FY27 - JA Phoenix - Redact_Redacted.pdf

This is a Justification for Other Than Full and Open Competition (sole source justification) for a federal contract award.

The Department of Veterans Affairs (VA), Office of Procurement, Acquisition and Logistics, Technology Acquisition Center in Eatontown, New Jersey, is awarding a sole source, firm-fixed-price (FFP) contract to Phoenix Software International (831 Parkview Drive North, El Segundo, CA 90245) for the renewal of brand name Phoenix software license subscriptions and maintenance support. The contract encompasses a 12-month base period with four 12-month option periods. The VA's Office of Information Technology (OIT) and Infrastructure Operations (IO) require renewal of the existing Phoenix JES3plus and (E)JES software, which are used enterprise-wide for job entry, workload management, system monitoring, and critical mainframe operational functions that support veteran-facing applications and claims processing. The justification authorizes this non-competitive award under 41 U.S.C. § 3304(a)(1) via FAR Overhaul VA Deviation 6.103-1, citing "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

The sole source determination is based on comprehensive market research conducted through February 2026, including reviews of competing products (IBM System Display and Search Facility, NuPSoft Tone OMC-Flash) and searches of the NASA Solutions for Enterprise-Wide Procurement (SEWP) contract vehicle. The research concluded that no alternative vendor can provide compatible software maintenance due to Phoenix Software International's exclusive access to proprietary source code required for developing critical security patches, point releases, service releases, and quarterly updates. The VA identified an estimated $450,000 transition cost associated with switching products, including parallel operations, training, testing, and migration activities. Phoenix Software International submitted a sole source memorandum confirming their exclusive provider status and confirming they do not authorize third-party domestic reseller agreements for these products. The total estimated contract value (inclusive of all option periods) is redacted in the document.