JA CEIAESA VACO redact_Redacted.pdf

Cisco Enterprise Infrastructure & Advanced Engineering Support Agreement (CEIAESA)

VA-25-00000385

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition and Logistics Technology Acquisition Center 23 Christopher Way Eatontown, New Jersey 07724

2. Description of Action: The proposed action is for the award of a firm-fixed-price brand name Cisco Systems, Inc.’s (hereinafter referred to as Cisco) Enterprise Infrastructure & Advanced Engineering Support Agreement (CEIAESA) that will provide Cisco SmartNet Total Care Service (SNTC), Cisco Focused Technical Support Services, and advance engineering services for VA managed Cisco equipment and applications worldwide.

3. Description of Supplies or Services: This action is required to renew brand name

Cisco maintenance and support services for the VA enterprise network infrastructure that expires September 30, 2024. The objective is to continue support for the VA Office of Information and Technology managed Cisco equipment and applications worldwide with a single, cohesive, CEIAESA that will provide the required support services.

VA currently manages Cisco’s networking, video devices, security products, server, converged virtualization, and Unified Communications (UC) devices that comprise the core of VA’s Information Technology (IT) infrastructure. These devices and applications require effective, proactive, on-going maintenance and support. This contract seeks to continue vital services that provide Cisco Gold Partner premium hardware support and engineering services for over 420,000 Cisco branded devices to include routers, switches, servers, telephones, video devices, and wireless infrastructure. This contract seeks to continue vital continuous (24 hours a day, 7 days a week, and 365 days a year) services that provide Cisco SNTC Service, Cisco Focused Technical Support Services, and embedded advance engineering services for VA managed Cisco equipment and applications worldwide. The contractor must also provide an asset management and tracking tool for VA. The asset management tool shall be used to record, track, and monitor products covered under this contract.

This tool shall optimize the administration, performance, and security of VA by improving asset visibility for Cisco brand name hardware requirements of this contract. In addition, VA also requires Cisco educational credits to improve the knowledge base of VA personnel.

VA has a significant investment in production networking, video (TelePresence), and unified computing infrastructure consisting primarily of Cisco systems equipment and associated software. The VA enterprise network is a critical data transport that connects all users located at VA Central Office (VACO), VA Medical Centers (VAMC), Regional Offices, Community- Based Out-Patient Clinics (CBOC), and external medical, administrative, and financial entities that are required to maintain data integrity and reliability in supporting our Veterans. The VA Internet Connections and Wide-Area Network Backbone consists primarily of Cisco systems equipment and associated software. More specifically, VA owns more than 420,000 Cisco devices in its network that require Cisco SNTC support services. Cisco SNTC is a proactive and reactive technical support service that provides anytime access for VA staff to Cisco engineers and Cisco.com resources to resolve critical operational issues related to Cisco Networking, Telephony, UC, TelePresence, and Unified Computing (server and converged virtualization) devices and applications. In addition, Cisco SNTC provides the following support for all covered products:

registered access to Cisco.com for online technical assistance; software updates and support on devices and licensed operating system software, including all maintenance, minor, and major releases; access to the Cisco Technical Assistance Center (TAC) 24 hours/day, 7 days/week; equipment firmware updates; advanced warranty replacement exchange of failed hardware either by next business day or 24 hours/day, 7 days/week, 4-hour delivery, depending on the type of equipment and its criticality to VA business operations; and Expert Care National Services which provides support for network and system optimization consisting of in-depth design support, software strategy, performance engineering and optimization, knowledge transfer, and mentoring service modules. In addition, the CEIAESA provides advanced engineering resources to support design, implementation, delivery, and management of the Cisco environment within VA’s network enterprise. The CEIAESA will also deliver problem resolution and case management by providing access to Cisco web portals, High Touch Operations Manager, and Technical Account Management services which permits VA to conduct regular conference calls to discuss operational issues, track open cases, and delivery of reports on the uptime of Cisco equipment, any incidents of support that were required and their time to resolution, information about Cisco’s future products for VA network, and the coordination of training in areas to expand VA’s staff level of proficiency, knowledge and expertise. This provides a seasoned approach to VA network maintenance with an expanded focus on its overall network infrastructure which results in quicker resolution of network issues and improved availability of critical VA systems. This proposed action is only for services and ancillary items (hardware replacement parts and / or hardware replacement) necessary to provide support services for VA owned Cisco devices and equipment. No new software or devices will be procured under this contract. The period of performance (PoP) for this action includes a 12-month base period, plus 4 12-month option periods, and 5 optional tasks (inclusive of Cisco learning credits, Cisco University all access licenses, additional enterprise datacenter engineers, additional enterprise datacenter server engineers, and additional network engineers), if exercised. The total estimated value of this action, inclusive of all option periods and optional tasks, is .

4. Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 (c) entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Rationale Supporting Use of Authority Cited Above: Based on market research, as described in Section 8 of this document, it has been determined that limited competition is available for this procurement. VA’s networking, TelePresence, and unified computing infrastructure primarily consists of Cisco devices and associated software that requires Cisco SNTC, Cisco focused technical support services, and advance engineering resources to maintain the integrity, reliability and operability of Cisco devices and equipment within the VA enterprise that are critical to VA’s mission. Due to the proprietary nature of the Cisco equipment and imbedded software within its devices, no other brand name support service provider has the proprietary data to perform the necessary support services as the proprietary data is particular to a single vendor, Cisco. Cisco owns the intellectual property rights to the Cisco network infrastructure devices and software, including Cisco networking, telephony, TelePresence, UC, and Unified Computing devices. Cisco’s equipment contains proprietary source code which prevents non-authorized users to access the source code and modify it. Access to this proprietary source code is required for Cisco products to interoperate and ensure the services provided by the hardware and software components of the appliances are properly configured.

Cisco and its authorized resellers are the only providers that can provide firmware / software updates and support on Cisco devices and licensed operating system software (inclusive of all maintenance, minor, and major releases) that will support basic and advanced features on VA’s existing Cisco infrastructure without disruption.

VA requires that each system operating on VA’s network, which consists primarily of Cisco devices and software, has the most current support updates to defend against potential operational impacts, while also requiring fully interoperable equipment and software replacements in the event of a specific application failure. Without current ongoing maintenance, firmware / software upgrades, patches, and technical support services, critical security and operational updates to VA’s installed base of Cisco networking, telephony, unified communications, and unified computing devices and applications will be eliminated; thereby, placing the sustainability and reliability of VA data-connected services at high risk.

Only authorized Cisco maintenance support providers have access to the proprietary data and source code required to sync with the existing Cisco devices currently integrated in the VA enterprise. The Government’s technical experts contacted Cisco in January 2024 and inquired if its proprietary data was for sale to non-authorized support providers. Cisco advised that its data is not for sale to non-authorized support providers. Any source other than an authorized Cisco reseller would need access to that proprietary data to provide the required services and the ability to configure, maintain, and support updates necessary to ensure the items remain operational and secure. Only Cisco or its authorized resellers and partners can provide direct access to the core Cisco software, upkeep, repairs, and support necessary for the continued maintenance and support of these essential Cisco devices and applications.

Presently, VA owns and utilizes over 420,000 currently installed Cisco brand name devices for enterprise switching, collaboration, enterprise routing, cloud networking, cloud & compute, wireless networking, and service provider routing within its VA IT enterprise. These devices currently utilize Cisco maintenance and services to function effectively. Due to the proprietary nature of the Cisco devices and resultant software / firmware, no other manufacturer can provide maintenance and associated upgrades, updates, and patches which can function on the existing Cisco devices.

Use of any other manufacturer’s maintenance would require replacement of all existing Cisco devices in the VA environment since no other manufacturer’s maintenance and services offerings are compatible or interoperable with Cisco devices. VA is not replacing its current Cisco infrastructure. Replacing Cisco devices would result in extensive procurement and installation efforts for the aforementioned Cisco devices that will be covered by the proposed CEIAESA. The CEIAESA provides support to over 420,000 Cisco devices. The predicted useful life of more than 80% of the VA owned Cisco equipment will be five or more years as the devices have either no Cisco-declared end of life date or have sufficient projected life spans.

The duplicative effort to replace these devices would cause estimated delivery delays of seven years and duplicated costs in excess of $935 million that would not be recovered through competition. This $935 million estimate is based on factoring in the projected total list price of VA’s current Cisco inventory base and the necessity of replacing 50-70% of the devices should VA have to refresh its entire infrastructure as well as VA Subject Matter Experts’ (SME) experience with deployment of similar devices. Specifically, any such replacement would need to occur in a phased approach that is estimated to take approximately seven years cumulatively. All Cisco devices in the VA environment could not be replaced simultaneously to maintain VA’s existing security and operational posture. The VA network is a critical data transport that connects all users located at VACO, VAMCs, Regional Offices, CBOCs, and external medical, administrative, and financial entities that are required to maintain data integrity and reliability in supporting our Veterans. The required maintenance cannot be provided by any other entity but Cisco or an authorized reseller. Cisco devices include firmware and source code which is wholly owned, patented, and maintained by Cisco. No other manufacturer can access this proprietary data by legal means to troubleshoot, diagnose, and issue updates for Cisco equipment in the VA enterprise.

VA requires the authorized reseller to be a Cisco Gold Partner in order to provide the premium level of maintenance and technical support required for CEIAESA. Cisco only provides resellers who are Gold Partners with a successful escalations management framework to assist the VA with Cisco TAC ticket escalation though an internal and partner process, ensuring the VA has robust response to issues. Gold Partners work with VA in a large scale to evolve to a more proactive, preventative long-term model which will increase uptime and predictability of the VA Cisco inventory. Only Cisco Gold Partners have access to the Cisco TAC 24 hours a day, 7 days a week, and only Gold Partners have access to Cisco’s escalation process which is a Cisco verified prioritization standard to ensure that appropriate service is provided to customers through a documented and robust escalation process which escalates problems through the reseller’s management structure and is elevated quickly to Cisco for resolution. Both of which are critical support elements needed for the VA IT Enterprise. In addition, only advance engineering services provided through a Cisco Gold Partner can meet the needs of VA. The level of engineering services the Government requires to support the Cisco infrastructure within the VA IT enterprise exceeds the level of routine services and requires access to Cisco’s proprietary information regarding its hardware and software. This information is not disclosed to the public and only shared with Cisco Partners achieving a gold status.

Cisco requires their Gold Partners to achieve specific advance engineering certifications to support Cisco SNTC contracts. The level of Cisco SNTC engineer support required by VA for its Cisco infrastructure requires engineering certifications only maintained by Gold Partners and issued by Cisco. The Gold Partner affiliated Cisco certifications required by VA are inclusive of but not limited to the following Cisco Certified Internetwork Expert (CCIE) Collaboration, CCIE Data Center, Cisco Certified Design Expert, and Cisco Contact Center Enterprise in order to provide the level of engineering support needed for its Cisco infrastructure. Furthermore, authorized resellers require an additional Advanced Technology Partner (ATP) certification to support VA’s Cisco Unified Contact Center Enterprise (UCCE) platform which is deployed across VA. Cisco requires authorized resellers to hold a Cisco ATP certification to design, optimize and support UCCE technology due to the critical support this application provides to VA in its primary mission of Veteran’s care and benefits. ATP certified resellers deliver specific skills, practices, and capabilities to the end user community above and beyond basic entry level product certifications, which is required for the UCCE platform. Accordingly, only a UCCE ATP certified reseller is capable of providing support for UCCE technology utilized by VA. Based on the above information, the Government’s technical experts concluded that only Cisco and their authorized resellers, who have the required ATP certification, have the required access to Cisco’s proprietary data to maintain Cisco equipment and software, and can ensure critical security updates are provided to the Government.

The UCCE technology supports critical programs across VA. Accordingly, it requires a Cisco reseller with specific skills, practices capabilities only certified by Cisco to ensure proper support. It is also noted that there will be instances where Cisco SNTC, technical support services, and advance engineering support will be performed simultaneously to meet unique, emergent, special, or critical requirements under this contract; therefore, VA requires one support solution to ensure proper configuration. Failure to adequately support the underlying Cisco infrastructure for the VA enterprise will adversely affect VA’s ability to provide health care services and benefits to Veterans since VA is dependent on its Cisco devices to perform several of the agency’s core functions as described in the following paragraph.

Due to the criticality of equipment and applications, as well as identified security threats and operational issues, support updates and current maintenance and support for Cisco devices and applications must be available. Cisco equipment is required to support, interconnect and conduct networking traffic for virtually all computers and other IT equipment components, Veterans Health Information Systems & Technology Architecture (VistA), VistA Imaging Systems, desktop computers, voice, computer room servers, and lab equipment throughout VA. VA is dependent upon the networking infrastructure to efficiently deliver healthcare and perform its business and mission of ensuring timely inpatient and outpatient medical care services, mental health benefits, disability benefits, education benefits, housing benefits, and memorial services to over nine million Veterans. If the core network or other key applications were to fail due to either a software or hardware failure, vital VA medical, benefits, cemetery and associated support operations would be critically compromised resulting in a total loss or at least substantial delay of Veteran Support across all VA service areas thereby negatively impacting Veterans, their families, and caregivers who depend on these critical services.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research Section 8 of this document. This effort did not yield any additional sources that can meet the Government’s requirements other than Cisco Gold Partners authorized resellers with Advanced Technology Partner certification.

Competition among manufacturers of other products is not anticipated for this acquisition. Limited competition, however, is viable among authorized resellers for this brand name effort. In accordance with FAR 6.302-1(c)(1)(ii)(c) and 5.102(a)(6) this justification shall be posted with the solicitation. Furthermore, the proposed action will be synopsized on the Contracting Opportunities Page in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

7. Actions to Increase Competition: In accordance with intent of the Competition in

Contracting Act (CICA) and the agency’s policy to encourage competition to the greatest extent practicable consistent with the actual requirements of the Government, VA conducted an analysis of its current enterprise-wide Cisco Business Critical Enterprise Service Agreement (CBCESA) contract (36C10B20C0006). VA in its review determined that the requirement contained in the CBCESA could be divided into two separate contracts to encourage additional competition while not fundamentally impacting the actual requirements of the Government. As such, this resultant action will be competed for continued Cisco hardware services, educational support, and engineering requirements originating from the CBCESA. A separate contract containing the remaining Cisco software licenses requirement, inclusive of the ancillary technical support, of the CBCESA was procured as its own independent acquisition. The Government will also continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: VA’s technical personnel conducted extensive market research beginning in March of 2023 and concluding in April of 2024. This market research consisted of the review of technical journals and articles, multiple one-on-one meetings with the original equipment manufacturer and third-party resellers, issuing numerous Request for Information (RFI) to ascertain if other brands could meet VA’s functional and technical requirements for the required enterprise level maintenance support. Based on the market research conducted, VA SMEs determined that while similar solutions from alternative manufacturers such as Juniper and Aruba exist, they do not meet VA’s requirements because only Cisco, or an authorized reseller, can provide the support and maintenance for Cisco devices. Other manufacturers, such as Juniper and Aruba, only provide hardware support and engineering services for their specific devices. Also, VA SMEs regularly reviews industry trade publications and conduct internet research to ascertain if any other brand name maintenance support providers are capable of providing a solution which can satisfy VA requirements and interoperate with the existing Cisco devices in place within VA.

Based on all these market research efforts, the Government's SMEs have concluded that only Cisco can provide firmware / software updates and support on Cisco devices and licensed operating system software (inclusive of all maintenance, minor, and major releases) that will support basic and advanced features on VA’s existing Cisco infrastructure without disruption. Only Cisco brand solutions can fully meet the VA's requirements.

VA released its first RFI on October 19, 2023 via SAM.gov. This RFI was extended once and ultimately closed on November 15, 2023. The RFI sought to identify Contractors who are authorized resellers of the required Cisco SmartNet and business critical services, and identify any non-Cisco resellers whose services and/or solutions could provide, or be modified to provide, the services and support required for the Cisco hardware and software (e.g., Cisco networking gear, Cisco Telephony, Unified Communications products, Cisco Telepresence Equipment and Unified Computing/Data Center devices, Collaboration Flex services, and applications, and Cisco Server and Virtualizations hardware) that are currently deployed, and/or will be deployed, throughout VA over the next five years. The RFI yielded 11 responses. No RFI respondents indicated they could provide any other than brand name solution and/or services other than the Cisco services to meet the Government's requirement.

An additional RFI addressing this hardware maintenance and services requirement was released on February 23, 2024, via SAM.gov, and closed on March 15, 2024.

This RFI yielded eight responses. No RFI respondents indicated they could provide any other than brand name solution and/or services other than the Cisco services to meet the Government's requirement. No alternative solutions were proposed.

Therefore, the RFIs did not yield any alternative products that can meet, or whose solutions can be modified to meet, the Government's requirements, other than Cisco or authorized Cisco resellers.

9. Other Facts: None.

10. Technical and 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 on competitive pricing and previous estimated pricing for contracts of similar scale and scope.

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

13. Legal Sufficiency Certification: I have reviewed this document and find it legally sufficient, based on the representations set forth in the documents and, if any, attachments. The Senior Procurement Executive’s approval is an independently supported decision not wholly reliant on the legal sufficiency determination.

Concurrence

In my role as Head of the Contracting Activity, based on the foregoing justification, I hereby concur on the acquisition of the Cisco Enterprise Infrastructure & Advanced Engineering Support Agreement (CEIAESA) that will provide on-going maintenance and support services to support VA’s existing Cisco network infrastructure systems, on an other than full and open competition basis pursuant to the statutory 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.

Date: ____________ Signature: _________________________________ Jeffrey C. Neill Head of the Contracting Activity Technology Acquisition Center

Office of Procurement, Acquisition, and Logistics Department of Veterans Affairs

Approval

Based on the foregoing justification, I hereby approve the acquisition of the Cisco Enterprise Infrastructure & Advanced Engineering Support Agreement (CEIAESA) that will provide on-going maintenance and support services to support VA’s existing Cisco network infrastructure systems, on an other than full and open competition basis pursuant to the statutory 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.

Date: __________ Signature: ___________________________________________

Angela Billups, Ph.D.

Executive Director and Senior Procurement Executive Office of Acquisition and Logistics Department of Veterans Affairs