A04_-_JA_DWAS_REDACTED.pdf

Federal Acquisition Regulation (FAR) PART 8

FAR 8.405-6 LIMITED SOURCE JUSTIFICATION AND APPROVAL (J & A)

Defense Working Capital Accounting System (DWAS)

Reference: In accordance with FAR 8.405-6(a)(1)(i)(B) tems peculiar to one manufacturer. An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer. Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

1. Identification of the agency and the contracting activity, and specific identification of the document as a “Limited Source Justification.”

a. Requesting Activity:

Defense Finance and Accounting Service-Cleveland

ZTCDB

XXXXXXX

XXXXXXXXXXXXX

b. Contracting Activity

DFAS Columbus

Contract Services Directorate

XXXXXXXXX

XXXXXXXXX

XXXXXXXXXXXXXXX

XXXXXXX

XXXXXXXX

XXXXXXXXXXXXXXX

2. Nature and/or description of the action being approved.

This procurement is for technical support services for maintenance of the Defense Working Capital

Accounting System (DWAS) which uses a Commercial off the Shelf (COTS) product provided by Brand

Name: Digital Systems Group (DSG). IAW FAR 8.401, this acquisition is being conducted under the authority of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services for Executive Agencies.

The procurement strategy is to issue a Request for Quote (RFQ) through General Services Administration

(GSA) Advantage utilizing the e-Buy tool in accordance with FAR 8.405-2(c)(3).

3. A description of the supplies or services required to meet the agency's needs (including estimated value):

This requirement is for procurement of technical support services for the maintenance of DWAS (Defense

Working Capital Accounting System) and travel costs. To continue the support of DWAS for DFAS customers, this acquisition will include the maintenance of the COTS product as well as estimated technical support hours for DSG to make changes to the existing software. The services to be provided shall be for the following task:

Task 1: The contractor shall provide “Fiscal Year Startup” support.

Task 2: The contractor shall provide “Closeout Task” support.

mailto:david.g.auer.civ@mail.mil

Task 3: The contractor shall provide “Integrated Financial Management Information System

(IFMIS) Encyclopedia and DWAS Data Dictionary” support.

Task 4: The contractor shall provide “Defense Working Capital Fund Accounting System

(DWAS) maintenance” support.

Task 5: The contractor shall provide “DWAS System Change” support.

Task 6: The contractor shall provide “Consultation Services (to include Emergency Support).”

Task 7: The contractor shall provide support of the “Audit Readiness/Steadiness, System

Certification and Accreditation, and Self-certifying Compliance.”

This justification is for the issuance of one order against the GSA Schedule for DWAS support in FY 19 with two option years through FY21. The estimated cost for the base period is XXXXXXXXX and the estimated cost for the total contract (base period and two one-year option periods) is

XXXXXXXXXXX.

4. The authority and supporting rational (see 8.405-6(a)(1)(i) and (b)(1)) and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service.

In accordance with FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. Only DSG has the ability to alter and modify the COTS software.. DSG owns the rights to the

COTS software and its code. They are the only source authorized to provide maintenance of their software and the DWAS modules. DSG does not utilize any resellers that the government can procure the services from. Therefore, DSG is the sole source for the technical services required to continue the DWAS projects.

5. A determination by the ordering activity contracting officer that the order represents the best value.

The order will provide the best value to the Government and result in the lowest lifecycle cost. The contractor’s rates for their GSA contract XXXXXXXXX are readily available which have been determined fair and reasonable by GSA. The ordering contracting officer will make a determination of price reasonableness for the order issued under the proposed GSA Schedule. The determination will be completed by using price analysis techniques: comparison of the proposed prices to the historical prices paid; comparison of the proposed prices with competitive poblished price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements; comparison of proposed prices with independent government cost estimates. Additionally the contract specialist will request price reductions from the vendor in accordance with FAR 8.405-4.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

The GSA schedule for Digital Systems Group XXXXXXX was reviewed. The estimate for the labor categories is based upon the “Professional Services” labor rates identified within the base award.

Previously alternative options were considered as well. The cost of acquiring a new system for current

DWAS customers exceeds the cost of continuing with current contractor support. Purchasing or changing the core modules would also cost more than continuing with current support. The time to design, procure, and implement such an option does not justify such an investment. A follow on contract with the current contractor provides the only option for DFAS to maintain the existing functionality.

The Analysis of Alternatives explored several different scenarios for providing accounting services to current DWAS customers. Purchasing another software package would cost the government an additional

XXXXXX. Purchasing the current software from the contractor would cost an additional XXXXXXX.

Transitioning to a different configuration employing different software interfaces would cost an additional

XXXXXX. While all of these options may be viable and could promote an additional source undertaking these changes are potentially substanial. The analysis indicates that any scenario other than a sole source contract would substantially increase government costs and risks over the system’s lifecycle.

7. Any other facts supporting the justification.

Since this a COTS product with proprietary software only the developer (DSG) can perform maintenance and enhancement activity. While it is possible to modify a different COTS software or seek to have a new program written to replace the DWAS capabilities, the time frame before a replacement would be fielded and able to support

DWAS is more than XXXXX. Upon conclusion of the XXXXXX for this effort the XXXX XXXX XXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXX XXXXXXX.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made.

DFAS did a review of the total DWAS requirement through the Analysis of Alternatives prior to requesting the prior contract. It showed that while there are things DFAS can do to increase competition, the cost to undertake such action are not justified.

9. The ordering activity contracting officer's certification that the justification is accurate and complete to the best of the contracting officer's knowledge and belief.

10. Evidence that any supporting data that is the responsibility of technical or requirements personnel

(e.g., verifying the Government's minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

11. For justifications under 8.405-6(a)(1), a written determination by the approving official identifying the circumstance that applies.

CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Requiring Activity/Program Management Office Certification

Printed Name: XXXXXXXXX

Title XXXXXXXX Org. Code XXXX Phone XXXXXXX

Signature: XXXXXXXXXXXXXXXXXXXX

Contracting Officer Certification

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Printed Name: XXXXXXX

Title XXXXXXXXX Organization Code XXXXXXX

REVIEW FOR LEGAL SUFFICIENT

Printed Name XXXXXXXXXXXXXXXXX

Title XXXXXXXXX Organization Code XXXXXXXXX

APPROVAL

Activity Competition Advocate ($650,000 - $13,500,000)

Printed Name _ XXXXXXXXXXXX