JA21-045 Hardware Renewal Support JA Final Redacted.pdf

CLASS JUSTIFICATION FOR

AN EXCEPTION TO FAIR OPPORTUNITY

UNDER FEDERAL ACQUISITION REGULATION (FAR) SUBPART 16.5

ACQUISITIONS BRAND-NAME

Multiple Award Schedule/Multiple Award Contract (MAC) Orders Under MAC/Fair Opportunity, FAR 16.505

Purchase Request Number: Various Contract Number: Various Delivery Order Number: Various Procurement Title: Brand-Name Class Justification and Approval (J&A) for Hardware Renewal Warranty Support and Maintenance Estimated Value:

Statutory Authority: 10 U.S.C. 2304c(b)(5)

BRAND-NAME JUSTIFICATION

Number: JA21-045

Upon the basis of the following justification, I, as Senior Procurement Executive, hereby approve this brand-name class justification for the proposed contractual action, pursuant to the follow:

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency (primary):

Defense Information Systems Agency (DISA) Development and Business Center Logistics and Contracts Division and DISA Operations Center 6910 Cooper Avenue Fort Meade, Maryland 20755-7088

Contracting Office (primary):

DISA/Defense Information Technology Contracting Organization (DITCO)/PL832

Regulatory Authority Statutory Authority Narrative

FAR 16.505(a)(4)

10 U.S.C. 2304c(b)(5)

The particular brand-name, product, or feature is essential to the Government’s requirements; and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the Agency’s needs.

FAR 8.405-6(b)(1)

10 U.S.C. 2304c(b)(5)

FAR 6.302-1

DFARS 206.302-1

10 U.S.C.2304(c)(1)

Only one or a limited number of responsible sources, and no other supplies or services will satisfy agency requirements.

Brand-Name Class J&A for Hardware Renewal Warranty Support and Maintenance-JA21-045

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2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S) BEING APPROVED:

a. The nature of this action is to procure annual hardware renewal warranty support

(hereinafter referred to as “support”) and maintenance for previously purchased proprietary, commercial off-the-shelf, brand-name hardware already integrated within the existing mission partner infrastructure. Scope is limited to the defined duration and ceiling of this J&A for hardware support and maintenance. This J&A does not cover the procurement of new hardware. Scope is restricted to hardware support and maintenance only (to include subscription or license renewals if appropriate). It is noted that the ordered hardware support or maintenance can be in effect longer than the duration of this class J&A as long as service is ordered during the covered period. Orders may also include option periods.

b. As the scope of this action is original equipment manufacturer (OEM)-centric, mission partners may be DISA or external mission customers. Any DITCO contracting office procuring hardware support or maintenance may use this class J&A, though the primary contracting office is PL832. Individual procurements will be awarded as firm-fixed-price contracts or delivery orders to an authorized reseller of the required OEM, utilizing the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) contracts, Army Computer Hardware Enterprise Software and Solutions (CHESS), General Services Administration (GSA) Federal Supply Schedules (FSS), or the open market via beta.SAM.gov.

c. This brand-name class J&A will justify hardware support and maintenance requirements from OEMs for a period of five years, estimated to begin on April 1, 2021 through March 31, 2026. When possible, competitive requests for quotes will be issued for individual requirements to maximize competition among authorized resellers for the required OEM.

A redacted copy of the approved class J&A will be posted with each hardware support or maintenance requirement. The total estimated price of the proposed acquisitions is

. This estimate is based on an analysis of DITCO and NASA SEWP V reports over the past year to identify OEMs and price projections for the next five years.

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS:

The objective of the contracting efforts supported by this brand-name class J&A is to renew annual hardware support or maintenance for previously acquired hardware (may include associated licenses and subscriptions) that are installed on existing mission partner networks.

The brand-name hardware support or maintenance to be acquired under this class J&A requires renewal to sustain existing infrastructure. This may include, but is not limited to, product upgrades, new releases and versions, fixes, and patches.

4. SUPPORTING RATIONALE FOR BRAND-NAME JUSTIFICATION:

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a. A brand-name justification was previously approved for the procurement of each of the original hardware devices now requiring OEM hardware support or maintenance. The initial J&As and associated market research documented the technical reasons and specific details as to why the previously acquired brand-name products were the only ones that could meet the Government’s requirement. Once a brand-name hardware product is procured, only the product OEM or one of its authorized resellers can provide continued hardware support or maintenance, as third party support is not authorized.

The required hardware support or maintenance is essential to the Government’s requirement, as each OEM offers the only brand-name product support or maintenance to maintain the current infrastructure in place. Because the products are already integrated into the mission partner infrastructure, no other products can seamlessly integrate with the existing infrastructure without making changes to the baseline. Existing equipment were specifically designed to interface and operate with specific OEM products. Other hardware brands may provide similar functionality, but without rewriting the application source code and reconfiguration of system connectivity to integrate other OEMs’ solutions into existing OEM-centric environments, the competing programs would not be functional. Introducing alternative products would not meet the Government’s need for interoperability.

Existing OEM products are proprietary, and upgrades and support are available from only the existing OEM or its authorized resellers. If the currently installed hardware support or maintenance is not renewed, the hardware would not receive the necessary updates, upgrades, and patches upon which the Government depends to provide continuity of operations. OEMs for applicable hardware support or maintenance do not authorize any third party hardware modifications or patches to their equipment. Existing product OEMs own the copyrighted equipment, with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the hardware, nor would they have access to the equipment schematics or source code to do so, because copyright and patent laws protect it.

b. After completion of market research for each hardware support or maintenance requirement, the contracting officer will select the best method for accomplishing the acquisition. This brand-name class J&A allows for the following specific authorities:

1) An analysis of hardware orders awarded by DITCO in the past year revealed that at least 92 percent of hardware support or maintenance orders were competed utilizing NASA SEWP fair opportunity and other contract vehicles utilizing FAR

16.5 procedures. For this reason, the primary authority for all actions authorized under this class J&A and competed as Fair Opportunity against NASA SEWP is FAR 16.505(a)(4). The particular brand-name, product, or feature is essential to the Government’s requirements; and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the Agency’s needs. The acquisitions referenced herein are conducted under the statutory authority of 10 U.S.C. 2304(c)(1).

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2) The authority for limiting sources to specific brand-name product(s) when purchasing hardware support or maintenance from GSA FSS or Blanket Purchase Agreement (BPA) orders is FAR 8.405-6(b)(1), as the particular brand-name, product, or feature is essential to the Government’s requirements; and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the Agency’s needs. The acquisitions referenced herein are conducted under the statutory authority of the Multiple Award Schedule Program, 41 U.S.C. 152(3).

3) The authority for limiting sources to specific brand-name product(s) when purchasing hardware support or maintenance from open market sources is FAR 6.302-1/DFARS 206.302-1, only one responsible source or a limited number of responsible sources, and no other hardware support or maintenance will satisfy agency requirements. The acquisitions referenced herein are conducted under the statutory authority of 10 U.S.C2304(c)(1).

5. COST/PRICE FAIR AND REASONABLE DETERMINATION:

a. Price reasonableness will be determined at the individual contract or order level.

Quotes will be solicited from the OEM and/or authorized resellers of the required support through the most appropriate acquisition method, as determined by market research to promote competition to the maximum extent. The contracting officer will make a determination of fair and reasonable price based on the comparisons of competitive quotes received, historical prices, commercial price lists, Governmental contract price lists, and the independent Government cost estimate. In addition, a determination will be made that the contract or order represents the best value to the Government and results in the lowest overall price. Although NASA SEWP, Army CHESS, and GSA have already determined the contract or schedule prices to be fair and reasonable, the contracting officer will seek additional discounts prior to placing an order.

b. All open market contracts with a lifecycle price over placed under this class J&A will be subject to cost and price analysis IAW DARS 15.404-1(S-91)(1), unless an exception applies.

6. MARKET RESEARCH:

a. Based on current market research, interoperability and system constraints, it has been determined that only brand-name hardware support or maintenance can fully meet and satisfy Agency requirements. Only the specific OEM proprietary hardware support or maintenance, which is available through the OEM or their authorized resellers, will satisfy Agency needs and can support the infrastructures currently in place. Current market research also considered the fact that the Agency has been procuring brand-name hardware support or maintenance through the OEM or their authorized resellers for years, with publically posted brand-name J&As that have not been challenged, solidifying the OEM/reseller industry standard.

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b. This brand-name class J&A supports all applicable requirements for a period of five years from date of approval. Market research will be performed for each individual requirement to determine that only the previously awarded brand-name hardware and support can fully meet the Government’s need. There is latitude within NASA SEWP, Army CHESS, and GSA Schedules for small business set-asides, and market research findings will be coordinated through the DISA Office of Small Business Programs if the estimated value is over in accordance with DFARS 219.201(c)(10).

7. ANY OTHER SUPPORTING FACTS:

The hardware support and maintenance sustained by this brand-name class J&A, are for hardware and associated licenses and subscriptions that were originally acquired under an individual approved brand-name J&A.

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

TO THE UTILIZATION OF A BRAND-NAME PRODUCT:

Individual requirements will be competed amongst the authorized resellers of the previously acquired hardware via NASA SEWP, Army CHESS, GSA Schedules, GSA BPAs and beta.SAM.gov. If the OEM elects to surrender their legal ownership, copyright, and/or intellectual property hardware rights for the products being renewed under individual procurements, then DISA will seek open competition. Regardless, the Government will continue to search the marketplace, and alternative hardware solutions will continually be researched to determine if alternative solutions exist. If the Government should determine that the previously acquired brand-name products are no longer required, the Government will seek a competitive acquisition approach for the required functionality. At that point, every effort will be made to provide for competition to the maximum extent practicable, based on new technologies that will support mission partner needs.