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DEFENSE INFORMATION SYSTEMS AGENCY (DISA)

COMPUTING SERVICES LOGISTICS CD1232

JUSTIFICATION AND APPROVAL TO PROCURE MAINTENANCE OF SOFT, INC. SOFTWARE PRODUCTS USING OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as the Competition Advocate, hereby approve the use of other than full and open competition for the proposed contractual action pursuant to the authority of 10 U.S.C.2304(c)(1), FAR Subpart 6.302-1.

JUSTIFICATION

1. Agency and Contracting Activity (FAR 6.303-2(a)(1)).

Agency:

Defense Information Systems Agency, Computing Services Logistics, CD1232.

1 Overcash Avenue, Bldg. 1C Chambersburg, PA 17201-4122

Contracting Activity:

Defense Information Technology Contracting Organization (DITCO)

Scott Field Office

2300 East Drive

Scott AFB, IL 62225-5406

2. Nature/Description of Action(s) (FAR 6.303-2(a)(2)).

This contracting action is to provide for a follow-on procurement effort to renew the expiring software maintenance support contract for the Source of Future Technology (SOFT) software product, Terminal Application Processing System (TAPS). The replacement contract will perpetuate existing coverage currently acquired through contract number, HC1013-06-P-2002, which expires on 30 September 2009. The renewal contract will have a five-year life incorporating a one-year base plus four one-year options. Pricing will be firm fixed price. This COTS software supports applications transmitted to or processed by DISA managed systems and facilities. The contract will have central site management.

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

a.) The Terminal Application Processing System (TAPS) software helps to build, operate and maintain online applications systems, reducing development time and maintenance costs. DISA depends heavily on the TAPS software for a crucial financial application. The TAPS software is unique and is used extensively throughout this financial application.

The DISA customer has critical TAPS applications programs in place which cannot run without SOFT, Inc. maintenance support.

b.) The total estimated cost of the proposed acquisitions for the five-year period is $2,500,000.00. This includes an estimated $477,538.00 for base year, $477,538.00 for OY1, $477,538.00 for OY2, $477,538.00 for OY3, and $477,538.00 for OY4. This is the maximum amount envisioned.

4. Identification of Statutory Authority (FAR 6.303-2(a)(4)).

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 (FAR 6.303-2(a)(5)).

a.) Source of Future Technology (SOFT) has proprietary rights to the software code for the Terminal Application Processing System (TAPS) product associated with this acquisition requirement and as such is the only known vendor that can provide the needed services. The proposed acquisition is for continuation of support currently performed by SOFT, Inc. under Contract number, HC1013-06-P-2002.

b.) Unique Capabilities: SOFT, Inc. is the only known source for this proprietary software. No other vendor or distributor can legally obtain access to the software and no other vendor can make duplicate copies since it is protected by copyright and patent laws.

c.) The SOFT, Inc. software, TAPS, supports the mainframe software environment. DISA CSD utilizes the TAPS software in a key financial application and the application software cannot be converted without extensive costs and production stoppage.

DISA customers have a significant inventory of the TAPS software, and an extensive amount of technical expertise has been developed within DISA and the customer technical personnel for the existing TAPS software installation. Since the TAPS software is crucial to DISA’s customer and their financial application, it is imperative that DISA continue to use the SOFT, Inc. software.

d.) Conclusion: Based on the above, SOFT, Inc. is the only source that can fulfill this requirement without substantial duplication of cost to the Government that is not expected to be recovered through competition, significant costs expended on technical reviews, business cases, functional replacements of installed inventory, training and implementations of new products.

6. FedBizOpps Announcement/Potential Sources (FAR 6.303-2(a)(6).

a.) A synopsis for this action will be published on the FedBizOpps website as required by the Federal Acquisition Regulation (FAR). The synopsis will completely identify the Government's minimum mandatory requirements.

b.) DISA does not anticipate any 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. This proposed procurement is the only known approach to licensing and maintaining this proprietary software.

7. Determination of Fair and Reasonable Cost (FAR 6.303-2(a)(7).

The historical data cost of the current contract and review of the commercial pricing will be used to determine a new contract to be fair and reasonable. Comparison to other recent in-house procurements from GSA schedules, where we have negotiated discounts will also be used. The dollar estimate reflects the maximum amount envisioned for the defined five-year period. It provides for the continuation of coverage for SOFT, Inc’s software product, Terminal Application Processing System (TAPS). The total cost of the previous four year term of the SOFT contract (HC1013-06-P-2002) is estimated to be $3.2 million. The vendor does not have a GSA contract.

Costs for the current SOFT, Inc. contract are as follows:

Base Year

$ 766,797.00 (10/1/05 – 9/30/06)

Option Year 1

$ 785,200.00 (10/1/06 – 9/30/07)

Option Year 2

$ 804,045.00 (10/1/07 – 9/30/08)

Option Year 3

$ 823,342.00 (10/1/08 – 9/30/09)

The contracting officer will make a determination that the anticipated price is fair and reasonable prior to award.

8. Description of Market Research (FAR6.303-2 (a)(8).

Market research was conducted and indicates that the vendor does not allow exclusive rights to be released to a second or third party vendor/reseller and this software cannot be released by anyone but SOFT, Inc. 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 SOFT, Inc.

9. Any Other Supporting Facts (FAR 6.303-2(a)(9))

TAPS software was initially used jointly by the STANFINS and SRD-1 applications with the costs being shared on equal basis. With STANFINS recently terminating the need for TAPS software, SRD-1 has paid the full software cost for the last few years.

For STANFINS, it cost $1M and two years of effort for conversion from TAPS to CICS software. SRD-1 has five times the TAPS' entry points than STANFINS' for conversion to CICS. Based on a prorated cost estimate, SRD-1's cost of conversion from TAPS to CICS would be about $5M. A timeline to replace TAPS with CICS software would be dependent on availability of staff and experience level.

For SRD-1, it was not considered cost effective to convert TAPS to CICS, since SRD-1 was scheduled for replacement by ADS at DFAS Kansas City, Indianapolis, and Columbus sites by end of FY 08. However, the replacement dates for SRD-1 at Indianapolis and Columbus sites have slipped to April 2010 and September 2010 respectively. Until ADS replaces SRD-1, TAPS is still needed to allow SRD-1 to make daily disbursements amounting to hundreds of millions of dollars. The replacement dates have slipped numerous times throughout the past five years, and although the estimated replacement date is September 2010, there is still no firm schedule. For this reason, the customer has requested that the contract contain a one-year base plus four option years.

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

To date, no vendor other than SOFT, Inc. is an interested source. Any responses to the FedBizOpps announcement will be considered by DISA prior to proceeding with an award. See paragraph 6.

11. Actions Taken to Remove Barriers to Competition (FAR 6.303(a)(11)).

SOFT, Inc. has proprietary data rights that effectively preclude competing annual maintenance for products.

12. Statement of Period of Performance and/or Delivery Schedule (DARS 6.303-2(a)(S-90).

The proposed acquisition will cover the Period of Performance (PoP) from 01 October 2009 through 30 September 2014. The period of performance is as follows:

Base Year 10/01/09 – 09/30/10

Option Year 1 10/01/10 – 09/30/11

Option Year 2 10/01/11 – 09/30/12

Option Year 3 10/01/12 – 09/30/13

Option Year 4 10/01/13 – 09/30/14

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

(DARS 6.303-2).

Not Applicable

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

14. Reference to Information Technology (IT) (includes National Security System (NSS) IT). Information Management (IM) and Information Assurance (IA) Requirements

(DARS 6.303-2).

Information Technology is being acquired. This is a renewal of software maintenance for previously acquired COTS Software.

TECHNICAL AND REQUIREMENTS CERTIFICATION: (FAR 6.303-1(b), 6.303-2(b), DFARS 201.303-1 and DARS 6.303-1(b))

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Technical Cognizance:

Signature/DATE: //Cathy Gilbert// 5-March-2009

Name: Cathy Gilbert

Title: IT Asset Maintenance Branch, DISA Logistics, Code CD1232

REQUIREMENTS COGNIZANCE:

Signature/DATE: //John DePasque// 5- March-2009

Name: John DePasque

Title: Chief, IT Asset Maintenance Branch, DISA Logistics, Code CD123

REVIEW FOR LEGAL SUFFICIENCY: (DARS 6.303-91)

This justification is determined legally sufficient.

Signature/DATE: //signed// 26 May 2009

Name: JOANN W. MELSKY

Title: Deputy Legal Counsel, DITCO, Code D01DT CONTRACTING OFFICER CERTIFICATION: (FAR 6.303-1(a) 6.303-2(a)(12))

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

Signature/DATE: 08 Apr 09

Name: Carrie M. Ross

Title: Contracting Officer, DITCO, Code PL8231

APPROVED BY: (FAR 8.405-6(h)(2)):

Signature/DATE:

, 27 May 2009

Name: ANN M. VAUGHN

Title: Procuring Activity Competition Advocate, DITCO

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