Appian_AKO_JA_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under

FAR Part 12, FAR Subpart 13.5, and FAR Part 15

Purchase Request Number:

Contract Number: To be determined Procurement Title: Appian Software Support in support of the Army Knowledge Online Enterprise Services (AKO-ES) Program Contracting Office: Defense Information Systems Agency (DISA) / Defense Information Technology Contracting Organization (DITCO) / PL8321 Estimated Value:

Statutory Authority: 10 U.S.C.§2304(c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

Justification for OTFAOC Number: JA16-064

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve the use of OTFAOC of the proposed contractual action, pursuant to the authority of 10 U.S.C.§2304(c)(1). The regulatory authority that applies to the requirement is FAR 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:

Army Program Executive Office Product Manager 10119 Beach Road, Building 322 Fort Belvoir, Virginia 22060

b. Contracting Office:

DISA/DITCO/PL8321

2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to procure brand-name Appian software support for the AKO-ES program. The AKO-ES program provides the Army with a single entry point for access to the internet and the sharing of knowledge and information, which makes AKO-ES the Army’s only enterprise collaboration tool operating throughout the Department of the Army, worldwide. The AKO-ES program provides web-based enterprise information services to over 2.4 million Army and Department of Defense (DoD) customers, to include retirees and family members in every country where the DoD has a presence (including over 40 combat zone countries) on a 24-hour, seven (7) days a week, 365 days a year basis. This

AKO-ES Appian Software Support-JA16-064 procurement will be awarded as a firm-fixed-price (FFP) contract using open market procedures. Support for the software must be provided by an authorized reseller of Appian, the original equipment manufacturer (OEM).

b. The period of performance will be date of award through November 30, 2016, estimated to begin April 29, 2016. The total estimated life-cycle value of this acquisition is $ . The applicable North American Industry Classification System code is 541519, Other Computer- Related Services, with a sales size standard of $27.5 million. Fiscal year 2016 Operation and Maintenance funds will be used to fund this effort and have been provided on Military Interdepartmental Purchase Request number .

3. DESCRIPTION OF SUPPLIES/SERVICES:

The software support is required to ensure continuity of operations for the existing AKO-ES platform. The acquisition will involve perpetuating annual software support that was provided under contract number HC1028-15-C-0004, which expired on November 30, 2015. The Appian software solution is a suite of tightly integrated solutions for portal management on the AKO-ES website, which allows modification by AKO-ES (when needed) to the various functions of the portal, such as email, file storage, websites, and user directories. This support will provide the needed software updates and patches. Having and maintaining this support is required to meet operational, security, and accreditation requirements necessary to operate AKO-ES.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

This acquisition is conducted under the regulatory authority of FAR 6.302-1/Defense FAR Supplement 206.302-1, only one responsible source and no other supplies or services will satisfy agency requirements, and statutory authority of 10 U.S.C.§2304(c)(1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. At this time, the Army’s operating environment includes the brand-name Appian software, and it is not economically feasible to deviate from the currently installed proprietary environment. The Army has almost 19 years invested in the AKO-ES infrastructure.

The original AKO-ES began as a pilot in 1997. With the success of the pilot program, the Secretary of the Army mandated that all Army data, information, and systems be migrated to the AKO-ES portal. As a result of the mandate, in June of 2002, the first competitive delivery order was issued. AKO-ES was originally stood up as a contractor-owned, contractor-operated system. In 2007, the Army purchased the system, and it was operated as a government-owned, contractor-operated system. In 2011, in an effort to gain cost savings and better control of the hardware/software environment, AKO-ES determined that the best course of action was to manage hardware and software support requirements in house rather than having the system integration contractor manage that function.

b. Justification.

(1) Minimum Government Requirements. The government’s minimum requirement is for Appian software support. The Appian software is an integrated portal solution on which AKO-ES resides. AKO-ES has been operational for over 19 years. The software to be supported is the currently installed software configuration baseline and must be supported in accordance with OEM specifications. Having appropriate support coverage for the software is required to meet operational, security, and accreditation requirements necessary to operate the AKO-ES.

(2) Proposed Sole Source Contractor. Not applicable.

(3) Discussion Regarding Cause of Sole Source Situation. Not applicable.

(4) Demonstration of Unique Source. The proprietary Appian software stated above is integrated into the AKO-ES and has the required functionality that fully meets the government’s requirements. The required Appian software products have proprietary features and custom operating environment found only in the brand name Appian software. The Appian software has been customized into the AKO-ES system by designing and developing codes/scripts to extend and leverage the original capabilities of the “Out-of-the-Box” product and also provides a consistent look and feel across AKO-ES. Key applications within the AKO-ES framework that employ the customized Appian software include the Army Homepage, AKO Lite Homepage, My Account, Management Console, Sponsor Management Console, and the Organizational Sponsor Management Cole. In order to sustain the current operational software configuration baseline, only Appian products can satisfy the requirement.

Appian software is proprietary and available only from Appian or their authorized resellers. To duplicate another functional replacement initiative through full and open competition is not in the best interest of the government at this time. Costs incurred to rewrite applications to function with replacement products throughout the Army would result in substantial work interruptions, creating unnecessary obstacles, restraints, and losses in efficiency.

(5) Procurement Discussion. It is not economically feasible to deviate from the currently installed Appian proprietary software base. Only Appian or their authorized resellers can legally obtain the access code necessary to integrate their products into the AKO- ES program, due to its protection under copyright and patent laws. The previous procurement identified that only one vendor, CRGT, Inc., could meet the AKO-ES requirement as stated, and there were no additional responses received from the sources sought.

(6) Impact. The government would be harmed if it would replace the software with any other brands other than the current brand-name Appian products supporting the AKO-ES infrastructure. It would be cost prohibitive (excess of $15 million) for the government to replace the existing software with another brand, as there are currently 781 servers that support the AKO-ES environment. If the current software were replaced, it would be necessary to purchase a replacement system, train employees to support it, test it in the environment, and implement and support it after integration.

Replacement of the program would incur a substantial duplication of costs that is not expected to be recovered through competition, and the program would suffer unavoidable time delays (estimated to be one year for complete replacement) to the government. Failure to procure the proprietary software support would result in the loss of integrity or availability of the AKO-ES program and could potentially cause both immediate and sustained loss of mission effectiveness.

6. FEDERAL BUSINESS OPPORTUNITIES (FBO) ANNOUNCEMENT/POTENTIAL

SOURCES:

a. In accordance with FAR 5.2, a sources sought announcement was posted on the FBO website from January 22, 2016 through February 12, 2016. No responses were received.

b. A notice of the proposed contract action will be synopsized on the FBO website, requesting proposals from all authorized resellers of the OEM. A copy of the redacted J&A will be posted with the synopsis.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The government will perform an evaluation of the offeror’s proposal and proposed prices to ensure they are fair and reasonable. A determination will be made by the contracting officer that the contract represents the best value to the government, as defined in FAR 2.101, and results in the lowest overall cost alternative (considering price, special features, and administrative costs) to meet the government's needs. The contracting officer will also determine if the pricing information is valid for comparative purposes. The technical team will perform an evaluation of the offeror’s proposal to ensure it meets the needs of the government. Certified cost and price data are not required for this acquisition, in accordance with FAR 15.403-1(b)(3). The contracting officer will determine whether the price is fair and reasonable, based on one or more of the following:

a. Comparison of proposed prices received and adequate price competition.

b. Comparison of the proposed prices to historical and existing prices paid, whether by the government or other than the government for the same or similar items.

c. Comparison of the proposed prices with competitive published price lists or published market prices of the similar commodities.

d. Comparison of proposed prices with the independent government cost estimate.

e. Comparison of proposed prices with prices obtained through market research for the same or similar items.

8. MARKET RESEARCH:

a. Market research was conducted by the Army from December 2015 through February 2016. Market research consisted of conducting internet searches, reviewing existing DISA-wide contract vehicles, issuing a sources sought announcement, and determining potential sources.

b. Based on the market research for the required software support, it is known that the

Appian software is proprietary, and upgrades and support are available from only Appian and its authorized resellers. The required Appian software products have proprietary features and a custom operating environment found only in this brand-name software. At this time, the Army’s operating environment includes the brand-name software, and it is not economically feasible to deviate from the currently installed proprietary environment. Market research determined that there are no competitor functional replacement products in the market capable of meeting the entire AKO-ES solution without incurring substantial duplicate costs and time delays that could not possibly be recouped through a full and open competition among all contractors that could provide potential replacement services.

c. Based on current market research, it has been determined that only the aforementioned brand-name product and/or product support, can fully meet the government’s requirements. The government will continue to conduct market research to determine if there are changes in the marketplace that would enable future competitive actions (i.e., there are similar products and/or product support in the marketplace that provide the same functionality, the OEM releases ownership rights of product, or it is economically feasible to procure a new system).

A solicitation will be solicited open market to both large and small businesses in an effort to promote competition by identifying other sources.

9. ANY OTHER SUPPORTING FACTS:

None.

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:

b. The government will continue to search the marketplace, and alternative software solutions will continually be researched to determine if they will function with currently used products. If the government should determine these brand-name products are no longer required or other software meets the government’s needs, the government will seek full and open competition for the required functionality. If similar requirements arise, every effort will be made to compete to the maximum extent practicable.

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

In accordance with the exceptions under DISA Acquisition Regulation Supplement 7.103 (S- 91)(h), an AP is not required.

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: See Separate Signature Page

TITLE/ORGANIZATION:

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: See Separate Signature Page

TITLE/ORGANIZATION:

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

NAME: SIGNATURE: See Separate Signature Page

TITLE/ORGANIZATION: Contracting Officer, DISA/DITCO/PL8321

PROCURING ACTIVITY COMPETITON ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete, to the best of my knowledge and belief.

Since this justification does not exceed $13.5M, this review serves as approval and my written determination that the aforementioned FAR circumstances apply.

NAME: SIGNATURE: See Separate Signature Page

TITLE/ORGANIZATION: Procuring Activity Competition Advocate, DISA/DITCO