IA02_W9124D24F0109_Knox LSJ 2024_81_Redacted.pdf

Control Number: MICC 2024-81

Justification Review Document for Limited Source Justification - FAR Part 8

Program/Equipment: IBM Main Frame Operating Software Maintenance Renewal

Authority: Title III of the Federal Property and Administrative Services Act of 1949 (41U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6.

Amount:

Prepared by: DSN:

IT Specialist Date: 26 Aug 24 Email:

Contracting Officer: Joseph R. Lawrence COM: 502-624-6496 Contracting Officer Date: 27 Aug 24 Email: joseph.r.lawrence3.civ@army.mil

Technical: COM:

Program Manager Date: 26 Aug 24 Email:

Requirements: COM:

Chief, Systems Mgmt. Branch Date: 26 Aug 24 Email:

suspension of mainframe operations, leading to mission-critical failures across multiple systems and organizations. Operating the mainframe with unlicensed software and without a maintenance contract for updates could result in significant monetary penalties, increased security risks, and STIG violations due to unpatched software.

While replacing the mainframe with a newer IBM z16 8562-G03 model could result in annual software savings, it would necessitate a substantial upfront investment.

Additionally, there is an option to transition to Mainframe as a Service (MFaaS), which is under consideration. This option could provide annual software savings but would incur an additional MFaaS annual expense. Although MFaaS may become a viable option for replacing mainframe hardware, it remains a multi-year process if selected as the best path forward.

Regardless of the path chosen, software licensing and maintenance are still required, either directly or through the MFaaS provider. It is crucial that the contracting office understands the importance of renewing these licenses to avoid operational disruptions and ensure mission success.

c. Impact if justification is not approved. If the mainframe goes off-line and is not able to be restored due to a lack of an active software maintenance contract, the Army as well as the HRC mission will be severely degraded. Lack of active software maintenance prevents HRC from obtaining any software updates, patches, or support.

Systems such as TOPMIS, TAPDB-AO, ITAPDB, Automated Orders, Reserve Recruiting (as well as many other applications) are used to support every soldier from recruitment to retirement. These systems are used to manage all human resources functions, annual performance evaluations, collect loan repayment data, and manage career strength. As part of the mission capabilities, is the ability for the mainframe to recover mission critical data from these Army wide applications. If support is not reinstated and renewed, a mainframe outage and loss of support could result in a failure of the HRC and Army Mission.

6. Actions to Increase Competition: There is an option to transition to Mainframe as a Service (MFaaS), which is under consideration. Several vendors offer MFaaS which would increase competition. Although MFaaS may become a viable option for replacing mainframe hardware, it remains a multi-year process if selected as the best path forward. Alternatives such as MFaaS are part of HRC’s ongoing effort to automate tasks to the fullest extent possible, thus reducing the total cost of ownership. Products offering a high degree of automation utilizing the latest technologies will be considered for implementation. Accordingly, the HRC will continue to monitor advancements in commercially available information technology products and services, particularly those listed within existing enterprise-related contracts under the Army CHESS Program and the DOD ESI agreements. An IT Approval System Waiver (ITAS) number 20240206075728 was approved. As stated above, HRC is in possession of a sole source letter from IBM indicating they are the only source authorized to provide the requested services. Utilizing this letter HRC received a SONA from CHESS. Due to the unique operating system required to operate the mainframe HRC is required to utilize this software.

7. Market Research: Research conducted by the HRC Personnel Information Systems Directorate included review of the Army CHESS Program's Information Technology Enterprise Solutions - 3 Hardware (ITES-3H) contracts and the DoD ESI agreements.

HRC will continue to research the Army Small Computer Blanket Purchase Agreements, ITES-3H contracts, commercial product advertisement, and Gartner, Inc., to find the best solution for the requirement. A CHESS Statement of Non-Availability (SONA) number 216804750 was approved.

8. Other Facts:

Procurement history.

Contract: W9124D-24-F0061 Contractor: IBM Award Amount $1,119,581.92 Period of Performance: 29 December 2023 – 31 March 2024 with reinstatement from 1 April 2023 Competitive Status: Only one source capable of providing the supplies or services Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W9124D21F0486 Contractor: IBM Award Amount $1,011,298.67 Period of Performance: 1 January 2021 – 31 March 2022 Competitive Status: Only one source capable of providing the supplies or services Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W9124D-20-F0314 Contractor: IBM Award Amount $1,197,112.82 Period of Performance: 1 Jan 2020 – 31 December 2020 Competitive Status: Only one source capable of providing the supplies or services Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W9124D-19-F0072 Contractor: IBM Award Amount $1,179,322.04 Period of Performance: 1 Jan 2019 – 31 December 2019 Competitive Status: Only one source capable of providing the supplies or services Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W9124D-18-F-0048 Contractor: IBM Award Amount $1,054,979.66 Period of Performance: 27 March 2018 – 31 December 2018 Competitive Status: Only one source capable of providing the supplies or services Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W9124D-17-F-0033 Contractor: IBM Award Amount $1,037,629.58 Period of Performance: 1 Jan 2017 – 31 Dec 2017 Competitive Status: Only one source capable of providing the supplies or services Authority: FAR 8.405-6(a)(1)(i)(B)

Contract: W9124D-16-F-0033 Contractor: IBM Amount $1,041,230.81 Period of Performance: 1 Jan 2016 – 31 Dec 2016 Competitive Status: Only one source capable of providing the supplies or services.

Solicited for 30 days with only 1 offer.