Limited_Sources_e-Buy-signed.pdf

UNITED STATES DEPARTMENT OF EDUCATION

Office of the Chief Financial Officer Contracts and Acquisitions Management

Limited Sources Justification Solicitation #: EDEICM15Q0005

Microsoft Enterprise License Agreement

1. Identification:

Agency Office:

United States Department of Education Office of the Chief Information Officer 550 12th Street, SW, Floor 9 Washington, DC 20202

Contracting Activity:

United States Department of Education Contracts and Acquisitions Management 550 12th Street, SW, Floor 7 Washington, DC 20202

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

The United States Department of Education (Department), Office of the Chief Information Officer (OCIO), seeks to acquire a Microsoft Enterprise License Agreement (ELA) and the associated software and services necessary to satisfy the Department’s requirements. OCIO has elected to sponsor Solicitation Number EDEICM16Q0005 and the resulting Blanket Purchase Agreement (BPA) to meet this requirement. The procurement will be solicited, competed, and subsequently awarded under the guidance of Federal Acquisition Regulation (FAR) Subpart 8.4.

The sought software and services are brand name specific and considered to be “items peculiar to one manufacturer,” as defined by FAR 8.405-6(b).

3. DESCRIPTION OF PRODUCTS/SERVICES:

The sought ELA will be Microsoft brand name specific and will be established to maximize savings by combining the purchasing efforts of OCIO and Federal Student Aid (FSA) under a single ELA. In addition to providing savings, the ELA will centralize the agency’s ability to effectively manage its Microsoft licenses and services under a single ELA that is auditable. The ELA will be acquired under the resulting Blanket Purchase Agreement (BPA) by means of two

(2) firm-fixed price (FFP) Task Orders (TO) with one TO representing OCIO’s needs and the other TO representing FSA’s needs. The Department previously held a BPA and two similar TOs with another Microsoft authorized reseller. The previous BPA expired on May 30, 2016.

However, the reseller abruptly closed their business without notification to the Department, which necessitates the need to establish another ELA by means of the BPA and resulting TOs. Given the specific needs, as detailed further below, the Department must acquire the brand name specific Microsoft licenses and services.

The following list of software/services will be acquired on a brand name basis under the resulting BPA. It should be noted that additional Microsoft software/services may be acquired under BPA, as may be necessary.

Part Number Product Description U5J-00004 ECALBridgeOff365 ALNG SA MVL Pltfrm UsrCAL

76A-00016 EntCAL ALNG SA MVL Pltfrm UsrCAL wSrvcs

312-02257 ExchgSvrStd ALNG SA MVL

5HU-00216 LyncSvr ALNG SA MVL

U7S-00008 Office365PlanG3 ShrdSvr ALNG SubsVL MVL PerUsr

BU8-00008 OfficeLiveMtgPro ShrdSvr ALNG SubsVL MVL PerUsr

269-05704 OfficeProPlus ALNG SA MVL

269-12442 OfficeProPlus ALNG SA MVL Pltfrm

076-01912 Prjct ALNG SA MVL

H30-00238 PrjctPro ALNG SA MVL w1PrjctSvrCAL

H22-00475 PrjctSvr ALNG SA MVL

H21-00591 PrjctSvrCAL ALNG SA MVL UsrCAL

4ST-00001 ProjProforOff365G ShrdSvr ALNG SubsVL MVL PerUsr

H04-00268 SharePointSvr ALNG SA MVL

359-00792 SQLCAL ALNG SA MVL DvcCAL

810-04760 SQLSvrEnt ALNG SA MVL

7JQ-00343 SQLSvrEntCore ALNG SA MVL 2Lic CoreLic

228-04433 SQLSvrStd ALNG SA MVL

7NQ-00292 SQLSvrStdCore ALNG SA MVL 2Lic CoreLic

228-04433 SysCtrStd ALNG SA MVL 2Proc

D87-01159 VisioPro ALNG SA MVL

D86-01253 VisioStd ALNG SA MVL

9ED-00073 VSPremwMSDN ALNG SA MVL

77D-00111 VSProwMSDN ALNG SA MVL

K4U-00265 WinProw/MDOP ALNG SA MVL Pltfrm

6VC-01253 WinRmtDsktpSrvcsCAL ALNG SA MVL DvcCAL

R18-00096 WinSvrCAL ALNG LicSAPk MVL UsrCAL

R18-00052 WinSvrCAL ALNG SA MVL UsrCAL

R39-00396 WinSvrExtConn ALNG SA MVL

P73-05897 WinSvrStd ALNG LicSAPk MVL 2Proc

P73-05898 WinSvrStd ALNG SA MVL 2Proc

U5J-00002 ECALBridgeOff365 ALNG LicSAPk MVL Pltfrm UsrCAL

76A-00010 EntCAL ALNG LicSAPk MVL Pltfrm UsrCAL wSrvcs

395-02412 ExchgSvrEnt ALNG LicSAPk MVL

395-03039 ExchgSvrEnt ALNG SASU MVL ExchgSvrStd

312-02177 ExchgSvrStd ALNG LicSAPk MVL

076-01776 Prjct ALNG LicSAPk MVL

H30-00237 PrjctPro ALNG LicSAPk MVL w1PrjctSvrCAL

H30-00910 PrjctPro ALNG SASU MVL PrjctStd w1PrjctSvrCAL

H21-00419 PrjctSvrCAL ALNG LicSAPk MVL DvcCAL

H04-00232 SharePointSvr ALNG LicSAPk MVL

359-00765 SQLCAL ALNG LicSAPk MVL DvcCAL

D2M-00366 SQLSvrBsnssIntelligence ALNG LicSAPk MVL

D2M-00498 SQLSvrBsnssIntelligence ALNG SASU MVL SQLSvrStd

7JQ-00341 SQLSvrEntCore ALNG LicSAPk MVL 2Lic CoreLic

7JQ-00448 SQLSvrEntCore ALNG SASU MVL 2Lic SQLSvrStdCore CoreLic

228-04437 SQLSvrStd ALNG LicSAPk MVL

7NQ-00302 SQLSvrStdCore ALNG LicSAPk MVL 2Lic CoreLic

T6L-00237 SysCtrDatactr ALNG LicSAPk MVL 2Proc

T6L-00315 SysCtrDatactr ALNG SASU MVL SysCtrStd 2Proc

T9L-00222 SysCtrStd ALNG LicSAPk MVL 2Proc

D87-01057 VisioPro ALNG LicSAPk MVL

D87-02227 VisioPro ALNG SASU MVL VisioStd

D86-01175 VisioStd ALNG LicSAPk MVL

9ED-00071 VSPremwMSDN ALNG LicSAPk MVL

9ED-00072 VSPremwMSDN ALNG SASU MVL VSProwMSDN

77D-00110 VSProwMSDN ALNG LicSAPk MVL

K4U-00266 WinProw/MDOP ALNG UpgrdSAPk MVL Pltfrm

6VC-01251 WinRmtDsktpSrvcsCAL ALNG LicSAPk MVL DvcCAL

R18-00096 WinSvrCAL ALNG LicSAPk MVL UsrCAL

P71-07280 WinSvrDataCtr ALNG LicSAPk MVL 2Proc

P71-07281 WinSvrDataCtr ALNG SASU MVL WinSvrStd 2Proc

R39-00374 WinSvrExtConn ALNG LicSAPk MVL

P73-05897 WinSvrStd ALNG LicSAPk MVL 2Proc

In addition, the successful offeror, which must be an authorized Microsoft federal reseller, will be required to provide value-added reselling services such as attending kickoff meetings and providing program and management support by attending meetings and providing reports in order to effectively plan, control, and execute this agreement and the resulting orders. See below for the estimated value.

4. STATUTORY AUTHORITY PERMITTING LIMITATED SOURCES

FAR 8.405-6(b): Items particular to one manufacturer. An item peculiar to one manufacturer can be a particular brand name, product or feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

5. SUPPORTING RATIONAL AND DEMONSTRATION OF UNIQUE QUALIFICATIONS:

Although there are a number of authorized Federal resellers, the sought Microsoft products and services are peculiar only to Microsoft and the associated requirements cannot be satisfied by any other manufacturer.

Market Research conducted demonstrates that the Department’s only other alternative is to acquire solutions considered equivalent to Microsoft products. However, these products have not been deemed compatible with the Department’s current information technology (IT) infrastructure. Use of alternative solutions would be significantly more expensive by requiring the Department to test and certify new products, re-image personal computers, incur substantial costs associated with ensuring backward compatibility and provide extensive training that users would need to operate the alternative solutions. It is more cost-effective to maintain the current Microsoft solutions that have already been effectively tested, certified and deployed. Based on the pricing provided by OCIO, costs associated with maintaining the current Microsoft solution is $1,285,135.26 for a 3 year period. Based on an analysis of new, similar software suites and associated implementation costs, the Department would expect to pay $42,453,092.98 for the same solution provided by Microsoft. In addition, OCIO would assume substantial risk to the current operating environment with taking current systems off- line, as well as, risk data integrity while the alternative software solutions are tested.

The following tables depict the technical data used in supporting this limited sources determination.

A. Planning:

Conversion Projects

FTE Months Hours Cost

Windows Servers 4 1.5 960 $233,426.40 Instant Messaging 2 1.5 480 $116,713.20 SQL Databases 4 1.5 960 $233,426.40 Desktop Products 2 1.5 480 $116,713.20 Remote Access 1 1.5 240 $58,356.60 Configuration Management Tool

1 1.5 240 $58,356.60

Email 4 1.5 960 $233,426.40 Summary 18 1.5 4320 $1,050,418.80

B. Configuration:

FTE Months Hours Cost

Windows Servers 16 2 5120 $687,466.06 Instant Messaging 8 2 2560 $343,733.03 SQL Databases 16 2 5120 $687,466.06 Desktop Products 8 2 2560 $343,733.03 Remote Access 4 2 1280 $171,866.51 Configuration Management Tool

4 2 1280 $171,866.51

Email 16 2 5120 $687,466.06 Summary

72 2 23040 $3,093,597.26

C. Requirements:

FTE Months Hours Cost

Windows Servers 4 2.5 1600 $389,044.00 Instant Messaging 2 2.5 800 $194,522.00 SQL Databases 4 2.5 1600 $389,044.00 Desktop Products 2 2.5 800 $194,522.00 Remote Access 1 2.5 400 $ 97,261.00 Configuration Management Tool

1 2.5 400 $97,261.00

Email 4 2.5 1600 $389,044.00 Summary 18 2.5 7200 $1,750,698.00

D. Testing:

FTE Months Hours Cost

Windows Servers 16 2.5 6400 $837,136.00 Instant Messaging 8 2.5 3200 $418,568.00 SQL Databases 16 2.5 6400 $837,136.00 Desktop Products 8 2.5 3200 $418,568.00 Remote Access 4 2.5 1600 $209,284.00 Configuration Management Tool

4 2.5 1600 $209,284.00

Email 16 2.5 6400 $837,136.00 Summary 72 2.5 28800 $3,767,112.00

E. Design:

Windows Servers

7680 $1,354,627.94

Instant Messaging

3840 $677,313.97

SQL Databases

16 3 7680 $1,354,627.94

Desktop Products

8 3 3840 $677,313.97

Remote Access

4 3 1920 $338,656.98

Configuration Management Tool

4 3 1920

$338,656.98 Email 16 3 7680 $1,354,627.94

34560 $6,095,825.72

F. Implementation:

16 3.5 8960 $1,352,686.93

8 3.5 4480 $676,343.47

8 3.5 4480 $676,343.47

4 3.5 2240 $338,171.73

Management Tool

4 3.5 2240 $338,171.73

Email

72 3.5 40320 $6,087,091.19

G. Management:

Overall Support FTE Months Hours Cost

3 15 7200 $1,750,698.00

21 15 50400 $12,254,886.00

H. Security:

Windows Servers 4 15 9600 $1,193,352.00 Instant Messaging 4 15 9600 $1,193,352.00

SQL Databases 4 15 9600 $1,193,352.00 Desktop Products 4 15 9600 $1,193,352.00 Remote Access 4 15 9600 $1,193,352.00 Configuration

Management Tool 4 15 9600 $1,193,352.00

Email 4 15 9600 $1,193,352.00

28 15 67200 $8,353,464.00

I: Total Conversion Project and Overall Support for Each Category:

Windows Servers 19.80 15 47520 $7,798,437.33

13.40 15 32160 $5,371,243.67

19.80 15 47520 $7,798,437.33

13.40 15 32160 $5,371,243.67

10.20 15 24480 $4,157,646.82

10.20 15 24480 $4,157,646.82

19.80 15 47520 $7,798,437.33

Summary 106.60 15 255,840 $42,453,092.97

J: Brand Name Cost Benefit:

Brand Name Period of Performance Cost

Microsoft Suite BPA (Task Order 01) $1,285,135.26 Competitor Suite BPA (Task Order 01) $42,453,092.97

6. BEST VALUE DETERMINATION:

The pricing established by GSA under its FSS contracts have already been deemed fair and reasonable. In addition to the fact that the Department will request additional discounts above and beyond the already declared fair and reasonable pricing, the Department anticipates adequate price competition that will further ensure competitive pricing for the brand name specific software and services. Based on this information, as well as the cost information cited above, the Contracting Officer has determined that the resulting order will represent best value to the Department regardless of the brand name specific software and services.

7. DESCRIPTION OF MARKET RESEARCH:

On May 11, 2016, the Department requested a list of authorized Federal resellers directly from Microsoft to determine potential resources capable of meeting the Department’s requirement.

Microsoft responded providing a list of authorized Federal resellers. The Department confirmed the list of authorized Federal resellers with those listed as holding Federal Supply Schedule contracts. The Department anticipates adequate competition.

8. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

No other facts were used to support this justification.

9. ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS THAT LED TO THE RESTRICTED CONSIDERATION BEFORE ANY

SUBSEQUENT ACQUISITION IS MADE:

The inherent nature of Microsoft software and services creates challenges to removing or overcoming any barriers that resulted in this limited sources justification. However, the Department will conduct a similar analysis in the future in order to determine if it is financially feasible to entertain alternative solutions for subsequent acquisitions.

10. PROGRAM OFFICE CERTIFICATION OF ACCURACY AND COMPETENESS:

This is to certify that the portions of this justification developed by the undersigned program office personnel, including supporting documentation and data verifying the Government’s minimum needs, schedule requirements and other rationale for other open than full and open competition, are accurate and complete.

X Neil Ghadiali Contracting Officer's Representative

11. CONTRACTING OFFICER CERTIFICATION:

By signing below “I have reviewed this limited sources justification and find it to be accurate and complete to the best of my knowledge and belief.”

Approved By: Contracting Officer, X Eugene Hopkins Contracting Officer

I hereby recommend that this justification be approved and that the Department proceeds with the intention to award a brand name specific BPA for this requirement. I certify that this justification is complete and accurate to the best of my knowledge.

X Eugene Hopkins Contracting Officer

X Jeremy Cook Contract Specialist

11. ADDITIONAL REQUIRED REVIEWS/APPROVALS:

In accordance with FAR 8.405-6(d) (2), I hereby recommend that this justification be approved and that the Department proceeds with the intention to award band name specific BPA. I certify that this justification is complete and accurate to the best of my knowledge.

X Cynthia Duncan Contracting Activity Competition Advocate