Justification_ _Approval_-_09-01-16.pdf

U.S. General Services Administration

GENERAL SERVICES ADMINISTRATION (GSA)

FEDERAL ACQUISITION SERVICE (FAS)

R10 CONTRACT OPERATIONS DIVISION

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(1) AGENCY AND CONTRACTING ACTIVITY:

Requesting Agency: General Services Administration

Federal Acquisition Service General Supplies and Services – Business Operations Division 1800 F Street NW Washington, DC 20006

Servicing Agency: General Services Administration Federal Acquisition Service

R10 Contract Operations Division 400 15th Street SW Auburn, WA 98001

NOTE: The Servicing Agency identified herein is responsible for procuring Operations & Maintenance (O&M) Support Services and Tier 2 / Tier 3 In-depth Technical Support Services for GSA’s Enhanced Check-out (GECO 2) and Store Portal (SP) solution application at 22 store locations around the world, as well as the National Capital headquarters. The need is to support an existing system (GECO 2 & SP). The Servicing Agency shall act in the capacity of contracting activity for the resultant acquisition. As a result, this Justification for Other than Full and Open Competition is hereby prepared and approved by both the technical team of the Requesting Agency and the Servicing Agency Contracting Officer (CO) responsible for the execution of the in-depth technical support services required.

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

The GSA FAS R10 Contract Operations Division, in support of the GSA FAS General Supplies and Services (GSS) Business Operations Division, intends to procure O&M Support Services for the GECO 2 and SP application. nChannel, as the owner of the proprietary nChannel middleware software application, is required to provide in-depth technical support services for their application. The in-depth technical support services shall be subject to this Justification for Other Than Full and Open Competition as nChannel will be the prime contractor for this contract.

The nChannel multichannel (multi-store) management software is used for the GSA GECO 2 system that provides GSA customers with access to GSA's catalogs of commercial supplies and products at competitive prices. This application is used throughout the USA and Asia, and provides a simplified acquisition and competitive pricing options for GSA’s customers. Orders for all stores flow through the nChannel software providing GSA with an enterprise-wide view of its customers’ acquisitions.

The use of proprietary software developed by nChannel is integrated into the GECO 2 / SP application. The limited rights to the Enterprise Item Manager (EIM) and Enterprise Customer Management (ECM) software modules are due to the proprietary nature of the software because it was written prior to GSA’s purchase. Any modifications requested and paid for by GSA belong to GSA. ECM and EIM are part of the middleware application that is the primary component for the entire sales system. Annual maintenance of the nChannel software and licensing is handled in a separate contract between GSA (Office of Internal Acquisition – Acquisition Operations Division) and nChannel. The Tier 2 and 3 in-depth technical support services personnel must be fully versed in the nChannel software and authorized by the firm to have access to the software code allowing for problem solving and bug fixes to issues that are software related. This is essential to the Government’s requirements for the Tier 2 and 3 in-depth technical support services, thereby precluding consideration given to another firm to perform such services without access to the nChannel software. These kinds of issues will be the responsibility of the nChannel personnel under this task order as they perform their Tier 2 and 3 in-depth technical support services. Thus, this procurement will be done in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. See section (4) below for additional details associated with the statutory authority.

(3) DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET AGENCY’S

NEEDS:

The GECO 2 Program uses the Microsoft Retail Management System (GECO 2 application) as a point of sale application, and the SP program is a custom developed web shopping application used as a virtual store for GSS Retail Operations. These two systems, GECO 2 and SP, offer customers a means to purchase industrial and office supplies. Both are designed to work with nChannel as the middleware application, an application to support multi-channel sales and supply chain processes. nChannel works by feeding data between the GSA order processing system, Customer Supply Center (CSC), and the stores running GECO 2 and sometimes SP. nChannel is the hub in the business model transmitting order transactions between the two front-end point of sales systems and the back-end legacy order management system.

The nChannel product receives data from CSC and Product Information Category System (PICS) to load store inventory data into its central database and then feeds segments of this data out to the various stores based on the store’s individual needs. nChannel includes two additional software products: the EIM and ECM applications to assist in the management of inventory and customer information.

The architectural decision of using a middle layer enterprise server bus to communicate between systems offered GSA significant savings both in time and money during the implementation of the GECO 2 & SP Enhancement Project, and played an integral part in the overall system design and implementation.

The GECO 2 & SP Program is seeking nChannel to be an O&M and Tier 2 & 3 in-depth technical support services provider who will work with all aspects of the GECO 2 & SP system:

the front end applications, the middleware applications, and the interface to the back-end order processing applications, to provide technical expertise and programming capabilities to support production, staging, and testing systems. The specific tasks involved in the in-depth technical support services include the following:

● Contractor On-Boarding and Transition Support – participate in the 30-day on-boarding process to ensure all contractor personnel have the appropriate credentials to work with GSA environment and participate in required training.

● Program Management Support – representatives will attend program management meetings and contribute to the status reports required to manage and monitor the program staff’s progress.

● Administer Application Databases – technical resources will be involved in database tuning, database management, analysis and troubleshooting.

● System Monitoring – Collect, analyze, evaluate and report on system metrics to provide GSA periodic assessments of system performance.

● System Administration – Monitor and maintain system and application software and support GSA Office of the Chief Information Officer (OCIO) personnel in their support of the system hardware and communication facilities.

● Documentation Support – contribute to the creation and maintenance of system documentation including release notes, root cause analysis and manual updates.

● Perform Information System Security Tasks – Assist in remediation of identified system vulnerabilities for various system components.

● Support Analysis and Resolution of Hardware Operations for Store Operations – Assist GSA OCIO personnel in the resolution of hardware related issues.

● Manage Tier 2 & 3 Trouble Calls – Respond to and resolve system trouble calls in adherence to the established Service Level Agreement. Provide documentation of resolution.

● Problem Management – Participate and contribute to the O&M meetings required by GSA to monitor issue resolution.

● Escalation Plan and Process – Adhere to and support the escalation plan and process established in accordance with the Service Level Agreement.

● Emergency Support – Participate in any emergency travel and support activities that require on-site personnel at any of the GECO2 store locations as directed by GSA.

● Information Systems Contingency Plan Support – Participate in the periodic review and enhancement of the plan as well as support the periodic testing of the plan.

Based on the Independent Government Estimate (IGE), the total cost for the services is estimated to be $3,030,342.10 (including options) (see IGE, dated June 15, 2016). The IGE was prepared by the GSA FAS GSS Business Operations Division team, using both historic and current market pricing information.

(4) STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

The statutory authority permitting other than full and open competition is FAR 6.302-1 because only one contractor is capable of providing the services required due to the proprietary nature of the underlying software.

(5) SUPPORTING INFORMATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF

ONLY ONE RESPONSIBLE SOURCE AUTHORITY:

The services in this contract can only be met through nChannel due to the proprietary software used in the GECO 2 / SP system. This system was created after GSA made a substantial investment in developing the GECO 2 & SP systems to meet customer specific requirements and deployed the system throughout the world. The foundation of the GECO 2 & SP applications is the nChannel software which interfaces with GECO 2, SP, and key GSA systems such as CSC and PICS. The GECO 2 & SP systems are reliable solutions that the US Military depends on as part of their supply chain. No other specifications, data packages, or software can be used to meet the current requirements of the GECO 2 & SP applications.

This contract is NOT for services to replace the current system and solution. The requirement is for a service provider to support the GECO 2 & SP systems with expertise in Microsoft Retail Management System (RMS), ASPdotnetStoreFront, and the nChannel software. Any interruption of service would impact the ability of customers to purchase key items to support their military operations. Replacement of the current architecture would cost the government a great deal of time, effort, and funds; would jeopardize the current service provided to our military customers supported by the GECO 2 & SP program; and is outside the scope of this procurement.

(6) DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY SOURCES AS PRACTICABLE:

Offers were not solicited from additional sources due to the determination that only one responsible source could provide the services identified herein necessary to satisfy the agency requirements. Proposed contract action is a sole source contract by negotiation.

(7) DETERMINATION THAT THE ANTICIPATED COST TO THE GOVERNMENT

WILL BE FAIR AND REASONABLE:

The historical cost of the full set of requirements per the Performance Work Statement (PWS) is known to the Government. The labor categories proposed to perform the requirements will have their prices compared to current Government ID/IQ contracts of similar scope as many, if not all, of the labor categories expected to be proposed have been priced in these ID/IQ contracts.

Historical data, particularly from the current contract, along with market research, will be used to assist the CO in the determination of fair and reasonable prices.

(8) DESCRIPTION OF MARKET RESEARCH CONDUCTED:

A market survey was conducted by comparing pricing from recent projects, similar in scope to the current requirements. Based on the market research from these estimates, as well as knowledge of the current contract’s pricing, GSA has developed an IGE. Further market research showed that the proprietary data supplied by nChannel to the GECO 2 and SP system cannot be maintained by any other firm as nChannel does not give such access to their code to any other firms.

(9) OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

The GECO 2 & SP application supports 22 stores around the world by providing a point of sale ordering system for roughly $200M of industrial and office supplies annually to support various federal government agencies. The GECO 2 & SP systems, used by both military and nonmilitary personnel, are critical in keeping the current supply chain active and maintaining inventory on site for government installations.

GSA has made a substantial investment in developing the GECO 2 & SP systems to meet customer specific requirements and deployed the system throughout the world. The foundation of the GECO 2 & SP applications is the nChannel software which interfaces with GECO 2, SP, and key GSA systems such as CSC and PICS. The GECO 2 & SP systems are reliable solutions that the U.S. Military depends on as part of their supply chain.

(10) LIST OF SOURCES EXPRESSING WRITTEN INTEREST IN THIS

ACQUISITION, IF ANY:

The current task order is under the 8(a) STARS 2 Government-Wide Acquisition Contract (GWAC). However, the requirements that are currently performed by the prime contractor (separate from those requirements performed currently by nChannel) are to be performed by Government personnel beginning with the award of this contract. Contractors on the 8(a) STARS 2 GWAC, including the incumbent prime contractor, have expressed interest in a follow-on contract.

The acquisition was originally going to be procured in the same manner as the current contract, with a prime contractor awarded via fair opportunity competition on the 8(a) STARS 2 GWAC, with the requirement of nChannel as the mandatory subcontractor. However, nChannel made the decision to sign an exclusive agreement with the current prime contractor, which eliminated the possibility of fair opportunity. The decision was made to go forward with a sole source contract to nChannel for the requirements where the firm was necessary for performance, and that the requirements currently being performed by the prime contractor would be shifted to the responsibility of the Government.

(11) A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED:

The GECO 2 and SP solutions are based on the nChannel solution as the middleware software.

As long as GECO 2 and SP are dependent on the nChannel application, the need for the nChannel application will remain. An effort to change nChannel as the hub is outside the scope of this acquisition and would require a substantial investment on behalf of the Government.

(12) APPROVALS

In accordance with FAR 6.302-1, because only one awardee is capable of providing the services required due to the proprietary nature of the underlying software, this justification is hereby written with the approval of the GSA FAS R10 CO for the O&M and Tier 2 and Tier 3 in-depth technical support services for the estimated total price of $3,030,342.10 (including options).

TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION (Requesting Agency):

I hereby certify that any supporting data (e.g. verifying the Government’s minimum needs or scheduled requirements or other rationale for other than full and open competition), which form a basis for this justification, are complete and accurate.

Justin Corsetti Supply Systems Analyst / Program Manager for GECO 2 / SP GSA FAS General Supplies and Services – Business Operations Division

CONTRACTING OFFICER CERTIFICATION (Servicing Agency):

I certify to the accuracy and completeness of this justification to the best of my knowledge.

Steven D. Wright Senior Contracting Officer GSA FAS R10 Contract Operations Division

SUPERVISORY CONTRACTING OFFICER CERTIFICATION (Servicing Agency):

Tamara D. Grant Supervisory Contracting Officer

BRANCH CHIEF - CONTRACTING CERTIFICATION (Servicing Agency):

Jacob A. Bertram Branch Chief

DIVISION DIRECTOR - CONTRACTING CERTIFICATION (Servicing Agency):

Ralph M. Lentz Division Director

COMPETITION ADVOCATE (Servicing Agency):

Geraldine Watson Competition Advocate / Deputy Regional Commissioner

GSA FAS R10

OFFICE OF GENERAL COUNSEL (Servicing Agency):

I certify that I have reviewed this Justification and Approval (J&A) document for legal sufficiency.

Leah Wright Attorney-Adviser (General) GSA R10 Office of General Counsel

JessicaGWillard Cross-Out