IBM Sole Source Justification Simplified Acquisitions JA Redacted.pdf

SOLE SOURCE JUSTIFICATION FOR SIMPLFIED ACQUISITIONS

FAR Part 13.501(a)(1)(ii)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 13.501(a)(1) in accordance with 41

U.S.C. 1901 or the authority of 41 U.S.C. 1903, the Office of Acquisition Management proposes to award a purchase on the basis of other than full and open competition with IBM Software

Support for the Compensation Support Processing System annual software maintenance on behalf of Bureau of Information Resource Management, Enterprise Server Operations Center

(IRM/SIO/ESOC).

2. The nature and/or description of the action being approved.

The requested action for approval is the sole source award of a firm-fixed-priced support contract for software products currently in use by the Department of State. This support and license agreement are to be effective for the term of one year restricted to the following source:

IBM

3. A description of the supplies or services required to meet the Department’s needs.

The requirement is to provide proprietary software support and licensing at the HST and SA26 location. The requested services would provide specific extension of service software support, software patches and revisions, and licensing of IBM z/OS version 1.13.

IBM z/OS is a required OS platform installed on the IBM z9BC Mainframe that allows specific licensed programs to run software packages and applications. These applications are mandatory applications that process payroll in a secure environment. IBM Software Support provides required support for IBM z/OS version 1.13 environment.

System z Defect Service Extension Support

1. Scope of Service

Under System z Defect Service Extension Support (Service), IBM will provide remote assistance (from IBM’s support center or via electronic access as specified below) for new and known defects for the supported products. See the IBM

Software Support Handbook for call handling process and response criteria by severity at http://www-

304.ibm.com/support/customercare/sas/f/handbook/home.html

The supported products under z/OS Operating System (z/OS) are identified at https://www-

03.ibm.com/services/supline/products/

Supported products, charges, service period dates and other details are specified in the

Schedule.

2. Service Description

IBM will:

1. provide assistance with questions regarding product documentation related to the supported products.

2. review diagnostic information to assist in the isolation of a problem cause (which would include, assistance interpreting traces and dumps for installation problems).

3. provide technical assistance to address known defects for which available corrective service information and program fixes are available under the IBM Program license for the supported product. Client may be required to update to the latest available corrective service level and/or install necessary prerequisite or co-requisite fixes; and

4. if it is determined that the supported product contains defects such that it does not conform to program specifications when properly used in the supported operating system environment for which the program was designed, IBM will attempt to provide a corrective restriction, bypass, or fix package, which may require prerequisite or co-requisite fix packages. In some cases, IBM may determine that a resolution is not feasible due to size, complexity and risk factors associated with code implementation and dependent architectural modifications. Any fix is provided at the then-current maintenance level on the release for the supported product.

2.1 Client Responsibilities

Client agrees to:

1. ensure that any access codes IBM provides are used only by Client’s authorized personnel.

2. designate a technically qualified United States (USA) based representative (Primary

Technical Contact) to be Client’s focal point and to whom

IBM may direct general technical information pertaining to supported products.

3. install the latest available maintenance if requested.

4. perform a regression test before accepting any fix, to ensure its integrity within Client’s

System z environment.

5. apply all fixes supplied by IBM (after regression test).

6. not apply any fixes obtained from other sources; and

7. provide IBM with appropriate remote access to Client’s system to assist with isolating the software problem cause.

3. Termination

IBM may withdraw this Service upon three months’ written notice. Client may terminate the

Service by giving one month’s written notice any time after Service has been in effect for at least two months for each of the Eligible Machines and/or supported products. Client will receive a credit for any remaining prepaid period associated with the terminated Service. This Service does not automatically renew.

This software support will provide the necessary system coverage to ensure that the mission critical Compensation Support Processing System maintains little or no down time. Without support, there is no guarantee that the IBM Z Series Compensation Support Processing System would provide accurate payroll processing and could directly affect the Department’s Employees.

IBM is a proven vendor for their products and meets the requirements of the Department of State.

4. An identification of the statutory authority permitting other than full and open competition:

In accordance with FAR Part 13.501(a)(1)(ii), and in accordance with 41 U.S.C. 1901, this justification serves to support procurement where only one responsible source and no other supplies or services may satisfy agency requirements.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

IBM Software Support is instrumental in maintaining the integrity of the proprietary IBM Z Series

Compensation Support Processing System. IBM owns the source code for the proprietary products and their maintenance is unavailable through any reseller. Therefore, all maintenance including software support, patches, and revisions for these products and licenses must be obtained through the sole source owner. The IBM Z Series System relies on these compatible products to support its accurate provision of payroll processing which directly affects the Department’s employees worldwide. The annual coverage outlined in this agreement will provide the necessary software support to ensure that the mission critical Compensation Support Processing System records little or no down time.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, include whether a notice was or will be publicized as required by

Subpart 5.2 and, if not, which exception under 5.202 applies.

The Enterprise Server Operations Center has conducted market research to identify possible resellers of the required products without success. Additionally, IBM has submitted a formal confirmation of their proprietary ownership of the required products.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. Note: dollar amounts may not exceed statutory limitations for the commercial items test program identified in FAR 13.500.

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based the established market price. There are no anticipated issues that would circumvent a fair and reasonable price determination for this simplified acquisition. By signing the justification, the

Contracting Officer makes a determination that the cost/price to the Government are expected to be fair and reasonable.

8. A description of the market research conducted (per FAR Part 10) and the results or a statement of the reason market research was not conducted.

Alternative products were researched by ESOC in an effort to expand options and opportunities to other vendors; however, the need to remain compatible with the Department’s IBM Z Series

Compensation Support Processing System is paramount. No other products identified were determined to satisfy agency requirements

9. Any other facts supporting the use of other than full and open competition such as:

None.

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

None.

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition before any subsequent acquisition for the supplies or services required.

None.