JA14-149_HC1028-11-F-0785-P00011_JA_redacted.pdf

LIMITED SOURCE JUSTIFICATION & APPROVAL

FEDERAL ACQUISITION REGULATION (FAR) PART 8 ACQUISITIONS

Multiple Award Schedule (MAS)/Multiple Award Contract Orders under MAS/General Service Schedules (GSA)/Federal Supply Schedules

FAR 8.405-6

Purchase Request Number: CMTEBM140003/14TCWSEE0006 Contract Number: GS-35F-0092M Task/Delivery Order Number: HC1028-11-F-0785 Procurement Title: Integrated Defense Enterprise Acquisition System (IDEAS) – Tier 3 Support Contracting Office: Defense Information Systems Agency (DISA)/Defense Information Technology Contracting Organization (DITCO)/PL8311 Estimated Value: $9,560,358 Limited Source Authority: FAR 8.405-6(a)(1)(i)(B)

LIMITED SOURCE JUSTIFICATION

J&A Number: JA14-149

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, hereby approve this limited source justification in accordance with (IAW) FAR 8.405- 6(a)(1)(i)(B). The acquisition referenced herein is conducted under the authority of the MAS Program.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requirements Activity: DISA

Procurement Directorate (PL1) 2300 East Drive Scott AFB, IL 62225-5406

b. Contracting Activity: DITCO/PL8311

2300 East Drive Scott AFB, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

PL1 is requesting a level of effort (LOE) increase to the initial approved estimated amount of HC1028-11-F-0785 resulting from the use of the FAR 52.217-8 extension clause. HC1028-11- F-0785 is a firm-fixed-price order for labor and cost reimbursable for travel, which was awarded to Appian Corporation, for IDEAS software consulting and programming services. The contract is funded with Defense Working Capital Fund and capital funds. The LOE increases are tied to existing work specifically described in the performance work statement (PWS) at paragraph 6.2 Task 2 – Implement New System Capability. This modification is necessary to support the continued development of the traditional contracting capabilities IAW PWS section 6.2 as well as the ongoing software consulting and programming.

Additionally, this justification is for an extension IAW FAR 52.217-8 for continued software consulting and programming services for the deployment of IDEAS, a single integrated

Integrated Defense Enterprise Acquisition -Tier 3 Support HC1028-11-F-0785 -JA14-149 procurement solution, which is based on Appian’s proprietary Business Process Management (BPM) software, and is a key element of the Enterprise Business Modernization (EBM) program solution.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The purpose of this requirement is for acquisition software consulting and programming services for Appian's Commercial off the shelf (COTS) software. The Appian software forms one of the core components of IDEAS. DISA PL1 manages the IDEAS configuration and deployment to the Defense Enterprise Computing Center, Ogden, Utah. Appian services are required for the IDEAS-unique configuration in support of the need to implement the traditional contracting capability increments in IDEAS, and to enhance and sustain the existing telecommunications contracting capability.

The current task order provides operations, maintenance, and enhancements to IDEAS. In addition to supporting the current telecommunications contracting requirements, it is an EBM goal that the underlying architecture be enhanced IAW PWS section 6.2 Task 2 – Implement New System Capability. The new system capability schedule was planned to start October 2013;

however, unanticipated delays in the funding certification process pushed the schedule by three months under the existing contract. Delayed work began in January 2014. Extending the task order IAW FAR 52.217-8, allows for continued operations and maintenance, in addition to enhancements to the traditional contract writing system.

To support the completion of the PWS 6.2 Task 2 – Implement New System Capability and to onboard other DISA organizations, more time and effort is required than is left on the current task order. The initial approved J&A was $9, 398,750. To date, LOE adjustments in the amount of $5,669,878 have been included since the time of award. The total increased LOE amount of $5,669,878 has brought the current life-cycle task order value to $15,068,628. The estimated potential cost to support the continued efforts under FAR 52.217-8 for the period October 1, 2014 – March 29, 2015 is $3,890,480 and could potentially increase the total life cycle amount to an estimated total of $18,959,108, if all 6 months of FAR 52.217-8 are utilized. This J&A in the amount of $9,560,358 accounts for the increased level of effort of $5,669,878 and the extension estimate of $3,890,480.

4. IDENTIFICATION OF LIMITED SOURCE AUTHORITY AND DEMONSTRATION OF

CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Circumstances Justifying Limiting the Source.

Pursuant to 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.

(b) Description of the Justification.

PL1’s experience with Appian reveals that its COTS product is unique and that Appian has unique knowledge and experience. Appian owns data and developmental rights to the COTS software that forms the core of the IDEAS environment and there is no alternative to this unique

Page 2 of 7 Pages qualification. The IDEAS system is based upon the Appian Enterprise business process management software and the Appian Acquisition Manager (AAM) framework. Appian's software is proprietary and cannot be reverse engineered or modified by other entities. IDEAS is formed from a series of business process models that run inside the Appian Enterprise environment. The Government owns the intellectual rights to those process models, but relies on the Appian COTS product development team to design processes for contracting personnel. The process models are built by configuring Appian Enterprise. It is essential that PL1 retain full access to the experts who completed this process model development to provide uninterrupted support and new capabilities in support of the war fighters’ acquisition requirements.

(c) Justification:

(1) Minimum Government requirements.

The Government requires IDEAS to meet telecommunications and traditional contract writing system standards, and for it to comply with Defense Procurement and Acquisition Policy (DPAP) procurement data standards (PDS) to support DISA’s contract writing and management requirements.

(2) Proposed sole source contractor.

Appian owns data and developmental rights to the COTS software that forms the core of the IDEAS environment and there is no alternative to this unique qualification. The basis of the IDEAS system is the Appian BPM software and the Appian AAM framework. Appian's software is proprietary and cannot be reverse engineered or modified by other entities.

Additionally, Appian has been supporting the development of IDEAS since 2006 as a subcontractor and prime contractor through competitive award (currently through contract HC1028-11-F-0785). They possess over 8 years of unique knowledge of the existing code base and experience with the development of IDEAS software. To competitively re-award this requirement would require a new COTS product; replacement of existing COTS interface systems; fallback to legacy processing; and training for project leads, staff developers, analysts, and end users. Re-awarding competitively at this time would not be in the best interest of the Government .

(3) Discussion regarding cause of the limited source situation.

The Appian BPM software consulting and programming services under this acquisition action bolsters the previously purchased, tested, and implemented acquisition system for DISA PLD.

As such, this application software has been tested, deployed, certified, and accredited. The DISA EBM project determined the specific software requirements. As part of this acquisition, it is required that the established standard, Appian software, be used. The Appian software and solution complies with the DISA – Chief Information Officer standard architecture, and the consulting and programming service support meets architectural development requirements for installing additional application infrastructure and application support upgrades. It is important to note that DISA's contracting for Telecommunications services is unique in Government contracting because it operates under a number of exemptions in the Defense Federal Acquisition Regulation Supplement. These exemptions create unique business and interface requirements that Appian has fulfilled and mastered through its intense involvement. During the design and

Page 3 of 7 Pages development of IDEAS, participation by Appian personnel in the configuration of Appian's software provides a consistent level of knowledge of DISA procurement, system design, testing requirements, and security requirements that would be very costly and time consuming to replicate by a competitor BPM contractor.

(4) Demonstration of limited source.

Other companies do not own data and developmental rights to the COTS software that forms the core of the IDEAS environment and there is no alternative to this unique qualification.

Additionally, it would take a new contractor 6 to 12 months to understand the legacy environment and to develop the unique knowledge required to design and transition DISA to another COTS solution that is DPAP PDS compliant.

(5) Procurement discussion.

The primary constraints of this procurement are schedule and COTS limitations. It is expected that IDEAS will be deployed throughout DISA PLD within the next 14 months (approximately October 2015). The new system capability increases must be implemented prior to deployment.

A sole source acquisition is the only viable option to achieve the desired outcome. The previous acquisition for configuration support services was also a sole source to Appian due to their proprietary ownership and developmental rights of the IDEAS software.

(6) Impact.

If acquisition software consulting and programming services for Appian's COTS traditional contracting new capability are not continued and deployed under the existing task order, then DISA PLD will be limited to telecommunications contract writing functionality. Additionally, this will result in negative impacts to IDEAS users and hamper PLD’s ability to execute its mission of writing and managing contracts for its global customer base. If the new system capability enhancements are not completed, they will render IDEAS incomplete, prevent traditional contract processing, and fail to meet the objectives of the EBM project. PLD contracting activities could potentially fall back to manually processing traditional contracting requirements. Contracting activities would take, at the very least, four times the amount of time to process requirements manually. Currently PLD uses the Procurement Desktop-Defense (PD2) system, however, the agency deadline to be fully operational in IDEAS is fiscal year (FY) 2016.

Legacy systems are not funded for FY16 and beyond.

5. BEST VALUE DETERMINATION:

At the time of the task order award, DITCO concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the government’s needs. GSA has already determined that prices of supplies, fixed price services, and rates for services offered at hourly rates are fair and reasonable. Additionally, a price analysis and comparison to the current contract prices will be accomplished to determine the LOE increase to be fair and reasonable.

The contracting officer will seek a price reduction IAW FAR 8.405-4.

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6. MARKET RESEARCH:

Appian owns data and developmental rights to the COTS software that forms the core of the IDEAS environment and there is no alternative to this unique qualification. The basis of the IDEAS system is the Appian BPM software and the Appian AAM framework. Appian's software is proprietary and cannot be reverse engineered or modified by other entities.

Appian’s partner network provides business and process consulting, implementation services, and packaged solutions. In January 2014, DISA PL14 reviewed Appian’s list of certified business partners to determine if one of them could provide the required level of software consulting and programming services support. DISA PL14 found some expertise is available in sustaining Appian systems; however, the level of expertise necessary to complete development and deployment is not currently available outside of Appian.

7. ANY OTHER SUPPORTING FACTS:

Due to the proprietary nature of the Appian software required, costs and resources expended to standardize the Appian software into DISA's PLD enterprise, and the significant expense to the Government to duplicate another functional replacement initiative through full and open competition , the Appian products must be continued. Technical data packages, specifications, engineering descriptions, statements of work suitable for full and open competition cannot be accomplished at this time due to the proprietary nature of the data and developmental rights of the software.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS THAT LED TO THE

RESTRICTED CONSIDERATION:

(a) Procurement history:

-HC1013-06-C-2001, Initial EBM Contract, Full and Open, Awarded to Vangent Inc., PoP – March 1, 2006 through May 30, 2009

Initial contract during which the Appian product was selected as the best value solution and Appian served as a subcontractor. The prime contractor failed to complete the system configuration and the Government accepted the system in a partially operational state and assumed the role of integrator.

-HC1028-09-P-2167, Certification and Accreditation Contract, Sole Source to Appian, June 1, 2009 through September 30, 2009

Authority: 10. U.S.C. 2304(c)(1) Only One Responsible Source

Small dollar ($100K) contract to review the installed system and ensure it would operate in a Government Enclave. The contractor successfully completed the work and the DISA Designated Approval Authority granted an Authority to Operate.

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-HC1028-09-F-2482, Configuration, Deployment and Sustainment, Sole Source to Appian, PoP

– October 1, 2009 through September 30, 2011

Authority: 10. U.S.C. 2304(c)(1) Only One Responsible Source

Contract to complete system configuration, assist with migration of users and data, and support operation of the system. The contractor successfully completed the work. Appian stabilized the system and all operational capabilities completed. During this period, 896 orders and 312 modifications were completed and 8 contracts were migrated into IDEAS. However, significant data migration remained as the Government struggled with cleanup and migration strategies for the 75,000 actions that existed in the legacy environment.

-HC1028-11-F-0785, software consulting and configuration support services, Sole Source to Appian, PoP - October 1, 2011 through September 30, 2014

Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. §251, et seq.) and Title 40 U.S.C. §501, Services for Executive Agencies. 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. (FAR 8.405-6(a)(1)(i)(B)).

(b) Actions proposed to remove barriers to full and open competition:

Based upon recent market research, there are no alternative sources to Appian for the development and deployment of IDEAS at this time. However, DISA PL14 did identify expertise available in sustaining certain aspects of the IDEAS solution. During reviews of existing Appian installations in the commercial market place and Government, PL14 determined that other contractors (including small businesses) can be utilized to support open source areas of the IDEAS solution after they have been developed. Once development is completed, the Government will perform market research to verify the availability of production support services and seek competition for those services. Note that these production support services are not included in the scope of this justification.

DISA PL14 requires Appian to provide acquisition software consulting and programming services for Appian's COTS product for IDEAS development and deployment. However, the Government will continue to search the marketplace for alternative sources. If the Government determines that Appian or its authorized resellers are no longer required, then the Government will seek full and open competition for the required functionality. DISA PL1 will make every effort to compete development and deployment requirements to the maximum extent practicable.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): An AP was not required for this effort as it does not meet the dollar threshold. A Memorandum for Record for Sole Source 'High-Risk' Acquisition Planning was completed IAW DARS 7.103(S-90).

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

((FAR 8.405-6)(c)(2)(x))

NAME: Ronald J. Anderson SIGNATURE: _See PDF_______________

TITLE/ORGANIZATION: IT Systems Analyst PHONE: 618-229-9259

DATE: ________________

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

(FAR 8.405-6(c)(2)(x))

NAME: Tomica Mishorich SIGNATURE: __See PDF______________

TITLE/ORGANIZATION: IDEAS PM/DISA PLD PHONE: 618-229-9454

DATE: 15 Aug 2014

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Anne Karen Keller SIGNATURE: _See PDF_______________

TITLE/ORGANIZATION: DISA/DITCO/PL8311 PHONE: 618-229-9234

DATE: ________

PROCURING ACTIVITY COMPETITION ADVOCATE APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Since this justification does not exceed $12.5M, this review serves as approval. (FAR 8.405- 6(d)(2))

NAME: Gay D. Arnold SIGNATURE: _______________________

TITLE/ORGANIZATION: PACA/DISA/DITCO PHONE: 618-229-9517

DATE: September 17, 2014

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

ANNE KAREN KELLER, 618-229-9504, anne.k.keller.civ@mail.mil or TREVOR WHITAKER, 618-229-9234, trevor.k.whitaker.civ@mail.mil.

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