IA02 W9124D-20-Q-0113 Knox JA 2020_Signatures Redacted.pdf

Control No: MICC 2020-23 Program/Equipment: Oracle Software Support Renewal

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

Program/Equipment: Oracle Software Support Renewal for Headquarters (HQs), United States Military Entrance Processing Command (USMEPCOM), North Chicago, Illinois.

Authority: FAR 16.505(a)(4) – Restricting consideration to an item peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product that is peculiar to one manufacturer).

Amount:

Prepared by:

Date: 30 Jan 2020

Contracting Officer:

Date: 30 Jan 2020

Technical:

Date: 30 Jan 2020

Requirements:

Date: 30 Jan 2020

Reviews: I have reviewed this justification and find it adequate to support an exception to fair opportunity.

Program Manager:

Date: see electronic signature

MICC-Knox Team Lead:

Version – September 2018 FOR OFFICIAL USE ONLY

MICC Legal Counsel:

Local Small Business Specialist

Division Chief:

Director, MICC-Fort Knox:

Assistant Director, Small Business Program:

(CDD), and many others. Oracle maintenance and support is required in order to receive new software upgrades and patches, which are propriety to Oracle. Without this support, USMEPCOM will not be able to stay in regulatory compliant pursuant to Army Regulation 25-2, which states patches and updates must be applied to the enterprise and platform in a timely and efficient manner upon release to reduce security vulnerabilities per DOD and Army cybersecurity directives.

b. Alternatives: Brand name Oracle products are requested because other vendor’s similar products, or products lacking particular features, are not compatible with the Oracle Platform and do not meet USMEPCOM’s needs. Oracle products are utilized to maintain high operability and availability of critical USMEPCOM core business applications and data integration within USMEPCOM’s Oracle architecture. Continued maintenance and support of these products is necessary to maintain consistency across the enterprise, ensure compatibility with the current structure, provide seamless integration, minimize any interoperability issues and to enable USMEPCOM to leverage in-house expertise that will minimize any adverse impact costs associated with overall manpower, training and time required to implement a new platform using another vendor’s products.

The Oracle products for which maintenance and support are required represent a substantial investment of over $100M by USMEPCOM. These products have successfully met USMEPCOM’s requirements for the past twenty years and are not due for lifecycle replacement at this time; therefore, USMEPCOM is seeking to maintain, rather than replace these products as the costs for both product replacement and the associated collateral costs for implementation and testing, training and time required to implement could not be recouped in a re-procurement at this time.

The Oracle platform is USMEPCOM’s implemented architectural design and uses Oracle based products that only Oracle can support. Implementing another vendor’s product would require the architectural design to be integrated/re-engineered, transformation logic would require rewriting for legacy system interfaces, documenting and revising technical documentation would add additional costs and technical reviews.

This would result in a substantial loss of time of at least two years, which would result in substantial additional costs in consulting, redesign efforts, rewriting of applications, and scripts that manage cloning, backup, monitoring, and performance. Any other product will adversely affect 67 Military Entrance Processing Stations (MEPS) from the processing of applicants for the all-volunteer armed forces, and the ability to exchange data with other agencies would cease until implementation of the new platform.

USMEPCOM, in collaboration with the Defense Digital Service (DDS) and GSA, has undertaken an effort to replace the existing Oracle-based MIRS family of applications.

This effort, in excess of $20 million, is ongoing at this time. A series of functional releases are projected to begin in October 2020, culminating with the end of all Oracle products currently in use by fiscal year 2023/2024.

c. Impact if not approved: Failure to approve limited source justification for the renewal of Oracle licensing would compel USMEPCOM to terminate the use of the USMIRS family of applications. The termination of operations would negate DoD’s ability to access over 275,000 enlisted applicants annually into the All-Volunteer force.

6. Actions to Increase Competition: While competition is limited to brand name, future requirements will be competed to the maximum extent practicable. At this time, it is believed that no action is possible to reduce or eliminate the technical shortcomings, or failure to meet critical requirements that would result from any acquisition other than the Oracle products specified. However, the Government will continue to conduct market research to ascertain if there are changes in the market place that would enable actions to be completed without restriction.

7. Market Research: Army Directives and AFARS 5139.101-90)(a)(1) state the Army’s Computer Hardware, Enterprise Software and Solutions (CHESS) program, under the Program Executive Office Enterprise Information Systems, is the mandatory source for commercial Information Technology (IT) hardware and software purchases. As such, there is an Enterprise Software Initiative (ESI) agreement on CHESS but ordering is only open to Program Executive Office, Enterprise Information Systems (PEO EIS), Army Materiel Command (AMC) and their respective subcommand offices, nor is there any other CHESS contract that exists to support USMEPCOM’s requirements. As a result, Oracle was contacted and it was determined that there was not an authorized reseller with a GSA contract, but there are six resellers that have been identified as a result from an Request for Information (RFI) that will be able to provide competitive pricing from their NASA SEWP contract. Per the Memorandum of Agreement (MOA) between Department of Defense (DoD) and NASA, NASA’s Solutions for Enterprise- Wide Procurements (SEWP) contract vehicle is open to all Federal Agencies (including Department of Defense) to order IT products and services.

8. Other Facts: There is no other vendor capable of providing a supply or service that is compatible with or integrates with existing Oracle products, or will satisfy agency’s essential requirements.

a. Procurement History:

Contract: NNG15SC07B / W9124D-19-F-0131 Contractor: DLT Solutions LLC Award Date: 30 January 2019 Competitive Status: Limited to NASA SEWP V, Group A vendors.

Contract: W91QUZ-06-A-0002-2E38 Contractor: DLT Solutions LLC Award Date: 29 January 2018 Competitive Status: Limited to CHESS DOD ESI vendors.

Contract: W91QUZ-09-A-0001-2E20 Contractor: Affigent, LLC Award Date: 25 January 2017 Competitive Status: Limited to CHESS ITES-3H.

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9. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Date: See Electronic Signature

Chief, Enterprise Branch

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Date: See Electronic Signature

J-6 CIO/Director

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made using price analysis and procurement history. As a part of this basis, certified cost or pricing data will not be required and the following exceptions apply (FAR 15.403): Prices that will be agreed upon are based on adequate price competition, and a commercial item is being acquired.

Date: See Electronic Signature

Contracting Officer

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: See Electronic Signature Nathalie W. Riley Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the procurement of Oracle Software Support using an exception to fair opportunity pursuant to the authority of Federal Acquisition Regulation Subpart 16.505(a)(4), - Restricting consideration to items peculiar to one manufacturer. The estimated value of the contract is for a one year period of performance beginning 28 February 2020. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

SCOTT D. KUKES

Alternate Command Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX