JA - ERP Cloud Hosting Subscription Licenses Managed Services - Redacted.pdf

CUI

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF ACQUISITION REQUIRES USE OF CITED

AUTHORITY:

In accordance with FAR 6.302-1(c)(1) this requirement specifically calls for SAP's brand-name Cloud Hosting and Subscription Licenses with Managed Services – a unique SaaS solution that combines SAP's proprietary cloud platform, flexible subscription model, and specialized managed services that only SAP can deliver. SAP, through its subsidiary, SAP National Security Services (NS2), is the only source capable of providing the required SAP Cloud Hosting and Subscription Licenses with Managed Services via a Software-as-a-Service (SaaS) delivery model for the following technical reasons:

Proprietary Technology and Exclusive Capabilities:

Only SAP possesses the proprietary source code, algorithms, and technical specifications required to deliver SAP software solutions via cloud-hosted SaaS model. No other vendor has access to SAP's proprietary technology stack, making it technically impossible for any third party to replicate or provide equivalent SAP cloud hosting services with the same level of integration, performance, and security.

Native Integration and Compatibility:

DLA's existing SAP ERP environment consists of deeply integrated SAP modules that require native SAP cloud infrastructure to maintain system integrity, data consistency, and operational continuity. Only SAP can provide the native cloud hosting environment that seamlessly integrates with DLA's existing SAP licenses, customizations, and business processes without requiring costly and risky system re-engineering.

SaaS Delivery Model Requirements:

The Government's requirement for SaaS delivery of SAP applications can only be fulfilled by SAP and/or it subsidiary, SAP NS2. Third-party providers cannot offer SaaS delivery of SAP products due to licensing restrictions and technical limitations.

Security and Compliance Capabilities:

DLA is already utilizing SAP products for its ERP systems which means that DLA must procure SAP services to continue support for these products or be forced into costly migrations and introduce risk to the DoD and national entities that DLA is required to support. DLA requires SAP cloud services with the required security controls and government compliance standards. As SAP's subsidiary and dedicated national security entity, SAP NS2 maintains unique security clearances, certifications, and government-specific infrastructure that no other vendor can replicate.

Technical Support and Maintenance:

Only SAP possesses the deep technical knowledge and direct access to SAP development teams necessary to provide comprehensive support for complex SAP cloud environments. Third-party providers cannot offer the same level of technical expertise or direct manufacturer support required for mission-critical government operations.

Migration Risk Mitigation:

Any attempt to migrate DLA's extensive SAP environment to a non-SAP solution would require a multi-year, multi-million dollar effort that would introduce unacceptable operational risks to DLA's critical logistics mission. The technical complexity and interdependencies within DLA's SAP ecosystem make migration to alternative solutions technically infeasible within acceptable risk parameters.

DLA requires SAP's exclusive cloud-native SaaS capabilities that only SAP can deliver to support mission-critical defense logistics operations.

DLA's operational mandate demands a resilient, cost-effective SaaS solution. SAP offers a technological solution currently in use by DLA that leverages SAP's unique proprietary technology stack. These capabilities exist exclusively within SAP's ecosystem and cannot be replicated by any other vendor or authorized reseller. Only SAP possesses the native cloud architecture, integrated subscription licensing model, and specialized managed services required to support DLA's complex multi-module ERP environment at scale that supports the Government requirements.

SAP's exclusive SaaS differentiators:

• Proprietary SAP Cloud Platform integration that seamlessly connects all ERP modules (contract solicitation, bid acceptance, contract awards, payments, technical/financial data hosting, and inventory tracking) in a unified SaaS environment

• SAP-native subscription licensing architecture that enables elastic scaling and cost optimization impossible with third-party hosting solutions

• Exclusive SAP managed services expertise with deep integration into SAP's proprietary codebase, security protocols, and performance optimization tools

• SAP's unique cloud-to-cloud migration capabilities that preserve existing customizations and integrations while transitioning to modern SaaS infrastructure

DLA's existing SAP infrastructure represents a sole-source capability where SAP's proprietary technology, licensing models, and managed services are inextricably linked to operational success. The multi-billion-dollar, multi-year risk of platform migration makes SAP's direct SaaS offering the only viable path to achieve enhanced operational capability, resiliency, and cost effectiveness while maintaining DLA's mission requirements, including managing the global supply chain and providing logistics support to all military branches and interagency partners.

Therefore, in accordance with FAR 6.302-1(c)(1), DLA's requirement for SAP ERP Cloud Hosting and Subscription Licenses with Managed Services via SaaS delivery can only be satisfied through a direct acquisition with SAP, or it’s subsidiary, SAP NS2, due to their unique technical capabilities and proprietary technology ownership.

Deloitte Services, LP 7D5S3 Other than Small Business

Diligent Consulting, Inc. 1XY69 Small Business

Dine Source, LLC 7RWA7 8(a) Small Business

KPMP, LLP 5D237 Other than Small Business

New Tech Solutions, Inc. 1QN24 Small Business

RV Global Solutions, Inc. 6TC84 8(a) Small Business

SAP National Security Services, Inc.

(SAP NS2)

32HW2 Other than Small Business

Thorben Consulting, LLC 46SA0 Small Business

Tryfacta, Inc. 73K81 Small Business

Unity Technologies Corporation 4QU93 Small Business

The results of market research confirm that SAP NS2 is the only firm that can provide the required SAP Cloud Hosting and Subscription Licenses with Managed Services via SaaS delivery model due to their exclusive ownership of SAP proprietary technology. DLA has conducted comprehensive market analysis and found no alternative sources capable of providing:

Native SAP cloud hosting with SaaS delivery capabilities Direct manufacturer support and maintenance for SAP cloud environments Seamless integration with existing SAP infrastructure and licenses Government-compliant SAP cloud services with required security controls

The research confirms that third-party resellers and cloud providers cannot offer SaaS delivery of SAP applications or provide the deep technical integration required for DLA's complex SAP environment. Only SAP, through SAP NS2, possesses the proprietary technology, licensing authority, and technical expertise necessary to meet the Government's SaaS requirements.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION:

None

10. A LISTING OF THE VENDOR SOURCES, IF ANY, WHICH EXPRESSED IN

WRITING AN INTEREST IN THE ACQUISITION:

Accenture Federal Services, LLC (1ZD18) Advantaged Solutions, Inc. (ASI) (37NY3) Alamo City Engineering Services, Inc. (1UAD6) Amazon Web Services, Inc. (66EB1) Business Enabled Acquisition and Technology, Inc. (BEAT) (5KW79) C5MI Insight, LLC (9ALF5) Consultadd, Inc. (69RC2) Deloitte Services, LP (7D5S3) Diligent Consulting, Inc. (1XY69) Dine Source, LLC (7RWA7)

KPMP, LLP (5D237)

New Tech Solutions, Inc. (1QN24) RV Global Solutions, Inc. (6TC84) SAP National Security Services, Inc. (SAP NS2) (32HW2) Thorben Consulting, LLC (46SA0) Tryfacta, Inc. (73K81) Unity Technologies Corporation (4QU93)