JA- redacted.pdf

NetApp Storage Maintenance Renewal Control Number VA-25-00000566

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 Delivery Order issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government-Wide Acquisition Contract (GWAC) for renewal of brand name NetApp hardware and software maintenance support on existing VA owned NetApp, Inc. (NetApp) storage solutions including Broadcom switches. Broadcom switches are included in the NetApp hardware and software converged system solution.

3. Description of the Supplies or Services:

The proposed action is for the renewal of customized brand name NetApp Premium hardware and software maintenance support on existing VA owned NetApp hardware and software converged system solution, which includes Broadcom Switches.

Maintenance support includes 24x7x365 remote hardware and software technical support and targeted response, onsite support, repair, minor updates and upgrades on the NetApp and Broadcom storage solutions. VA utilizes these storage devices to support server virtualization operations, site File Shares and critical medical and administrative data. This maintenance will ensure these items remain operational.

These storage solutions are vital in providing high-availability, virtualized servers for their respective facilities, including fault-tolerance and in-use migrations to support clinical and administrative use cases, resulting in zero loss of data. Both maintenance for NetApp Hardware and Software and Broadcom Hardware and Software Maintenance are required as NetApp utilizes Broadcom equipment in its cluster installations. Broadcom maintenance and NetApp and Broadcom maintenance are inseverable as these two components are integrated together as a storage appliance to make a working converged system solution, and maintenance issues and fixes cannot be validated for either system without support from the other. Therefore, it is important that the maintenance is managed by the same reseller as both maintenance contracts can be engaged by the same contractor troubleshooting the issue and validating the solution. It also benefits VA to have this maintenance managed and co-termed together to avoid a lapse in any appliance’s renewal.

This effort is only for maintenance services on existing NetApp hardware and software converged system solution, which includes Broadcom switches, no software will be renewed or procured under this proposed action. As part of the maintenance services, hardware parts may be replaced as needed. The period of performance shall be one (1)

12-month base period, one (1) 12-month option period with one (1) optional task for training credits. The total estimated price of the proposed action is $13,207,035.72 inclusive of all option periods and optional tasks.

4. Statutory Authority:

Pursuant to Federal Acquisition Regulation (FAR) 16.505(a)(4), the following brand name requirements are 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 Subpart 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:

Based upon market research, as described in Section 8 of this justification, the Government determined that competition is available for this action among authorized resellers of the maintenance support for the customized NetApp and Broadcom solution. As part of this requirement, VA requires continued hardware and software maintenance support for the operation of the pre-existing VA owned storage device configurations in place, inclusive of the 155 NetApp and 12 Broadcom appliances.

NetApp and Broadcom or NetApp and Broadcom resellers are the only sources that can meet all of VA’s technical requirements. NetApp and Broadcom hardware and software issues are addressed through software updates, replacements parts and onsite hardware repair. Only NetApp and Broadcom can provide proprietary software and microcode updates as access to NetApp and Broadcom’s proprietary code is necessary to push updates and fixes to all devices. These updates ensure the NetApp and Broadcom devices have the most up to date security updates, resolves code defects, and ensures the NetApp and Broadcom appliances continue to function. The direct hardware and software support ensures that there is no loss of Veteran data. Only NetApp and Broadcom or a NetApp and Broadcom authorized reseller can provide complete maintenance for these devices, use of any other maintenance would require a complete replacement of all 155 NetApp and 12 Broadcom appliances. Based on market research of similar historical acquisitions, this effort to procure, install, reconfigure, and migrate to new hardware and software would take approximately 12 months and would cost approximately $39,000,000. These costs are not anticipated to be recuperated through competition. This effort would include the procurement of new hardware and software, installation of this hardware, configuration of the hardware, testing the hardware and configuration, and migration of the current data. Replacement of the current solution would also require a significant reengineering effort and potentially result in disruption to server virtualization operations, site File Shares, and critical medical and administrative systems. Without NetApp and Broadcom maintenance support, VA’s ability to perform its mission of serving the Veteran would be significantly compromised as NetApp and Broadcom storage appliances support Veterans Integrated System and Technology Applications, data server virtualization operations and their backups, site File Shares and critical medical and administrative data. Any loss of this data would immediately impact Veterans, as there would be a massive backlog of benefits claims and longer wait times for Veterans to get treated.

VA relies heavily on the data stored within the existing application storage solutions for patient care information. Procurement of the required maintenance and support will ensure that the storage systems remain operational, without interruption.

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. Although the Government is limiting competition as a result of specifying a brand name, competition is viable among resellers for the required brand name maintenance support that are NASA SEWP V GWAC holders. In accordance with FAR 5.301, 16.505(a)(4)(iii), and 16.505(b)(2)(ii)(D), the award notice for this action will be synopsized on the Federal Business Opportunities website and this justification will be made publicly available within 14 days of award. The justification will also be posted to the NASA SEWP V GWAC website with the Request for Quotation for review by prospective GWAC holders.

7. Actions to Increase Competition:

In an effort to remove or overcome barriers to competition in future acquisitions for the requirements described herein, Market research was conducted, details of which are in the market research Section of this document. This effort did not yield any additional sources that can meet the Government’s requirements. It was determined, however, that competition is viable among authorized resellers for this brand name NetApp and Broadcom maintenance. The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be fully competed.

8. Market Research:

The Government’s technical experts conducted market research from March 2024 through June 2024 to ascertain the ability of any other source, other than a NetApp and Broadcom reseller, that can provide the software and hardware maintenance and replacement parts. Specifically, the Government’s technical experts conducted web-based research and discovered that while other maintenance support offerings from alternative manufacturers such as Cisco, Hewlett Packard, EMC Corporation, and International Business Machines exist, they do not meet VA’s technical compatibility/interoperability requirements for the existing NetApp and Broadcom infrastructure in place, and cannot maintain NetApp and Broadcom infrastructure without the ability to modify the proprietary NetApp and Broadcom code. Additionally, only NetApp and Broadcom, or its resellers can access the proprietary source code in order to provide the required maintenance support or provide NetApp and Broadcom replacement parts for the storage solution. Unauthorized maintenance providers do not have access to the proprietary data on the existing NetApp or Broadcom storage hardware to be able to provide the required maintenance for repair, minor updates and upgrades on the NetApp storage and Broadcom solutions. As a result, the Government’s technical experts concluded that only NetApp and Broadcom or resellers have the capability to provide the continued maintenance support for the existing NetApp and Broadcom configurations. In addition, VA Subject Matter Experts regularly review industry trade publications and conduct internet research to ascertain if any other brand name maintenance support is available. Based on all these market research efforts, the Government’s technical experts have determined that only the NetApp and Broadcom brand name maintenance support can meet all the VA’s needs.

Furthermore, OSS issued Request for Information (RFI) number 309278 on the NASA

SEWP V GWAC website on May 16, 2024. The RFI closed on June 6, 2024, with a total of three responses received; two responses were received from Service-Disabled

Veteran-Owned Small Businesses (SDVOSB) and one response was received from a

Small Business. Based on the information gathered from the RFI, the Government’s technical experts determined that 2 (SDVOSBs) of the 3 respondents were capable of meetings the Government’s requirements. The one respondent who was found not capable proposed third-party support that does not provide software maintenance as outlined in the Product Description, as such the proposed solution does not “provide access to the required software and firmware updates to include major releases, point releases, newly released features, service releases and security releases of applicable software/firmware, bug fixes, on-site response and installation of software releases.”

Additional market research was conducted in June 2024, identifying 87 contract holders that are resellers of brand name NetApp and Broadcom hardware and software maintenance support by utilizing the NASA SEWP Provider Lookup tool. Of these 87 resellers, 10 are Historically Underutilized Business Zones, 19 are verified SDVOSBs, 46 are Small Businesses, and 12 are Large Businesses. Furthermore, NASA SEWP has a dynamic catalog where line items can be added on customer requests provided that the required item or service is within scope of the NASA SEWP V contract suite and therefore additional competition may be achieved.

Based on the results of the review set forth above, there is reasonable expectation that two or more SDVOSBs will be able to provide the required hardware and software maintenance support. Therefore, given that there is a reasonable expectation of competition between at least two capable SDVOSBs, it has been determined that the subject Request for Quote will be released as an SDVOSB set-aside under the existing

NASA SEWP V contract vehicle, under the North American Industry Classification

System code 541519.

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.

Drake Johnson Date: ___________________________

Program Manager Signature: ____________________________

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 upon anticipated price competition among NASA SEWP V GWAC holders for the required brand name NetApp and Broadcom hardware and software maintenance support.

Additionally, NASA SEWP has already determined that the product prices on its GWAC are fair and reasonable. Finally, price analysis shall be conducted by comparing the successful quote to the Independent Government Cost Estimate.

Peter Lewandowski Date: ________________________________

Procuring Contracting Officer Signature: ____________________________

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

Peter Lewandowski Date: ________________________________

Procuring Contracting Officer Signature: ____________________________

Office of General Counsel (OGC) Review

I have reviewed this document and find it legally sufficient, based on the representations set forth in the documents and, if any, attachments. The Contracting Officer’s approval is an independently supported decision not wholly reliant on the legal sufficiency determination.

Name Date Office of General Counsel

Advocate for Competition Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of NetApp and Broadcom hardware and software maintenance on an other than fair opportunity basis pursuant to the 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.

Jason Bullen Date Advocate for Competition Technology Acquisition Center Office of Procurement, Acquisition, and Logistics Department of Veterans Affairs