JA - QUANTUM - Redacted.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action:

The proposed action is for the issuance of a firm-fixed price (FFP) delivery order under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government-Wide Acquisition Contract (GWAC) for Quantum brand name hardware and maintenance support for Salt Lake City and St. Louis.

3. Description of Supplies or Services:

The Department of Veterans Affairs (VA), VHA Institute for Learning, Education and Development’s (ILEAD)’s Production and Delivery Service Line requires hardware and maintenance support for both Salt Lake City and St. Louis facilities’ Quantum LTO (Linear Tape Open) 8 library systems. These Quantum LTO 8 libraries support all long-term production and post-production video file archiving at these facilities and allows ILEAD to meet all the NARA (National Archive and Records Administration) requirements for archiving.

The Period of Performance shall be a base period of October 24, 2024 through May 28, 2025 followed by four 12-month option periods.

The total estimated value of the proposed action, including all options, is

4. Statutory Authority: Pursuant to Federal Acquisition Regulation (FAR) 16.505(a)(4), the following brand name requirement is being justified and approved as an exception to fair opportunity under the statutory authority of Section 41 U.S.C.

4106(c)(2) as implemented by FAR 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:

Quantum Hardware and Maintenance Support

VA-25-00006463

Based upon market research, as described in section 8 of this document, it was determined that limited competition is viable among authorized resellers of brand name Quantum hardware and software maintenance to meet the needs of ILEAD.

VHA’s ILEAD Quantum LTO Libraries are used in both the ILEAD Production and Delivery facilities in St. Louis, MO and Salt Lake City, UT. These LTO libraries archive all production and post-production content files and meet the NARA requirements for federal agencies archiving a service contract is needed to support the hardware and software.

Through the Government’s market research, it was confirmed that Quantum is a proprietary system and only Quantum, or its authorized resellers, can deliver the support for these Quantum LTO libraries. Additionally, all service support has to be done by a certified Quantum engineer. Quantum requires that all service support be done by a certified Quantum engineer or all warranties of the Quantum hardware would become null and void.

Quantum brand name LTO library software is the only software that can continue to build upon VA’s existing Quantum LTO library systems. Any other brand name LTO library software is unable to integrate with the currently fielded Quantum LTO library software. Additionally, no other brand name LTO library software would be interoperable or compatible with the currently fielded Quantum LTO library software. Specifically, the Quantum LTO library system uses a proprietary file system ANTF (ADIC Native Tape Format) and a proprietary tape encryption system. No other LTO library software can provide support for Quantum’s ANTF tape file system or encryption services. Furthermore, the Salt Lake City’s Quantum LTO library uses the encryption keys and encryption servers on the St.

Louis Quantum LTO library. This currently fielded environment links the two sites, allows the Government to simplify the infrastructure in order to avoid requiring two fully independent encryption systems at each site. No other LTO library could be fully integrated with this Quantum topology.

6. Efforts to Obtain Competition:

Market research was conducted, details of which are in section 8 of this justification. This effort yielded additional sources that can meet the Government's requirements. However, the undersigned VA technical representative determined that limited competition is available among authorized resellers for brand name Quantum. 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 Contracting Opportunities website and this justification will be made publicly available within 14 days of award.

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 products to be considered.

8. Market Research:

The Government’s technical experts conducted market research from May 2024 - August 2024 to ascertain if sources other than brand name Quantum could meet VA’s needs. The Government’s technical experts conducted market research by reviewing other similar software. This market research is an ongoing process starting in 2019 and continuously being conducted, as recently as August 2024.

The other similar LTO library software reviewed included Hewlett Packard (HP), Spectra Logic, XenData, and IBM. Based on reviews of these products, the Government’s technical experts determined that none of these products can meet the Government’s interoperability and compatibility requirements previously discussed. Review of these products is based on actual VA experience using the competing XenData LTO library system. Additionally, the VA Subject Matter Experts regularly review industry trade publications and conduct internet research to ascertain if any other brand name software is available. Based on all of these market research efforts, the Government’s technical experts have determined that only Quantum LTO library brand name software can meet all of VA’s needs.

As a result of the above, the Contract Specialist conducted additional market research in September 2024 utilizing the NASA SEWP V Market Research Tool by searching for the provider listing for Quantum. The search revealed that Quantum Corp has contract relationships with 132 resellers, 23 of which were SDVOSB’s. Furthermore, NASA SEWP has a dynamic catalog where line items can be added based on customer requests provided the required item or service is within the scope of the NASA SEWP V contract suite; therefore, additional competition may be achieved. As a result, there is a reasonable expectation that competition exists among SDVOSB value added resellers on the NASA SEWP for the needed requirement so this acquisition will be issued as an SDVOSB set-aside. Evidence of the SDVOSB resellers has been placed in the contract file.

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 anticipated limited competition. Additionally, NASA SEWP V GWAC prices have previously been determined fair and reasonable prior to being added to the contract and more competitive pricing may result from competition.

Additionally, the successful quote will be compared to the published price lists on the NASA SEWP V GWAC price catalog of the successful offeror. Finally, the successful quote will be compared with the Independent Government Cost Estimate.

12. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief. As this contract action does not exceed $750,000, the certification below required by FAR 16.505(b)(2)(ii)(i)(B) serves as approval.