JA IBM MVS_Redacted.pdf

4. Authority: This acquisition is conducted under the authority of the Multiple-Award Schedule Program. The specific authority providing for a limited source award is Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(B), “Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.”

5. Rationale Supporting Use of Authority Cited Above: The MVS software is used for the seamless monitoring of end-to-end performance of business services. VA requires software licenses and maintenance upgrades capable of supporting its existing infrastructure protocols and functionality for continued operational. IO's current infrastructure and software communicates through MVS source code which is based upon IBM proprietary data and source code. Accordingly, only IBM has the requisite knowledge and expertise with VA’s existing MVS infrastructure protocols.

If changes were made to the underlying IBM source code by anyone other than IBM, significant mistakes could be made which would harm VA’s implementation and place IO in jeopardy of not being able to appropriately monitor its data centers.

Additionally, IBM is the only source capable of providing access to IBM’s proprietary source code necessary to develop, configure and implement software updates. IBM does not allow access from outside entities to modify their source code; this can only be done by IBM. The current IBM based infrastructure supports multiple critical VA programs, most notably the Benefits Delivery Network (BDN) which is VA's primary veterans' claims processing, tracking and payment system which tracks and distributes approximately $40 billion in Veterans' entitlements annually. Based on the concerns above, IBM is the only source capable of providing the required MVS software and maintenance upgrades that meets these unique requirements. Further, no other software products are compatible or interoperable with the IO's existing IBM MVS proprietary database structures, protocols, and software application programming interfaces. Due to these proprietary constraints the use of any other vendor for maintenance would require a complete replacement of the IBM infrastructure currently in place. This replacement is estimated to produce duplicative costs of $800,000 in resource costs alone and approximately $20M to replace existing IBM mainframes. This replacement effort is estimated to require a minimum of 18 months. The cost of replacement and the lost time would include the amount of time necessary for installing a new product in a test environment, testing the product which would be necessary to be replicated for the over 60 applications on the mainframe, and putting the new product into production. These estimates of time and costs are based on previous acquisition history and the estimated duplicative costs would not be recovered through competition. In addition, during this time both products would need to be run simultaneously so that there was no downtime.

Failure to maintain the IO’s existing IBM MVS software will have a cascading negative impact on multiple critical VA programs, including BDN. In return, this could result in the interruption of Veterans’ claims processing, which would significantly

FY24 IBM-MVS New Buy VA-24-00053668 impact VA's ability to continue reducing the claims processing backlog and would cause potential harm to Veterans who need continued access to care.

Based on extensive market research, as described in Section 8 of this document, it was determined that there is no competition among vendors for the required software and maintenance upgrades and that IBM is the sole provider of the required IBM software and maintenance upgrades. Further, the current IO infrastructure is based on existing IBM mainframe hardware and software, and VA requires software and software support compatible with the existing infrastructure protocols and functionality for continued operational availability. For example, the required MVS software maintenance provided under this effort will also allow updates to be communicated to the existing IBM Interactive System Productivity (ISPF) software.

Only IBM can provide the necessary upgrades because of the propriety source code required to develop and implement changes. Without access to the proprietary source code, it is not possible to develop the required updates, upgrades, point releases, service releases and security releases. No other source is capable of providing the required software and maintenance upgrades that meets VA’s unique functional requirements to meet Federal Information System Management Act Nation Institute Standards and Technology 800-53 high system controls and Internal Revenue Service Publication 1075 requirements to ensure Financial Tax Information data, specifically requirements addressing system management, file management, audit controls, change management and incident response. In addition, ISPF works seamlessly with an existing implementation of IBM zSecure software licenses across the VA enterprise. IBM zSecure requires ISPF to function correctly and fully. No other license is compatible with or interoperable with the existing IBM zSecure, proprietary database structures, protocols, and software application programming interfaces. The IBM brand name MVS software license upgrades are the only upgrades that meet the Government’s requirements, and IBM is the only provider of maintenance for these licenses.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in Section 8 of this justification. This effort did not yield any additional sources that can meet the Government's requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 8.405-6(a)(2) 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. Further, in accordance with FAR 8.405- 6(b)(3) this justification will be posted with the Request for Quotation on the GSA eBuy website.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed. Specifically, the Government will continue to monitor the marketplace to determine whether other brand software could integrate into VA's existing network infrastructure.

8. Market Research: The Government's technical experts conducted market research by reviewing similar software licenses and maintenance support services in February 2024, to ascertain if there were other products that could meet VA's requirements. Specifically, the Government's technical experts conducted web-based research on software licenses and maintenance solutions including Action Message Format, Message Pack, and Alternative Format Service. As a result of the market research, the technical experts confirmed that as the source code underlying VA’s current MVS implementation is proprietary to IBM, they are the only source capable of providing the required software licenses and maintenance upgrades to the existing IBM MVS software. No other source has the capability of developing and issuing software updates and fixes for IBM MVS software necessary to support the functional requirements stated in Section 5 of this justification. No other software products are compatible or interoperable with the IO's existing IBM MVS proprietary database structures, protocols, and software application programming interfaces. Additionally, all other products researched were unable to meet the Government's maintenance requirements necessary to support IO's existing IBM MVS software or avoid the duplicative costs and time as outlined in Section 5 of this justification.

The required software and maintenance upgrades cannot be purchased through IBM resellers. The Original Equipment Manufacturer, IBM, confirmed in a letter dated February 20, 2024 that the required MVS software and maintenance upgrades are available only through IBM's GSA Multiple Award Schedule contract number GS- 35F-110DA. Additionally, the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Governmentwide Acquisition Contract (GWAC) Market Research Tool was utilized to confirm that the required MVS software and maintenance upgrades are not available under NASA

SEWP.

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. Best Value Determination I hereby determine that the proposed contract action will represent the best value to the Government consistent with FAR 8.404(d). GSA has already determined that the prices on the MAS contract are fair and reasonable. Further price analysis will be conducted, and subsequent negotiations held as necessary. Additionally, price discounts will be sought.

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

This contract action exceeds the simplified acquisition threshold, but does not exceed $750,000, therefore, the certification required by FAR 8.405-6(d)(1) serves as the Contracting Officer’s approval.