JOFOC - Totvs fully signed.pdf

Use this template when limiting competition using Simplified Acquisition Procedures for procurements not exceeding the simplified acquisition threshold (see FAR subpart 13.106-1(b)(1)).

SINGLE SOURCE JUSTIFICATION NOT EXCEEDING THE SIMPLIFIED ACQUISTION

THRESHOLD

SECTION 1: IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Department of State Contracting Activity

☐ Office of Acquisitions Management ☐ Foreign Service Institute ☐ Office of Foreign Missions ☐ U.S. Mission to the United Nations ☒ Overseas Post Brazil

Requiring Activity Local Payroll IT System License Contract

SECTION 2: NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED

Approval is requested to award on a sole source basis to TOTVS Brazil for the supplies and/or services described in Section 3 on behalf of the Requiring Activity.

SECTION 3: DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S NEEDS

The requirement is to provide the license to use HR Local System Totvs as well as the system’s cloud and support services for Mission Brazil. The estimated value for the entire period of performance is $ 185,000.00, including options. These supplies/services require that Totvs provides 2 HR licenses to use, 1 full IT license to use, monthly support services (SMS), as well as Cloud Prime services for the system. This will allow the Office of Human Resources to accomplish local employee management, to comply with local labor laws, and eSocial mandatory requirements, according to the Brazilian Government rules and regulations regarding locally employed staff.

Protheus is Totvs’ proprietary IT system, which serves as a database with all personal, labor and benefit related information regarding the Mission’s Locally Employed Staff. The system allows HR to manage and calculate all benefits, transmit all labor and salary information to the Brazilian Government System eSocial, update digital labor books for LE Staff, process terminations according to local labor law, manage absences and leave, issue several different reports, and it is fully customized to fit the Mission’s needs.

SECTION 4: IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION

https://www.acquisition.gov/far/part-13#FAR_13_106_1

In accordance with Federal Acquisition Regulation (FAR) 13.106-1(b)(1), the Contracting Officer has deemed only one source reasonably available based on the following:

☐ Urgency ☒ Exclusive licensing agreements ☐ Brand-name ☐ Industrial mobilization ☐ Other

SECTION 5: DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY

CITED

Totvs is the developer and owner of the IT HR system used to manage Locally Employed Staff. Since it is a proprietary software, protected by copyright, only Totvs is legally able to provide its exclusive license to use. If another vendor were to be considered, it would not be a license to use contract, but a new purchase and implementation contract for another system, which would cost considerably more to the U.S. Mission in Brazil and demand a long time to customize it to the Mission’s rules and needs, until the system is ready for implementation.

The Mission first purchased a system to manage everything related to LE Staff in 2015, in anticipation of the implementation of eSocial, the Brazilian Government’s mandatory system. Totvs was chosen as the software provider after an open solicitation. The system, Protheus, was then customized to the Mission’s needs and implemented in the following years, with the license to use and cloud services contract being done in 2020, the year in which Foreign Missions and International organizations were obligated to fully adhere to eSocial policies and guidelines. Per local law, eSocial must receive all labor information from all employers in the country. Protheus is connected to eSocial and used by HR to transmit all mandatory information to the Brazilian Government in a timely manner, and following local labor law.

This request is a sole source solicitation to renew the exclusive license agreement with Totvs, so the U.S.

Mission can continue to use the software to manage LE Staff and to comply with Brazilian Government’s laws, policies and guidelines.

SECTION 6. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST

TO THE GOVERNMENT IS FAIR AND REASONABLE

By signing the justification, the Contracting Officer makes a determination that the price to the Government is anticipated to be fair and reasonable.

SECTION 7. CERTIFICATIONS

All reviews and approvals should be completed in the order listed unless otherwise authorized or required.

REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Requirements Cognizance:

SIGNATURE:

Tolkyn Y Martin 11/27/2024 Deputy Human Resources Officer Human Resources Office

CONTRACTING OFFICER CERTIFICATION

I certify that this submission is accurate to the best of my knowledge, and that it contains complete information necessary to enable other officials to make an informed recommendation for approval or disapproval.

SIGNATURE:

Jennifer K Sheehan Date Contracting Officer General Services Office