JA_HC102825C0003_MOD02 - Final_Redacted.pdf

Controlled By: DISA

Controlled By: PSD/PS8331

CUI Category: PROCURE

Distribution/Dissemination Control: FEDCON

POC: disa.scott.ditco.mbx.services@mail.mil

Controlled Unclassified Information (CUI)

Page 1 of 6 Pages

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Modification (MOD) Justification

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting

Procurements under FAR Part 12, FAR Part 15, or FAR Part 13.5.

Tracking Number: 832571841

Contract Number: HC102825C0003

Procurement Title: Software Asset Management (SWAM) Support Services

Estimated Value: + AMD 01 + MOD 01 =

Regulatory Authority: 10 U.S.C. 3204(a)(1) and FAR 6.302-1/DFARS 206.302-1

J&A Number: JA25-040 MOD 02

Upon the basis of the following justification, I, as the Senior Procurement Executive, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of FAR 6.302-1/DFARS 206.302-1.

1. REQUIRING AGENCY AND CONTRACTING ACTIVITY:

Requiring Agency:

Defense Information Systems Agency (DISA)/J6 Pentagon

7010 Defense Pentagon

Room 2B913A

Washington, DC 20301-7010

Contracting Activity:

DISA/Defense Information Technology Contracting Organization (DITCO)/PS8331

2300 East Drive, Building 3600

Scott Air Force Base, Illinois 62225-5406

NOTE: New revisions to the Justification for OTFAOC, referred to as “J&A” through the remainder of the document, are prefaced by “MOD 02” and identified in bold text throughout the document. Revisions to the original J&A and previous modification are prefaced by “MOD 01” throughout the document.

2. NATURE/DESCRIPTION OF ACTION(S):

Software Asset Management (SWAM) Support Services JA25-040 MOD 02

CUI

Page 2 of 6 Pages

The nature of this action is to issue a bridge contract for SWAM services for up to 8 months firm fixed price (FFP) to extend the period of performance (PoP) for contract, HQ0034-19-C-0165.

The PoP for the current contract ends March 28, 2025. This extension will extend the PoP by 8 months to November 13, 2025. This extension will ensure continued support during the period of the follow-on contract. The SWAM effort actively supports software licenses and software support for J6 and its stakeholders. FY25 Operation and Maintenance (O&M) funds will be provided via Military Interdepartmental Purchase Request (MIPR) number, HC1085504010.

MOD 01: The original awarded contract value of exceeded the original J&A estimate of and is annotated as AMD 01 (an increase of ). The purpose of this modification is to extend the duration of the contract and increase the lifecycle value by from to . The current bridge contract period of performance (PoP) expires on November 13, 2025. The original estimated value and PoP of the

J&A was and 7.5 months to provide additional time to complete the competitive follow-on effort (actual contract awarded value is ). The follow-on effort has been delayed and is now estimated for award by June 2027. Additional time is needed to provide continuity of services while the Government re-assesses its follow-on acquisition approach, conducts/finalizes an extensive market analysis, and competitively solicits and makes award based on the resultant acquisition strategy.

DISA/J6 began working on the recompete package after the approval of the initial J&A;

however, a variety of factors delayed the follow-on award schedule. This included the need to re-examine requirements as a result of an accelerated schedule for the Department of War network migration and enhanced analysis of approximately 1,300 different software manufacturers and

2,500 software products supported by the contract. In addition, during calendar year 2025, the

DISA/J6 program office has been unexpectedly and significantly impacted by Government programs that incentivized personnel separation or extended periods of leave (e.g., Deferred

Resignation Program, Voluntary Early Retirement Authority, Voluntary Separation Incentive

Payments, Paid Parental Leave). DISA/J6 staffing has also been further impacted by hiring restrictions and challenges to recruit eligible candidates for vacated positions. These staffing implications have significantly degraded the DISA/J6 bandwidth to complete acquisition planning for the follow-on, especially considering the robust nature of the requirement analysis and its expansive portfolio of critical programs requiring support.

The J&A modification provides a 12-month extension to the contract (November 14, 2025 –

November 13, 2026). This extension supports the time necessary to complete acquisition planning, soliciting, and awarding the follow-on acquisition strategy.

MOD 02: The purpose of MOD 02 is to update the projected award of the follow-on effort from June 2027 to October 2026.

3. DESCRIPTION OF SUPPLIES/SERVICES: DISA J6 Pentagon requires SWAM services to actively support software licenses and support for DISA/J6 and its stakeholders. Continuity of services is required for SWAM support and services. The contract provides support software licenses that DISA J6 manages the lifecycle of software licenses and software support for over

Page 3 of 6 Pages

1,300 different software manufacturers and software titles. This support includes recording software license purchases and reviewing software usage on a regular basis to ensure compliance with software license agreements and entitlements. The purpose of this contract is to help the

Government manage software licenses from numerous software contracts along with limited small purchases of software maintenance and licenses to meet the Government’s requirement for continuous software technical support, renewals, and licensing with manufacturer access to government required fixes, patches, and updates.

The estimated cost of support for this bridge contract is for the 8 months: March 29, 2025, through November 13, 2025.

MOD 01 to the J&A extends the contract for 12 months (November 14, 2025 – November 13, 2026). The extension increases the total estimated value by to

(amounts reflect the proposed pricing by TM3 Solutions and match current contract values).

4. IDENTIFICATION OF STATUTORY AUTHORITY: 10 U.S.C. 3204(a)(1), FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

(1) The current SWAM contract, HQ0034-19-C-0165 is currently under Washington

Headquarters Services (WHS) Acquisition Directorate (AD) which expires 28 March

2025. After reassessing the milestone schedule due to altering acquisition strategy for

SWAM, the projected award for the DITCO recompete is 13 October 2025 plus a 30-day transition, 13 November 2025, resulting in a possible mission support gap of approximately eight months. The Government has identified a continuous need for

SWAM support and services and the on-going acquisition for the follow-on requirement. To avoid a break in service, a bridge contract action will need to be executed. This extension of the current contract will allow for continued support for this vital program and will provide a consistent level of effort for DISA J6 and its stakeholders without a break in service.

MOD 01: The follow-on, competitive effort is now projected for award by June 2027.

MOD 02: The follow-on, competitive effort is now projected for award by

October 2026.

(b) Justification.

(1) Minimum Government requirements. The SWAM effort actively supports software licenses and software support for J6 and its stakeholders. In awarding this bridge contract, DISA J6 may continue SWAM support and services for DISA/J6 and its stakeholders without disruption.

Page 4 of 6 Pages

(2) Proposed sole source contractor.

Vendor: TM3 Solution, Inc.

Cage: 5AJF6

UEI: WT7KNDWBFLK5

Address: 2800 Eisenhower Ave., Suite 260 Alexandria VA, 22314-5210

TM3 Solutions, Inc. is cited for sole source follow-on acquisitions as described in

FAR 6.302-1/DFARS 206.302-1, include an estimate of the cost to the Government that would be duplicated and how the estimate was derived or identify the unacceptable delays that would result in fulfilling the agency’s requirement if any other source is used.

(3) Discussion regarding cause of the sole source situation. This is a continuation of a previous effort by the same contractor, TM3 Solutions. Competition is not feasible for this short duration bridge requirement as described above. The follow-on, competitive effort for this requirement is on-going and anticipated to be awarded in October 2025

MOD 01: The follow-on, competitive effort is now projected for award by June 2027.

A separate, competitive award for the MOD 01 bridge period extension is not feasible and would lead to unacceptable delays and lapse in the critical services provided by the contract arrangement with TM3 Solutions.

MOD 02: The follow-on, competitive effort is now projected for award by

(4) Impact. If this sole source action was not executed, DISA/J6 SWAM services and support to DISA/J6 and its stakeholders would be severely degraded, negatively impacting each of their customers’ missions. DISA/J6 Pentagon customers include the Office of the Secretary of Defense, Joint Staff, Pentagon Force Protection Agency, and other Fourth Estate organizations.

6. CONTRACT OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES: The follow-on requirement was solicited via 8(a) Small Business Set Aside in September 2024.

MOD 01: As a correction to the original J&A, the follow-on requirement has not been solicited;

however, a Sources Sought Notice for the follow-on was published in February 2024 on

SAM.gov.

7. DETERMINATION OF FAIR AND REASONABLE COST: A price evaluation will be accomplished to determine the pricing as fair and reasonable. The contracting officer will determine a fair and reasonable cost by obtaining historic cost/pricing information, comparing proposed prices with the Independent Government Cost Estimate, and reviewing current commercial prices).

8. MARKET RESEARCH: TM3 is the only contractor that may fully support the Government’s immediate need in the timeframe necessary for SWAM support and services.

Page 5 of 6 Pages

9. ANY OTHER SUPPORTING FACTS: Not Applicable

10. LISTING OF INTERESTED SOURCES: In accordance with DISA Acquisition Regulation

Supplement 206.302-1 (S-90), a source sought was not performed to identify other potential sources for the bridge period.

MOD 01: DISA Acquisition Regulation Supplement reference updated to 5806.302-1(d)(S-90).

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History. This bridge extension, tracking number 832571841, is a new DISA requirement to the following Washington Headquarters Services contract.

• Contract Number: HQ0034-19-C-0165

• Contract dollar value:

• Incumbent name: TM3 Solutions, Inc. Cage: 5AJF6

• Incumbent business size: 8(a) and SDVOSB

• Contract Period of Performance: 29 Sep 2019 through 28 March 2025

• Method of previous acquisition: Competitive 8(a) set-aside

MOD 01 to the J&A is for an extension to the following bridge contract:

• Contract Number: HC102825C0003

• Contract dollar value:

• Incumbent name: TM3 Solutions, Inc. Cage: 5AJF6

• Incumbent business size: 8(a) and SDVOSB

• Contract Period of Performance: 29 March 2025 through 13 November 2025

(b) The Government has identified a continuous need for SWAM support and services, therefore, there will be a follow-on requirement. The projected award for the DITCO recompete is 13 October 2025 plus a 30-day transition, 13 November 2025, resulting in a possible mission support gap of approximately eight months.

MOD 01: The follow-on effort has been delayed and is now estimated for award by June 2027.

Additional time is needed to avoid a lapse in the critical services while the Government reassesses its follow-on acquisition approach, conducts and finalizes an extensive market analysis as well as competitively solicits and makes award based on the resultant acquisition strategy.

MOD 02: The follow-on effort has been delayed and is now estimated for award by