JA_DHQCSD18MPC0022_Redacted.pdf

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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: DHQCSD18MPC022 Contract Number: TBD Task/Delivery Order Number: TBD Procurement Title: Innovation Data Processing (IDP), FY17 Software Maintenance Renewal

Statutory Authority: FAR 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: N/A

Upon the basis of the following justification, I, as 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 authority that applies to this requirement is FAR 6.301-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency: Defense Information Systems Agency (DISA)

Operations Center Logistics (OCL24) 1 Overcash Avenue, Building 12 Chambersburg, PA 17201-4123

Contracting Office: DISA Defense Information Technology Contracting Organization (DITCO) (PL833) 1 Overcash Avenue, Building 12 Chambersburg, PA 17201-4123

2. NATURE/DESCRIPTION OF ACTION(S): This requirement is to procure follow on software maintenance for Innovation Data Processing’s (IDP) proprietary Commercial-Off-the- Shelf (COTS) products listed in the table in paragraph 3: Innovation Data Processing’s products support IBM z/OS Mainframe workload processing at Defense Enterprise Computing Center (DECC) Mechanicsburg and Ogden for the: Army, Navy, Air Force, Marine Corps, Defense Finance and Accounting Service (DFAS), and Defense Logistics Agency (DLA), Defense Information Systems Agency (DISA), and DISA’s Contingency Of Operations Planning (COOP) Testing. This will be a Firm-Fixed-Price (FFP) Sole Source award to Innovation Data Processing. The Period of Performance (PoP) for this action will be a base plus 4 one-year option years. Base PoP is 1 Oct 2017 through 30 Sep 2018. Operations and Maintenance (O&M) money will be used for this requirement. The North American Industry Classification System (NAICS) Code is 541519.

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(2) Proposed sole source contractor.

The proposed Vendor Innovation Data Processing. IDP’s suite of products is proprietary and maintenance is only available sole source from IDP. No other vendor or distributor can legally obtain access to the software source code, make duplicate copies, provide new versions, release upgrades, plus fixes/patches/PTFs (program temporary fix) and maintenance are only available from IDP Software, since copyrights and patent laws protect it.

(3) Discussion regarding cause of the sole source situation.

Competition would not have been feasible had more time been available. System Administrators at DECCs Mechanicsburg and Ogden use IDP’s suite of products in supporting the Army, Navy, Air Force, Marine Corps, DFAS, DLA, DISA, and DISA’s COOP. IDP’s suite of products has been in use in the Defense Information Systems Agency’s (DISA's) IBM z/OS mainframe processing environment since the 1990’s and is an established part of the everyday systems operations.

(4) Demonstration of unique source.

IDP’s suite of products is proprietary and maintenance is only available sole source from Innovation Data Processing. No other vendor or distributor can legally obtain access to the software source code, make duplicate copies, provide new versions, release upgrades, plus fixes/patches/PTFs (program temporary fix) and maintenance are only available from IDP Software, since copyrights and patent laws protect it.

(5) Procurement discussion.

Market research indicates IDP’s suite of products have been in use by System Administrators in DISA’s z/OS IBM mainframe computing environments for over two decades and has been Sole Source to the OEM (Original Equipment Manufacturer).

Innovation Data Processing has not authorized Resellers for their product, or maintenance of their product. IDP’s suite of products provide data storage management; backup and recovery of z/OS data, volume and data set backup, DASD volume reorg and space release, managed volume incremental backup, batch driven DASD storage reporting. An award effective 01 Oct 2017 is required to provide follow on maintenance to the current contract HC1028-16-P-0209, expiring 30 Sep 2017.

(6) Impact:

IDP’s suite of products provide data storage management; backup and recovery of z/OS data, volume and data set backup, DASD volume reorg and space release, managed volume incremental backup, batch driven DASD storage reporting. There are no current or past performance problems with Innovation Data Processing. DISA’s IBM z/OS mainframe System Administrator’s (SA) at DECC’s Ogden and Mechanicsburg have developed policies, procedures, and software naming conventions/standards using IDP’s suite of products for data storage management; backup and recovery of z/OS data, volume and data set backup, DASD volume reorg and space release, managed volume incremental backup, batch driven DASD storage reporting. It would require a tremendous effort and

Page 4 of 7 Pages many man-hours to change their policies and procedures programs to accommodate a different product to perform this crucial function.

In addition, a functional replacement cost for IDP’s suite of products is estimated at $438,583.00 (reference Gartner Research G00219430) to acquire licensing/entitlements.

Additionally, a product change-out would require substantial training for both System Administrators and ESD’s Customers, for integration and compatibility testing, an undetermined amount of time for implementation, at a cost of potentially $1,315,750.00 to $3,070,084.00 (reference Gartner Research G00152089). In addition, a functional replacement of this magnitude could take three to five years. Also, the OTC (one time cost) for licensing and training cost would be Capital Funding, which is unplanned and unbudgeted at this time and for FY18 and the out-years.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: In order to confirm market research efforts which indicate there is only one source from which to procure subject software maintenance/ support, a synopsis for this requirement will be published to Federal Business Opportunities website as required by FAR 5.2. A sources sought notification was posted to Fedbizops on June 23, 2017, closing on July 10th, 2017. Frontier Technologies did provide a proposal but it was not for the requested products and therefore technically unacceptable.

7. DETERMINATION OF FAIR AND REASONABLE COST: The Contracting Officer will make a determination that the anticipated cost to the Government is fair and reasonable based on comparison of commercial list pricing, previous history, comparison of the negotiated prices, and a comparison of the independent government cost estimate. A determination will be made that the contract represents the best value to the Government and results in the lowest overall cost alternative.

8. MARKET RESEARCH: Market Research was conducted in March and April 2017 by the Operations Center Logistics (OCL) Mainframe Software Contract Support OCL24, OPB52 (DECC Mechanicsburg) Service Support Branch, and OPG34 (DECC Ogden) Mainframe Change-Configuration Management. Market Research was also conducted by reviewing past MRR reports, and reviewing past/current contracts.

9. ANY OTHER SUPPORTING FACTS: Innovation Data Processing’s products are licensed by the number of MSUs (By Full Capacity of each CPU), by product, by site. IDP allows IBM z/OS Mainframe Technical Refreshes, e.g., CPU MSU increases or CPU MSU decreases, throughout the year at no additional cost. The CPU changes from one year to the next are incorporated into the annual product/MSU/Site reconciliation, establishing a baseline for the next year’s maintenance requirements. At the annual reconciliation, IDP allows DISA to transfer excess product MSUs from one site (created by CPU MSU decreases) to the other site to cover product MSU increases (created by CPU MSU increases). Over the past annual inventory reconciliations, the ability to transfer product MSU from one site to another has saved DISA an immeasurable amount of funding.

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10. LISTING OF INTERESTED SOURCES:

None. When market research was conducted, no sources expressed interest in this requirement. As stated in Para. 6 above, a synopsis will be published prior to issuance of solicitation or contract award.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

FY17:

Contract Number: HC1028-16-P-0209 Contractor: Innovation Data Processing Contract Period: 01 Oct 2015 through 30 Sep 2017

Contract Type: FFP Objective of Contract: COTS software maintenance for IDP’s suite of products.

FY16:

Contract Number: HC1028-15-P-0260 Contractor: Innovation Data Processing Contract Period: 01 Oct 2015 through 30 Sep 2016

Contract Type: FFP Objective of Contract: COTS software maintenance for IDP’s suite of products.

FY15:

Contract Number: HC1028-14-P-0287 Contractor: Innovation Data Processing Contract Period: 01 Oct 2014 through 30 Sep 2015

Contract Type: FFP Objective of Contract: COTS software maintenance for IDP’s suite of products.

FY14:

Contract Number: HC1028-13-P-0198 Contractor: Innovation Data Processing Contract Period: 01 Oct 2013 through 30 Sep 2014

Contract Type: FFP Objective of Contract: COTS software maintenance for IDP’s suite of products.

FY13:

Contract Number: HC1028-12-P-0226.

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Contractor: Innovation Data Processing Contract Period: 01 Oct 2012 through 30 Sep 2013

Contract Type: FFP Objective of Contract: COTS software maintenance for IDP’s suite of products

FY12:

Contract Number: HC1028-11-P-0354 Contractor: Innovation Data Processing Contract Period: 01 Oct 2011 through 30 Sep 2012

Contract Type: FFP Objective of Contract: COTS software maintenance for IDP’s suite of products.

Innovation Data Processing owns all proprietary rights to the source code and does not have any authorized resellers. IDP’s suite of products is not currently available on an existing GSA, ESI BPA, or SEWP contract.

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

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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: Marie Billett IT Specialist SIGNATURE:

TITLE/ORGANIZATION: SE231

PHONE: 303-224-1734 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: Melissa Leal SIGNATURE:

TITLE/ORGANIZATION: OCL24

PHONE: 717-267-8318 DATE:

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief. Since this effort exceeds $150K but does not exceed $700K, this certification serves as APPROVAL.

NAME: Cindy Goshorn SIGNATURE:

TITLE/ORGANIZATION: DISA/DITCO/PL833

PHONE: 717-267-5707 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Cindy Goshorn, 717-267-5707, cindy.m.goshorn.civ@mail.mil

7/19/2017

7/19/2017

BILLETT.MARIE

.R.1369555479

Digitally signed by

BILLETT.MARIE.R.1369555479

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DISA, cn=BILLETT.MARIE.R.1369555479 Date: 2017.07.19 12:45:14 -06'00'

LEAL.MELISSA.S

UE.1385323413

Digitally signed by

LEAL.MELISSA.SUE.1385323413

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DISA, cn=LEAL.MELISSA.SUE.1385323413 Date: 2017.07.19 14:47:17 -04'00'

GOSHORN.CIND

Y.M.1109937742

Digitally signed by

GOSHORN.CINDY.M.1109937742

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DISA, cn=GOSHORN.CINDY.M.1109937742 Date: 2017.07.19 14:49:17 -04'00'