Sole_Source_Justification_(Over_SAT)_Redacted.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

25 May 2018 FOR OFFICIAL USE ONLY Page 1 of 4

NOTE: If a Justification was approved for the preceding acquisition, a copy of the approved Justification for the predecessor action must be included in the staff package for approval of the instant Justification. This applies to Justification staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor Justification will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $700K > $700K and < $13.5M

Contracting Activity: AFTC/PZIEA

Purchase Request / Local ID Number: F1S0AB8172B001

Program / Project (and PE, if applicable): Concerto Software Support

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): Justification Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

23 Oct 2018

Deputy Chief, Project Management Branch

APPROVAL (AFFARS 5306.304(a) )

Date

24 Oct 2018

Contracting Officer

Signature

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 FOR OFFICIAL USE ONLY Page 2 of 4

I. Contracting Activity.

The contracting organization that is responsible for the proposed contract action is the Air Force Test Center (AFTC), Directorate of Contracting, Enterprise Acquisition Division (PZIEA), 5 South Wolfe Avenue, Edwards AFB CA 93524-1185. The contracting officer for this acquisition is

II. Nature and/or description of the action being processed.

The purchase is a new contract for the renewal of the Realization Technologies Concerto annual support, maintenance, and upgrades for 360 Concerto Software Licenses. The proposed action will result in a new sole source, Firm Fixed- Priced (FFP) contract, #FA9302-19-P-1002.

The specific support required involves the following:

(1) User technical support via email, fax, and phone;

(2) Provide updates (bug fixes, error corrections and minor enhancements) as they become commercially available; and

(3) Provide upgrades (new software versions that contain major enhancements or significant new functionality) as they become commercially available; and provide workarounds (temporary solutions to software problems) so that all major functions of the software are operational.

III. Description of supplies/services required to meet agency needs.

The requirement is for 360 Concerto licenses' (P/N is not applicable) annual support, maintenance, and upgrades. The period of performance is one year, January 1, 2019 through December 31, 2019 in the amount of , with four one-year options. After the first year there will be a 3.5 % increase cost each year. The total estimated value of the acquisition - including options - is for .

Annual software support Period of Performance (PoP):

- January 1, 2019 thru December 31, 2019:

- Option Year 1 : January 1, 2020 thru December 31, 2020:

- Option Year 2 : January 1, 2021 thru December 31, 2021:

- Option Year 3 : January 1, 2022 thru December 31, 2022:

- Option Year 4 : January 1, 2023 thru December 31, 2023:

This is being funded with appropriation of 3600 funds, PR #F1S0AB8172B001.

Option years are required since the costs, effort, and risks to on-going projects for a transition to a different solution would be significant without any gain in capability to deliver projects.

IV. Statutory authority permitting other than full and open competition.

The statutory authority permitting this action is Air Force Federal Acquisition Regulation Supplement (AFFARS)

5313.501 - 10 USC 2302b, implementation of Simplified Acquisition Procedure (41 U.S.C. 1901).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Concerto is the primary software used in support of 412 Test Wing project management scheduling. Concerto software consists of a CAC enabled, web-based interface for project execution and control and stand-alone software tools (Critical Chain Planning and Enterprise) to develop project and synchronized portfolio schedules.

Realization is the owner and developer of the Concerto Commercial-Off-the-Shelf (COTS) software and holds Patent No.

7,669,179, “Facilitation of multi-project management using critical chain methodology”. The patent can be viewed at:

The U.S. Patent Office. Realization is the only source that can satisfy the Government's requirement identified in the

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 FOR OFFICIAL USE ONLY Page 3 of 4 above paragraph, because it has not established resellers or authorized service provider agreements; Realization has 100% ownership of the Concerto COTS software and its source code. At their own expense, Realization Technologies spent more than 2,000 man-months of programming effort of time in research and developing the Concerto software.

While other CCPM solutions in the marketplace are capable, Concerto offers comparable capability and is currently in use and meets security requirements with approval to operate on the 412 TW network environment. Procuring and implementing another solution would be a significant duplication of cost and effort through vulnerability testing, security accreditation and approval to operate, installation and configuration of the new system, SME training of in-house trainers and application administrators and contractor support personnel, modification of existing in-house training, conversion of dozens of existing projects in the current system to the new system, training of the entire workforce across 8 CTFs, two T2 mod organizations at two different bases - a total of about 60 project managers and 40 project support contractors, as well as senior leaders and other project participants that need familiarization with the system. This implementation effort would have to happen while still maintaining current project management on current projects without degradation of the efforts. The requirement for annual software sustainment would then have to be in-place with the new system just as it is with Concerto today. The duplication of cost is estimated at $600k, not including estimated annual recurring sustainment costs of $75K for the new system. The $600K would be a direct cost (DBA) to the 412 TW based on effort of about 9000 man hours for TMG to complete the implementation as described.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Realization, as the sole source for Concerto Software, was contacted and asked whether they have resellers, distributors, or authorized service providers who can provide the software requirements needed and they stated they are the sole source providers of their software.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The anticipated costs will be determined fair and reasonable based on comparison to vendor's current commercial catalog and historical pricing.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

IAW FAR Part 10, market research is conducted by the 412 Test Wing Test Management Division (412 TW/TMG) on an on-going basis in the form of attending periodic product conferences and conducting internet research. Past 412 TW procurement of software sustainment to support Concerto (FA930215MF001 awarded December 2014) was also considered. Realization Technologies, Inc. is currently the only vendor who provides CCPM/Concerto solutions and training. They have not established resellers, distributors, or authorized service provider agreements; therefore, they are the only source that can provide the CCPM based solution and training required using Concerto.

Market research using the internet determined only Realization can satisfy the requirements.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

All Test and Evaluation project schedules within eight CTFs of the 412 TW, the 812 AITS/ENI, and 896 TSS at AFB, FL are built using Concerto which has a unique data format used for the web based project planning and execution management system. Also, Concerto formats and procedures are uniquely tied to 412 TW project management process and workforce training of over 50 project managers. Market research using the internet determined only Realization can satisfy the requirements.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

25 May 2018 FOR OFFICIAL USE ONLY Page 4 of 4

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

Continue performing market research using the Internet, while attending conferences, trade shows, and vendor demos to identify other possible sources to best satisfy government requirements. Market research will continue throughout the contract period. If it is determined to be beneficial and competition becomes available, the government will use full and open competition for any future acquisition.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.