A04_LSJ_IBM_Cognos_FY14_REDACTED.pdf

Control No. _____________________

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Procurement Request Number:

LSJ Number:

LIMITED-SOURCES JUSTIFICATION FOR FEDERAL SUPPLY SCHEDULE PROGRAM

Upon the basis of the following justification, prepared in accordance with Federal Acquisition Regulation (FAR) 8.405-6(c), sources limited to fewer than those required in FAR 8.405-1, pursuant to the authority of 41 U.S.C. 251 as implemented by FAR 8.405-6(b). This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 251, et seq.)

1. Identification of the agency and the contracting activity.

Contracting Agency and Activity: Washington Headquarters Services (WHS) Acquisition Directorate (WHS/AD) WHS Enterprise IT Services Directorate (EITSD)

2. Nature and/or description of the action being approved: Approval to issue Firm Fixed

Price (FFP) contract with Limited Source Justification (LSJ) utilizing the Federal Supply Schedule (FSS) for software subscription and technical maintenance services support, base plus 2 option periods for currently in productions IBM Cognos Business Intelligence (BI) software. This is a base plus 2 option periods renewal request. Period of Performance for base period is 04/1/2014 ~ 03/31/2015.

(IBM Cognos SW Subscription and SW maintenance support Base plus 2 Option Periods) Base Year: IBM Cognos Licenses & Support: $XXXX (4/1/2014~3/31/2015) Option Year 1: IBM Cognos Licenses & Support: $XXXX (4/1/2015~3/31/2016) Option Year 2 IBM Cognos Licenses & Support: $XXXX (4/1/2016~3/31/2017) Total funding for base +2: $XXXX

Nature: New Requirement Follow-on Requirement Mod to Existing Order Number

Order against: FSS Contract Number: ESI BPA DABL01-03-A-1006 / GS-35F-0265X

OR

Multiple Award ID/IQ Contract Number:

Pricing: Firm-Fixed Price Time & Materials Cost Type

Funds: OMA Other Funds: DAU APC S9TW FY14

Proposed Vendor: Immix Technology, Inc.

Street Address: 8444 Westpark Drive, Suite 200 City/State: McLean, VA 22102 Phone/POC: (703) 752-0637 David Ball

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3. Description of Supplies or Services: This justification and approval covers brand name procurement for the continuation of software maintenance and technical support for the DAU current IBM Cognos Business Intelligences software license subscriptions. Technical support includes software upgrades, patches, releases and 24/7 technical support.

The Business Systems community at DAU requires business intelligence software and utilities with capabilities and features exclusive to IBM Cognos BI. DAU owns perpetual licenses for a variety of IBM Cognos software products listed below. The services requested are software license component renewals and technical maintenance support for the IBM Cognos software that DAU is licensed to use. The Defense Acquisition University is not purchasing new software but renewing maintenance and support services for the below listed DAU IBM Cognos Business Intelligence software. The renewal of services represents approximately 20% of the cost were government to replace with new title Business Intelligence software.

The estimated value of the proposed action for base period is: $ XXXX

4. Authority:

FAR 8.405 and DFARS 208.7402, Departments and agencies shall fulfill requirements for commercial software and related services, such as software maintenance, in accordance with the DoD Enterprise Software Initiative (ESI) (see website at http://www.esi.mil/). ESI promotes the use of enterprise software agreements (ESAs) with contractors that allow DoD to obtain favorable terms and pricing for commercial software and related services.

5. Rationale/explanation to support cited authority: The IBM software annual licenses and technical support renewal are essential to the Government’s requirements and market research indicates other company’s similar products or products lacking the particular features, do not meet, or cannot be modified to meet, the agency’s needs. Failure to procure this annual maintenance will adversely impact DAU’s Business Systems functions jeopardizing adequate planning and performance data resulting in a negative impact in the daily DAU mission.

Because IBM Cognos software is currently owned and utilized by DAU, all previous data results produced by users exist in proprietary format within the IBM Cognos software and is not transferrable or compatible with a replacement or substitute business intelligence software brand. If additional off brand products are purchased in support of the DAU mission, compatibility with existing data, production time, and efficiency of data handling will be lost. In addition, the purchase of non-IBM Cognos software will result in a new learning curve for analysts, thus affecting operational data production and time sensitive results.

To change DAU’s Business Intelligence software would not be cost effective because of the reasons cited above and additional cost that would be incurred by the government to retrain DAU Faculty and staff on new product, transfer proprietary formatted collected

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6. Market Research: DAU conducted market research to determine if other companies have been approved to be third party providers for IBM Cognos BI support, we found that the contractor, IMMIX Group, is the sole provider of COGNOS software and maintenance support under the mandatory procurement source, the General Service Administration (GSA) Enterprise Software Initiative (ESI) Program. The GSA ESI program has proven that managing the acquisition of commercially available software at the enterprise level reduces costs. GSA ESI enables the aggregation of software requirements and promotes the use of Enterprise Software Agreements that leverage the DoD's buying power. Therefore, in accordance with Defense Federal Acquisition Regulation Supplement 208.7402, the DoD ESI agreements were considered and the search for IBM COGNOS Business Intelligence products represents the best pricing for commercial software.

7. Actions to Increase Competition: At this time similar BI products from other vendors would not meet DAU’s requirements and would require substantial additional cost to the Government which would exceed the amount of this request. For the Government to introduce a new software solution at this time would result in a stoppage of existing in production configured Cognos BI data structures tools that input data into the DAU managed business systems. New Business Intelligence environment software would require new data structures and permissions to be created for every user. When this happens the configured linkages back to the users my folders, distribution lists, etc. would have to be taken from the existing proprietary Cognos formatted data structured content and migrated into a new one. The technical risk, cost, and schedule delay associated with not using the identified brand name for this acquisition far exceed the benefit obtained from a full and open competition based on capabilities and functions. DAU is committed to the competitive spirit in all procurement regulations. This service may be competed in the future as DAU audits our BI requirements. This request is for base plus two options period contract award in which DAU will review the market to determine whether another Business Intelligence (BI) product can offer the required functionality in a manner that better meets the needs of the government and whose price is reasonable given market conditions.

8. Any other facts supporting the justification: It is necessary that the maintenance for the IBM Cognos software maintenance and technical support be used as the Cognos software is already in place within the DAU enterprise. The license renewal and maintenance is needed to allow for the continuity of operations for DAU staff to perform their duties to collaborate in exploring data and building statistical models. IBM Cognos licensing/support renewal bill is calculated at 20% of list price of procurement of new Business Intelligence (BI) software.

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Historical Data: IBM remains the sole proprietor and copyright licenses owner of proprietary IBM Cognos management software for managing data structures, relationships and attributes from anywhere in a shared view. The DAU renewal cost represents 20% what it would be to procure new software and an estimated $500K to replace with new BI title.

FY13 Award for IBM Cognos Software subscription technical support for DAU was Contract Award: DABL01-03-A-1006 DATED: 20 March, 2013 Order Number: DM17

9. Technical / Requirements Certification: I certify that the supporting data under my cognizance which is included in this limited sources justification is accurate and complete to the best of my knowledge and belief.

Submitted

X Charles E. Garvin Operations Information Systems Plans & Budget

10. Contracting officer’s determination that the order represents best value (FAR 8.404(d)), to include the basis for determination of a fair and reasonable price per FAR 15.402:

Typed Name:

Signature:_____________________________Date:_______________

11. Review: I have reviewed this justification and have no legal objection.

Legal Counsel Typed Name:

Signature: ____________________________ Date: ________________

12. Contracting Officer’s Approval: I hereby certify that this limited source justification is accurate and complete to the best of my knowledge and belief. Based on the foregoing, I approve this limited source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

SIGNATURE: DATE:

NAME:

TITLE: Contracting Officer