ID02120052_PCR032B_LSJ-MOD_054_FINAL.pdf

Limited Source Justification

I. Agency and Contracting

Requesting Activity

Department of Veterans Affairs (VA)

Contracting Activity General Services Administration Federal Acquisition Service Assisted Acquisition Services One World Trade Center New York, 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 Enhancements to Implement Work Streams to address several enhancements to the HR Smart system.

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 core functionality required by HR Specialists to appoint, separate, or make other personnel changes. HR averages over one million transactions per year due to the size of the VA workforce. The new system provides the automated capability to initiate and process a personnel action. It uses automated workflows to initiate, review, and approve requests for personnel actions, route personnel actions through its approval sequence and provide appropriate notifications. As well, VA employees will use the system to review their own personal compensation information.

The current action, per Price Change Request 32B, addresses requirements for IBM to provide enhancements that will provide for VA to meet OIG compliance and changing needs of the Department. The following requirements are included in this action:

Manager Self Services to include pagelets and workflow for ease of use in performing transactions

Drug Test Listing Report to redesign the report to incorporate Fee Basis and Clinical Trainees who are not currently filling positions within HR Smart.

USA Staffing Integration Requirements, Design, Development, Testing and Implementation – an interface using web services between USA Staffing system and HR Smart. for providing additional data and in real time to assist in streamlining the process of hiring to critical positions. These requirements provide for VA to meet changing needs of the Department. The requirement has follow-on maintenance for the optional out years of the task order.

These requirements have follow-on maintenance (O&M CLINs) for the optional years of the task order at firm fixed fee pricing. The estimated hours required to perform the Time and Materials portion are 8611 hours at a not to exceed ceiling of $1,486,126.64. The work will be performed with a period of performance of 12 months. The total estimated value of this requirement is $2,432,908.64. This includes optional Operations and Maintenance pricing (FFP) for all out years of the task order. The proposed hourly rates are in accordance with the rate table discounted MAS contract labor rates incorporated into the task order and reflect a 25% discount off the GSA schedule rates. GSA has received funding in full for this amount.

The remainder, (O&M), will be funded as FFP amount in each option year.

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 for enhancements required to address system changes required to support VA HR and payroll operations and OIG compliance.

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.

06//06/17

Mark Ricciardi Date PM, OIT, PD, 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.

06/06/2017

Mark Ricciardi Date PM, OIT, PD, 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 T&M rates set forth in the VA HR LOB task order, 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.

Rick Yao Date Contracting Officer

XII. Concurrence

I concur with the Contracting Officer’s determination.

Charles Ade Contracting Officer

Joe Urbanik Acting Director

Theresa Ramos Competition Advocate