FY20 LSJ IBM Mainframe Final Redacted_1.pdf

United States Department of the Interior

INTERIOR BUSINESS CENTER

Washington, DC 20240

LIMITED SOURCE JUSTIFICATION

AUTHORITY: FAR 8.405-6 and 40 U.S.C 501

PR 0040480499

This acquisition is conducted under the authority of the Multiple Award Schedule Program.

1. Identification of the agency and contracting activity, and specific identification of the document as a Limited Source Justification.

This document is a Limited Source Justification for the Department of the Interior (DOI), Interior Business Center (IBC), Acquisition Services Directorate (AQD) for the Office of the Secretary (OS), Office of the Chief Information Officer (OCIO).

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

This is a Limited Source Justification to purchase software maintenance and support on International Business Machines (IBM) mainframe software products currently in place at DOI OCIO data centers.

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

(including the estimated value).

The specific subscription support and software maintenance required by OCIO are detailed in the charts below for the Base and each Option Period. The estimated value of this Delivery Order for a full year of performance is

BASE PERIOD:

Subscriptions and Support (June 1, 2020- May 31, 2021)

PASSPORT ADVANTAGE SITE NUMBER 7095955

PART NUMBER DESCRIPTION QTY

5655P06 Cl/Supersession for z/OS S&S 115 5655X02 Sterling Connect:Direct S&S 77

PR 0040480499

Software Maintenance (June 1, 2020- August 31, 2020)

PASSPORT ADVANTAGE SITE NUMBER 7095955

PART NUMBER DESCRIPTION QTY

5650ZOS z/OS V2 Base 3 mo.

5650ZOS z/OS V2 DFSMS dss 3 mo.

5650ZOS z/OS V2 RMF 3 mo.

5650ZOS z/OS V2 SDSF 3 mo.

5650ZOS z/OS V2 Security Server 3 mo.

OPTION PERIOD 1:

Software Maintenance (September 1, 2020- November 30, 2020)

PASSPORT ADVANTAGE SITE NUMBER 7095955

PART NUMBER DESCRIPTION QTY

5650ZOS z/OS V2 Base 3 mo.

5650ZOS z/OS V2 DFSMS dss 3 mo.

5650ZOS z/OS V2 RMF 3 mo.

OPTION PERIOD 2:

Software Maintenance (December 1, 2020- February 28, 2021)

PASSPORT ADVANTAGE SITE NUMBER 7095955

PART NUMBER DESCRIPTION QTY

5650ZOS z/OS V2 Base 3 mo.

5650ZOS z/OS V2 DFSMS dss 3 mo.

5650ZOS z/OS V2 RMF 3 mo.

OPTION PERIOD 3:

Software Maintenance (March 1, 2021- May 31, 2021)

PASSPORT ADVANTAGE SITE NUMBER 7095955

PART NUMBER DESCRIPTION QTY

5650ZOS z/OS V2 Base 3 mo.

5650ZOS z/OS V2 DFSMS dss 3 mo.

5650ZOS z/OS V2 RMF 3 mo.

The Subscriptions (Part Numbers 5655P06 and 5655X02) will be acquired in the Base Period for a full year (June 1, 2020- May 31, 2021), while only three (3) months of software maintenance will be procured (June 1, 2020- August 31, 2020). The software maintenance for the remainder of the year will be split into three (3), three (3) month Option Periods, as depicted above. OCIO is currently exploring new solutions to fulfill this requirement in the near future. It is anticipated that a new solution may be in place over the next year and the three (3), three (3) month options for the software maintenance provides OCIO with the necessary flexibility to move to the new solution once it is available.

4. The authority and supporting rationale (see 8.405-6(a)(1)(i) and (b)(1)) and, if applicable, to provide the required supply or service.

FAR 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.

IBM products are used by the DOI OCIO to provide hosting services to its DOI customers. Federal Payroll Personnel System (FPPS), can only run on an IBM mainframe due to technological constraints that could only be removed by re-writing the application to run on a different Operating System (OS). There are no other products currently available that provide similar functionality to what is provided with the IBM mainframe-related software. Due to the critical nature of these products, maintenance of the software maintenance and support must be purchased each year to ensure continuity of service. The latest estimates to replace the current system are in the range of $25 million.

Failure to procure the products identified herein would greatly affect the ability of the agency to continue with necessary business functions. For the time being, the risk and potential of negative consequences to the Government not utilizing the correct

HRD FPPS continues to operate.

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

The IBM Mainframe software maintenance and support under this Delivery Order will be quoted as Firm-Fixed Price. The AQD Contracting Officer (CO) will determine the price is fair and reasonable via the use of an in-depth price analysis comparing the pricing against current IBM General Services Administration (GSA) rates, a comparison to the Independent Government

Representative (COR), and based on a comparison with historical pricing for this software maintenance.

Based on this comparison it is anticipated the Delivery Order price will represent a 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 .

While National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government-Wide Acquisition Contract (GWAC) is typically the recommended source for this type of software or maintenance requirement, the competition in May 2017 determined that based on the quantity of mainframe software maintenance and support required, only IBM can fulfill this requir GSA Information Technology (IT) Schedule 70. Recent market research, conducted in 2018, 2019, and 2020 for each recompete, indicate that no IBM resellers currently provide the required support.

This requirement was originally competed in conjunction with the items under solicitation D17PS00437 through NASA SEWP. During the competition various Value Added Resellers (VARs) informed DOI that, based on the quantity required, IBM would not provide the pricing for the mainframe related software support and subscriptions;

therefore, the solicitation was split into two (2) separate solicitations. The items that could be provided through VARs remained under D17PS00437, and were competed through NASA SEWP. The items that could not be provided through VARs, the ones under this requirement, were procured under D17PS00802 thro GSA IT Schedule 70. The additional IBM Software Maintenance items are still competed through VARs on NASA SEWP.

The IBM Federal Software Client Leader, confirmed on March 3, 2020 via email, that the required software maintenance would GSA IT Schedule 70 and are not available through VARs on NASA SEWP. IBM no longer provides mainframe related software or maintenance through VARs due to its complexity. Therefore, based on the information above, the IBM Mainframe software maintenance required by OCIO is only available via IBM and must be procured directly from IBM through their GSA IT Schedule 70. Recent market research, as discussed above, confirms that no IBM resellers currently provide all of the required support.

7. Any 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 supplies and services is made.

This requirement will continue to be a sole source award to IBM for IBM Mainframe software and maintenance and support unless IBM opens up the product for resale by

However, the Government will make maximum efforts to enhance competition for future acquisitions, if similar requirements allow. Furthermore, as the current infrastructure nears the end of its lifecycle, OCIO will seek to transition the platforms to the most capable and cost effective, non-proprietary platforms available. OCIO is currently exploring new solutions to fulfill this requirement. It is anticipated that a new solution may be in place within the Period of Performance, as a result, the one (1) year period of performance for the software maintenance will be split into one (1), three (3) month Base Period, and three (3), three (3) month Option Periods apart from the two (2) Subscription and Support items that will be billed in full during the Base Period, as depicted in section 3.

9.

justification is accurate and complete to the best of the contracting

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

Contracting Officer

10. Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

I certify the technical data which forms a basis for this justification is complete and accurate and meet the Government s.

COR

11.For justifications under 8.405-6(a)(1), a written determination by the approving official identifying the circumstance that applies.

FAR 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.

12. Reviews and Approvals

Concur:

Branch Chief

Concur:

Division Chief

Approved:

Competition Advocate