JA17-020_DHQCSD17MPC0065_ASG_SS_(002)_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: To Be Determined (TBD) Contract Number: TBD Task/Delivery Order Number: Not Applicable (N/A) Procurement Title: Allen Systems Group (ASG) Software Licenses and Maintenance

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

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA17-020

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 FAR Subpart 6.302-1 and 10 U.S.C. 2304(c)(1).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency: Defense Information Systems Agency (DISA) Implementation and Sustainment (IML24), Logistics One Overcash Avenue, Bldg. 12 Chambersburg, PA 17201-4122

Contracting Agency: Defense Information Technical Contracting Organization (DITCO) Software Section/PL833 2300 East Drive Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

This requirement is to procure ASG commercial off-the-shelf (COTS) software licensing and maintenance subscriptions for mainframe and distributed processing that supports applications transmitted to or processed at the DISA managed facilities. The new contract will perpetuate existing coverage currently acquired through contract number HC1028-12-C-0007, that expires on 30 December 2016. This acquisition provides for the procurement of new licenses and/or additional licenses and provides upgrades for existing products, and provides maintenance for ASG products. The period of performance will be a five-year life cycle contract consisting of a one-year base plus four one-year options.

ASG Renewal DHQCSD17MPC0065-JA17-020

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3. DESCRIPTION OF SUPPLIES/SERVICES:

The Government requires software licenses and support for mainframe environments in support of critical applications for programs such as civilian and military personnel payroll and logistical activities. DISA requires the software to provide software solutions in applications, operations, content, performance and infrastructure management, including business re-engineering, systems integration, and systems development in the enterprise. The solution needs to provide unified and simplified management of content regardless of content type, size or platform, as well as customized document processing and output management as well as access, index, link and store petabytes of information in any format from virtually any data sources across multiple systems (mainframe, distributed, and Web-based). The solution must provide affordable, pragmatic options for ensuring that business's application investments continue to return value. Innovative integration between tools facilitates greater efficiencies for modernization, testing and problem resolution.

The government requires a life cycle management (LCM) mainframe management source and configuration management product. It securely stores all versions of source and executables within a life-cycle framework and automates the promotion of changes through the life-cycle in a secure manner. It provides audit capability to track all changes back to the user ID and provides time and date of all changes. Without access to the LCM product, the site would have to set up a manual process to apply changes to the applications source and executable modules. This will result in significantly increased possibility for the loss or corruption of critical code and potential loss of auditability of who made changes and when they were made.

The government requires a program development tool to assist COBOL programmers to edit and change COBOL source programs that provides better understanding and syntax checking to reduce programmer workload when making changes. Without this ability, programmers will have to fall back to manual efforts to understand and change the COBOL source code. The tool is required as an interactive program testing and debugging tool that allows COBOL programmers to interactively test their COBOL programs. The product will need to allow testing in the batch environment, debugging in the CICS environment, and assistance for analyzing the COBOL code during testing and can provide additional understanding of error situations. Without this tool, the programmer must use time-consuming manual processes to test and debug their programs.

The government requires software products that provide a lifecycle solution for managing existing critical systems and provides a comprehensive integrated tool set that supports legacy application reengineering and maintenance processes. The solution must also provide a real-time control system that monitors Integrated Database Management System activity, helping data centers keep productivity high by providing the ability to observe, understand, diagnose and resolve production problems quickly in multiple mainframe environments. Other features of the solution must include the capability for program quality metrics for mainframe application management, and repeatable application maintenance processes. An extensive amount of technical expertise has been

Page 3 of 7 Pages developed at the computing centers for the existing software installations. The software products must provide critical mainframe application support for programs such as civilian and military personnel payroll and logistical activities. This family of products handles data processing across all DISA mainframe installations throughout the DISA enterprise.

Software maintenance shall consist of regularly recurring maintenance, updates, revisions, error detection and correction, rights to new releases and/or versions to bring each DISA managed facility up to the same release level with accompanying instructions for implementation. Additionally, the maintenance covers the Release Management Office for duplication and distribution via the Release Management Factory to the additional users. All software maintenance consists of patch releases, other pertinent documentation, and voice telephone access 24 hours a day, 7 days a week.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

This acquisition is being conducted under the authority of 10 U.S.C.2304(c) (1) and regulatory authority FAR Subpart 6.302-1(a) (2) (iii).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events. The software licensing, maintenance and purchase of the additional proprietary software products are only available from ASG and no other type of software will satisfy the agency requirements. ASG owns all proprietary rights to the source code and has no authorized resellers. The software acquired and maintained through this purchase will support all equipment augmentations and all government owned software processing environments. Various ASG products have been chosen by military branches and government agencies supported in DISA Defense Enterprise Computing Centers (DECCs) as the standard for that Service/Agency, being deployed as an integral part of the application processing environment. The branches and agencies are customers of the DISA DECCs.

(b) Justification. ASG owns all proprietary rights to the source code which is only available from ASG. No other vendors, nor distributors can legally obtain access to the ASG source code since it is protected by copyrights and patent laws. ASG is the

Page 4 of 7 Pages only company who sells and maintains ASG software. Support for ASG software can only be obtained directly through the ASG.

(1) Minimum Government requirements. At this time, DISA’s standard operating environment is a proprietary environment and it is not feasible (from technical/economical) to deviate from the currently installed proprietary software base. Customer functionality dictates the need for this requirement. The ASG software products provide critical mainframe application support for programs such as civilian and military personnel payroll and logistical activities. This family of products handles data processing across all DISA mainframe installations throughout the DISA enterprise.

(2) Proposed sole source contractor. ASG

(3) Discussion regarding cause of the sole source situation. Various ASG products have been chosen by military branches and government agencies supported in DISA Defense Enterprise Computing Centers (DECCs) as the standard for that Service/Agency, being deployed as an integral part of the application processing environment. The various military branches and government agencies are customers of the DISA DECCs. Without this specific product line, payroll for all government and Military personnel will be affected adversely to the point of a stoppage in payroll.

The software acquired and maintained through this contract action will support all equipment augmentations and all government owned software-processing environments. DISA has integrated multiple network and customer applications with the ASG software products. Failure to obtain ASG software maintenance would directly jeopardize DISA’s mission to support their current DoD customers and other agency’s needs, as well as its ability to sustain and enhance the critical mainframe application support for programs such as civilian and military personnel payroll and Logistical activities. To duplicate another functional replacement initiative through full and open competition is not in the best interest of the government at this time.

The deployment and integration of ASG products within the computing environment has spanned 20 years, with a total investment of $9M (GSA purchase pricing).

Functional replacement of all these integral software products would cost between $27-72M and require substantial investment in application modification, training and manpower. Change out costs for software is 3-7 times the initial software license cost.

(4) Demonstration of unique source. Market research shows no other product can meet or be integrated to meet the Governments need at this time.

(5) Impact. Not procuring ASG licenses and support to seamlessly integrate with the existing equipment and licenses will cause a major disruption to various military branches and government agencies as described in (1) and (3) above.

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6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

a. A Sources Sought notice was placed on FedBizOpps on October 17th, 2016 for 15 days. IBox Global did respond on October 28, 2016; however, ASG has confirmed on November 7, 2016 that there are no authorized resellers for their software. A synopsis for this action will be published on the FedBizOpps website as required by the FAR. The synopsis will completely identify the Government's minimum mandatory requirements. FAR Part 5.201(b)1(i).

b. DISA does not anticipate any other qualified sources; however, should any responses be received, they will be evaluated to determine if they are fully responsive to the Government's stated minimum requirements and will be considered by DISA prior to proceeding with an award. This proposed procurement is the only known approach to license and maintain the proprietary software.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The contracting officer will make a determination and finding that the anticipated costs are fair and reasonable. DISA will perform an evaluation of all offerors’ technical and cost proposals to ensure the proposed solution costs are reasonable and appropriate. The contracting officer will determine whether the price is fair and reasonable based on comparison with the Independent Government Cost Estimate,, historical data cost of the previous contract as well as prices established on GSA schedule. The contracting officer will seek a discounted price below price established on GSA schedule.

8. MARKET RESEARCH:

Market research was performed October 2015 – July 2016 to determine if other products were functionally equivalent or provided a family of ‘like’ products to support the DISA customer base throughout the enterprise. These “like” products were selected based upon similar product functionality. While products from Computer Associates and BMC Software provides like functionality, the ‘family’ of products from these vendors provide this ‘like’ functionality to distinct and mutually exclusive database management systems which are incompatible with the current systems arrangement within DISA. The inability to separate the ‘family’ of products or the separate products for separate systems and application functions would introduce operational, functional, and security risk. The packaging of these products as an entire entity could cause additional usage costs, delayed operability and potentially slow work processes for the computer mainframes. The 'family' of components currently support major military and civilian payroll systems providing operational integrity and security for processing. One or more capabilities from one or more vendors would be required to modify the applications/systems to function at a processing level performed currently with the existing vendor’s capabilities with no assurance of 100% functional equivalency.

9. ANY OTHER SUPPORTING FACTS: N/A

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10. LISTING OF INTERESTED SOURCES:

To date no vendors are an interested source other than ASG. However, any responses to the FedBizOpps announcement will be considered by DISA prior to proceeding with an 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. The current ASG Software Maintenance contract, HC1028-12- C-0007, and previous contracts HC1028-08-P-2330, HC1013-07-C-2028, and DCA200-03-C-5002 were purchased under a sole source contract direct to ASG for a period of one base year and four, one-year option periods. The software terms and conditions were negotiated directly with ASG to include specific DISA terms and conditions.

b. At this time, it is deemed that only ASG products would be able to function with the current ASG products already in place at DISA facilities. Alternate software solutions will continually be researched to determine if they will function with currently used products. Prior to expiration of this contract the Government will determine if ASG products are no longer required and if it is feasible to replace the ASG products with another brand. At that time the Government will seek full and open competition for the required functionality if feasible

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.

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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: See PDF Document

TITLE/ORGANIZATION: SE231

PHONE: 303-224-1734 DATE: 7/17/16

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: See PDF Document

TITLE/ORGANIZATION: IML24

PHONE: 717-267-8318 DATE: 7/17/16

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

NAME: Cindy Goshorn SIGNATURE: See PDF Document

TITLE/ORGANIZATION: DITCO/PL833

PHONE: 717-267-5707 DATE: 11/7/2016

PROCURING ACTIVITY COMPETITION 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:

TITLE/ORGANIZATION:

PHONE: DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

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