Class Open Market J A.doc

The below Class J&A covers Procurement Request Number: DHQCSD10MPC0007.

DEFENSE INFORMATION SYSTEMS AGENCY (DISA)

COMPUTING SERVICES LOGISTICS CD1232

CLASS JUSTIFICATION AND APPROVAL (J&A) TO PROCURE ANNUAL SOFTWARE MAINTENANCE RENEWALS USING OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1) FAR Subpart 6.302-1 (a)(2)(iii), Only one responsible source and no other supplies or services will satisfy agency requirements.

JUSTIFICATION

1. Agency and Contracting Activity:

Requiring Activity:

Defense Information Systems Agency (DISA)

Computing Services Logistics (CSD)/CD1232

1 Overcash Avenue, Bldg, Chambersburg, PA 17201-

Contracting Activity:

Defense Information Technology Contracting Organization (DITCO)/PL8321

2300 East Drive,Scott AFB, IL 62225-5406

2. Nature/Description of Action(s):

a. This contracting action is to provide for follow-on procurement efforts to renew expiring annually-renewed software license/maintenance. The replacement contracts will perpetuate existing enterprise licenses/ maintenance of the vendor’s proprietary software in DISA Computing Services’ inventory. A Class Justification and Approval (J&A) for Other Than Full and Open Competition was executed for all annually renewed software maintenance orders/contracts were awarded in fiscal year 2009. This is a follow-on effort to that J&A.

b. DITCO processes well over 100 software renewal actions each year. With the exception of orders placed against previously competed multi-year contracts, each renewal requires a sole source action based on common underlying conditions. The open-market contract is streamlined using the process with a Class J&A and this process saves hundreds of man-hours and cuts acquisition lead time.

c. The overall goal of this Class J&A for software contract renewals is to efficiently maintain the currently installed base of COTS software and to facilitate, streamline, and speed up the renewal process. The objective of this follow-on effort is to continue existing license and/or maintenance coverage of vendor’s proprietary software. The included software is all commercially available, off-the-shelf (COTS) software already provided by the vendors based on current contracts.

d. This follow-on effort for the current annually renewed software licenses and maintenance of the named vendors’ proprietary software is intended to cover awards for a one year period that will begin in Fiscal Year (FY) 10 (1 October 2009 – 30 September 2010. These contracts are required to maintain the current level of services, eliminate duplication, and reduce sustainment license/maintenance costs of the existing inventories. Contracts will all have a DISA-wide perspective to facilitate life-cycle product upgrades that are essential to maintaining the required level of services at DISA managed facilities.

e. The renewal contracts will be annual firm fixed price. This COTS software maintenance supports applications transmitted to or processed at the DISA managed facilities.

f. Contracts executed under this J&A will be for a one year period beginning in FY10 (1 October 2009 – 30 September 2010). The contracts will have central site management. The contracts will cover the currently identified installed product base from the named vendors, allow for follow-on licenses/maintenance for additional products purchased via separate acquisition actions and support software license upgrades driven by machine upgrades.

g. The total estimated cost of the proposed acquisitions is $477,538.00. This is the maximum amount envisioned. The Period of Performance (PoP) is 1 October 2009 through 30 September 2010 providing Source of Future Technology software license/maintenance support for DISA, CSD.

3. Description of Supplies/Services: (FAR 6.303-2(a)(3)).

The objective of this follow-on effort is to provide for one contract per year for this vendor that encompasses all known software product licenses/maintenance agreements requiring annual renewal. This acquisition is for COTS software supporting applications transmitted to or processed by DISA managed facilities. This acquisition allows for machine group upgrades through the highest group level when Central Processing Units (CPUs) are upgraded or new CPUs are delivered; or workload leveling requires loading the software onto a different/larger CPU. This J&A will allow for the inclusion of licenses/maintenance for additional COTS software products from the named vendor following their initial acquisition via separate contracting actions. Any new products will have been considered for competition in the acquisition phase prior to being added to this contract.

4. Identification of Statutory Authority:

10 U.S.C. 2304 (c)(1), FAR Subpart 6.302-1. The services required by the agency are available from only one responsible source and no other type of services will satisfy the Agency requirements.

5. Demonstration of Contractor’s Unique Qualifications:

a. Only one responsible Source and No Other Supplies or Services will satisfy Agency Requirements (FAR 6.302-1(a)(2))

(1) FAR 6.302-1(a)(2) states, “When the supplies or services required by the agency are available from only one responsible source, or for DOD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

The vendor on this J&A is producers of proprietary COTS software products and are currently providing licenses/maintenance under existing annual executive software maintenance contracts with DISA. Contracts may be awarded directly with named vendors or, if the vendor has authorized resellers, with the lowest priced reseller.

(2) Software producers own all proprietary rights to the source code. Further, the software producers have not released the product source code or authorized third party vendors to sell, lease or maintain their proprietary software product.

(3) Obtaining replacement software products from other sources would result in massive software conversions resulting in additional costs for the Military Services and Agencies and central design activities, which have developed in-house applications using these COTS software products in their application systems. Therefore, a competitive acquisition for this renewal is not feasible.

(4) The proposed acquisition is for continuation of work currently being performed by the named vendors. This effort requires the vendors to provide for continued licenses/maintenance of their proprietary software for the defined period.

6. FedBizOpps Announcement/Potential Sources:

a. A Federal Business Opportunities (FedBizOpps) synopsis will be published for each action authorized by this Class J&A if required by the Federal Acquisition Regulation. The synopsis will completely identify the Government's minimum mandatory requirements.

b. DISA does not anticipate other qualified sources; however, should any responses be received, they will be evaluated to determine if they are fully responsive to the Government's stated minimum requirements and will be considered by DISA prior to proceeding with an award. These proposed procurements are the only known approach to licenses/maintenance of proprietary software required.

7. Determination of Fair and Reasonable Cost:

The dollar estimate reflects the maximum amount envisioned for the defined one-year period. It provides coverage for the known/current product inventory from the named vendors and allows for the addition of products initially procured via separate contract vehicles and added to the annual-renewal software maintenance contracts during the contract life. The contracting officer will make a determination the anticipated prices are fair and reasonable.

8. Description of Market Research:

DISA Computing Services is constantly surveying the market and from this corporate experience knows that the software is proprietary and upgrades and maintenance are only available from the contractors identified. The contractors own the source code and will not release it to other vendors. DITCO-Scott will publish a notice of intent to award prior to negotiating any contracts if required by the Federal Acquisition Regulation and will evaluate all responses received to determine if they are capable of satisfying the Government's minimum requirements.

9. Any Other Supporting Facts:

At this time DISA is locked into a proprietary environment and it is not economically feasible to deviate from the currently installed proprietary software base. Computing Services Operations has established a Standard Operating Environment (SOE) that will standardize software categories that have proven to be cost effective in managing and maximizing use of available computer resources at DISA facilities.

10. Listing of Interested Sources: (FAR 6.303-2(a)(10)).

To date none other than the named vendors are interested sources. However, any responses to the FebBizOps announcement will be considered by DISA prior to proceeding with an award. See paragraph six.

11. Actions Taken to Remove Barriers to Competition:

Vendors for existing products have proprietary data rights that effectively preclude competing annual maintenance for the products. There are open-ended initiatives within DISA that will undoubtedly impact some of the vendors/products covered by this document by replacing them with new “standard” products. Any such replacements of existing products would be accomplished competitively. However, if and when any replacement products are competitively selected, follow-on maintenance for the new products may again be noncompetitive due to proprietary data rights from the new vendor.

12. Statement of Period of Performance and/or Delivery Schedule:

Annual-renewal software maintenance contracts can expire any time during the year. While most renewals will be effective 1 Oct 2009 and have a life equal to FY 10, some will have other start dates. Accordingly, this J&A will cover renewal contracts awarded during the period 1 October 09 through 30 September 10. Consequently, some actions will have a period of performance that end in FY 2011.

13. Reference to the Approved Acquisition Plan (AP)/Program Plan (PP):

The value of the requested Class J&A is below the threshold requiring an Acquisition Plan.