JA IBM Software Support-Redacted.pdf

LIMITED SOURCES JUSTIFICATION

FOR LIMITING SOURCES ON THE FEDERAL SUPPLY SCHEDULE PROGRAM

FAR Part 8.4

1. Identification of the agency and the contracting activity:

The Office of Acquisition Management is proposing to enter into an order purchase agreement on the basis of other than full and open competition for IBM Software Support for the Department’s IBM Z

Series Compensation Support Processing System on behalf of the Bureau of Information Resource

Management, Enterprise Server Operations Center (IRM/SIO/ESOC). The period of performance is

1/1/2021 to 12/31/2021.

2. Nature and/or description of the action being approved.

The requested action for approval is a Limited Source Justification and Approval to support a firm-fixed-priced order under GSA Schedules. This is a sole source action of a proprietary licensed product for continued support of IBM z/OS Software, IBM’s GSA contract number is GS-35F-110DA.

3. A description of the supplies or services required to meet the Department’s needs.

This IBM Software Support Renewal is necessary for the continued operation and support of the

Department’s critical Compensation Support Processing System located at the Main State and SA26 annexes. IBM Software Support provides support of Proprietary Licensed Software to meet the needs of the Department.

This Renewal of IBM Software Support is instrumental in maintaining the integrity of the Proprietary

IBM Z Series System. The annual coverage outlined in this renewal will provide the necessary Software

Support to ensure that the mission critical Compensation Support Processing System records little or no down time.

IBM Software Support provides required support for IBM z/OS V1 and V2 environments. These environments contain several software packages that must be maintained with Proprietary IBM updates or patches. These updates or patches can only be provided by IBM. Some of these packages are: BDT

FTF, DFSMS, DFSORT, GDDM-PGF, RMF, SDFS, CICS, Tivoli, VTF, Debug Tools, WBS, Fault

Analyzer, File manager, Connect Direct, IHOD and more all require monitoring and maintenance.

IBM is a proven vendor for their products and meets the requirements of the Department of State.

4. The authority and supporting rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the supply or services. This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3), and 40 U.S.C. 501), as implemented by FAR 8.4 and substantiated by the following:

☒ 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.

As the proprietary developers of the software, IBM is the only source capable of providing software maintenance at the required level of quality for IBM mainframe-specific support. The existing platform currently uses the IBM proprietary product, making the vendor uniquely qualified to provide the necessary support and maintenance. Furthermore, the renewal of the IBM mainframe software is essential to the continued operation and support of the Department’s current IBM Z Series compensation support processing system which enables accurate payroll processing and management. All domestic payroll databases are securely managed using this highly specialized IBM software for the IBM Z. Interruptions in service or alterations to the platform would directly affect the Department’s employees worldwide.

5. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

FAR 8.404(d) states that GSA has already determined the prices for supplies and fixed-price services under schedule contracts to be fair and reasonable. All items quoted for this order are in accordance with their GSA FSS contract. Additionally, the DOS program office will provide an evaluation and statement that the total price is reasonable for this order. Therefore, the anticipated cost to the

Government will be fair and reasonable consistent with FAR 8.404(d) and FAR 8.405-2(d).

6. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted.

A market research among schedule holders was conducted for this order and there was one vendor who could provide this product. As this is a proprietary product name only justification and only can be licensed by one vendor. Only one contractor’s unique qualifications are used as the basis for this justification. Rather, the products identified by IBM Software herein have been identified as the only products that will meet the Department’s requirements as part of the Department’s IT network infrastructure.

7. Any other facts supporting the use of this justification.

Without Renewal, there is no guarantee that the Proprietary IBM Z Series Compensation Support

Processing System for the Department would provide accurate payroll processing and would directly affect the Department’s Employees worldwide. All Domestic payroll data are managed by using IBM z/OS and IBM Software packages.

8. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

IRM/SIO/ESOC keeps current with regard to new and emerging tools by reviewing technical publications and checking vendors’ web sites. Therefore, if and when a product or products become available that is/are comparable or superior to IBM Software then IRM/SIO/ESOC will perform a technical assessment, including a benefit/cost analysis, to determine whether to retain this product or to transition to a new, more cost-efficient product.