ID02160008_Limited_Sources_Justification_USAF_Middleware_Support_v.1__5.9.2016.pdf

RFQ# ID02160008

General Services Administration

Federal Acquisition Service Northeast and Caribbean Region

Limited-Sources Justification May 9, 2016

1. Description of Action:

An approval is requested for a limited-sources award of a FFP GSA FSS, IT Task Order, No.

ID02160008 to HP Enterprise Services, LLC (HP ES), under BPA ID02120007, awarded under GSA FSS, contract No. GS-35F-0323J, on behalf of the Defense Manpower Data Center (DMDC) for procurement of Middleware Support For ActivClient Middleware licenses. The order will be placed on a Firm-Fixed Price basis. The order will be funded with OA&M funds.

2. Description of Supplies or Services:

DMDC requested that GSA’s Assisted Acquisition Services (AAS) Division procure and award an order for Middleware Support Services for ActivClient middleware. The support will be provided to the U.S. Air Force, for its 628,700 seat licenses of ActivClient middleware, from July 1, 2016 through June 30, 2017.

Estimated Costs: $842,458.00

3. Authority Cited:

The acquisition is conducted under the authority of the Multiple-Award Schedule Program.

Specifically, 8.405-6(b)(1)-Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s needs.

4. Reason for Authority Cited:

As reported by the U.S. Air Force: The AF currently has the ActivIdentity smart card middleware product ActivClient fielded across the AF and it has been in place for a number of years. To support continuous vendor support of the product, the AF is requesting purchase of support for these licenses to fulfill its annual maintenance requirement. Since the ActivIdentity product is already fielded and operational, no other vendor product can fulfill this requirement.

No company other than the middleware manufacturer/developer is in a position to provide the services required to maintain and support these licenses. The software source code is owned and modifiable only by ActivIdentity, the company that manufactures ActivClient middleware. A support agreement for another brand of middleware, such as Charismathics, Safenet, or AuthentXware, would not result in the successful support of ActivClient licenses. A support agreement for ActivClient middleware, similarly, would not result in the successful support of Charismathics, Safenet, nor AuthentXware middleware. Each of these middleware products is uniquely constructed and the data rights to the construction are owned by the manufacturer. Only the manufacturer of a particular middleware product is in a position to render support services for its particular product. In the case of this acquisition, the Government has already fielded 628,700 seat licenses of ActivClient, which have been in use successfully for many years, for which only support services provided by ActiveIdentity will suffice.

Under the DMDC Multiple-Award BPA’s (issued as a result of quotes received in response to RFQ No. 02BPA97110001) through which DMDC, the U.S. Air Force, and other authorized agencies may acquire middleware support for ActivClient and other middleware platforms, as required, only one of four BPA holders provided a quote for ActivClient support. HPES, under BPA ID02120007, formed a Contractor Teaming Arrangement with Envoy Data Corporation to support the Government’s stated requirement for ActivClient support services.

5. Efforts to Obtain Competition

Government agencies are allowed to choose their middleware platforms, which are required to be FIPS 201 certified. Once selected, the support of those products must be obtained from the manufacturer of the middleware. The other option the Government may pursue is to forego maintenance services, but this approach inherently entails a high level of risk, in terms of maintaining security and interoperability between systems.

The U.S. Air Force, the intended consumer of the required support services has successfully relied on ActivClient as its middleware since at least 2008. There is no known plan to change from ActivClient to some other platform.

There is no known effort to increase competition for the support services for a particular middleware product, as the middleware manufacturer is in the best position to provide these services.

GSA is supportive of BPA holders’ efforts to add products and services to their BPA’s and has been told by one BPA awardee, XTEC, Inc that it is pursuing the addition of ActivClient support to its BPA award, but no definitive request has been made to add ActivClient support to a BPA holder’s award, despite requests from all four BPA holders to modify their BPAs either for administrative reasons, or to add additional products.

Given the looming deadline for renewal prior to the expiration of the current support interval, with an attendant upshot in the cost of support if support is not renewed by that date, and the availability of at least one responsible vendor who can provide the service, at a fair and reasonable price, the Government will pursue an order with the available vendor.

The Government is hopeful that other BPA holders, besides HPES, the holder of BPA ID02120007, are successful in their efforts to position themselves to supply the Government with ActivClient middleware support, but as of this date no BPA holders except for HPES are qualified to do so.

The Government has considered conducting a new acquisition, as an alternative to issuing a BPA call to HPES for the support services, however, it is unlikely that the Government will receive quotes that are as competitive in pricing as is the HPES quote, which was based on providing middleware support for multiple agencies over a five year time span.

6. Market Research

GSA conducted Market Research to confirm that HPES is capable of providing a quote to meet this requirement. HPES was the re-seller of ActivClient middleware support services under a preceding order, ITSS task number 02FL9780604, used by GSA Region 2, from 2008 to 2011, to award support services for ActivClient middleware services for DMDC and its customers, and the re-seller of said services under ID02120044, issued in June, 2012, order ID02130031, issued in June 2013, order ID02140024, issued in June 2014, and order ID02150022, issued in June 2015, under which services are currently provided. HPES was responsive in all cases then and as the only offeror on the BPA to respond to the Government’s stated requirement for ActivClient middleware support, remains responsive.

GSA also confirmed via market research conducted on GSA Advantage, that there were resellers of ActivClient middleware support with which other BPA holders could team, should they desire to offer ActivClient support to the Government to meet future requirements. The Contractors on GSA Advantage that have ActivClient on their Federal Supply Schedules include:

ENVOY DATA CORPORATION GS-35F-0332S

Software International Resource Corp, (SIRC) GS-35F-0149N

OFFICE INK PROS, INC. GS-35F-179AA

A&T Networks GS-35F-400CA

7. Determination of Fair and Reasonable Pricing

The quote is expected to match, or be lower than, the rates currently quoted for support under HPES existing BPA vehicle , ID02120007, which has been determined to be priced fairly and reasonably.

The Government will review, and use for the basis of any negotiations, previously established pricing under similar contracts for the goods proposed.

Additionally, price reasonableness will be been determined based on the requirements and techniques as set forth in FAR 15.404-1.

8. Interested Source

See paragraph 5, Efforts to Obtain Competition.

9. Other Facts

No other pertinent facts.

10. Contracting Officer Certification

I certify that the above information is accurate and complete to the best of my knowledge and belief.

Date: 05/9/2016 Signature: ___________________________ Charles Ade Contracting Officer (2QFAC)

Date: ______ Signature: ____________________________ Joe Urbanik Deputy Director

Date: ______ Signature: _____________________________ Theresa Ramos Competition Advocate