(FBO)_Limited-Sources_Justification_-_CS_Tanium_Software_Maintenance_-_SAQMMA17F0550.pdf

LIMITED-SOURCES JUSTIFICATION -- SAQMMA17F0550

1. The U.S. Department of State (DOS) Office of Acquisition Management (A/LM/AQM) is conducting this acquisition for Tanium brand software maintenance and software module subscription renewal on behalf of the Bureau of Diplomatic Security, Office of Cybersecurity

(DS/IS/CS, “CS”).

2. Nature and/or description of the action being approved: New delivery order for commercial

IT software maintenance and subscription renewals, on a limited-sources (sole source) basis, i.a.w. FAR 8.405-6. This acquisition is conducted under the authority of the Multiple-Award Schedule Program (see 8.401).

3. A description of the supplies or services required to meet the Department’s needs: CS has a requirement for one year of software maintenance and software module subscription renewal to continue CS’ use of the Tanium brand cyber monitoring software licenses it purchased in 2016. Tanium software is used by CS for comprehensive end point visibility by establishing a point of presence on local systems to detect malicious cybersecurity incidents and provide proactive incident response. The ability to rapidly scope a threat, explore system and registry settings and profile running processes efficiently translates identified indicators into actionable information, allowing cybersecurity incident responders to rapidly and efficiently identify compromised systems and perform critical triage and mitigation. The Tanium software licenses purchased by CS in 2016 also enable proactive incident response actions such as quarantining compromised systems and providing over-the-wire forensic capabilities, significantly reducing incident response time and reducing the burden on local post personnel during incident response. Tanium provides CS with the ability to retrieve accurate results back from endpoints across the Department in just seconds as opposed to hours or days, and without the need for a massive database infrastructure to scale. Additionally, with the core platform and required modules, Tanium is positioned to provide CS and the Department with these benefits:

• Support configuration compliance activities with capability to query endpoints for specific items to know for example, the computer names of endpoints that are not running anti-virus service.

• Software license management to provide an accurate view of how licensed software is deployed within the enterprise, and how often it is actively used.

• Quickly discover unmanaged assets within the enterprise environment, allowing the Department to take actions necessary to review, secure and gain control of these assets.

• Apply critical patches or changes in minutes in support of incident response.

CS now requires annual maintenance of the underlying software platform license (“Tanium Core Platform”) and renewal of annual subscriptions for four separately priced modules known as Tanium Trace, Tanium Incident Response, Tanium IOC Detect, and Tanium Discover. The current maintenance and subscription period ends on January 31, 2017. The ongoing maintenance and subscriptions will permit continued use of the software licenses CS previously purchased. The total quantity of licenses previously purchased and now requiring one year of maintenance and continued subscription is 130,000. The estimated value of this acquisition is $1.9 million.

4. Authority and supporting rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service. The authority for this action is 40 USC 501 as implemented by FAR Subpart 8.4 at 8.405-6(a)(1)(i)(B): only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. The licenses CS

- 2 -purchased in 2016 are for software products published by Tanium, 1625 Shattuck Ave, Suite 200, Berkeley CA 94709. The maintenance and subscriptions required consist of products such as software code patches, bug fixes, updates, and technical support, which require access to and rights over the underlying software code. As the software publisher and owner of the proprietary software code, Tanium is the only source for maintenance and subscriptions to its software.

Tanium sells its sole source software maintenance and subscription products under the General Services Administration’s (GSA) Federal Supply Schedule (FSS) though a single reseller partner, EC America 8444 Westpark Drive, Suite 200, McLean, VA 22102 (GSA Schedule contract GS- 35F-0511T). Tanium does not sell its proprietary software products through any other GSA Schedule contract holder. Because Tanium is the sole source for maintenance and subscriptions to its proprietary software and EC America is Tanium’s sole authorized GSA Schedule contract holder, the only source that can meet the Government’s needs under the GSA FSS program is EC America.

5. A determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d): GSA has determined the prices of supplies under schedule contracts to be fair and reasonable. DOS has verified GSA availability of the items required and no separate fair and reasonable determination is required. In accordance with FAR 8.404(d), and despite the sole source nature of the requirement, the CO has obtained from the manufacturer, through its sole GSA contract holder, significant discounts (approximately 60%) below GSA list pricing. The CO also considers significant administrative savings of using an existing Government contract (i.e. GSA FSS) instead of conducting a new competition that would duplicate expenses already incurred by GSA in its FSS award process. The CO therefore determines that this order will result in the lowest overall cost alternative to meet the Government’s needs and represents the best value to the Government.

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: Due to the sole source nature of this requirement, no market research was conducted other than to verify with Tanium (the software publisher and sole source for maintenance and subscriptions to its proprietary software) that EC America is its sole authorized GSA Schedule contract holder. The CO also reviewed GSA Advantage to confirm that EC America and only EC America offers the required products on GSA Schedule.

7. Other facts supporting the justification: None.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: This justification will be published to the Government wide Point of Entry www.fedbizopps.gov within 14 days after issuance of the delivery order, as required by FAR 8.405-6(a)(2). Additionally, prior to any additional purchases by CS of Tanium annual maintenance or license subscriptions, DOS will conduct market research to determine whether there are competing products that could replace the Tanium software licenses purchased by CS in 2016. Based on the results of that market research, DOS will either conduct a competitive acquisition for its ongoing cybersecurity monitoring needs currently being met by Tanium, or, if no other products can be found that will meet the agency’s needs, then DOS will execute and publish, as applicable, a new Justification and Approval for continued sole source purchases of maintenance and license subscriptions.

http://www.fedbizopps.gov/

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CERTIFICATIONS

I certify that all supporting data that is the responsibility of technical or requirements personnel (e.g. verifying the Government’s minimum needs for requirements or other rationale for limited sources) and which form the basis for the justification are complete and accurate.

//original signed// //cleared 01/27/2017// [-----------------] Date Deputy Director Office of Cybersecurity

DS/SI/CS

I certify that this justification is accurate and complete to the best of my knowledge and belief.

//original signed// //cleared 01/30/2017// [-----------------] Date Contracting Officer Office of Acquisitions Management

A/LM/AQM/DSCD/SB

REVIEWS

//original signed// //cleared 01/27/2017// [-----------------] Date Chief, Security Branch

A/LM/AQM/DSCD/SB

//original signed// //cleared 01/27/2017//

Director, Diplomatic Security Contracts Division

A/LM/AQM/DSCD

//original signed// //cleared 01/30/2017//

Assistant Legal Adviser for Buildings and Acquisitions

L/BA

APPROVAL

//original signed// //cleared 01/31/2017//

Contracting Activity Competition Advocate

A/LM/AQM