JA - Alteryx - Final_Redacted.pdf

Alteryx Renewal Control Number: VA-25-00019207 as an exception to fair opportunity under the statutory authority of Section 41 U.S.C.

4106(c)(2) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505(b)(2)(i)(B), entitled “Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

5. Rationale Supporting Use of Authority Cited Above: Alteryx software is unique in its ability to deliver a no-code experience required for users that enables all skill levels of the FMBT program users to contribute to program objectives, significantly shortening data cleanse efforts and preventing errors. The ability to provide a no-code experience is a critical functionality that allows the FMBT program to deliver a repeatable process for reporting accuracy, dashboarding performance and maintenance in a consistent format quality across multiple FMBT program future waves. Only Alteryx can meet this functional requirement. Failure to renew the Alteryx software inclusive of maintenance and technical support will reverse progress made in the speed and quality of FMBT’s data conversion effort from VA’s legacy financial system to the new Integrated Financial and Acquisitions Management System (iFAMS). VA estimates that without the renewal of Alteryx software licenses, maintenance and technical support, VA will abandon the approximately $12 million investment made since 2021 on data conversion progress. Specifically, since July 2021, Alteryx has been used to pull data from implemented legacy systems. Alteryx, through its proprietary algorithm has converted this data into a format which is used for current data reporting efforts.

Due to proprietary constraints, no other vendor would be able to utilize this data and meet the reporting requirements. An alternative vendor would lead to an estimated duplication of cost of approximately $12 million to reconvert data from the implemented legacy systems. In addition, introducing a new software application would require additional time to go through the Authorization to Operation (ATO) process and installation of a new platform is estimated at least 12 months to receive the ATO approval and staff trained on a new software. This estimate is based on previous acquisition history. Additionally, any change to an alternative brand name software would require VA to replace existing data reporting process for currently live iFAMS waves, leading to significant operational disruptions. This would pause current iFAMS waves mid-implementation leading to significant risk to the go-live schedule dates for the FMBT Program. This would in turn negatively impact VA’s ability to provide service to Veterans. Without access to Alteryx proprietary source code, no other source is able to provide maintenance or technical support inclusive of program updates, fixes, security alerts and critical patch updates, tax, legal and regulatory updates, upgrade scripts, certification with most new third-party products/versions, major product, and technology releases, which may include general maintenance releases, selected functionality releases and documentation updates.

Additionally, a result of proprietary constraints, use of any other brand name license and maintenance and technical support will negate the investment in setting up FMBT’s current data preparation and data mining effort, essentially eliminating all the progress made on data conversion efforts on multiple implementation waves since July of 2021, and would significantly impact the schedule on the FMBT program’s implementation efforts for Office of Management, Office of Inspector General, Veteran Benefits Administration’s Loan Guarantee and the VHA Configuration Waves. Alteryx or one of its authorized resellers is the only vendor capable of satisfying the VA’s requirements discussed above without VA experiencing significant impact to Veterans and a substantial duplication of the cost that could not be recovered through competition. Without the renewal of the existing Alteryx licenses, it negatively impacts VA’s ability to provide service to Veterans; to include delaying payments to providers in the community as well as for procurement of medical supplies and equipment used to treat Veterans.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. It was determined that limited competition is viable among authorized resellers for the required solution. In accordance with FAR 16.505(a)(4)(iii)(A)(1), this justification will be provided with the solicitation to all appropriate NASA SEWP V GWAC holders. Furthermore, in accordance with FAR 5.301, 16.505(b)(2)(ii)(D), and 16.505(a)(4)(iii), the award notice for this action will be synopsized on the Sam.gov website and this justification will be made publicly available within 14 days of award.

7. Actions to Increase Competition: In order to remove or overcome barriers to competition in future acquisitions for the requirements described herein, the Government will continue to conduct market research to determine if there are any products or services available that will enable future requirements to be competed.

8. Market Research: The Government’s technical experts conducted market research in October 2024 by reviewing similar software products to ascertain if any other products are available to meet VAs requirements. Specifically, the Governments technical experts reviewed similar software and services online from Microsoft (Microsoft Azure Data Services) and IBM (IBM Tool) to determine whether they can provide the necessary licenses and support.

The Government technical experts determined that no other vendor could meet VA’s functional requirements or avoid the substantial duplication of cost and time as outlined in Section 5 of this justification. Additionally, no other vendor can provide the required brand name Alteryx maintenance and technical support as no alternative vendor has access to the proprietary source code required to provide program updates, fixes, security alerts and critical patch updates, tax, legal and regulatory updates, upgrade scripts, certification with most new third-party products/versions, major product and technology releases, which may include general maintenance releases, selected functionality releases and documentation updates to the proprietary Alteryx software. Each software developer offers a proprietary system and associated services that will only operate with its respective hardware and software. Based on this market research, only Alteryx or resellers of Alteryx can meet VA technical requirements.

In addition, the Contracting Officer Representative conducted market research on October 23, 2024, by using the NASA SEWP V GWAC Provider Lookup Tool, which resulted in the identification of 21 potential capable sources that can provide the Alteryx brand name software, including nine (9) SDVOSB re-sellers. On October 23, 2024, a Market Research Request was posted on SEWP and seven (7) SDVOSB Quotes were received. As a result, there is a reasonable expectation for limited competition on the NASA SEWP V GWAC.

9. Other Facts: None.

10.Technical/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.

11.Fair and Reasonable Cost Determination I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based Contracts awarded on NASA SEWP GWAC have already been determined to be fair and reasonable. Competition among multiple authorized resellers is authorized. Finally, price analysis shall be conducted by comparing the successful quote to the Independent Government Cost Estimate.

12.Contracting Officer Certification/Approval I certify that this justification is accurate and complete to the best of my knowledge and belief.

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition for the renewal of Alteryx software licenses, maintenance, and technical support on an other than fair opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.