Oracle_JA_DHQCSD15MPC0092_Redacted.pdf

J&A – Oracle Software Licenses and Support

LIMITED SOURCE JUSTIFICATION & APPROVAL (J&A)

FEDERAL ACQUISITION REGULATION (FAR) PART 8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract Orders under MAS/General Services Administration (GSA)/Federal Supply Schedules

FAR 8.405-6

Purchase Request Number: DHQCSD15MPC0092 Contract Number: To be determined (TBD) Delivery Order Number: TBD Procurement Title: Oracle Software Licenses and Support Contracting Office: Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO) - Scott/PL8321 Limited Source Authority: FAR 8.405-6(b)(1)

LIMITED SOURCE JUSTIFICATION

J&A Number:

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve this limited source justification in accordance with FAR 8.405-6(b)(1), items peculiar to one manufacturer. The acquisition referenced herein is conducted under the authority of the MAS Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

DISA - Enterprise Information Services (EIS) Building 12, Overcash Avenue Letterkenny Army Depot Chambersburg, Pennsylvania 17201-4123

b. Contracting Office:

DISA/DITCO Scott/PL8321 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this new requirement is to procure brand name, commercial off-the-shelf (COTS) Oracle E-Business software licenses and support for the Defense Logistics Agency’s (DLA) Defense Agencies Initiative (DAI) project. The requirement will support customer workload transmitted to or processed in DISA facilities. The procurement will be awarded as a firm-fixed-price delivery order to an authorized reseller of Oracle, the original equipment manufacturer (OEM), against a Department of Defense (DoD) Enterprise Software Initiative (ESI) Blanket Purchase Agreement (BPA).

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b. The period of performance will be from October 1, 2014 through September 30, 2015.

Fiscal Year 2015 funds are provided under a Military Interdepartmental Purchase Request. The applicable North American Industry Classification System code is 511210, Software Publishers, with sales size standard of $38,500,000.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The Oracle E-Business Suite software licenses and support are a comprehensive suite of integrated business applications to help manage the complexities of business environments with capabilities spanning enterprise resource planning, customer relationship management, and supply chain planning. The E-Business Suite Financials standardizes processes for shared services, productivity tools, and integrated performance management. The Advanced Procurement products streamline procure-to-pay processes and ensure policy compliance.

Oracle Projects applications support the lifecycle of project and portfolio management providing a view of all project-related activities. The software easily organizes and controls large amounts of data for the DAI project environment.

b. Descriptions of the brand name software licenses and support required are listed below:

Oracle Product Description Part # Metric Qty

Financials A80561 Application User 1836 Project Billing for Project Costing L31923 Application User 581

Contract Lifecycle Management for Public Sector L86832 Application User 1,343

Project Costing A85888 Application User 839 Purchasing A81402 Application User 733

Time and Labor A92407 Employee 29,777 iProcurement L28328 Application User 2,116

Advanced Controls for E-Business Suite L97424 Monitored User 2,500 User Productivity Kit Standard L17918 UPK Developer 9 User Productivity Kit Standard L93842 Application User 10,000

Diagnostics Pack A90649 Processor 32 Application Management Suite for

Oracle E-Business Suite L86617 Processor 32

Tuning Pack A90650 Processor 32 Business Intelligence Suite Enterprise

Edition Plus L46235 Processor 4

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION OF

CONTRACTOR’S UNIQUE QUALIFICATIONS:

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a. Circumstances Justifying Limiting the Source: FAR 8.405-6(b)(1), items peculiar to one manufacturer—the particular brand name, product, or feature is essential to the government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

b. Description of the Justification: The required Oracle software licenses and support are unique, highly specialized, and are essential to satisfying DISA EIS’s requirement. The Oracle products are required to interact with the existing DISA and DLA owned products for the DLA DAI project. The existing products are designed specifically to interact with Oracle systems and as such, only Oracle products will satisfy the requirement. Market research indicates other companies’ similar products do not meet, nor can be modified to meet, the agency’s needs without significant duplication of costs and unacceptable delays. Oracle software is proprietary and is only available from Oracle, the OEM, or its authorized resellers. Oracle owns the copyrighted source software with all legal rights, privileges, and ownership contained therein.

No other source may legally modify or change the software, nor would they have access to the source code to do so.

c. Justification:

(1) Minimum government requirements. The minimum government requirement is for the purchase of Oracle licenses and support for the products and quantities listed above in 3.b.

(2) Proposed sole source contractor. Not Applicable.

(3) Discussion regarding cause of the limited source situation. DISA and DLA have developed applications integrating the Oracle COTS software products into the existing application systems. DISA and DLA have already invested substantial labor hours and technical support resources to develop the current environment that relies on Oracle technology and products. Other vendor’s software products specifically designed to integrate with Oracle applications and physical hardware have also been purchased specifically to support the Oracle framework of databases and developed applications.

(4) Demonstration of limited source. In accordance with the Defense FAR

Supplement 208.7402, the DoD ESI BPA is a priority source, and the recommendation is to solicit quotes from DoD ESI BPA contract holders that provide Oracle software products.

(5) Procurement discussion. The Oracle products are proprietary software, manufactured by Oracle. Only Oracle, the OEM, or its authorized resellers will be able to satisfy the program’s requirement for the software licenses and support.

(6) Impact. Introducing new software, other than Oracle, into the existing architecture would result in stoppage of existing work as reflected in paragraph 4.b. Considerable time and costs would be expended on technical reviews, removal of existing software, testing, training, and implementations of new products. Additionally, the time incurred to rewrite applications to

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5. BEST VALUE DETERMINATION:

The requirement will be competed among four Oracle DoD ESI BPA holders. By placing an order against a DoD ESI BPA using the procedures in FAR 8.405-3, the contracting officer has determined that the order represents the best value to the government (as defined in FAR 2.101) and results in the lowest overall cost (considering price, special features, administrative costs, etc.). In addition, the contracting officer will determine the prices fair and reasonable based on solicited quotes received, a comparison of the negotiated pricing of the DoD ESI BPA holders, and a comparison of the independent government cost estimate. Additional cost discounts will be sought prior to placing an order.

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