- ID02120052-126_PCR 075_LSJ-Extended Support Phase 3_9.20.2021.pdf

Limited Source Justification

I. Agency and Contracting Activity

Requesting Activity

Department of Veterans Affairs (VA)

Contracting Activity General Services Administration Federal Acquisition Service Assisted Acquisition Services Div.

One World Trade Center New York City, NY 10007-0089

II. Description of Action This contract action is for a sole source award of a modification to International Business Machines (IBM), 6300 Diagonal Highway, Boulder, CO 80301 for services to the Department of Veteran Affairs (VA) to provide personnel, management, and materials necessary to meet the requirements requested for Extended Support Year 3. Once PCR 075 for Extended Support Phase 3 is awarded, it is anticipated this work will be added as a new FFP CLIN. The expected period of performance is September 28, 2021, to September 27, 2022.

Description of Supplies/Services

The requesting activity has an awarded requirement for the design, development, testing, training, deployment, hosting, help desk support, and also operations and maintenance (O&M) services for an enterprise Human Resources Information System (HRIS) (a.k.a. HR Smart) that is replacing the legacy 50+ year old Personnel Accounting and Integrated Data (PAID) which is nearing its end of life. The new system, being provided by IBM, provides VA Human Resource (HR) Specialists with personnel action processing capabilities, and both HR Specialists and all VA employees with benefits administration and compensation management capabilities. This enterprise system serves the entire VA and over 400,000 personnel.

These services are essential to provide critical programmatic support for current and enhanced functionality required in the HRSmart Platform. VA HR averages over one million transactions per year due to the size of the VA workforce, as a result, this work ensures that users are getting the adequate support from this system from a usability and technically feasibility perspective. The current action, per Project Change Request 075, addresses requirements for IBM to support existing and enhanced functionality within the HR·Smart system through functional, programmatic, and testing support ensuring VA’s evolving and growth HR capabilities roadmap is adequately supported.

The VA has implemented numerous PeopleSoft modules into the HR·Smart Platform over the course of FY20. The VA has a large employee population that is being supported by these modules and enhanced capabilities which requires a significant change management and training response.

These modules and capabilities will also require enhancements and functional support to ensure that we are accurately capturing and documenting our requirements.

Extended Support 3 effort provides continued business and functional support necessary to support implemented modules and capabilities that have been turned on and will be phasing into the platform for the VA user’s utilization. This support is needed to ensure there is a high level of user confidence and user adoption.

The extended support service requirement is a firm fixed price of $2,276,094.75. It includes the AdHoc Services and CRs required. The period of performance will be 12 months; from September 2021 through September 2022. The VA has provided funding for this requirement.

III. Authority Cited

FAR 8.405-6(a)(1)(i)(B) only one source is capable of providing the supplies or services required at the level of quality required because the services are unique to the source (IBM).

IV. Reason for Authority Cited

The current contractor, IBM is the developer of the proprietary HRIS SSC solution VA is currently utilizing.

This action provide for improved overall business processing of personnel actions. Outlined below are the relevant factors relating to this effort:

a. The VA requirement is within scope as it provides the continued extended support consisting of business analysis, requirements analysis, change management, communication and training support for the HRIS SSC solution currently in place.

b. The current Contractor, IBM is the developer of the “proprietary” HRIS SSC solution VA is currently utilizing. IBM solely owns and license’s the PeopleSoft based developed solution and is hosting the solution at its facilities.

c. Purchasing the services through multiple contracts or other means would significantly increase the program risk and cause potential mission failure for program solutions. Such an approach would present a very high risk of configuration control issues across the multiple contracts.

d. VA currently does not have the programmatic skills or subject matter expertise in the area of product application development.

This acquisition is being conducted under the authority of the Multiple Award Schedule Program.

This justification is prepared in compliance with 8.405-6(a)(1)(i)(B), which authorizes the limiting of sources when “only one source is capable of proving the service.” Based on the requesting activity’s needs, the intent of this procurement is to minimize cost and transition risk to meet critical mission requirements. IBM has all the necessary labor skill categories to meet the requirements.

V. Efforts to Obtain Competition

Market research was not conducted, details of which are included in the market research section of this document.

VI. Actions to Increase Competition

No actions were taken as this is a one-time upgrade with follow on operations and maintenance that must be performed by the developer of the system.

VII. Market Research

Because of the Private Shared Service Center solution described in IV, market research was not conducted. IBM, as the developer of the proprietary HRIS SSC solution, which includes the software, hardware, hosting and maintenance, prevents any market research from being conducted for this requirement.

VIII. Interested Sources

(See paragraph VI, Efforts to Obtain Competition).

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

Emily Prohaska Date CEHRIS COR, Department of Veterans Affairs

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

Emily Prohaska Date HRLOB COR, Department of Veterans Affairs

XI. Contracting Officer’s Certification

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief, that the order represents the best value to the government and the anticipated cost to the government will be fair and reasonable. The price for the associated services is computed using the established GSA hourly rates set forth in the VA HR LOB task order and IBM’s MAS schedule, reflecting a 25% discount. Based on the foregoing justification, I hereby approve a sole-source task order modification award to IBM for the requirements listed in this document.

Charles Ade Date Contracting Officer

XII. Concurrence

I concur with the Contracting Officer’s determination.

Date Lawrence Unger Deputy Branch Chief

Theresa Ramos Competition Advocate

_________________________________________ Date