JEFO - IBM HW SW RedHat Maintenance Extension - redacted.pdf

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Control Number:

Justification Review Document for an Exception to Fair Opportunity - FAR 16.505(b)(2)(i)(C)

Program/Equipment: IBM HW/SW and Red Hat Maintenance Support Renewal

Authority: Federal Acquisition Regulation (FAR) 16.505(b )(2)(i)(C). The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

Amount: estimated

Prepared by: Leslie Dickson Contract Specialist leslie.m.dickson2.civ@army.mil

PH: 1 520-693-1333

Date: 6/18/24

Contracting Officer: Charles Davis PH: 571-588-8553

Date: 6/18/24

Technical:

Requirements:

Procuring Contracting Officer charles.d.davis49.civ@army.mil

Controlled by: United States Army Controlled By: ACC-APG CUI Category: General Procurement and Acquisition Distribution/ Limited Dissemination Control: FEDCON POC: David Paul Clapham

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(Source Selection Information - See FAR 2.101 and 3.104-4)

1 JUN 2023

Justification for an Exception to Fair Opportunity Under FAR 16.505(b )(2)(i)(C)

1. Contracting Activity: U.S. Army Contracting Command - Rock Island (ACC-RI), Rock Island Arsenal, Rock Island, IL 61299-8000

2. Description of Action: Product Director Global Combat Support System - Army (GCSS-Army) requests a firm fixed price bridge Contract to maintain currency of the IBM Hardware, Software and Red Hat licenses under Delivery Orders W519TC23F0447 and W52P1 J22F0283 under Indefinite Delivery Indefinite Quantity (IDIQ) Contract W52P1 J-16-D-0008. ACC-RI projects award for June 2024 and will obligate fiscal year 2024, Operations and Maintenance, Army funds. GCSS-Army has existing IBM HW/SW currently in use. This requirement is for hardware and software maintenance on the IBM equipment purchased in 2018-2020 and RedHat that supports the IBM HW/SW.

GCSS-Army IBM maintenance is currently on two (2) contracts (W52P1 J-22-F-0283 and W519TC-23-F-0447) and will be combined into one contract on this award.

3. Description of Supplies/Services: GCSS-Army has a requirement for license renewals to provide HW and SW maintenance. The renewed licenses will provide IBM brand name Hardware Maintenance Agreements (HWMA), Software Maintenance Agreements (SWMA), Virtual Storage Center (VSC) SW maintenance, and Red Hat brand name maintenance in support of IBM equipment. The IBM equipment in need of maintenance includes E980 Power System servers, Flash Systems, Fiber Channel Adapters, Storage Area Network (SAN) 512b-6, RedHat Enterprise Linux (RHEL), VSC, Tape Drives, Base Frames, HW Management Consoles, SAN Volume Controllers (SVC), Racks, and Power Draw Tools. The equipment supports the GCSS-Army mission and its Enterprise Resource Planning (ERP) systems which track equipment and supplies at all locations Army-wide.

The VSC SW maintenance license is needed for the SVC that manages all storage presented to the IBM server. Without the maintenance provided by the license, there would be no storage for the systems. GCSS-Army requires RedHat maintenance for running RHEL on IBM Power for Systems Applications and Products High Performance Analytical Appliances (SAP HANA). The SAP HANA platform provides real-time analytics to the ERP system for equipment and supply availability status.

In addition, the maintenance provided will ensure that the Defense Information System Agency's (DISA) Information Assurance and Data Compliance policies are adhered to and that servers are running optimally and kept updated at DISA-required security technical implementation guidelines levels.

The projected license maintenance period is This amount of time should be sufficient to finalize award of the follow-on delivery order expected to be solicited through the Computer Hardware and Enterprise Software and Solutions (CHESS) Information Technology Enterprise Solutions - 3 Hardware (ITES-3H) contract vehicle.

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JUN 2023

Table 1: GCSS-Army Maintenance:

e • i Hard Drive Retention Stora e - #2145 HWMA USA CITZ Support Storage - #9840 x5, #9843 x2 Hard Drive Retention Stora e TS4500 - #3584 Hard Drive Retention Power

- #9080 Hard Drive Retention - HMC -#7063 HWMA USA CITZ Storage - #2145 HWMA USA CITZ Support Power #7316 HWMA USA CITZ Support Storage - #9843 x2, #9840 x5 HWMA USA CITZ Support Power #9080 HWMA USA CITZ Support Stora e, #2498 HWMA USA CITZ Support Stora e #8961 HWMA USA CITZ Support Stora e TS4500 #3584 HWMA USA CITZ Support Storage, #3588, Model

00001XXXX

HWMA USA CITZ Support Storage, #3588, Model

00002XXXX

HWMA USA CITZ Support Stora e #7063

TOTAL

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Table 2: GCSS-Army SW Maintenance Renewal

Descri tion Proactive Support Storage TA Option (AE3) - #9840 x5, #9843 x2 Proactive Support Storage, TA Option (SAN968-5), #2498 Proactive Support Storage, TA Option (SAN5128 -6), #8961 Proactive Support Storage TA O tion L55 , #3584

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Control Number:

{Source Selection Information - See FAR 2.101 and 3.104-4)

Proactive Support Storage, #3588, TA O tion F6C Proactive Support Storage, #3588, TA O tion F8C Proactive Support Storage

SVC #2145

Proactive Support Storage TA Option (AE3) - #9840 x5, #9843 x2 Proactive Support AIX / IBM i, #9080 Proactive Support Storage, TA Option (SAN96B-5), #2498 Proactive Support Storage, TA Option (SAN512B -6), #8961 Proactive Support Storage TA O tion L55 #3584 Proactive Support Storage, #3588, TA O tion F6C Proactive Support Storage, #3588, TA O tion F8C SL Storage SAN Infrastructure PRO #2498 SL Storage SAN Infrastructure PRO #8961 Proactive Support Storage -

TA OPTION SVC #2145

SL For Storage USA CITZ Su ort SAN96B-5 #2498 SL For Storage USA CITZ Support (SAN512B-6), #8961 SL For Storage USA CITZ Support, #9840 x5, #9843 x2 MCP Remote Support

HMC #7063

SL For Storage USA CITZ Su ort #3584 SL For Storage USA CITZ Su ort,#3588 SL For Storage Enterprise, #9840 x5, #9843 x2

SL STOR Enterprise Stora e S stem #3584 SWMA for AIX Enterprise Edition #9080 SWMA for AIX Enterprise Edition #9080 SWMA for AIX Standard

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Control Number:

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Edition, #9080 SWMA For PowerVM Enter rise Edition, #9080 SWMA PowerVC Cloud Mana er, #9080 SWMA USA CITZ Support

AIX #9080

SWMA USA CITZ Support

AIX LPP #9080

TOTAL

Table 3: GCSS-Army HW Maintenance e • i TS4500 HD2 Base Frame #3584 TS1060 Ultrium 6 Tape Drive, #3588 TS1060 Ultrium 8 Tape Drive, #3588 HWMA Power, #7316 HWMA Storage (AE3), #9843 HWMA Storage (AE3), #9840 HWMA Power, #9080 HWMA Power, #9080 HWMA Power, #9080 HWMA Power (HMC), #7063 SVC Storage Engine, #2145 System Networking

SAN96B-5, #2498

Storage Networking

SAN512B, #8961

TOTAL

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Table 4: GCSS-Army RedHat Maintenance Renewal

Descri tion QTY Unit Price IBM Advanced Support with Red Hat Enterprise Linux for SAP Solutions for Power, LE, Premium (4 Cores, Up to 4 LPARs, L3 Onl , #RH00761

TOTAL

Table 5: GCSS-Army VSC SW Maintenance Renewal

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Total

Control Number:

Capacity Unit (1-100) Annual SW Subscription & Support Renewal:

Storage nual SW newal:

Storage nual SW ewal:

Storage nual SW ewal:

Storage nnual

IBM Virtual Storage Center Storage Capacity Unit (1251-2000) Annual SW Subscription & Support Renewal:

IBM Virtual Storage Center Storage Capacity Unit (2000+) Annual SW Subscription & Support Renewal:

POP

TOTAL

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Control Number:

GCSS-Army is working to consolidate IBM requirements into a single contract in order to achieve potential savings from volume discounts. Further, a synchronization of IBM requirements will allow for more flu id execution of the phase out plan of th is HW to a competitive cloud-based solution, a concept that is currently off the table due to lack of funds. There has been no progress made on the move of IBM to the cloud since it is pending availability of funds. This acquisition is a coordination opportunity to leverage existing requirements in support of the larger strategy for cloud integration. Based on the Independent Government Estimate, GCSS-Army estimates a dollar value of

, for maintenance support.

4. Authority Cited: Federal Acquisition Regulation (FAR) 16.505(b)(2)(i)(C). The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

5. Reason for Authority Cited: The maintenance of currently deployed in-service IBM HW and SW is essential to the Government. IBM HWMA provides not only on-site repair for HW problems, but it also provides for firmware applied to the HW. The firmware is released periodically from IBM and provides improvements from a HW rel iability and security standpoint. IBM owns all the firmware and only IBM and its

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authorized resellers can provide updates to the firmware. Updated firmware ensures a reliable and secure infrastructure for the Army. Similarly, IBM SVVMA is only available from IBM and its authorized resellers. IBM SVVMA provides SW updates for reliability and security enhancements for the IBM systems SW stack. IBM's support for the VSC provides for license and SW updates for the storage virtualization SW. The VSC SW reduces the overall storage costs and simplifies administration of the storage infrastructure and is the only product that runs on storage volume controllers necessary for this requirement. This support provides an annual license for VSC which is only available from IBM and its authorized resellers.

The final portion of this requirement, Red Hat maintenance, provides commercially tested patches and support for vulnerabilities that are discovered over time within the operating system (OS). IBM and authorized resellers are the only ones who can provide RedHat maintenance specific to IBM systems.

If the Army does not maintain compliance by patching the SW, the Army would not be able to maintain its authorization to operate (ATO). The Government uses ATOs to manage risk in their networks by evaluating the security controls for new and existing systems. An ATO certifies that the organization explicitly accepts the benefits of using the system to outweigh the operational risks it introduces. The GCSS-Army ERP systems provide the Army with real-time logistics, accountability, and readiness.

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Table 6: Cost Impact of Using Other than IBM Equipment

Items Equipment New Equipment Install Removal/Disposal of current IBM Equipment Training (System Users) Total Estimated Cost

Amount

Additional justification for remaining on IBM power platform because shifting to another architecture is cost prohibitive and would result in detrimental impacts to GCSS-Army's ability to function are as follows:

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IBM Software and support have been an intricate and vital operational part of the GCSS- Army Enterprise Solution for many years. Market research accomplished by GCSS- Army identified that I BM has sole ownership of the operating systems underlying code and is the only source who can provide the corrective maintenance services. I

6. Efforts to Obtain Competition: This is a logical follow-on and so is issued to the incumbent of the two existing contracts, which this action replaces. However, the projected follow-on competition is expected to be competed on CHESS ITES-3H IAW AFARS 5139.101-90 (a)(1 ), as CHESS is mandatory for Army organizations to utilize CHESS vehicles. If the product is not on these vehicles, the Army organizations are able to use other vehicles to procure its requirements.

a. Effective competition. The follow-on requirement will be competed among all ITES-3H vendors capable of providing the required maintenance support.

b. Subcontracting competition. NA

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7. Actions to Increase Competition: GCSS-Army is continually monitoring the marketplace and assessing products in search of better hardware/software and overall IT solutions to improve and enhance its systems. At this time, any future procurements of IBM maintenance and support would need to be IBM brand-name as well. This will ensure the networkability of the new components and maintain the integrity of the system which is critical to Army readiness. Additionally, extra equipment needed to interface and a new team of system experts would not be required. GCSS-Army will remain vigilant in monitoring the ever-changing world of IT solutions in case an alternative which leads to expanded competition comes about.

Specifically, GCSS-Army is researching cloud-based solutions for hosting its SW needs.

This would eliminate the need for physical servers and allow for competition to be achieved amongst cloud-hosting services as the physical IBM HW is phased out.

8. Market Research: GCSS-Army conducted market research in May/June 2023, January/February 2024. Market research supported that only IBM, and no other manufacturer's items are capable or substitutable to integrate into the existing infrastructure. Market research also concluded that this brand-name requirement will be fulfilled by soliciting CHESS ITES-3H to see if there are any resellers/vendors.

Additional market research was accomplished via posting of RFI as part of the award process.

Request for Information (RFI) # 485796 was created on the PD CHESS e-Mart Web site on 18 March 2024 and closed 25 March 2024. Responses were

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Another RFI #491759 was created on the PD CHESS e-Mart Web site on 3 May 2024 and closed on 17 May 2024. Responses were

On 08 May 2024, IBM confirmed to the contract specialist their intent to quote the requirement as the incumbent.

As part of the market research, GCSS-Army technical POCs performed a complete review of all IBM equipment to verify a current inventory of in-use, retired end-of-life, and other status of items at all locations. The revised inventory was coordinated with the OEM (IBM) to determine the actual periods of performance, lapsed and current maintenance status, reinstatement requirements, in-compliance requirements and maintenance elements no longer required.

9. Other Facts:

a. Procurement history. GCSS-Army HW/SW and maintenance currently in use has been previously purchased on the following:

Contract: W519TC-23-F-0347 Contractor: CDW Government LLC Award Date: June 2023

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Competitive Status: Sole Source, IAW FAR 16.505(b)(2)(i)(C), Flash System 7300.

Contract: W519TC-23-F-0447 Contractor: I BM Award Date: June 2023 Competitive Status: Sole Source, IAW FAR 16.505(b)(2)(i)(C), E980 servers, etc.

Contract: W52P1 J-22-F-0283 Contractor: I BM Award Date: June 2022 Competitive Status: Sole Source, IAW FAR 16.505(b)(2)(i)(C), Maintenance SAN, SVC, tape drive, etc.

Contract: W52P1 J-21-F-0134 P00005 Contractor: I BM Award Date: June 2021 Competitive Status: Sole Source, IAW FAR 16.505(b)(2)(i)(C), Flash System 900s, SVC, Power Draw Tools Tape Library, maintenance, as well as Red Hat and VSC maintenance

Contract: W52P1 J-20-F-0170 Contractor: Force 3, LLC Award Date: 6 February 2020 Competitive Status: Competed, brand name, IAW FAR 16.505(a)(4), Control No: 20-011 Flash System 900s & HW Maintenance

Contract: W52P1 J-19-F-0751 Contractor: Force 3, LLC Award Date: 16 September 2019 Competitive Status: Competed, brand name, IAW FAR 16.505(a)(4), Control No: 19- 078, Maintenance & SVC Equipment Purchase

Contract: W52P1 J-19-F-0700 Contractor: Force 3, LLC Award Date: 30 August 2019 Competitive Status: Competed, brand name, IAW FAR 16.505(a)(4), Control No: 19- 094, Tape Library Purchase & Maintenance

Contract: W52P1 J-18-F-0079 Contractor: I BM Award Date: 03 August 2018 Competitive Status: Competed, brand name, Control No: N/A, E880 HW Maintenance

Contract: W52P1 J-19-F-0504 Contractor: Force 3, LLC Award Date: 07 June 2019

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Cont rol Number:

Competitive Status: Competed, brand name, IAW FAR 16.505(a)(4), Control No: 19- 050, Flash System 900 & Maintenance

b. Other facts. The goal of this purchase is to keep GCSS-Army up to current supported hardware/software technologies.

10. Technical Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

11 . Requirements Certification: I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowled e and belief.

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action wi ll be fair and reasonable. I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made by using price analysis and the Independent Government Cost Estimate. Prices listed in CHESS ITES-3H vendors' catalogs have been determined to be fair and reasonable at the base contract level. As a part of this basis, certified cost or pricing data is not required in accordance with FAR 15.403-1(a) because the supplies being acquired are considered commercial.

DAVIS.CHARLES. Digitally signed by DAVIS.CHARLES.DENNIS 18 June 2024 Signature: _D_E_N_N_IS ____ D_.1._, 2_02_4_o_s.,_soo_ ,4_1,2_s-o_ s_·o0'_ Date:

Typed Name: Charles Davis Title: Contracting Officer

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

DAVIS.CHARLES. Digitally signed by 18 J 2024 DAVIS.CHARLES.DENNIS u n e

Signature: DENNIS oate:2024.os., soo:47:40 -os·oO' Date: __________ _

Typed Name: Charles Davis Title: Contracting Officer

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