A23_ERM_Perfect_JA_Redacted.pdf

FOR OFFICIAL USE ONLY - PROCUREMENT SENSITIVE - SOURCE SELECTION SENSITIVE

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FOR SOLE SOURCE JUSTIFICATION

PR# ERM Perfect

REFERENCES:

FAR 13.106 (b) states that, “For purchases not exceeding the simplified acquisition threshold, contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand name, or industrial mobilization). The following documentation constitutes the rationale for this decision.

FAR 13.500(a) This subpart authorizes the use of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not exceeding $7 million ($13 million for acquisitions as described in 13.500(c), including options, if the contracting officer reasonably expects, based on the nature of the supplies or services sought, and on market research, that offers will include only commercial items. Contracting officers may use any simplified acquisition procedure in this part, subject to any specific dollar limitation applicable to the particular procedure. The purpose of these simplified procedures is to vest contracting officers with additional procedural discretion and flexibility, so that commercial item acquisitions in this dollar range may be solicited, offered, evaluated, and awarded in a simplified manner that maximizes efficiency and economy and minimizes burden and administrative costs for both the Government and industry (10 U.S.C.2304(g) and 2305 and 41 U.S.C.3305, 3306, and chapter 37, Awarding of Contracts.

13.501 (a) Sole source (including brand name) acquisitions. (1) Acquisitions conducted under simplified acquisition procedures are exempt from the requirements in part 6. However, contracting officers must-

(ii) Prepare sole source (including brand name) justifications using the format at 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C.1901 or the authority of 41 U.S.C.1903

DOCUMENTATION:

(1) Requiring Activity:

a. Requesting Activity

DFAS-Columbus

Building 21, Room 4A

3990 E. Broad St.

Columbus, Oh 43213-1152

b. Contracting Activity

DFAS Columbus

Contract Services Directorate Building 21, Room 2B218

3990 E. Broad St.

Columbus, Oh 43213-1152

(2) Nature/Description of Action:

This limited source justification is for the negotiation and issuance of a contract for the purchase of Brand

Name ERM Perfect software. The resultant contract will be a Firm Fixed Price contract in accordance with the procedures outlined in both FAR 12.6, Acquisition of Commercial Items and FAR Part 13, Simplified

Acquisition Procedures.

(3) Supplies or services being procured:

This requirement for the procurement of ERM Perfect (ASM) Annual Support and Maintenance and Term license for Corporate Document Management System (CEDMS). This software suite delivers a reliable system, improved performance, application security and access control. The CEDMS configuration must be identical to the application instances for – environments at to minimize cost, maintain current system functionality, security and to eliminate operational risks and/or downtime in business operations. ERM Perfect is one of the core software components required to maintain all CEDMS applications instances at DFAS.

The estimated cost of this acquisition is based on a base period from Oct, 1, 2019 – May 20, 2020 and 4 one year options totaling:

(4) Statutory Authority Permitting Sole Source – Brand Name:

The statutory authority permitting other than full and open competition is title 41 U.S.C. 1901(e)(2), for a sole source acquisition under the authority of the Simplified Acquisition Procedures test program for certain commercial items, as implemented by FAR 13.501(a).

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

The Defense Finance Accounting Service (DFAS) previously procured the above listed software under full and open competition. This included licenses for development and testing. Those licenses have been maintained since and are currently supported under contract number HQ042317C0010 for

. Additionally, a perpetual license (located at

(DLA) in FY13. The proposal to utilize the above outlined software suite flows from the current production unclassified environment and maintain the

If these exact licenses are not purchased and maintained in the version of CEDMS the following adverse actions would occur:

Three separate system CEDMS software configurations would result in increased software maintenance and pose risk of system failure and downtime

Increase security risk. DFAS requires each system to be certified and accredited in accordance with

DoD regulations. If the current system configuration is modified or altered; the Risk Management

Framework (RMF) security posture will be required to be revalidated with new software procurement.

The new software components would need to be validated to ensure they meet DoD security guidelines prior to purchasing. No other software found during market research is known to currently meet DFAS and DoD security guidelines.

In addition to security and system failure risks procuring alternate software would result in an estimated increased cost to the agency of at least and require the following:

Additional technical services to re-program CEDMS software components

DFAS users to be re-trained to use different software components

The software listed above is an integral part of the CEDMS infrastructure. This software suite delivers performance, application security and access controls that no other software found during market research possesses. If any of these components are different, severe risk will be introduced into the maintenance of the

CEDMS version of CEDMS 3.0. These risks are: additional programming costs, security risks, functionality problems, end user training costs, schedule delays etc. Configuration management and software maintenance would double for each new release of the system.

ERM-Perfect is the core software component in CEDMS 3.0. Any alternative software found during market research would result in creating a new system. The continued performance of the CEDMS 3.0 is reliant on the

ERM-Perfect software.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies

Market research was conducted for the purpose of seeking as many potential sources as possible. In communications with the OEM, Composition Research Technologies, Inc. they stated that there are no other sources of supply, no resellers or distributors. A sources sought notice was publicly posted to FBO.gov seeking brand name or equal responses; no additional possible sources responding to the posting could meet the requirements to integrate with the CEDMS 3.0 environment.

(7) Price Reasonableness Determination:

The price will be determined Fair and Reasonable by using the Proposal Analysis Techniques listed in FAR

15.404-1(b)(2).

(8) Market survey (indicate if any other firms were contacted or expressed interest)

Market research was conducted for the purpose of seeking as many potential sources as possible. A sources sought notice was publicly posted to FBO.gov; no additional possible sources responded to the posting could meet the requirement. Market research determined that Composition Research Technologies, Inc. is the sole manufacturer and provider of the ERM Perfect, there are no distributors with the required ERM Perfect maintenance and support available on the open market or through any GWAC. Market research including exchanges with the OEM that combining and co-terming the licenses awarded under separate contracts, and including option years, were acceptable. Option years are included in this procurement as the expected system life of this software is five or more years. This requirement will be acquired via a FAR Part 13 Open Market solicitation.

The following sources were contacted for pricing and availability information:

COMPOSITION RESEARCH TECHNOLOGIES, INC

3918 PROSPERITY AVE STE 205

FAIRFAX VA 22031-3342

(9) Any other facts supporting the use of other than full and open competition

NA

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

No additional possible sources responded with interest to the sources sought posting.

(11) Actions to Remove Barriers to Future Competition:

Future requirements will be evaluated to determine whether an alternate brand/source provider can be used.

(12) Technical requirements personnel certification

I hereby certify that this justification is made in good faith, that the supporting data and information are accurate and complete to the best of my knowledge and belief, and that I would not be making this request if it were feasible to fully compete this requirement. I further certify that this request is not the result of lack of advanced planning or a desire to expend funds while those funds are still available.

Acting Systems Manager

DFAS-ZTECC

Contracting officer certification

I hereby certify that this justification is made in good faith, that the supporting data and information are accurate and complete to the best of my knowledge and belief.

Contracting Officer

DFAS-CSD/CO

Review for Legal Sufficiency

Competition Advocate Approval:

Chief Contract Policy and Compliance

Competition Advocate