HSCG23-15-F-PCI112_Limited_Source_Justification.pdf

HSCG23-15-F-PCI112

Limited Source Justification Multiple Award Schedule Program

Only One Source Is Capable Of Responding

This acquisition is conducted under the authority of Section 201 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.501) Multiple Award Schedule Program FAR

8.401 and is justified by the following facts and rationale required under FAR 8.405-6 (a)(1)(i)(B) as follows:

(1) Agency and Contracting Activity.

The United States Coast Guard (USCG) Office of Contract Operations, Formal Contracts Division III (CG-9123), proposes to enter into a contract on a basis other than full and open competition.

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

The USCG is currently using subscription licensing for Perceptive Software’s ImageNow/WebNow product in support of imaging all personnel documents for its Direct Access Human Resources and Payroll System. The USCG currently has an on-premise subscription license, which Perceptive no longer offers to customers, although they allow the USCG to maintain this license. This is a proprietary software product and support service, and only available to the Federal Government through Perceptive Software, LLC, a division of Lexmark Enterprise Software. IMMIX Technology is a Federal Government reseller of Perceptive Software products and services (GS-35F-0265X), but they are not authorized to sell, service, or support on-premise subscription licensing (which the USCG currently uses). To continue using this product it is necessary to renew Support and Maintenance services for 1,000 ImageNow/WebNow Combo Subscription Licenses. Product support ensures the Coast Guard has access to Perceptive Software Support Engineers and ongoing software updates and security patches. This product and support services will be procured on a sole source basis. The period of performance is expected to be a 12 month base period with four, twelve-month option periods.

The price for the base period is $300,000.00, and each option period is $300,000.00 for a total price of $1,500,000.00. The proposed GSA Contractor is:

Perceptive Software, LLC 8900 Renner BLVD Lenexa, KS 66219-3049

(3) Description of Supplies/Services.

This requirement is for on-premise subscription service (right to use) and for annual support and maintenance of ImageNow/WebNow Combination Licenses. Perceptive Software, LLC (a division of Lexmark Enterprise Software) is the proprietor and owner of the software and associated services and support, and the exclusive provider to the Federal Government. This product and support will be purchased under GSA Schedule Contract GS-35F-0044T for a twelve-month base period and four 12-month options:

Period Unit Price Total Base Year 12 mo. $300,000 $300,000 Option Year 1 12 mo. $300,000 $600,000 Option Year 2 12 mo. $300,000 $900,000 Option Year 3 12 mo. $300,000 $1,200,000 Option Year 4 12 mo. $300,000 $1,500,000 Total $1,500,000

(4) Identification of the justification and the rationale.

This acquisition is being conducted under the authority of the Multiple Award Schedule Program in accordance with FAR 8.405-6 limited sources justification and approval. In accordance with FAR 8.405-6 (a)(1)(i)(B), the circumstances restricting competition for this acquisition is that 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.

(5) Determination by the ordering activity Contracting Officer that the anticipated order represents the best value consistent with 8.404(d).

The Contracting Officer has determined that the anticipated prices represent the best value to the Government. Per FAR 8.404(d), General Services Administration (GSA) has already negotiated fair and reasonable pricing, and the anticipated prices are consistent with the historical pricing for GSA Contract GS-35F-0044T.

(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.

Market research was conducted by reviewing private sector websites for resellers of Perceptive Software ImageNow/WebNow software. There are some companies that are resellers, but not to the Federal Government. A review of GSA Schedule 70, SIN 132-33 “Perpetual Software License - SUBJECT TO COOPERATIVE PURCHASING”, shows that one Federal Government reseller was found (IMMIX Technology, GS-35F-0265X), however they aren’t authorized to sell, service, or support on-premise subscription licensing. Perceptive Software LLC is the only authorized provider of its on-premise, subscription license ImageNow/WebNow software to the Federal Government.

(7) Any other facts supporting the justification.

Perceptive Software LLC is the creator and owner of ImageNow/WebNow imaging software.

They own the code and are the only company that can make changes to the software. As there are no on-premise subscription license resellers, maintenance of this software cannot be purchased elsewhere. The Perceptive Software LLC suite of imaging applications is considered “Best of Bread”. This product has a proven track record in both private industry and the public sector/education (University Wisconsin-Milwaukee, Duke University, Florida A&M University, Virginia Commonwealth University, University of Michigan and over 350 Healthcare companies and organizations). Replacement by another vendor’s software would be impractical and cost ineffective (the USCG currently receives an over 50% discount rate than the private sector, $300K vice $600K+), and it would severely impact the USCG HR and Payroll personnel in the performance of their day to day operations and duties during the downtime associated with installation, testing, implementation, and training transition. The software is in use and has unique features required by the USCG.

ImageNow was created and is owned by Perceptive Software (now Lexmark/Perceptive) who is an official Oracle Partner, which gives the Coast Guard leverage utilizing the ImageNow tool, as well as continuing to see enhanced integration with the USCG enterprise HR PeopleSoft products currently in use. The USCG has an enterprise license for Oracle’s database as well as the enterprise license for PeopleSoft HR and global Payroll. ImageNow provides delivered integration with the USCG’s HR application, Oracle PeopleSoft, which the USCG refers to as Direct Access. ImageNow is currently used for official PDR’s, all USCG retiree records and all travel claims both military and civilian. ImageNow has more methods to capture and collect electronic images than many other content management applications. ImageNow possesses a better ability to develop electronic forms, allowing HR professionals to more easily collect and integrate paper documents into electronic imaging. Further, ImageNow can automatically feed into workflow, a delivered ImageNow functionality that facilitates HR and payroll internal controls for financial reporting. During the initial market research when the USCG was searching for its content management and imaging product, ImageNow was compared to many other Electronic Content Management (ECM) software products. ImageNow was determined to be much more configurable than other ECM’s reviewed, which reduces maintenance costs for configuration changes due to the less rigidity of the software.

The USCG has an IDIQ with Perceptive (HSCG23-14-D-PIT018), however “on-premise” subscription licenses are not available on this contract. Further, when the IDIQ was established it was mostly to support the Integrated Health Information System (IHIS), but the vision was to eventually purchase DA perpetual licenses as well, since both systems use them. At the present time due to budget constraints, CG-631 doesn't have the funding to cover the initial costs of purchasing the perpetual licenses to replace the subscription licenses, and they don't know when they will have the funding to do so based on budget forecasts. Perceptive was willing to put the subscription licenses on the IDIQ (as long as it was for Direct Access only), since they don't sell those to new customers, including new initial USCG purchases. However this required modifying the IDIQ and would have pushed it above $10M, requiring the establishment of a streamlined Acquisition Plan and approvals (which extends the PALT beyond the required deadline of August 31, 2015). Further, modifying the IDIQ and the approvals required jeopardized obtaining the licenses prior to the end of FY 2015, and the uncertainty of available funding at the beginning of FY 2016. Additionally, there were no cost savings associated with modifying the IDIQ, and Perceptive quoted the same price ($300K per year) for both adding it to the IDIQ or establishing a GSA Task Order. After consulting with the IDIQ Contracting Officer and IHIS program personnel, it was uncertain whether the IDIQ options would be exercised, because there was consideration for disestablishing the IHIS project. CG-631 was concerned that they would be in the IDIQ and then have to do another sole source in a year or two if the IDIQ was not renewed.

Not exceeding $650,000 Date Contracting Officer

Over $650k but not exceeding $12.5mil Date

CPACA

BRISBON.HENRIETTA.KATRINA.1

060483619

Digitally signed by BRISBON.HENRIETTA.KATRINA.1060483619 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USCG, cn=BRISBON.HENRIETTA.KATRINA.1060483619 Date: 2015.09.24 07:35:24 -04'00'