), the Government researched government procurement sources and determined, as explained in Paragraph 6 above, there are three viable Gold Partner sources – GSA, NASA SEWP V, and Open Market – and Open Market provides the best source of qualified Cisco Gold Partner Value Added Resellers (VARs), the ability to add part numbers on short notice, and the flexibility of a multi-year IDIQ.

9. Any other facts supporting the use of other than full and open competition.

The FBI and DOJ are planning to compete future network equipment hardware requirements on a full and open basis, with limited Cisco brand name procurements until certain Cisco proprietary software protocols can be transitioned to open source standards. As those competitions are employed to replace the existing network equipment, the residual Cisco installed base of equipment using this Brand Name solicitation will diminish to the point of being fully replaced by those competitions’ maintenance agreements.

As a result of the planned competitive procurements of future network hardware, and that hardware’s associated maintenance and implementation engineering services, the FBI and JMD on behalf of DOJ Components require (1) Smart Net maintenance, (2) Advanced Services engineering support, and (3) SWSS on the current installed base of Cisco hardware and software licenses. The proposed IDIQ procurement is planned to fully meet those requirements. The IDIQ takes into account that future competitive network hardware procurements will replace the Cisco network hardware currently owned and operated by the FBI and DOJ, and therefore the installed base of Cisco hardware requiring Cisco support could diminish significantly over the 5-year life of the IDIQ.

10. A listing of any sources that expressed a written interest in the acquisition.

No other companies have expressed an interest either orally or in writing. The solicitation will be posted to Fedbizopps to encourage responses from as many resellers as possible.

11. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated.

The FBI and DOJ are proactively converting the installed base of Cisco network equipment from Cisco proprietary software to open standard software, which will enable the Government to use competitors’ network hardware. As that work is completed on each of the DOJ’s multiple networks, the DOJ will conduct Full and Open competitions for new hardware, associated recurring annual maintenance, and any required implementation engineering.

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