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 and FAR Part 15

Purchase Request Number: N0002418MP00718 Contract Number: To Be Determined (TBD) Task/Delivery Order Number: Not Applicable Procurement Title: Micro Focus Software Licenses and Support Renewal Estimated Value: $1,796,312 Statutory Authority: 10 U.S.C§2304(c)(1)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA18-076

Upon the basis of the following justification, I, as the Procuring Activity Competition Advocate, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the statutory authority of 10 U.S.C§2304(c)(1) and the regulatory authority of 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:

Naval Sea Systems Command (NAVSEA), Management Systems Support Division Portsmouth Naval Shipyard, Building 170, 6th Floor Portsmouth, New Hampshire 03804-5000

b. Contracting Office:

DISA/DITCO-Scott/PL8413 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to renew brand name, commercial off-the-shelf Micro Focus software support, procure new Micro Focus licenses, and upgrade the current Micro Focus licenses to virtualization licenses in support of NAVSEA’s transition to Maritime Systems Enterprise (MSE) 1.1. This procurement will be awarded as a firm-fixed-price purchase order to the sole source provider and original equipment manufacturer (OEM), Micro Focus, using open market procedures. This requirement will perpetuate the existing support under contract N00024-16-C-4304, which expired on November 30, 2017.

b. The period of performance is date of award, estimated to be May 04, 2018 through November 30, 2018. The estimated cost for this requirement is $1,796,312. Fiscal year 2018 operation and maintenance funds have been provided under Military Interdepartmental Purchase

Micro Focus Software Licenses and Support Renewal-JA18-076

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Request N0002418MP00718. The applicable North American Industry Classification System code is 541519, Other Computer Related Services, with a sales standard of $27.5 million.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. In response to the Navy Maritime Maintenance Enterprise System (NMMES) implementation initiative, which requires the consolidation of data centers located at the four naval shipyards and regional maintenance centers into one data center, NAVSEA developed the MSE 1.1 suite of applications. The MSE 1.1 suite of applications was developed and written using the Micro Focus common business oriented language (COBOL) software. MSE 1.1 will replace the Corporate Shipyard Application System (CSAS), which houses NAVSEA’s current financial applications. These applications provide critical and unique functionality to the fleet sites supporting ship repair and maintenance. In order to continue to use and access the applications on the CSAS while transitioning to MSE 1.1, NAVSEA requires renewed Micro Focus COBOL support. The continued Micro Focus support allows these applications to continue to provide financial and planning information required by users in order to accomplish mission related functions. Renewed support also provides upgrades and patches in order to identify and correct any security vulnerabilities.

In addition to renewed support the Government also requires new licenses and the upgrade of current licenses to virtualization licenses. The new licenses and upgrades will be used for the development and deployment of MSE 1.1 across Windows, UNIX, and Linux platforms, application servers, databases, and middleware components. The new Micro Focus licenses will facilitate the migration of the current databases to one consolidated data center. The upgrade of licenses to virtualization licenses reduces the number of servers required, which allows for faster provisioning of applications and simplifies data center management.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

This acquisition is conducted under the statutory authority of 10 U.S.C§2304(c)(1) and 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. The software and support are peculiar to a specific brand name. Only Micro Focus can satisfy the requirement.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events. In 1993, NAVSEA directed the migration of shipyard information systems from Honeywell mainframes to small, more cost effective UNIX servers. In 1997 the financial applications and material management systems were rewritten to operate in the new UNIX environment, which required the use of Micro Focus software in order to run COBOL code from the Honeywell based systems. As a result, 800 licenses of Micro Focus Operating System-X version 10 for UNIX were purchased and still operate in the architecture today.

(b) Justification.

(1) Minimum Government requirements. The minimum Government requirement is for the renewal of support for existing Micro Focus COBOL licenses and the upgrade of

Page 3 of 6 Pages the existing licenses to virtualization licenses. The Government also requires new Micro Focus COBOL licenses.

(2) Proposed sole source contractor. Micro Focus

(3) Discussion regarding cause of the sole source situation. Micro Focus is the sole manufacturer of the required brand name software, support, and upgrades. The software and support are proprietary and only available from Micro Focus, and no other type of software and support will satisfy the agency requirements. Micro Focus owns all proprietary rights to the software code and has no authorized resellers. The Micro Focus software and support are the only products that can meet the minimum needs of the Government, as listed in section 3.

(4) Demonstration of unique source. While there are similar products available on the market, the Micro Focus software and support are the only products that can continue to support the consolidation and transition of the current financial applications and management tools to the MSE 1.1 suite of applications. These are also the only products that can seamlessly integrate into the current infrastructure. Over the years NAVSEA has evaluated other COBOL solutions; while these applications mimic some functionality of the required Micro Focus COBOL software, none provide the specific and detailed data visibility required by the sites utilizing the MSE 1.1 suite of applications. The similar solutions do not fully support the consolidation and transitions efforts, nor do they seamlessly integrate into NAVSEA’s MSE 1.1 suite of applications.

(5) Procurement discussion. NAVSEA has been developing and implementing MSE 1.1 over the past six years. The suite of applications is currently being integrated into all four of the shipyard’s infrastructures. At this time no other product can fully meet the Government’s needs as detailed above. Incorporation of a different software would require significant changes to business processing rules and procedures, possibly resulting in impacts to the fleets’ readiness. In order to move to a competitive acquisition, analysis has been conducted and a path forward has been presented, however high priority/high visibility mandated project milestones along with resource constraints have prevented those efforts from progressing forward.

(6) Impact. Failure to continue the use of the brand name Micro Focus software and support will have significant long term impacts on the consolidation and transition of the four shipyards’ current applications to MSE 1.1. Ongoing support from Micro Focus is critical in order for NAVASEA to continue to access current applications that are a part of CSAS. Without the new licenses and upgrades, the MSE 1.1 new suite of applications would not be able to function within the network. NAVSEA would not be able to complete the required transition to MSE 1.1, and ultimately a failure of the infrastructure would degrade mission readiness.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES:

A sources sought announcement was published by DITCO-Scott to FedBizOpps (FBO) on April

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5, 2018. A notice of the proposed contract action will be synopsized on the FBO website, as required by FAR 5.2, with the intention to award a sole source contract to Micro Focus. A copy of the redacted Justification for OTFAOC will be posted with the synopsis.

7. DETERMINATION OF FAIR AND REASONABLE COST:

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 the pricing information valid for comparative purposes. Certified cost and price data is not required for this commercial item acquisition, in accordance with FAR 15.403-1(b) (3). The contracting officer will determine whether the price is fair and reasonable, based on comparison of the proposed prices to historical prices paid, the commercial price list, and the independent government cost estimate.

8. MARKET RESEARCH:

a. Market research was conducted from October 2017 through April 2018. Market research included discussions with knowledgeable individuals in Government/industry (to include the OEM), reviewing historically similar acquisitions, and reviewing existing Government-wide acquisition contracts. In addition, a sources sought announcement was issued. One response was received, but it did not meet the Government’s minimum requirements. Based on current market research, it has been determined that only the aforementioned brand name software and support can fully meet the Government’s needs.

b. The first step in conducting market research was to determine if another brand name solution could meet the Government’s requirements. Market research confirmed that while there are similar products available on the market, the Micro Focus software and support are the only products that can provide the performance, scalability, and support necessary to function across four naval shipyards and the navy enterprise. Based on the market research it there are no competitor functional replacement products in the market capable of fully meeting the Government’s requirements.

c. The second step in conducting market research was to determine a method of procurement. Market research concluded that the software and support are 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. Based on the results of market research, a notice of the Government’s intent to issue a sole source award will be published to FBO and a solicitation will be issued directly to Micro Focus, a large business, and the sole provider of the Micro Focus software and support.

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9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

Micro Focus

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: N00024-16-C-4304 Contractor: Micro Focus Contract Period: December 1, 2015 through November 30, 2017 Total Contract Value: $2,850,000 Contract Type: Firm Fixed Price Objective of Contract: Micro Focus license and support

b. At this time, it is deemed that only the Micro Focus software would be able to function with the CSAS infrastructure that is already in place and support the implementation and transition to MSE 1.1. The Micro Focus software and support must be procured through Micro Focus. If Micro Focus elects to surrender their legal ownership, copyright, and/or intellectual property software rights and move toward providing an open source solution for the products being procured under this procurement, then the Government will seek a competitive acquisition approach. Regardless, 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 determines that any of the Micro Focus software is no longer required or other software meets the government’s needs, then the government will seek other competitive alternatives for the required functionality. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.

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

In accordance with DISA Acquisition Regulation Supplement 7.103(S-91)(1)(vii), this requirement does not meet the dollar threshold requiring a written 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: Marcia Adair SIGNATURE: See Separate Signature Page

TITLE/ORGANIZATION: Management Analyst/Management Systems Support

PHONE: 207-438-1792 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: Angela Dubois SIGNATURE: See Separate Signature Page

TITLE/ORGANIZATION: Supervisory Management Analyst/Management Systems Support

PHONE: 207-438-1622 DATE:

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

NAME: Lisa O. Cravens SIGNATURE: See Separate Signature Page

TITLE/ORGANIZATION: Contracting Officer/DISA/DITCO

PHONE: 618-229-9295 DATE:

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: Gay Arnold SIGNATURE: See Separate Signature Page

TITLE/ORGANIZATION: PACA/DISA

PHONE: 618-229-9517 DATE:

QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Amber Musenbrock, amber.e.musenbrock.civ@mail.mil, 618-229-9687