JA_Redacted.pdf

FOR OFFICIAL USE ON LY

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acqui sition Regu lation (FAR) Part 6 Justification, Supporti ng Procurements under FA R Part 12, FA R Subpart 13.50 I , and FA R Part I 5

Purchase Request N umber: F3ST9Q5077GOO I Contract Number: To Be Determined (TBO) Task/Del ivery Order N um ber: TBO Procurement Title: Microsoft Premier Support Contracti ng Office: Defense lnfonnation Systems Agency (DISA), Defense In formation Technology Contractin g Organization (OITCO), PL8321 Esti mated Value: $350,000 Statutory Authority: 10 U.S.C. §2304(c)( l ) and FA R 6.302-1

JUSTIFICATION FOR OTFAOC

Upon the basis of the following justification , 1, as Contracting Officer, hereby approve the use of other than fu l l and open competition of the proposed contractual action pursuant to the authority of 1 0 U.S.C. §2304(c)( l). The regu latory authority that applies to the requ irement i s FAR 6.302- 1, only one responsibl e source and no other supplies or services wi l l satisfy agency requi rements.

JUSTI FICATION

1. REQU IRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency: United States Transportati on Com mand Program Executi ve Office

(PEO-T) Events Logbook (ELB) Program 508 Scott Drive, Building l 900W Scott AFB, Illinois 62225

b. Contracting Office: Dl SA/DITCO/PL8321

2300 East Drive, Bui lding 3600 Scott AFB, Ill inois 62225

2. NATURE/DESCRIPT ION OF ACTION(S):

a. The nature of this action i s to procure extended support for Microsoft Wi ndows Server 2003 SP2 for the PEO-T ELB program through a Custom Support Agreement (CSA). On 15 Ju ly 20 15, Microsoft will end public support for Microsoft W indows Server 2003 SP2. This CSA will allow for the conti nued support of Windows Server 2003 SP2 in the form of telephone support and security updates rated ''Cri tical " by the M icrosoft Security Response Center (MSRC). The recommendation is to execute a sole-source firm fixed pri ce delivery order.

b. The period of performance wi ll be 15 J uly 20 1 5 through 14 J uly 2016. Fiscal year 201 5 transportat ion work i ng capital funds wil l be provided under a forthcoming M ilitary I nterdepartmental Purchase Request. The applicable North American I ndustry Classification System code is 541519, Other Computer Related Services, with sales size standard of $27,500,000. The estimated cost is $350,000.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The objective of this CSA is to provide continuous support to the PEO-T ELB program for Microsoft Windows Server 2003 SP2 for one year. The CSA will provide PEO-T ELB with support and security updates rated "Critical" by the MSRC until PEO-T ELB sunsets i n J uly 20 16. The CSA will ensure PEO-T ELB has continued extended support to avoid security vu lnerabil ities on the existing l icenses. The security updates for v u lnerabilities rated "Critical " will be provided at no add itional charge; but per hotfix, additional fees wi ll apply for security hotfixes rated ·'Important''. Non-securit y hotfixes are not avail able.

Microsoft Windows Server 2003 SP2 Custom Support will include:

a. Problem Resolution Support provid es assi stance for problem s with specific symptoms encountered whi le using the Enrolled Product, where there is a reasonab le expectation that the problem i s caused by the Enrolled Product.

b. Support Assistance provides short-term advice, guidance, and knowledge transfer for issues not covered by Problem Resolut ion Support that USTRANSCOM may encounter while using the Enrolled Product , where there is reasonable expectation that the i ssue i s l im ited to the Enrolled Product.

c. Support Account Management from an assigned Microsoft resource ("Serv ices Resource") helps to build and maintain relationships with USSTRATCOM IT management and service delivery staff and helps arrange each element of the Premier Support to meet USTRANSCOM 's business requi rements.

Description Quantity

Custom Support - Microsoft Windows Server 2003 SP2 Custom Support Enrollment

I

Important Security Hotfixes I

4. IDENTIFICATION OF STATUTORY AUTHORITY :

This acquisition is conducted under the statutory authority of 10 U .S.C. §2304(c)( I ) and the regu latory authority of FAR 6.302- 1/ Defense FAR Supplement 206.302-1, only one responsible source and no other suppl ies or services will satisfy agency requi rements. The support is pecul iar to a specific brand name. Only M icrosoft can satisfy the requi rement.

5. DEMONSTRATION OF CONTRACTOR 'S UNIQUE QUALIFICATIONS:

a. Description of events:

I ) M icrosoft is end ing approximately nine (9) years of support for Microsoft Windows Server 2003 SP2 leaving organizations to choose between migrating to newer technology or utilizing outdated OSs and accepti ng potentia l network security vulnerabilities . Microsoft will officially end support for M icrosoft Windows Server 2003 SP2 on 15 July 20 15.

2) The PEO-T ELB program i s scheduled to sunset in J uly 20 16. The PEO-T ELB program management team determined that it is more cost effective to procure extended support for Microsoft Windows Server 2003 SP2 rather than to migrate to a newer version of the software.

b. Justification:

I ) Minimum Government requi rements: This requi rement is to provide a CSA for extended support on Microsoft W i ndows Server 2003 SP2 for the PEO-T ELB program. Microsoft, the original equipment manufacturer (OEM), will d iscontinue public support on the Microsoft Windows Server 2003 SP2 on 15 J ul y 2015. PEO-T ELB requires continued support in order to maintai n operational effectiveness and prevent security threats until i t sunsets i n July 2016.

2) Proposed sole source contractor: Microsoft Corporat ion, 120 12 Sunset Hills Rd , Reston, Virginia 20190. Only Microsoft , the OEM, can distribute patches and hotfixes for Microsoft Windows Server 2003 SP2. Microsoft will be required to provide 100% of the product and tech nica l services required to execute the CSA.

3) Discussion regard ing cause of the sole source situation : M icrosoft mai ntai ns strict control over its proprietary source code and has not licensed any other contractor to have access to this information or to work on the software products.

I n add ition, Microsoft, the OEM, is only a llowed to make source code changes. I f Microsoft allows a reseller to provide a CSA, a portion of the costs provided to the Government are "pass-through fees." As a result, i t is not cost effective or efficient havi ng these upgrades and fixes provided by companies that are not able to perform all required support and who will charge an add itional fee to get the support for the Government.

4) Demonstrat ion of unique source: Microsoft is the only ent ity that will create patches and resolve hotfix situations for Microsoft Windows Server 2003 SP2.

Microsoft mai nta ins strict control over i ts proprietary source code and does not license any other contractor to work on the software products. Therefore, the M icrosoft Corporation i s the only source to provide d i rect and unique access to the Microsoft patches, troubleshooting , and hotfix-type issues.

5) Procurement discussion : The Microsoft CSA for Microsoft Windows Server

2003 SP2 is a new and non recurring necessity for PEO-T ELB. After approximately nine (9) years, M icrosoft has announced publ ic support on

Microsoft Windows Server 2003 SP2 will be reti red. The PEO-T ELB program req ui res continu ed support of Microsoft Windows Server 2003 SP2, so a CSA with Microsoft is needed before the product's end of l i fe date on 15 J uly 2015.

6) Impact: Microsoft software is essent ial for the Government to meet mission requirements. The lack of support for IT systems sti ll using Microsoft Windows Server 2003 SP2 will prevent PEO-T ELB from downloadi ng necessary patches which will create major security issues and cause a direct mission impact to the warfighter. This will cause the PEO-T ELB program to be more vul nerable to threats since security patches and hotfixes wi ll no longer be available and the system wi ll no longer be supportable.

6. FEDBIZOPPS (FBO) ANNOUNCEMENT/POTENTIAL SOURCES:

A notice of proposed contract action will be synopsized on the FBO website with the intention to award a sole source contract to Microsoft Corporation. A copy of the redacted J&A wi ll be posted wi th the synopsis. A sources sought notice was published to FBO on May 5, 201 5 - May 19, 2015 prior to the issuance of the sol icitation or contract award as required by FA R 5.2. No responses were received.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The government will perform an evaluation of the offerer's proposal and proposed costs to ensu re the costs are fair and reasonable. The Contractin g Officer wil l determin e that the resu lting contract 's costs or prices will be fair and reasonable based on published price l ist or published market prices for the same or similar items, and the independent government cost estimate prici ng for the requ ired support renewal. The Contracti ng Officer will also detennine the pricing i nformation valid for comparative purposes. Certified cost or pricing data is not requ ired for this acquisi tion, i n accordance with FA R 15.403- 1 (b)(3).

8. MARKET RESEARCH:

Market research was conducted by the PEO-T ELB team i n April 2015. Market research was conducted by contacting the manufacturer , searching the internet, reviewi ng catalogs and other contractor literature, holding exchanges with Microsoft, and reviewing publ ications of externa l informati on from technology research firms. The purpose of the market research was to verify no possi ble resellers were ava ilable. Web searches identifi ed that M icrosoft, the OEM, is the only source capable of provid ing the patches and hotfixes. Microsoft will be requ ired to provide I 00% of the product and technical services required to execute the CSA for Microsoft Windows Server 2003 SP2.

As a resu lt, a small business set aside i s not possible since a small business would be affil iated wi th the OEM (M icrosoft. large busi ness) and would fall under the ostensible subcontractor rule, 13 C.F.R. 12 1 .103(h)(4). Additionally, under 52.219-14, at least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern for services. Because the services wou ld require Microsoft, a large business , to perform over 50 percent of the software solution, a set aside is not possible. The market research a lso revea led that Microsoft currentl y does not have a General Serv ice Administ ration Schedule, National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement or any other contract veh icles in place for the CSA support.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

M icrosoft Corporation

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

THAT LED TO THE EXCEPTION TO FU LL AND OPEN COMPETITION.

a. Procurement History: This is a newly identi fied requirement. M icrosoft is d iscontinuing their public support for Windows Server 2003 SP2 on I 5 J uly 2015. Therefore, a CSA must be i n place to support the PEO-T ELB program 's need for continued support of Windows Server 2003 SP2. Current support for Windows 2003 SP2 i s currently met under task order HC 1028-13-D-0013-0036.

b. Microsoft, the OEM, i s the only entity that will release patches and hotfixes for extended coverage on Wind ows Server 2003 SP2. If the Government requ i res functionality change, then the government wi ll seek full and open competition.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

A written AP is not requi red at this threshold.

f -.."

TECHN ICAL CERTIFICATION: I certify that the supporting data under my cognizance which are includ ed i n the J&A are accurate and com plete to the best of my knowledge and belief.

NA ME: Mr. Robert Engle SIGNATU RE:

TITLE: ELB Program Manager ORGANIZATION: Program Executive Office - USTRANSCOM (PEO-T)

PHONE: (6 1 8) 220-461 4

REQU I REMENTS CERTI FICATION: I certify that the suppo1ting data under my cognizance which are included in the J&A are accurate and complete to the best of kno e and bel ief.

NA M E: Mr. William Innes

TITLE: Division Chief. Systems and Services Program Management ORGAN IZATION: Program Executi ve Office - USTRANSCOM (PEO-T)

PHONE: (61 8) 220-4548 DATE: '"'\ AA ..., -

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CONTRACTING OFFICER CERTIFICATION: I certify that this justification i s accurate and com plete to the best of my knowledge and bel ief. Since this effort exceeds $ I 50K but does not exceed $650K, this certification serves as APPROVAL.

NAME: Betty A. Burris

TITLE: Contracting Officer

ORGAN IZATION: DISA/ DITCO/PL8321

BURRIS.BETTY.;::- .::::::.... -

SIGNATURE: A.1281850527-w®v•

PHONE: 618-229-929 1 DATE: 20 May 2015

A LL QUESTIONS REGA RDI NG THIS JUSTI FICATION A RE TO BE REFERRED TO:

Contracti ng Specialist: Michael Morris Phone: 618-229-9231 Emai I: m ichael.f.morri s 16. civ@mai I.mi I