JA_Redacted.pdf

Micro Focus Software Renewal

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification, Supporting Procurements under FAR Part 12, FAR Subpart 13.501, and FAR Part 15

Purchase Request Number:

Contract Number: To Be Determined (TBD) Task/Delivery Order Number: TBD Procurement Title: Micro Focus Software Renewal Contracting Office: Defense Information Systems Agency (DISA), Defense Information Technology Contracting Organization (DITCO) Estimated Value:

Statutory Authority: Section 4202 of the Clinger-Cohen Act of 1996, FAR 13.501, and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

Justification for OTFAOC Number: N/A

Upon the basis of the following justification, I, as the Contracting Officer, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of Section 4202 of the Clinger-Cohen Act of 1996. The regulatory authorities that apply to the requirement are FAR Subpart 13.501, Test Program for Certain Commercial Items, and FAR Part 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE

a. Requiring Agency:

b. Contracting Activity:

2. NATURE/DESCRIPTION OF ACTION(S):

(a) The nature of this action is to award a Firm-Fixed-Price (FFP) Open Market delivery order for software maintenance for brand name, Micro Focus Products, including Server for COBOL and Server Express and Virtualization Rights. This procurement will perpetuate existing coverage, which is currently provided under contract number

, that expires 28 Apr . It also includes Virtualization Rights that will allow conversion from the physical environment to a virtual environment. The

Page 1 of 8 Pages virtualization rights will allow DISA to utilize current licensing in a way that aligns with the ongoing effort of Data Center Modernization which, as one of its tenets, includes the use of virtualization to its greatest extent. As the size of physical servers increase, especially in regards to the number of physical cores, current applications will not be impacted as servers are tech refreshed to larger physical servers as the number of virtual cores will remain the same.

(b) The period of performance (POP) is estimated to be 29 April through 28 April . Fiscal Year Operation and Maintenance (O&M) funding is provided for the procurement under the Military Interdepartmental Purchase Request (MIPR) number The applicable North American Industry Classification System (NAICS) code is 511210. The estimated value of this contract is

3. DESCRIPTION OF SUPPLIES/SERVICES:

(a) Micro Focus software maintenance is required to sustain the current inventory at DISA.

The software is used and hosted on distributed servers located at

The objective of this contracting effort is to provide continual maintenance while ensuring DISA customers receive uninterrupted, continuous access to their applications and data. DISA requires access to new product releases, version updates, and other security patches through download links provided by Micro Focus, with keys for new releases being provided via email from Micro Focus Supportline.

Micro Focus maintenance includes technical support around the clock and around the world.

(b) Micro Focus software maintenance will provide Software updates for the Server for COBOL and Server Express. The Micro Focus Software provides the Run-Time platform used for the Deployment of COBOL Applications on Windows, Unix, and Linux Systems. Without this software, several critical applications, such as Defense Working Capital Accounting System (DWAS), Defense Business Management System (DBMS), Defense Industrial Funds Management Systems (DIFMS), and Air Force Depot Maintenance Accounting and Production System (DMAPS), could not continue to operate. The software is used by

(c) The added virtualization rights will allow DISA to license a virtual server by the number of virtual cores used for each application rather than the current method of licenses by the number of cores on the entire physical server. For instance, the current DWAS test server, a four core virtual server, is currently licensed based on the eight core physical server it is hosted on. Virtualization rights will allow that application to be licensed with

Page 2 of 8 Pages four core licenses rather than eight, and even if that virtual server moves to a 16 core physical server, the license requirement will remain at four. This same scenario also holds true with all five DMAPS virtual servers which are each one to two core virtual servers hosted on four core physical servers, and the likelihood is that the next tech refresh will re-host the DMAP servers on 16+ physical core servers. Virtualization of these licensees will save DISA and its partners at least in this case. This capability provides DISA with greater flexibility as well as future cost savings as the size of new physical servers continue to increase.

4. IDENTIFICATION OF STATUTORY AUTHORITY: Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c)(1). (FAR 6.302-

1/DFARS 206.302-1);

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events:

a. The Micro Focus software has been used in for at least 20 years in support of several partner applications. This includes the DIFMS, DWAS and DBMS applications as well as the AF DMAPS applications. In each case DISA’s partner has requested that DISA purchase and maintains this software, as it is used on applications that are hosted in on servers that are managed by

b. The quantity of licenses has varied from year to year primarily due to changes in the size of the physical servers used to host the applications. Adding virtualization rights to the license will greatly reduce this fluctuation and will likely result in only reduction of the number of licenses, thereby reducing future costs for sustainment. The trend towards greater virtualization in the data center should also lead to reduced requirement in the total number of licenses for the current applications.

c. This acquisition has been delayed due to several factors, resulting in the current time sensitive nature of the procurement. There are multiple partner applications supported by this software, and several of those applications were either affected by or will soon be affected by tech refreshes, resulting in a reallocation of the number of licenses required for each application. Secondly, in an effort to minimize future impact of tech refreshes DISA has been working with Micro Focus to move from a license model that is based on the physical size of the server to a model that is based on the virtual size, which is in accordance with the modernization and virtualization efforts. The virtualization rights that Micro Focus is offering provide the mechanism for this move from a physical to a virtual model. These two factors resulted in delays to fund the acquisition thus delaying the submission to .

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(b) Justification.

a. The verified minimum requirements are for the renewal of maintenance of 92 Server for Cobol Licenses as follows:

DIFMS Mechanicsburg Production: 8 DIFMS Mechanicsburg Test: 8 DIFMS Ogden Production: 8 DIFMS Ogden Test: 8 DWAS Production 16 DWAS Test 16

DBMS 8

DMAPS Ogden Server 1 4 DMAPS Ogden Server 2 4 DMAPS Tinker Server 1 4 DMAPS Tinker Server 2 4 DMAPS Warner Robins 4 Total: 92 and 16 Server Express licenses as follows:

DIFMS Mechanicsburg Production: 10 DIFMS Mechanicsburg Test: 2 DWAS Production 4 Total: 16 and Virtualization Rights for the 92 Server for Cobol

b. Micro Focus software is proprietary and the purchase of Software Maintenance is only available from Micro Focus or possibly authorized resellers of the brand name product. No other vendors or distributors can legally obtain access to the software nor make duplicate copies since copyrights and patent laws protect it.

Micro Focus owns all proprietary rights to the source code. The software maintenance of the brand name proprietary software products is available and

c. Consequences from obtaining replacement software products from other sources would result in extensive software conversions and additional costs for the . The Micro Focus software included in the maintenance renewal is integrated into and Applications and replacing it with another product would cause major disruptions in DISA’s ability to perform these functions and would incur significant costs.

Without the renewal of the software maintenance, DISA would not be able to receive product upgrades and security patches and would have no access to Micro Focus support line to resolve issues. This could result in failure of critical Financial and Logistics systems used by .

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6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: To ensure that offers are solicited from as many potential sources as is practicable, a synopsis for these requirements will be published to the Federal Business Opportunities website as required by FAR 5.2.

7. DETERMINATION OF FAIR AND REASONABLE COST. The Contracting Officer will make final determination of price fair and reasonable based on the comparison of quotes received and a comparison of the Independent Government Cost Estimate (IGCE). can conclude that the order represents the best value and results in the lowest overall cost alternative to meet the Government’s needs.

8. MARKET RESEARCH:

(a) Market research was conducted by from 2 Feb through 1 Apr The first step taken in conducting market research in support of this project was to determine if there were other software solutions that would meet the government’s requirements. Product research was conducted through the use of websites and vendor brochures and hands on knowledge of available software. The viability of a vendor's product was based upon their product's ability to fulfill the mission critical requirements of supporting . The market research revealed that the Micro Focus solution is the only source that will satisfy the agency’s requirements for maintenance support for all software. Micro Focus and its authorized resellers are the only sources that can satisfy the requirement. The required Micro Focus software products have proprietary features and a custom operating environment found only in this brand name software.

(b) The only other software with similar functionality, commercially available, is Fujitisu NetCOBOL. However, the NetCOBOL product does not function in all of the different operating environments (Windows, HPUX, Solaris, Z-Linux) that began using the Micro Focus Software more than a decade ago, and originally purchased the software. At the time the product name was Object COBOL, later named Application Server, and is now known as Server for COBOL. It was determined that the product was necessary to accommodate the migration of the legacy applications to new platforms and that it was the only product on the market that would satisfy the requirement. As these systems have been moved into to operate and maintain, has continued to maintain these licenses and in some cases purchased additional licenses to maintain license compliance. In 2011, evaluated the viability of moving to another product and determined that there were no other products available that could be used to replace the Server for COBOL product. Fujitsu NetCOBOL could potentially be used for the Windows applications, but not for the HPUX or Solaris applications, which are used in the majority of the systems.

(c) Market researched confirms that this software maintenance can only be purchased from Micro Focus or its authorized resellers. Micro Focus does not have any contractual vehicles such as General Services Administration (GSA), SEWP, or DOD ESI, but

Page 5 of 8 Pages several resellers are available through Therefore, the recommendation is to procure this requirement through an Open Market procurement.

9. ANY OTHER SUPPORTING FACTS: At this time, there is not a direct replacement software product that is functionally equivalent to the Micro Focus Server for COBOL.

Replacing the Software would require a complete rewrite of the applications using the product.

This would prove both costly and time consuming, requiring man hours for years of design, development, testing, training, and documentation. There are applications using Server for COBOL that are hosted .

hosts these systems in its facilities, providing the servers, executive software, and operations support, but is not and never has been involved in the maintenance of the financial and logistic applications, so it would fall to to formulate a plan to replace the Micro Focus Software. It is who determine what software is used in the development of their applications.

10. LISTING OF INTERESTED SOURCES:

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

1. Contract Number:

Contractor:

Contract Period: 29 April – 28 April Total Estimated Contract Value:

Contract Type: Open Market Objective: Renewal of Maintenance

2. Contract Number:

Contractor:

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Contract Period: 29 April – 28 April Total Estimated Contract Value:

Contract Type: Open Market Objective: Renewal of Maintenance

3. Contract Number:

Contractor:

Contract Period: 29 April – 28 April Total Estimated Contract Value:

Contract Type: NASA SEWP Objective: Renewal of Maintenance

4. Contract Number:

Contractor:

Contract Period: 29 April – 28 April Total Estimated Contract Value:

Contract Type: NASA SEWP Objective: Renewal of Maintenance

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE:

TITLE/ORGANIZATION:

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE:

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

NAME: SIGNATURE:

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