ECS Point of Sale LSJ Final 052522.pdf

U.S. Customs and Border Protection Limited-Sources Justification (LSJ) - FAR 8.405-6

For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2020

Date: 5/17/2022 PR Number: 20132503

This acquisition is conducted under the authority of the Multiple-Award Schedule Program, 41 U.S.C.

152(3), Competitive Procedures, and 40 U.S.C. 501, Services for Executive Agencies.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Customs and Border Protection (CBP), Office of Acquisition, proposes to enter into a contract on a basis other than full and open competition.

2. Nature and/or description of the action being approved.

Pursuant to FAR 8.405-6, CBP intends to limit the number of sources by awarding a Blanket Purchase Agreement (BPA) to National Cash Register (NCR), 20370 Seneca Meadows Pkwy, Germantown, MD 20876, for operations and maintenance of existing proprietary products. The BPA will use Firm Fixed Price (FFP) task orders and be awarded under the GSA Federal Supply Schedule, Contract Number GS-35F-0082V.

Estimated cost per year (Includes Base and Options):

Period Total Base Period 09/2022 to 09/2023 $1,272,465 Option Period 1 09/2023 to 09/2024 $1,296,313 Option Period 2 09/2024 to 09/2025 $1,142,581 Option Period 3 09/2025 to 09/2026 $1,174,166 Option Period 4 09/2026 to 09/2027 $1,196,177

Total $6,081,702

3. Description of Supplies/Services.

CBP intends to procure professional software services to maintain and seek opportunities for continual improvement of the existing Point of Sale (POS) software in use on CBP POS cash registers and within the Enterprise Management System (EMS), which is a web based Mperium software platform. The EMS connects all cash registers throughout the CBP enterprise to support CBP enterprise-wide register monitoring, Port-level receipt reconciliation across multiple cash registers at a single port location and facilitates the ultimate deposit process which allows the POS system to communicate collection receipts to the CBP System of Record for collections, known as ACS. It is noted that NCR’s Mperium proprietary product is the core component of this software package.

The Mperium cash register software provides standard workflow driven functionality to facilitate the sale and cash, check, or credit collection of the retailer's goods or services. The Mperium product includes a web-based platform that consolidates information for all cash registers across

For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2020 the retailer’s storefronts to facilitate (1) the monitoring of cash register health, (2) the monitoring and reporting of collection receipts across the store’s multiple cash registers, and (3) the reconciliation of receipts and their associated tenders (cash and check) to complete the day’s bank deposit and accounting receivable entries into the accounting System of Record. In support of ongoing operations and maintenance, NCR, will be required to provide software configuration or code changes to fix identified production defects which will be delivered across three scheduled maintenance release packages per year or by out-of-cycle emergency release package depending on the severity of the defect discovered.

4. Authority and supporting rationale. Select one of the circumstances justifying limiting sources pursuant to FAR 8.405-6(a)(1)(i) below and demonstrate the proposed contractor’s unique qualifications to provide the required supply or service.

The POS Mperium software is a licensed product of NCR and was configured for CBP’s use to support Port collections and Deposits to ACS, the collection System of Record. From 2018 through 2022, NCR has been a key partner with CBP to configure and deploy the newly updated cash register systems across all 178 operational POEs. CBP intends to continue using the Mperium product as Revenue Modernization at this time.

NCR and the proprietary Mperium software product were selected as a result of a competitive procurement in 2018 to assist CBP in delivering the requirements for the agency’s modernized cash register system. While the commercial Mperium product provided the platform and work-flow framework on which the CBP cash register system could be built, the unique requirements of the CBP retail environment mandated a significant investment in time, resources, and funding to shape the Mperium core code into the POS Cash Register system that today allows CBP officers to make timely cash, check, credit, and debit card payment collections through customized register menus and workflows. The Mperium software also provides critical workflow technology that allows ports to reconcile collections across multiple cash registers within their POE and ensure an accurate and timely deposit of cash and checks via integration with the CBP collection system of record, ACS.

In total, 479 cash registers were installed along with supporting peripheral equipment across those 179 POEs during this nearly 2-year implementation. Phasing in a new cash register software product with new hardware components to over 10,300 users required a coordinated effort involving the project team and the impacted Ports. The OFO investment in training and acclimation to this new system has been significant and most certainly has impacted operational capacity. Maintaining status quo of the current POS Cash Register Product is essential to limit additional operational downtime and significant duplication of cost and resources.

Given its expertise and knowledge of the existing software, NCR is uniquely qualified to provide follow-on development and enahancements to the current CBP POS Cash Register system in order to keep the cash register system current with changing customer requirements, emerging hardware

For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2020 technology, OIT security standards, and PCI compliance standards. Because NCR has proprietary rights to the Mperium product at the core of the CBP POS Cash Register system, no other contractor is able to make the necessary adjustments or upgrades to the Mperium code in order to meet these continual emerging requirements. Further, no other vendors have authorization or license to complete the required maintenance and upgrades to the core Mperium code.

The POS Cash Register system is a highly specialized, major collection tool system critical to OFO and Port operations. A decision to discontinue use of Mperium and the supporting NCR vendor at this juncture would result in a substantial duplication of cost and cause significant interruptions to operations at the POEs that would not be recovered through competition. In addition, continuing with the use of NCR’s Mperium software will ensure CBP maintains continuity of operations across the POE network to best support the flow of people and goods in and out of the United States.

5. Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with FAR 8.404(d).

The contracting officer has determined that issuing the proposed BPA for NCR’s Mperium product represents the best value and will result in the lowest overall cost, considering price and administrative costs, to meet the Government’s needs. The General Services Administration (GSA) has already negotiated fair and reasonable price.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

Market research was conducted via Internet and through use of the GSA e-library and schedules for services similar to those being provided through the existing contract vehicle. While there were other contractors identified that provide similar types of services as NCR, it was determined that no other contractor, including resellers of the NCR brand name, has the licensed right or ability to provide updates or coding changes to the core Mperium code as is required by this contract.

7. Any other facts supporting the limited-sources justification. Additional facts may be stated in this section. If there are no additional facts, you must state that here.

As stated earlier, NCR holds exclusive rights to the Mperium software product in use by CBP.

Pursuing a new POS software provider would result in significant operational impacts, disruption, and delays as well as result in substantial duplication of cost and loss of resources already expended that the Government could not expect to be recovered through competition.

8. A statement of actions, if any, the agency may take to remove or overcome any barriers that led to restricted consideration (i.e., limited-sources) before any subsequent acquisition for the supplies or services is made.

For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2020

To maintain continuity of operations, CBP intends to use the Mperium software product in the immediate future. CBP is continuously re-evaluating its requirements and the market to determine if the acquisition should be competed in the future.

9. Posting Requirement.

CBP intends to post this requirement on pursuant to FAR 8.405-6(b)(3)(i)(B).

For orders or BPAs exceeding the Simplified Acquisition Threshold (SAT)

Version 2.0 November 2020

10. Technical/Requirements Personnel Certification:

Pursuant to FAR 8.405-6(c)(2)(x), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the Limited-Sources Justification, are accurate and complete.

Technical Representative/COR Date

11. Contracting Officer Certification and/or Approval: *

Pursuant to FAR 8.405-6(c)(2)(ix), I certify that the Limited-Sources Justification is accurate and to the best of my knowledge and belief.

Contracting Officer Date

*Note: In accordance with FAR 8.405-6(d)(1) for proposed BPAs or orders with an estimated value exceeding the simplified acquisition threshold, but not exceeding $750,000, the ordering activity contracting officer’s certification that the justification is accurate and complete to the best of the ordering activity contracting officer’s knowledge and belief will serve as approval.

LSJ Approvals:

12. COMPETITION ADVOCATE (Per FAR 8.405-6(d)(2) - Exceeding $750,000)

Approved Disapproved

Name (Print): ________________________ Competition Advocate

Signature: ___________________________ Date: _____________

5-25-2022

X

Richard K. Gunderson

05/25/2022