JA- redacted.pdf

VISN 15 HyperConverged Infrastructure Control Number VA-25-00059069

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 a firm-fixed-price Delivery Order to be issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise Wide Procurement (SEWP) V Government Wide Acquisition Contract (GWAC), for the procurement of brand name Cisco hardware, Nutanix software, NetApp hardware, and HYCU software for the expansion of Veterans Integrated Services Network (VISN) 15’s Cisco virtual server environment.

3. Description of the Supplies or Services: VA, Veterans Health Administration (VHA), VISN 15 Healthcare Technology Management requires the following brand name only products for VISN 15 data centers located in Columbia, MO, Kansas City, MO, Wichita, KS, and Marion, IL. VISN 15 requires Cisco M7 Unified Computing System (UCS) nodes for the expansion of VISN 15’s Cisco virtual server environment. VISN 15 requires the Nutanix hypervisor software and licensing for the Cisco nodes to enable VISN 15 to create virtual servers on the nodes. Cisco requires that Nutanix brand name hypervisor be used for the nodes. VISN 15 requires Nutanix maintenance services to maintain the Nutanix hypervisor software in the Cisco M7 UCS nodes. VISN 15 requires HYCU Suite software and licensing to backup data from the Cisco UCS nodes. VISN 15 requires NETAPP storage appliances for storing the data backed up from the Cisco M7 UCS nodes by the HYCU software. NETAPP maintenance services are required to maintain the NETAPP storage appliances and HYCU maintenance services are required to maintain the HYCU software.

The products will be used for the expansion of VISN 15’s Cisco virtual server environment. VISN 15 Healthcare Technology Management currently has Cisco M5 UCS nodes with Cisco Hyperflex software. However, Cisco is no longer maintaining its Hyperflex software and is out of the business of hypervisor software altogether (Cisco Hyperflex is a hypervisor software). Cisco now has an agreement with Nutanix for Nutanix to provide the hypervisor software for the Cisco nodes. In addition, the Cisco M5 UCS nodes are now forecasted as end-of-life.

VISN 15 also requires NETAPP storage appliances for storing data as well as the HYCU Suite software to perform backups of the data from the Cisco nodes to the NETAPP appliances. VISN 15 requires the NETAPP maintenance services to maintain the NETAPP storage appliances and the HYCU maintenance services to maintain the HYCU software.

The delivery of hardware shall be within four (4) to six (6) weeks from the date of

Award and the Nutanix 12-month term licenses shall begin 90 days from delivery of accepted Cisco hardware. The new hardware is expected to have a useful life beyond five (5) years. The period of performance (PoP) shall be 12 months from date of award with four (4), 12-month option periods. The PoP for maintenance shall be 12 months from date of acceptance. Maintenance shall include 24 hours a day, seven (7) days a week technical support. The total estimated value of the proposed action, inclusive of all option periods, is $3,729,989.74.

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: Currently, VISN 15 has a Cisco Virtual Cluster Environment that resides on Cisco M5 UCS server hardware and is interconnected physically through VISN 15’s Cisco Fabric Interconnects (FI) and Cisco 93180-FX Switches. The FIs are the central hub of the node cluster infrastructure. All the servers tie into the FIs and they are the physical connection between the multiple nodes. VISN 15 has two (2) FIs to enable redundancy.

VISN 15 requires new Cisco M7 UCS servers because the VISN 15 data centers already have the Cisco brand FIs, only Cisco brand server hardware can connect to the Cisco FIs, and the Cisco brand FIs are very, very expensive. Currently, VISN 15 has a Cisco Virtual Cluster Environment that resides on Cisco brand hardware including the Cisco FIs and Cisco Switches and only brand name Cisco products can connect to the Cisco infrastructure. Selecting another hardware manufacturer would introduce a second hardware management strategy and two different methods of monitoring hardware “health”, as another manufacturer would not be interoperable and compatible with the Cisco FIs currently being utilized. Selecting any other OEM would introduce a secondary virtual environment, requiring a minimum of four nodes per site, which would increase VA’s hardware requirements and would create inefficiencies such as additional portals to monitor, multiple parts and support methodologies to manage, and inability to communicate with the existing cluster, as other manufacturers of hypervisor software are not interoperable.

Because VISN 15 has the Cisco FIs and Cisco Switches to create the node cluster environment and monitor the cluster health and because only Cisco servers can connect to the Cisco Fabric Interconnects, VISN 15 requires brand name Cisco M7 UCS servers. Not retaining the current Cisco FIs and Cisco network switches would represent a substantial duplication in cost. Since only Cisco UCS hardware can connect to a Cisco UCS Fabric Interconnect, only Cisco UCS hardware can be used.

This is a highly technical system and not retaining the current Fabric interconnects and network switches would represent a substantial duplication in cost. The VA estimates that that to replace the systems with a different brand name that the duplicated costs would be at least $750,000. This is from replacing the physical hardware (Cisco FI/Cisco 93180) as well as vendor costs to install/integrate and VA FTE cost to support that endeavor.

VISN 15 requires new Cisco M7 UCS servers because the current VISN 15 Cisco M5 UCS nodes have Cisco Hyperflex software, which Cisco is no longer maintaining, and they are already forecasted as end-of-life. Because it is no longer in the hypervisor business at all Cisco now has an agreement with Nutanix for Nutanix to provide the hypervisor software for all Cisco UCS hardware servers. Since the Nutanix software is not compatible with VISN 15’s end-of-life Cisco M5 UCS server nodes VISN 15 cannot run it on the M5 nodes, hence another reason for VISN 15’s requirement for the new Cisco M7 UCS nodes. Any other hypervisor software other than Nutanix would require VA to replace all FIs and switches, as Nutanix is the only hyper-converged software that Cisco approves with their hardware that meets all technical requirements. Additionally, because any Cisco hardware support and software licensing is already covered under VA OIT’s national support and licensing contract with Cisco, it makes sense to stay with Cisco products. Finally, if another manufacturer were selected, it would not share resources (UCS management and enterprise-wide Cisco support; firmware updates) across the two different systems effectively. For these reasons, VISN 15 requires brand name only Cisco M7 UCS servers and the Nutanix hypervisor software that Cisco requires for them. Because Cisco requires brand name Nutanix hypervisor software for the Cisco M7 UCS nodes, brand name only Nutanix hypervisor software and maintenance services must be acquired. This procurement and installation is required to be performed together because medical servers that reside on the infrastructure are in production and will be migrated in production. The migrations, implementation, backup and retention must happen simultaneously in order to reduce downtime or interruptions and minimize impacts to patient care.

The Cisco M7 UCS nodes will need to be backed. Because Nutanix is required for the Cisco M7 UCS nodes and because, in agreement with Nutanix HYCU is the backup and recovery solution for Nutanix virtual servers, brand name only HYCU backup/recovery software is required for Nutanix server backups.

Storage appliances are required for storing medical data from HYCU backups of the Cisco M7 UCS nodes. Brand name only NETAPP storage appliances are required because HYCU runs on NETAPP storage appliances and HYCU would not function without physical storage to store to. VISN 15 would be without backups of medical data from the Cisco nodes without the NETAPP storage devices and HYCU backup/recovery software. NETAPP storage devices fit into the current day VISN15 network design specifications. No other OEM storage appliance will be compatible with the VISN 15 network design. If NETAPP devices were to be procured later, VISN 15 would be without medical data backup/recovery until the devices became available.

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. However, the undersigned VA technical representative determined that limited competition is available among authorized resellers for brand name Cisco hardware server and Nutanix Software environment. 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 Contract 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 actions to be competed.

8. Market Research: The Government’s technical experts conducted market research from September 2024 through February 2025 to ascertain whether any source other than Cisco could provide hardware and software compatible with the current virtual server environment. Brands considered were HP, Dell, and Lenovo.

While other sources had similar hardware and software, no other manufacturers can meet the Government’s needs other than Cisco due to the interoperability with the existing fabric interconnect, the UCS management, and maintenance efficiencies.

Review of software for virtual server environments revealed that if VA were to select any other hypervisor software other than Nutanix, all fabric interconnects and switches would need to be replaced as the only hyper-converged software that Cisco approves with their hardware that meets all technical requirements is Nutanix.

Additionally, VA networking 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 Nutanix software hosted on Cisco hardware is the only solution that can meet all of VA’s needs.

Additional market research was conducted in February 2025 utilizing the NASA SEWP Provider Lookup tool, which resulted in the identification of multiple Service- Disabled Veteran-Owned Small Business (SDVOSB) resellers of the required brand name Cisco and Nutanix hardware and software under Groups B, C and D.

Furthermore, NASA SEWP contract holders have dynamic catalogs where line items can be added based on customer requests provided that the required product or service is within scope of the NASA SEWP V GWAC. The requirement discussed herein was found to be within scope of the NASA SEWP V GWAC in a separate determination.

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.

Robert Hamilton Date Program Manager

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 competition and discounts from NASA SEWP GWAC holders who are resellers of the required brand name Cisco and Nutanix products. Additionally, NASA SEWP has already determined that the catalog prices on its contracts are fair and reasonable. Finally, price analysis shall be conducted by comparing the successful quote to the Independent Government Cost Estimate.

Kimberly Geran Date Contracting Officer

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

Kimberly Geran Date Contracting Officer

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of brand name Cisco, Nutanix, NetApp, and HYCU products 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