J A.pdf

Control No: RCOI-J&A-FY16-28

Version – August 2015

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: 414th CSB, Regional Contracting Office-Italy, Vicenza, Italy.

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order Number: To be determined

Pricing/Contract Type: Fixed Price

Funds: Operations & Maintenance, Army (OMA) Other Funds: ________

FY: ________

Name of Proposed Contractor(s) and Address:

Data Management Human Resources Spa Largo Lido Duranti 1 00128 Roma

Brand Name Buy: Yes No

3. Description of Services or Supplies:

The requirement is a sole source acquisition to Data Management Human Resources SpA to provide annual software update services for the USAG Vicenza/Livorno Italian Local National Pay System (ILNPS) at 266th Finance. This includes the update of Security Patches with the realignment of two databases that occurs quarterly and updates of all Italian tax and other benefits information. The Government projects award on 16 September 2016 for a period of performance of one (1) year, from 16 September 2016 through 15 September 2017. The contact value is $ 31,131.79.

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited:

a. The current ILNPS has been used by the USAG Vicenza/Livorno since 1 Nov 1994. This system was purchased through Data Management Human Resources SpA by USAREUR Finance Office in 1994 under contract number DAJA37-94-M-0267 from

RCO Berlin. The current ILNPS must be compatible with the Italian Government’s Social Security and Tax Offices, as monthly transmissions to these offices from the US Government are required. Only Data Management Human Resources SPA provides the required database format (proprietary custom source code) for these transmissions, as required by the Italian Government. The ILNPS is required to connect Italian timekeepers with the Italy Finance Office and the Italian Governmental agencies.

b. Data Management Human Resources SpA has the exclusive and proprietary rights to the initial software and any subsequent alterations based upon their General Conditions of Software Maintenance “Supply General Conditions Software Maintenance” attached to the original contract. Furthermore they have a license agreement “Condizioni Generali di Fornitura Licenza D’Uso Software” which states in paragraph 2.1 the following:

“The program and documentation remain the exclusive property of Data Management Human Resources SPA under Data Management Human Resources SPA”

“The client may not copy any operational activities of the program…. and may not give sub license to third parties”

“The client may not modify the Program….”

c. Data Management Human Resources SpA is the only vendor that can perform this requirement due to the nature of its patent and proprietary rights. The company has the expertise to modify the Local National pay system attributed to new or modified Italian laws based on their decades of support of the present system. This includes new tables, leaves and training of Local National pay personnel on these complex issues.

System maintenance consists of implementing periodic changes in pay, allowances and reporting procedures prescribed by Italian law as well as required program maintenance and remedial problems.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at 5.202(a)(12).

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

Action is NOT a brand name restriction and is under $150K, no posting required.

7. Market Research:

Data Management Human Resources SpA has the proprietary rights to the initial software and any subsequent alterations. No other company has the technical expertise to modify, alter or copy any operational activities of the program due to the nature of its proprietary rights to Data Management. Data management personnel is capable to maintain in an effective and efficient way the software system. The program and documentation remain the exclusive property of Data Management Human Resources SpA. Other possible vendors would be unable to complete this task because the program and documentation remain exclusive property of Data Management Human Resources SpA which has the exclusive and proprietary rights to the software process tools utilized by the Italian Payroll in Finance Office

8. Other Facts:

Award of a contract to other than Data Management Human Resources SpA would adversely impact the Government’s ability to provide adequate reporting to the Italian Government and record maintenance to support to the Local National pay system.

Failure to have a compatible system in place with the Italian Government could result in a complete disruption of the service and violation of agreements between the two Governments.