JA_557708_Redacted.pdf

Micro Focus Software Renewal

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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: TBD Task/Delivery Order Number: NA Procurement Title: Micro Focus Software Renewal Contracting Office: 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.

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 Open Market purchase 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 .

(b) The period of performance is estimated to be 29 April 2016 through 28 April 2017.

Fiscal Year 2016 (FY16) Operation and Maintenance (O&M) funding is provided for the procurement under the Military Interdepartmental Purchase Request number

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The applicable North American Industry Classification System 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 could not continue to operate. The software is used by

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) 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 directly through Micro Focus and in the past has also been purchased through

However, Micro Focus does not provide a discount to the reseller, so the resellers cost to DISA is higher since includes additional cost to account for vendor profit margin.

(b) Consequences from obtaining replacement software products from other sources would result in extensive software conversions and additional costs for

The Micro Focus software included in the

Page 3 of 6 Pages maintenance renewal is integrated into 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

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. DITCO 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 11 Jan 2016 through 15 Mar

2016. 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 DISA. 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 Fujitsu NetCOBOL. However, the NetCOBOL product does not function in all of the different operating environments (Windows, HPUX, Solaris, Z-Linux) that DISA requires. Each of began using the Micro Focus Software more than a decade ago, and each Agency 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 were moved into DISA facilities to operate and maintain, DISA has continued to maintain these licenses and in some cases purchased additional licenses to maintain license compliance. In in cooperation with 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.

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(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, NASA SEWP, or DoD Enterprise Software Initiative, but 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 primary applications using Server for COBOL that are hosted in .

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 & conversion to sub capacity (virtual) Server for COBOL licenses

2. Contract Number:

Contractor:

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

Contract Type: Open Market

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Objective: Renewal of Maintenance

3. Contract Number:

Contractor:

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

Contract Type: Open Market 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

5. Contract Number:

Contractor:

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

Contract Type: NASA SEWP Objective: Renewal of Maintenance

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): IAW the exceptions under DISA Acquisition Regulations Supplement 7.103 (S-91)(h) an AP is not required.

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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.

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.

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