Redacted_J&A.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: 10947947 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: JA17-024

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition 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 Government’s need is to sustain the AKO-ES program and to ensure the existing software licenses are supported. In order to meet this need, proprietary commercial off-the-shelf brand name Appian software support must be renewed. 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

AKO-ES Appian Software Support-JA17-024

Encl 12a_J&A Page 2 of 7 Pages 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 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 base period, estimated to begin January 17, 2017, will run through November 30, 2018, followed by two 1-year option periods. The total estimated lifecycle value of this requirement 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 2017 Operation and Maintenance funds will be used to fund this effort and have been provided on Military Interdepartmental Purchase Request number 10947947.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The Army requires software support to sustain the suite of software currently installed and to ensure continuity of operations for the existing AKO-ES platform. The acquisition will perpetuate software support that was provided under contract number HC1028-16-C-0008, which expired November 30, 2016. 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 and 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 20 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.

b. Justification.

1) Minimum Government requirements. The Government’s minimum requirement is for support of 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

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Organizational Sponsor Management Cole. Appian software support. The Appian software is an integrated portal solution on AKO-ES Appian Software Support. 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. Appian software support can only be provided by Appian or an authorized reseller of Appian.

3) Demonstration of unique source. The proprietary Appian software stated above is integrated into AKO-ES and has the required functionality that fully meets the Government’s requirements. 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. The Appian software is the backbone of the AKO Portal.

It supports Identity and Access Management for the Army. The Army is in the process of planning to move AKO from a brick and mortar environment to virtualized environment within the next two years. However, until that happens and in the meantime, the Army’s operating environment will continue to include Appian brand-name software, and it is not economically feasible to deviate from the currently installed proprietary environment.

4) Procurement discussion. The Appian software support can only be provided by Appian or an authorized reseller of this brand name product. This is a follow-on contract, and the only possible supplier is the OEM or an authorized reseller of Appian software. 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, Salient CRGT, Inc. (CRGT), could meet the AKO-ES requirement as stated, and there were no additional responses received from the sources sought.

5) Impact. 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

Page 4 of 7 Pages 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 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 and again in September-October of 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 AKO- ES Appian Software is proprietary, and upgrades and support are available from only Appian and its authorized resellers. 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.

c. This required Appian software product has unique technological features that operates in a custom operating environment that is only found with this brand-name software. At this time, the Army’s operating enterprise and platform is not economically feasible to deviate from the currently installed proprietary environment. Furthermore, outside replacement products, costs, timelines, and schedules will jeopardize the overall program integrity while providing and/or introduce critical risk management factors that will not allow the program to be recoverable.

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d. 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. Market research revealed that the required support is not available on existing government contract vehicles, to include Enterprise Software Initiative, General Services Administration, and National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement. The only capable contractor known to date is CRGT, Inc. 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:

CRGT, Inc.

11921 Freedom Drive Reston, Virginia 20190

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a. Procurement History.

Contract Number: HC1028-16-C-0008 Contractor: CRGT, Inc.

Contract Period: April 27, 2016 through November 30, 2016 Total Contract Value:

Contract Type: FFP Objective: Hardware maintenance and software support in support of the AKO-ES

Contract Number: HC1028-15-C-0004 Contractor: CRGT, Inc.

Contract Period: February 2, 2015 through November 30, 2015 Total Contract Value:

Contract Type: FFP Objective: Hardware maintenance and software support in support of the AKO-ES

b. Based on current market research, it has been determined that only the aforementioned product and/or product support, Appian, can fully support the Governments need. The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions; e.g., 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.

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

In accordance with Defense Acquisition Regulation Supplement 7.103(S-91)(h), this requirement does not meet the dollar threshold requiring an AP.

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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: See separate PDF

TITLE/ORGANIZATION: Deputy PO AKO

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.

TITLE/ORGANIZATION: AMD PL EC2M

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

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.

TITLE/ORGANIZATION: Procuring Activity Competition Advocate, DISA

PHONE: DATE: December 27, 2016

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Adam Venhaus, 618-229-9272, adam.m.venhaus.civ@mail.mil.

mailto:adam.m.venhaus.civ@mail.mil.