Justification and Approval - nChannel - License Maintenance.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

FAR 6.302-1

Nchannel, Inc. Multichannel Software License Annual Maintenance

1. AGENCY AND CONTRACTING ACTIVITY:

General Services Administration (GSA) Federal Acquisition Service (FAS) General Supplies and Services (GSS), Business Operations Division (BOD) 1800 F St NW Washington, DC 20405

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

The statutory authority allowing other than full and open competition is Federal Acquisition

Regulation (FAR) subsection 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

The requirement for which approval is sought is for annual maintenance for 50 Nchannel multi-channel licenses under GSA license number NCEMCM02151502090519D.

A contract for Nchannel’s software license maintenance package would be awarded to:

Nchannel, Inc., Inc.

8760 Orion Place, Suite 210 Columbus, OH 43240

· Contemplated Contract Type: Firm Fixed Price

· Proposed Approach under Consideration: GSA intends to make a sole source award to Nchannel, Inc. Nchannel is the only known source that can meet the Government’s needs.

· Period of Performance: April 1, 2020 through March 31, 2021

· Total Estimated Value of Procurement: $99,960.00

3. DESCRIPTION OF SUPPLIES OR SERVICES REQUIRED TO MEET

AGENCY’S NEEDS:

The Nchannel multichannel (multi-store) software is currently used for the GSA Enhanced Check-Out Version 2 (GECO2) and Store Portal application, which provides GSA customers with access to GSA's catalogs of commercial supplies and products at competitive prices.

Nchannel’s software is the middleware interface between multiple channels within the GECO2/Store Portal application. It feeds data between GSA’s Order Management Services (OMS), which supports GSS’s end-to-end business processes, GECO2, which is utilized in 34 GSA Fourth Party Logistics (4PL) brick-and-mortar stores worldwide, and the Store Portal (SP) application, which is a web shopping application that is utilized as a virtual store for GSS’s Retail Operations. These applications are currently deployed worldwide. Orders for all stores flow through Nchannel’s software, providing GSA with an enterprise-wide view of its customers’ acquisitions.

The software maintenance pack for license NCEMCM02151502090519D is purchased annually. It is the commercial offering that includes software upgrades, enhancements, releases, and associated support. The current maintenance pack was purchased under contract 47HAA019P0010 and ends on March 31, 2020.

GSA requires continued use of the Nchannel software and therefore continued use of the associated software maintenance to ensure the license is updated and secure. Nchannel, Inc. is the only vendor that provides the required maintenance license for their own software platform.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION:

The statutory authority permitting other than full and open competition is FAR Subpart 6.302-1. GSA has determined there is only one responsible source and no other source will satisfy agency requirements. Specifically, the basis for other than full and open competition is that the minimum need can only be satisfied by one supplier with unique capabilities in accordance with FAR 6.302-1(b)(1)(i).

5. SUPPORTING INFORMATION THAT THE CONTRACTOR’S UNIQUE

QUALIFICATIONS REQUIRES THE USE OF ONLY ONE RESPONSIBLE

SOURCE AUTHORITY:

Nchannel, Inc. is the developer and only seller of the proprietary Nchannel software that is currently utilized by GSA as an integral part of GSA Retail Operation’s ordering and order management systems. Due to the proprietary nature of the software, only Nchannel, Inc. is available to provide the maintenance associated with their software licenses.

The Nchannel software is a key component of and any degradation to performance would be detrimental to GSA’s supply chain solutions as the software acts as a middleware application and feeds data between multiple channels. If there were degradation issues with the Nchannel software, communication between the multiple channels within the GECO 2 and Store Portal application would be negatively affected and the entire order management process could be crippled. A breakdown in this system would mean that transaction data from the point of sale systems would not be able to communicate with the order management system and therefore unable to process orders.

Accordingly, the maintenance package is required as it will ensure upgrades and patches for the existing licenses to ensure the overall order management process remains operational, secure, and stable. Any interruption of service would impact the ability of customers to purchase key items to support their military operations and supply chains.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY SOURCES AS PRACTICABLE:

The proprietary software developed and employed by Nchannel, Inc. that is used in the GECO2 and SP systems is not maintained by any other company. An open market search was conducted and no other companies providing Nchannel license maintenance were found.

Market research also revealed that this software is not available on GSA Schedule or on any Government-Wide Acquisition Contract (GWAC). Therefore, a notice will be publicized with the intent to sole-source to Nchannel, Inc.

7. DETERMINATION THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE:

This procurement is for a commercial offering. An Independent Government Estimate was provided and was based on previous purchases of the same offering, which has been purchased annually since 2014. Pricing will also be negotiated with Nchannel, Inc.

8. DESCRIPTION OF MARKET RESEARCH CONDUCTED:

Market research concluded that Nchannel, Inc. is the only known provider of Nchannel Enterprise Edition software maintenance and support. The GECO2 functionality already in place is based on Nchannel’s software. The existing Nchannel Enterprise License for 25 stores was purchased in 2014, with an additional 25 stores added in 2016, bringing the total to 50 licenses.

A Google search for “Nchannel Enterprise Edition License” did not locate companies who provide Nchannel software license maintenance, besides Nchannel, Inc. In addition, a search was also conducted in GSA Advantage. No matches were found.

GSA verified that no other company is able to conduct the services required as they are not granted access to nor do they have a license to use Nchannel’s proprietary software that is used as a part of the GECO2 infrastructure.

9. LIST OF SOURCES EXPRESSING WRITTEN INTEREST IN THIS

ACQUISITION, IF ANY:

No other known sources are available in the marketplace for this requirement.

10. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

None.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

MAKING ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR

SERVICES REQUIRED:

There are no plans to discontinue with the existing Nchannel GECO application. There are plans to upgrade GECO 2 to GECO 3 with the expected implementation date of March 31, 2021, but it is anticipated that annual maintenance will continue to be required.

12. APPROVALS

TECHNICAL REQUIREMENTS PERSONNEL CERTIFICATION:

I hereby certify that any supporting data (e.g. verifying the Government’s minimum needs or scheduled requirements or other rationale for other than full and open competition), which form a basis for this justification, are complete and accurate.

Justin Corsetti Program Manager Business Operations Division GSA FAS Office of General Supplies and Services

CONTRACTING OFFICER CERTIFICATION:

By signing this justification the Contracting Officer certifies that the facts and statements made are accurate and complete.

Sarah Duncan Contracting Officer stin Corsetti

SARAH

DUNCAN

Digitally signed by SARAH

DUNCAN

Date: 2020.03.24 14:10:12

-04'00'

COMPETITION ADVOCATE:

I certify to the accuracy and completeness of this justification to the best of my knowledge.

Competition Advocate

GSA FAS

DOMINIC

LACKEY

Digitally signed by DOMINIC

LACKEY

Date: 2020.03.24 14:18:22

-04'00'

STEPHEN

SMITH

Digitally signed by

STEPHEN SMITH

Date: 2020.03.26

15:16:00 -04'00'

3/27/2020