Justification for Other than Full and Open Competition Notice_Redacted 1.pdf

Office of Inspector General

(AUTHORITY: 41.U.S.C. 1901, as implemented by 13.501 and 6.302)

1. Identification of the agency and contracting activity.

Federal agency and contracting activity. The requirement is being conducted by the Export Import Bank of the United States, Office of Contracting Services (OCS) at 811 Vermont Avenue, NW, Washington, D.C. 20571.

2. Nature and/or description of the action being approved.

• Acquisition purpose and objectives. The Office of Audits and Evaluations (OAE) requires a specific service for an audit software hosting product and licensing service to document and maintain audit, inspection, and evaluation results. The system enables OAE to comply with the Generally Accepted Government Auditing Standards and the Quality Standards for Inspections and Evaluations and support our current audit and record management process.

Wolters Kluwer Financial Services, Inc. for TeamMate+ (TeamMate Plus) Suite software services, maintenance, and licensing. Wolters Kluwer is the exclusive distributor of TeamMate+ software and licenses.

The period of performance for this contract will be five (5) years.

Project background. TeamMate Audit Management Software has been used by the Office of Audits (OA) since 2012. The software was originally purchased in 2012 via competitive procurement, and that the hosting was subsequently obtained from the software creator, Wolters & Kluwer. The software product was hosted through another federal agency from 2012 through 2015. The third-party hosting by another federal agency was deemed a hinderance to OA’s operational efficacy. Prior hosting by another agency caused challenges to functionality that effected productivity and sometimes access to the system. In 2016, OA secured a hosting contracting directly with the vendor, TeamMate.

Our audit process has been designed to work in TeamMate to facilitate a standardized workflow and provide standardized templates that are used by all auditors to ensure the consistency of our audit documentation. Additionally, on October 1, 2018 the Office of Audits and Office of Inspections and Evaluations merged, resulting in the Office of Audits and Evaluations (OAE). The newly merged office seamlessly transitioned all documentation processes into TeamMate. The OIG’s record management policy is structured for the use of TeamMate as our central records repository system.

We currently have assignments in process within TeamMate and switching to a new audit management software product will 1) delay ongoing assignments, 2) prevent OAE from adhering to its Record Management Policy, and 3) prevent us from

Justification for Other than Full and Open Competition maintaining a standardized approach and documentation for our audits, inspections, and evaluations.

OAE has an existing TeamMate Secure Managed Infrastructure Hosting Services contract EXIM-16-P-0062 which expires on August 31, 2021. The hosting service requires TeamMate user licenses to use the program. Therefore, OAE also has an existing TeamMate Audit Management Software User License contract EXIM-17-P- 0081 which is not set to expire until September 28, 2022.

Our current Infrastructure Hosting Service product, TeamMate AM, is being retired by Wolters Kluwer in order to focus on its new product, TeamMate+ . The order will cover OAE requirements including migration to configure new system, transfer historical data, validation of data, and training for staff. OAE requires an audit management solution that is hosted by the Wolters Kluwer. See further details on Wolters Kluwer hosting in the unique qualifications section.

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

• Project title. TeamMate Secure Managed Infrastructure Hosting Service and TeamMate Audit Management Software User Licenses

• Project description. The OAE requirement is for a hosted audit management software product and licenses with TeamMate+ as well as application help desk services. Teammate+ compromises an integrated solution, hosted within a FISMA compliant cloud. The purchase of TeamMate+ an integrated audit solution and service for a cloud hosted program. The cloud hosting service provided by Wolters Kluwer for TeamMate+ differs from normal hosting in that help desk, and other technical support are included. Further description is in the succeeding “Demonstration of contractor unique qualifications” section. To use the Hosting Services, OAE also needs 10 TeamMate Audit Management Software User Licenses.

• Total estimated dollar value and performance/delivery period. The estimated dollar value for the migration to TM+ hosted audit software product is for base year plus 4 option years totaling . The estimated dollar value for the migration of user licenses to TeamMate+ is for base year plus 4 option years totaling Total estimated cost for both the hosted audit software product and user licensing maintenance service is .

• Requirement type.

Research & development (R&D) R & D support services Support services (non-R&D) Supplies/equipment x Information technology (IT) Construction Architect-engineer (A & E) services

Design-build Other (specify): ____________________

• Type of action.

x New requirement Follow-on Other (specify): ______________________

• Proposed contract/order type.

x Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___________ Completion Form Term form

• Acquisition identification number. N/A

4. Identification of the statutory authority permitting other than full and open competition. This acquisition is requested under the authority of 41 United States Code 3304(b)(2)(B) as set forth in Federal Acquisition Regulation (FAR) 6.302- 1.

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

• Name and address of the proposed contractor(s).

Wolters Kluwer Financial Services, Inc.

100 S 5th St Ste 700 Minneapolis, MN, 55402-1219

UNITED STATES

• Nature of the acquisition and proposed unique qualifications of the contractor(s). The currently hosted TeamMate AM program is being decommissioned as of August 31, 2021. TeamMate+ provides OAE with continued hosting of the audit management software product to enable a seamless transition for staff and uninterrupted audit work. TeamMate AM is the only system OAE utilizes to manage operational work for audits, evaluations, and special projects. With the decommission of the AM program, TeamMate+ allows for continued productivity for OAE operations and complete mission support work. The hosting as well as database administration, and application help desk services; constitute an integrated solution.

It will ensure adequate controls, monitoring, and risk management; are all maintained. The current requirement includes installation of the existing database/licenses into a FEDRAMP/FISMA compliant cloud environment. The current hosting audit software is being retired and as such, the new software will still have to both provide a FEDRAMP/FISMA compliant cloud environment. The installation may require access to TeamMate software codes, operating language, or other proprietary information; which is not available from any other sources. The requirement also includes continuous, ongoing Data Base Administration Services, along with updates, protection from unauthorized access, and troubleshooting for the software applications where needed. The solution ensures that access to EXIM will be secured from the internet using industry standard firewall technology at both the application layer and the data layer.

Using Having other products/systems to provide these services or attempt to; would significantly complicate the migration to a new environment, impose an unacceptable risk of compromising the sensitive data involved, and may jeopardize existing software license agreements currently in place for TeamMate licenses. A proprietary product of Wolters & Kluwer, TeamMate+ is not authorized for re-sale or maintenance through any resellers or distributors. This was confirmed through the Contractor by providing a proprietary letter for sole servicing of both the software and license. Also, in providing the help desk services the contractor must be able to resolve/troubleshoot problems related to both the software itself, as well as the cloud environment where the licenses are being hosted. Having a separate database administrator/help desk from the cloud service provider would require working with two entities, which often results in the application information being unavailable for use, which would significantly impair the agency’s mission in this area and create an unacceptable risk for the OIG.

Additionally, TeamMate+ allows for the migration of historical data for completed/finalized projects to the new web-based Teammate+ program. The migration of completed projects into the TeamMate+ program allows for compliance with record retention requirements.

Furthermore, TeamMate+ allows for a Microsoft Office integrated solution for easier and more efficient audit documentation including solutions to centralize risk assessment, program area and issue trend analysis, data analytics, audit request list provided to client, and various audit report generation (e.g. SARC, mandatory time sensitive reports, and discretionary reports). By providing a streamline web-based program that manages audit, TeamMate+ eliminates siloed and archive processes which drive efficiencies into all facets of the internal audit workflow.

Based on the above, Contracting Officer has determined that only Wolters & Kluwer is able to provide the above services.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

There is only one potential source and it has been evidenced by the software owner, Wolters Kluwer, that no resellers are currently authorized for either the software or licenses required in the subject acquisition. However, a notice will be publicized to synopsize the proposed contract actions as required by FAR 5.2.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable. The Contractor shall be required to submit a price proposal to be evaluated and negotiated by the Government. Prior to execution of the contractual instrument, a price analysis will be performed. The price analysis will ensure that the final agreed-to price for the contract action is fair and reasonable.

Before making an award, the Contracting Officer will determine that the proposed price is fair and reasonable based on several of the techniques identified in Federal Acquisition Regulation (FAR) Subpart 13.106-3 – Award and Documentation. This procurement is for a commercial item. Thus, the price can be determined fair and reasonable based on a comparison of the established market price and historical pricing.

OAE has historical contract information from previous awards with Wolters Kluwer Financial Services Inc. for TeamMate Hosting Services and Annual License Renewals so there are no anticipated issues that would circumvent a fair and reasonableness price determination. The Contracting Officer will determine price reasonableness during the proposal evaluation process prior to contract award, based on historical pricing/IGCE and commercial pricing, if available.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted. Prior to execution of the current 2015 contract, OA performed market research to bring the software product in house and found the annual price of to not be feasible and the benefit of hosting directly with the vendor to be the most advantageous to the government.

OAE recently conducted informal research with knowledgeable program officials from other agencies. OAE found most agencies use similar software do not include hosting services.

These agencies have sufficient in-house resources to manage the software hosting capability on their own, where EXIM does not have the same capacity.

Additionally, our Contracting Specialist (CS) reviewed recent acquisitions from different agencies in FPDS-NG (Federal Procurement Data System) and found 5 similar recently awarded TeamMate / TeamMate+ contracts from various Federal Agencies. Each of the awarded contracts listed Wolters & Kluwer as a vendor and had “Only One Source” selected under the “Solicitation Procedures” when the description listed the TeamMate software. The

CS also searched for the contracts with GovTribe.com and found that each of the 5 contracts contained a Sole Source Justification for the perspective contract numbers. This demonstrates that the software is propriety to Wolters & Kluwer and a Justification for Other than Full and Open Competition would be needed for this requirement.

9. Any other facts supporting the use of other than full and open competition.

OAE does not have budgetary resources to host the software in house nor do we have excess staff or department that could oversee the implementation, maintenance, and technical requirements to keep the software updated for optimal performance levels. Switching from TeamMate to another product/system would require OAE to migrate and configure new system/product, transfer historical data, validation of data, and training for staff. OAE doesn’t have the staff resources to accomplish these tasks. Additionally, Wolters & Kluwer can transfer user license from the current system to new system at no additional cost.

Switching from TeamMate to another product/system will 1) delay ongoing assignments, 2) prevent OAE from adhering to its Record Management Policy, and 3) prevent OAE from maintaining a standardized approach and documentation for our audits, inspections, and evaluations.

Beyond implementation and cost, OAE would need to implement significant changes to the internal processes as documented in our Audit Policy and Record Retention Policy if TeamMate+ was not used. Currently the policies are built largely around how to adhere to OAE’s process and procedures using TeamMate software. OAE conducted peer reviews that include a quality control assessment of whether the work is performed according to our policies. New product/system would require a complete re-write of or Audit Policy and changes to the office practices in order to continue having a successful ‘passing’ rating. As a result, implementing a completely new software product would unquestionably result in delays in office work, overall productivity, and potentially impact our effective quality controls.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition. No other sources have expressed an interest, in writing, in the proposed acquisition at this time.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services. The agency will continue to examine the market and attend audit community meetings for alternative solutions to new sources before executing any subsequent acquisitions for the same requirements. Due to the unique qualifications and nature of the expressed requirements, there are no known actions which the Agency may take to consider other products or systems for the requirements described herein.

12. Program office certification. I certify that the facts presented in this justification including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for other than full and open competition, are accurate and complete.

Technical Representative Date

13.

14. Contracting Officer certification. I certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Contracting Officer Date