Justification for OTFAOC Processor VMWare REDACTED.pdf

Enclosure 12a, J&A (Part 6) Page 1 of 5 Pages

24Mar2010/Version 1.3

Procurement Request Number: Processor Capacity Services

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

Justification for OTFAOC Number: JA11-140

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 6.302-1(a), only one responsible source and no other supplies or services will satisfy agency requirements. This is a brand name action as the item is peculiar to one manufacturer brand name.

JUSTIFICATION

1. Agency and Contracting Activity:

Requiring Activity

Defense Information Systems Agency (DISA) Computing Services Directorate (CSD)

6916 Cooper Ave

Fort Meade, MD 20755

Contracting Agency:

Defense Information Technology Contracting Organization (DITCO)

2300 East Drive Bldg 3600

Scott AFB, IL 62225-5406

2. Nature/Description of Action(s):

a. The purpose of this requirement is to provide capacity service for the VMware product suite for

X-86 virtualization services currently provided under the present Processor Capacity Services contract

(HC1013-07-D-2004) as CSD initiates the effort to re-compete this contract in 2011. The brand name

VMWare will continue to be the virtualization service provided through the Processor Capacity Services program as identified in the current Statement of Objectives (SOO) and Requirements Document for the

X-86 chipset.

b. The period of performance for the Processor Capacity Services re-compete is for a five-year base period and three one-year option periods. O&M funds will be used for this procurement.

Five-Year Base Period - May 2012 through 30 April 2017

Option Year One - May 2017 through 30 April 2017

Option Year Two - May 2017 through 30 April 2018

Option Year Three - May 2018 through 30 April 2019

3. Description of Supplies/Services:

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a. The current requirement identified in RFP HC1028-11-R-0104 is for a solution that recognizes

VMWare as the virtualization service for the X-86 chipset. Specifically, the requirement is for capacity service to provide VMware/VSphere Enterprise Plus with vCenter Server as the ESXi host support for virtual operating environments (VOEs) and management of the VMware virtual infrastructure. VMware is the standard virtualization infrastructure for X-86 chipset virtual environments within CSD and is the recognized market leader in X-86 virtualization products (Gartner, 30 June 2011). The X-86 virtual software will be included in the processor capacity service. Offeror will provide the underlying infrastructure, tools, software, licensing, and licensing agreements to provide the capacity service for

VMware/VSphere Enterprise Plus with vCenter Server as the ESXi host support for virtual operating environments (VOEs) and management of the VMware virtual infrastructure. The Government will manage the virtual hosts, placements, relocating environments (vmotion), and the vCenter Server.

b. VMware functions include the following specific functions and benefits currently in use today by

CSD under the current Capacity Services contract:

VMware® Fault Tolerance - Provides zero-downtime and zero-data-loss continuous availability in the case of hardware failures

VMware vNetwork Distributed Switch - Provides a central datacenter level aggregated control point for virtual machine networking

VMware Host Profiles - Allows creation of “golden” profiles of ESX hosts and their application to existing or new hosts

VMware vStorage Thin Provisioning - Defers the allocation of storage to virtual machines until it is needed

VMware Hot Add - Allows CPU and memory to be added to running virtual machines without disruption or downtime and allows virtual HBAs and NICs to be added to or removed from virtual machines without disruption or downtime

VMware Data Recovery - Provides backup to disk and simple recovery at a file or image level for small environments

VMware® vShield Zones - Enforces corporate firewall security policies at the application level in a shared environment, while still maintaining trust and network segmentation of users and sensitive data

VMware vSMP (8-way) - Allows a single virtual machine to use up to 8 virtual CPUs

VMware® Distributed Resource Scheduler (DRS)/VMware® Distributed Power Management

(DPM) - DRS continuously monitors virtual machines and physical servers to optimally align compute capacity to application requirements based on business priorities

VMware® Storage VMotion - Live migration of virtual disks from one storage location to another without disruption to users

VMware® VMotion™ - Live migration of virtual machines from one server to another without disruption to users, minimizes the need to schedule application downtime due to server maintenance

VMware® High Availability (HA) - Continuous monitoring of servers in a pool and automated restart of virtual machines on alternate servers in the event of hardware failures

VMware Update Manager - Automates patching for ESX hosts and select Microsoft and Linux virtual machines

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VMware® ESX™/ESXi - High performance bare metal hypervisor, unique CPU and memory optimization features that enable the highest consolidation ratios, optimized for the highest network and storage throughput

c. This project will be provided as a capacity service under the Processor Capacity Services Contract resulting from the award of RFP HC1028-11-R-0104 for the X-86 chipset. Under this model, all required VMware software licensing and sustainment will be provided by the contractor. Call orders will be placed for the X-86 chipset and VMware, where required. Government usage levels will be monitored and adjusted monthly to provide only the staffing, services, and licensing to meet the government’s requirements.

4. Identification of Statutory Authority:

10 U.S.C.2304(c)(1), as implemented by FAR 6.302-1/DFAR 206.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements. The item is peculiar to one manufacturer brand name. Only the original equipment manufacturer and its limited number of authorized resellers will satisfy the requirement.

5. Demonstration of Contractor’s Unique Qualifications:

a. For the current Processor Capacity Services solicitation and eventual contract award, the VMware product suite is still necessary to support CSD’s virtualization infrastructure. Offerors must propose

VMWare as the virtualization service for the X-86 chipset, no other alternatives will be evaluated.

Virtualization provides flexibility and scope of service sufficient to meet current and future processing environment workload, security, and modernization requirements, while ensuring DISA customers receive uninterrupted, continuous access to their applications and data. DISA’s goal is to obtain a dynamically scalable processing environment utilizing an on-demand service approach that will readily adjust to changes in processing requirements, both increases and decreases, and is priced on a utility (“as used”) basis. The services acquired in the follow-on Processor Capacity Services contract will provide the hardware/chipsets, operating systems software and VMWare software required to deliver processor capability to DISA for X-86 operating environments including Windows Server, Red Hat Enterprise

Linux, SUSE Linux Enterprise Server, and Solaris for X-86.

b. VMware brand name software is required for the X-86 chipset as the basis of CSD’s virtualization infrastructure. VMware Enterprise Plus has been identified as the standard Commercial Off-The-Shelf

(COTS) virtualization software package based upon the functionality of the software. VMware has been in the CSD processing environment since 2007 as the only virtualization product for the X-86 operating environment within the Capacity Services contract. The use of VMware has evolved in the CSD processing environment to take advantage of greater processing power due to multiple Operating

Environments being processed on individual hardware. VMware is the foundation for CSD’s cloud service offerings as well as the RACE environments and is NSA accredited for virtualization of X-86 operating environments. Therefore, the recommendation is to acquire the services for VMware licensing and sustainment of this product, in conjunction with the processor capacity services contract amongst the authorized resellers of VMware virtualization software on the open market.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/06.htm#P82_10997 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/dfars/dfars206.htm#P83_2842

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c. The acquisition requires the use of brand name VMware virtualization software. VMware is the

OEM for virtualization software. The proprietary software is solely owned by VMware who is the only authorized warranty/licensing source.

d. The requirement is for Brand Name VMware licenses/software. No other similar virtualization software for the X-86 chipset can integrate into the existing DISA CSD X-86 chipset processing environment. Virtualization is an extremely strategic foundation for infrastructure modernization, improving the speed and quality of IT services, and migrating to hybrid and public cloud computing.

With almost five years of adoption and use of VMware, replacement of this foundational toolset would be highly disruptive to the CSD infrastructure and operational capabilities, causing unnecessary expense and lost productivity to replace VMware with a less mature and less functional tool. According to

Gartner, closest competitors have difficulty converting large-scale VMware install bases and have conflicting product offerings for cloud based solutions, as well as, additional overhead and security concerns with requiring a parent operating system. Change out costs for software is 3-7 times the initial utility cost (Gartner, Oct 07). Gartner is an independent Information Technology (IT) firm that conducts independent research of products and IT processes.

e. Virtualization infrastructure for the X-86 server environment is the foundation for two extremely important initiatives within CSD - infrastructure modernization for lower cost operational support and cloud computing. For infrastructure modernization, virtualization is being used to improve resource utilization, improve the speed of resource delivery and encapsulate workload images in a way that enables automation. Virtualization is also being used as the basis for CSD’s cloud computing environments, through private cloud offerings such as RACE as well as CSD’s operational infrastructure.

f. Since the initial installation of VMware in its operational infrastructure, CSD has virtualized multiple customer and internal operating environments hosted on just a number of physical servers housed in less than X equipment racks. The aggressive use of virtualization provides significant cost savings for hardware costs and software licensing, minimizes impact to facilities through decreased power and cooling requirements as well as reduced labor to manage the virtualized infrastructure.

Without VMware providing virtualization infrastructure, the number of VOEs mentioned above would require X additional servers and over X additional equipment racks. In this example, virtualization yield minimal need for Microsoft Windows operating system licenses, using less than X software licenses to support this work. Without VMware, over X additional Microsoft licenses would be required. From a physical plant perspective, the current virtualized environment utilizes approximately X cables for network and SAN connectivity, while approximately X similar cables would be needed to support this same environment without virtualization facilitated by VMware. Lastly, CSD’s virtualization effort with

VMware fully supports DoD’s Green IT initiatives by saving the equivalent carbon dioxide emissions of over X cars, or X homes. This is based on Gartner research, citing every server that is virtualized saves

X kWh of electricity and four tons of carbon dioxide emissions per year (Gartner Inc. 'Gartner Says

Agility Will Become the Primary measure of Data Centre Excellence by 2012', 10/24/07) .

g. The cost to the Government to introduce a virtualization solution other than VMWare with similar capabilities to the X-86 processing environment for virtualization software would literally result in stoppage of existing work. To retrofit a different solution would mean implementing and testing the new product on all X-86 servers to ensure interoperability with each customers applications and software, replacing or reengineering current customer application software licenses in favor of the replacement virtualization product, recoding existing reports, retraining the developer and user

Page 5 of 5 Pages community to become familiar to a new interface, requiring users to recode their own customized reports, and diverting the focus of the DISA’s program on development to ramp up with the new product as quickly as possible. Change out costs for software is 3-7 times the initial utility cost

(Gartner, Oct 07).

h. In addition to losing our customers and DISA CSD current investment in application and management software, DISA would also suffer unquantifiable losses such as; 1) the inability to work new requirements because contractor personnel resources would otherwise have to be diverted to stand-up a replacement solution, and 2) the corporate IT knowledge and experience associated with VMWare that would have to be reacquired with a replacement product. It takes time to integrate replacement products into operational software architectures, and that time equates to an unplanned expense to the

Government that would not be recovered through re-competition. This is estimated to be four years based on time to complete RFI, evaluate multiple software solutions and integrate them into one package to meet CSD processor X-86 virtualization requirements, resolve security issues, begin the acquisition process anew, and complete a two year implementation.