JA SAP MAIN.pdf

U.S. DEPARTMENT OF JUSTICE

UNICOR, Federal Prison Industries, Inc.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION:

Authority Cited: Sole Source-FAR 6.302-1 41 USC-253(c) (1)/10 USC-2304 (c) (1)

1. Identification of the agency and the contracting agency.

Department of Justice UNICOR, Federal Prison Industries, Inc.

Central Office 400 First Street N. W.

Washington D. C. 20534

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

This is a request for authorization to procure services without full and open competition (Sole Source) for the Acquisition of Commercial Product, SAP ECC annual maintenance and support services. UNICOR wishes to waive other than full and open competition and negotiate with the potential vendor.

3. A description of the supplies or services required that meet the agency’s needs (including the estimated dollar amount).

DESCRIPTION

Primary maintenance and support of our SAP ECC 6.0 system for 2021 yearly maintenance and software licensed from SAP in support of our existing SAP ECC 6.0 system. To be invoiced on quarterly basis:

SAP Maintenance 1/1/21 - 3/31/21 $184,379.390 SAP Maintenance 4/1/21 - 6/30/21 $184,379.390 SAP Maintenance 7/1/21 - 9/30/21 $184,379.390 SAP Maintenance 10/1/21 - 12/31/21 $184,379.390

4. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires the use of the authority cited.

SAP is the only company that can provide primary support/maintenance of our SAP ECC 6.0 system. SAP ECC is the system of record for Federal Prison Industries and continuity of this system is necessary to continue operations.

5. A description of effects made to ensure that offers are solicited from as many potential sources as is practical including whether a CBD notice was, or will be, publicized as required by Subpart 5.2 and, if not, which exception under

5.202 applies.

This is sole source procurement because SAP is the only company that can provide primary support for our SAP ECC 6.0 system. We have previously considered going to third party support for our SAP system. A benefits analysis was conducted and it was determined the risk was too great to go to third party support, and that FPI should stay with SAP primary support.

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

Price is determined to be fair and reasonable, the cost for this calendar year’s support is based of software cost and a percentage from that software costs, and currently we are paying 22%. Generally software maintenance costs are normally 22% of software cost.

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

FPI conducted market research and a cost benefits analysis of primary versus third party support. FPI MISB management decided the risks of third party support was too great. SAP is the only company that can provide primary support.

8. Any other facts supporting the use of other than full and open competition.

SAP is the only company that can provide primary support/maintenance to our SAP ECCC 6.0 system.

9. A listing of sources, if any, that expressed in writing, an interest in the acquisition SAP Public Sector

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

As long as it is determined that FPI management believes the risks of using a third party support is too great to our financial system and that we should only use primary support from SAP, the manufacture of the software, there is nothing that can be done to overcome this barrier.