OLULMSSaaSJustifApproval-Aug_20 _2015BCSigned9.23.15.pdf

U.S. General Services Administration

1800 F Street, NW Washington, DC 20405-0002 www.gsa.gov

JUSTIFICATION AND APPROVAL

TO PROCURE USING OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as Director, Internal Acquisition Division, Office of Administrative Services, U.S. General Services Administration, hereby approve the use of other than full and open competition for the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1) Only One Responsible Source (FAR Subpart 6.302-1).

JUSTIFICATION

1. Agency and Contracting Activity: U.S. General Services Administration (GSA), Office of the Chief Information Officer (OCIO), Office of Financial and Human Resource Information Technology Services (IB), Financial Administrative Systems Division (IBF), Fort Worth, TX.

Nature/Description of Action(s): GSA IT and OHRM intend to award a sole source contract to the incumbent vendor, Oracle. The current GSA OLU contract is expiring as GSA is divesting its HR Line of Business (HRLOB) services, which will be procured from another federal agency or private company following the divestment. At that time (estimated in FY 2016), GSA will be required to use the IT systems of the new HRLOB Shared Services Provider (SSP), which may or may not be the same solution GSA is currently using.

Currently, GSA provides HR and payroll services to employees of GSA and more than forty external clients. To meet this requirement, Oracle provides a commercial off-the-shelf (COTS) automated learning management system that GSA uses exclusively to manage mandatory and non-mandatory on-line training, instructor-led training, individual development plans, and competency management under the name GSA Online University (GSA OLU). However, GSA has begun the process of divesting its HR Line of Business (HRLOB) to a new Shared Service Provider (SSP) sometime in FY 2016, i.e., a complete outsourcing of systems as well as integration with current GSA legacy environments. At that time, GSA will be required to use the IT systems of the new SSP, which may have no contractual agreement with Oracle or any software provider under contract with GSA.

If GSA is required to change software vendors on November 1, 2015, and again later during FY 2016, this would potentially require back-to-back four- to six-month periods of work and significant expenditures, as detailed elsewhere in this document. Impact on the divestment initiative would also be substantial due to resource limitations.

Conversely, if a sole source contract is awarded and the divestment occurs while GSA is under contract with Oracle, no more than one data migration process would be required, with estimated savings to the government of $775,000 to $1,200,000. At the end of the sole source contract period, GSA would compete the GSA OLU requirements to utilize one the new SSP’s integrated LMS solutions.

The period of performance of this sole source contract will be from November 1, 2015 through October 31, 2016. We are requesting a six-month option period from November 1, 2016 through April 30, 2017, because there is a dependence on OPM and OMB to review and approve GSA’s HRLOB Divestiture Executive Business Case. The current order is Firm Fixed Price (FFP), and it is anticipated that the follow-on order for the new work will also be

FFP.

Description of Supplies/Services: The contract provides GSA’s Office of Human Resource Management (OHRM) with a commercial off-the-shelf (COTS) automated enterprise-wide system to manage mandatory and non-mandatory online training courses, instructor-led training, individual development plans, and competency management. Additionally, the contract provides the following services: project management; development, modernization, and enhancement (DM&E); data backups; technical helpdesk support; and training. A complete description of each task is available in the Performance Work Statement (PWS).

The purpose of this new order is to acquire the following services for the Government:

CLIN Description

Mandatory or

Optional Price 0001 Taleo eSkillz End User Annual

Support Mandatory $

0002 Taleo LearnCenter Enterprise Mandatory $ 0003 Taleo LearnCenter Enterprise Level 1

Support and Maintenance Mandatory $

Note: Price includes anticipated costs for a 12-month base period beginning on November 1, 2015, and one six-month option period beginning on November 1, 2017.

The total estimated dollar value of the order is $557,945.71, for the period of performance beginning November 1, 2015 through October 31, 2016, with a six-month option from November 1, 2016 through April 30, 2017. We are requesting a six-month option because there is a dependence on OPM and OMB to review and approve GSA’s HRLOB Divestiture Executive Business Case.

2. Identification of Statutory Authority: The authority under which this J&A is made is pursuant to FAR 6.302. In accordance with 41 U.S.C. 253(c) and/or 10 U.S.C. 2304(c), GSA has determined that the procurement requires a sole source in order to satisfy the Agency’s need.

Background GSA OLU is a key legacy HR system and is coming up for re-compete within the next six months. A decision to replace the current vendor’s system will increase both short- and long-term costs to GSA and impact the overall HRT2T migration schedule. In order to minimize the operational impact and unnecessary costs of funding back-to-back migrations of GSA’s training data and eLearning courses, GSA IT and OHRM are requesting to retain the incumbent vendor for another year because Oracle has the requisite knowledge and experience with GSA OLU to maintain the level of support needed without disruption.

GSA OLU SaaS Award History The GSA OLU SaaS contract # GS03T11DSC6001, which was awarded on 11/04/2010 for $1,879,955.69, provides OHRM with an automated learning management system that GSA uses exclusively to manage mandatory and non-mandatory online training, instructor-led training, individual development plans, and competency management under the name GSA Online University (GSA OLU).

The original GSA OLU SaaS contract was an open market competition in 2010. Six proposals were submitted by the following offers:

1. Conerstone OnDemand

2. General Physics Corporation

3. Learn.com

4. Meridian Knowledge Solution, Inc.

5. Plateau Talent Management Solutions

6. Saba

Acceptable offers were submitted by the following:

1. General Physics Corporation

2. Learn.com (Oracle later acquired Learn.com)

3. Plateau Talent Management Solutions.

HRLOB Divestiture Initiative Impact OHRM is currently in the process of divesting both the GSA HR Line of Business (HRLOB) and Payroll Line of Business (Payroll LOB) and IT systems as directed by GSA Administration and has undertaken a formal program, designated HR Transition to Transformation (HRT2T), to implement this migration. The HRT2T team is a joint effort between OHRM and GSA IT personnel. This program requires a complete outsourcing of current HR, Time & Attendance, and Payroll systems to an Office of Personnel Management

(OPM) approved Shared Service Provider (SSP) as well as integration with current GSA legacy environments.

GSA OLU is a key legacy HR system and is coming up for re-compete within the next six months. A decision to replace the current vendor’s system will increase both short- and long-term costs to GSA and impact the overall HRT2T migration schedule. In order to minimize the operational impact and unnecessary costs of funding back-to-back recruitment data migrations, GSA IT and OHRM are requesting to retain the incumbent vendor for another year because Oracle has the requisite knowledge and experience with GSA OLU to maintain the level of support needed without disruption.

Awarding the incumbent a sole source contract:

Eliminates the need for GSA IT to support back-to-back data migrations, which are projected to cost between $775K and $1.2M. These estimates are based on historical data from prior projects and experience from developing more than sixty interfaces to GSA’s payroll and HR systems.

Allows GSA to compete the GSA OLU SaaS requirements to utilize one of the new SSP’s integrated LMS solutions, which would result in substantial cost savings and risk reduction because of the dependencies between GSA OLU and GSA’s Comprehensive Human Resources Integrated System (CHRIS).

Allows GSA to include a data migration task in the new contract so that GSA’s training data and courses can be migrated to the new system.

Eliminates immediate need to complete an Authorization and Accreditation (A&A) to receive authorization to operate a low risk system in the new SaaS environment. This normally takes 4-6 months because it will be designated as a low risk system.

Allows GSA to utilize Single Sign On implementation for GSAOLU, which is scheduled to be deployed by October 2015. This is significant because it helps protect GSA’s PII data. Because GSA OLU must interface directly with GSA’s Comprehensive Human Resource Integrated System (CHRIS) to allow for user access management and to create employee training files that are submitted to OPM’s Electronic Official Personnel Folder, it is important for GSA to utilize one of the LMS solutions that is supported by its new Shared Service Provider HR system.

Impact HR Learning Management System Staff Since there is not a task in the current PWS to migrate GSA’s eLearning courses and training data to another Learning Management Solution (LMS) SaaS solution, OHRM is estimating that it would take at least 4-6 months to transition eLearning courses and training data to the new LMS provider. GSA IT is estimating approximately 3-4 months to build new interfaces between GSA’s CHRIS & GCIMS systems and the new LMS if we transition to a new provider on November 1, 2015. The best-case scenario is that GSA is without a learning management system for 4 months if Oracle is not awarded a sole source contract.

HR Tasks include:

Testing new CHRIS/GSA OLU interface Training for approximately 8 HR system administrators, 40 LMS training administrators, and 1,800 supervisors and managers Coordinating access to the new system for all GSA employees

Impact to GSA Employees On-demand training provided All GSA employees will require access to the new system

Impact GSA IT Staff The GSA IT security staff is estimating that it will take between 3-4 months to complete an Authorization and Accreditation (A&A) to receive authorization to operate a low risk system in the new SaaS environment.

The CHRIS and GSA OLU technical teams must work with the new LMS provider to build a new CHRIS/GSA OLU interface to capture employee training data.

The CHRIS and GSA OLU technical teams must work with the new LMS provider to build a new GCIMS/GSA OLU interface to manage access control.

Work with new LMS SaaS provider to implement Single Sign On.

Development and Modernization Impact There are currently two initiatives underway in terms of development and modernization that will be delivered to the Government but if a change is made to the vendor, GSA will not be able to capitalize on the services provided.

The first initiative will implement Single Sign-On (SSO) for GSA OLU and benefit include:

Reducing password fatigue from different user name and password combinations Reducing time spent re-entering passwords for the same identity Reducing IT costs due to lower number of IT help desk calls about passwords

The second initiative will is to significantly improve the access request management process for GSA OLU and benefits include:

Allows GSA IT to grant access to new employees within days instead weeks Eliminates the one of the CHRIS/GSA OLU interfaces

3. Demonstration of Contractor’s Unique Qualifications: Over the past five years, Oracle has provided exceptional service to GSA. They have developed and mastered their capabilities and possess the institutional knowledge to provide critical support to the Office of Human

Resources Management (OHRM) OLU LMS and its customers. Not awarding a sole source sole source contract to the incumbent would disrupt GSA’s ability to ensure adequate training content is available for GSA employees and contractors through GSA OLU.

Justification Since the Oracle SaaS solution already contains all of GSA’s eLearning courses and training data, Oracle is uniquely qualified to serve as GSA’s Learning Management System SaaS solution for another year. Awarding Oracle a sole source contract allows GSA to select a new HRLOB Shared Service Provider and to utilize one of the new SSP’s integrated LMS solutions and to award a contract that includes migration plans for both eLearning courses and training data.

A sole source contract is warranted by the substantial cost savings and risk reduction to GSA’s HRLOB Divestiture project because the GSA OLU re-compete occurs as GSA is divesting its HR Line of Business (HRLOB) services, which will be procured from another federal agency or private company following the divestment. At that time, GSA will be required to use the IT systems of the new HRLOB Shared Services Provider (SSP), which may have no contractual agreement with Oracle or any software provider under contract with

GSA.

4. Determination of Fair and Reasonable Cost: Based on the historic cost information currently available, the contracting officer has adequate information to ensure that the cost to the government for this acquisition will be fair and reasonable.

5. Description of Market Research:

The Government conducted market research beginning in February 2015 to evaluate the marketplace and assess vendors’ abilities to meet GSA’s requirements. The Government worked with the U.S. Department of Commerce National Technical Information Service (NTIS) to assess existing Office of Personnel Management (OPM) approved e-training providers’ capabilities. Multiple vendors, out of the dozens of NTIS Joint Venture partners, fully addressed the requirements and appeared to possess the capabilities and experience needed to fulfill the requirements. However, none of the vendors are capable of providing services by November 1, 2015.

While multiple vendors are able to meet GSA’s core requirements, transitioning to a new vendor prior to the HRLOB and Payroll LOB divestitures will result in funding an additional migration that is estimated to cost between $775K and $1.2M. In addition, we would be funding the migration of a learning management system that may not be supported by GSA’s new SSP and would need to be replaced within 6-12 months. At the end of the sole source contract period, GSA would compete the GSA OLU requirements to utilize one of the new SSP’s integrated LMS solutions.

It is in GSA’s best interest that OLU LMS SaaS is awarded to the incumbent provider, Oracle, who has the requisite skills and knowledge and will, therefore, not require any additional start-up resulting in the potential for additional and possibly redundant expenditures on a system that may be decommissioned. In addition, the incumbent presents less risk in providing continuity of service for the remaining period with less threat of disruption to the operations.

For all the reasons stated above, it is in GSA’s best interest that GSA OLU SaaS is awarded to the incumbent provider who has the requisite skills and knowledge and will, therefore, not require any additional migration cost (estimated below):

Estimated to cost between $775K and $1.2M Interfaces development: $200,000 - $350,000 (CHRIS & GCIMS interfaces) Testing: $75,000 to $100,000 (2 interfaces, reports, and eLearning courses) Training: $150,000 to $200,000 (HR staff and all GSA employees) Assessment and Authorization: $150,000 Single Sign On: $200,000 – $400,000

Note: These estimates are based on historical data from prior projects and experience from developing more than sixty interfaces to GSA’s payroll and HR systems. At this time, GSA IT does not have the bandwidth to support a training data migration because the Financial Administrative Systems Division’s development teams are currently supporting CHRIS & PAR mandated changes for projects such as the Affordable Care Act (Employer Shared Responsibility Reporting) and OPM’s Phased Retirement, in addition to supporting both the HRLOB and FMLOB Divestiture projects.

These migration costs will result in a redundant expenditure on a system which may not be supported by GSA’s new SSP. In addition, the incumbent presents far less risk in providing continuity of service for the remaining period with less threat of disruption to the operations. If the incumbent is not awarded a sole source contract, GSA may be without a learning management system for at least four months.

6. Actions Taken to Remove Barriers to Competition:

GSA IT fully intends to compete the GSA OLU requirements to utilize one of the new HRLOB Share Service Provider’s integrated LMS solutions. The new SSP is scheduled to be selected by February 2016.

7. Statement of Delivery Requirements: The proposed period of performance for the sole source award is November 1, 2015 through October 31, 2016, with an option period from November 1, 2016 through April 30, 2017.

8. Total Estimated Dollar Value of the Acquisition Covered by this J&A: The total estimated value of the OLU LMS SaaS sole source award is $557,945.71.

TECHNICAL AND REQUIREMENTS CERTIFICATION (FAR 6.303-2(b)) I certify that the facts and representations under my cognizance, which are included in this Justification and which form the basis for this justification are complete and accurate.

Monica Shackelford Date Director Financial Administrative Systems Division

CONTRACTING OFFICER

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Diane Taylor Date Contracting Officer, Information Technology Contracting Branch

Lisa Ellis Date Chief, Information Technology Contracting Branch

DIANE TAYLOR

Digitally signed by DIANE TAYLOR DN: c=US, o=U.S. Government, ou=General Services Administration, cn=DIANE TAYLOR, 0.9.2342.19200300.100.1.1=47001000011369 Date: 2015.08.21 07:21:08 -04'00'

LISA ELLIS

Digitally signed by LISA ELLIS DN: c=US, o=U.S. Government, ou=General Services Administration, cn=LISA ELLIS, 0.9.2342.19200300.100.1.1=47001000015872 Date: 2015.09.23 09:23:55 -04'00'