JA_NASA_SEWP_REDACTED.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

10-WKAC HP Blade Server Maintenance Renewal

KODUH5R1929

1. IDENTIFICATION OF THE REQUIRING AND CONTRACTING ACTIVITIY:

a. Requiring Activity:

DFAS-XXXXXXXXXXX

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b. Contracting Activity:

DFAS XXXXXX

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2. NATURE OR DESCRIPTION OF THE ACTION:

The purpose of this document is to obtain approval for a Items Peculiar to One Manufacturer (Brand Name) acquisition in accordance with FAR 16.505(b)(2)(ii)(B). Competition is limited to the following brand name products:

Hewlett Packard (HP)

The procurement strategy is to issue a request for quote (RFQ) on the NASA Solution for Enterprise-Wide

Procurement (SEWP), and the fair opportunity procedures set up by the SEWP will be followed. According to those procedures, a RFQ with a brand name requirement must include a justification and approval and be submitted to all four SEWP Contract Groups. The order at issue includes a brand name requirement. Therefore, the below justification and approval will be included with the RFQ, which will be submitted to all four SEWP Contract Groups.

3. DESCRIPTION OF SUPPLIES/SERVICE:

This requiremnt is for the renewal of the maintenance support agreement with Hewlett-Packard (HP) for 31 servers located throughout DFAS for a base period of one year and two one-year option periods. The estimated cost of maintenance for these thirty-one (31) servers is XXXXXX for the base period and XXXXX for the base and options periods. Maintenance for the HP Blade Servers is currently being provided by XXXXXXXXX under contract

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The contract will include a base year plus two option years. The estimated cost for the base period is XXXXXX and the estimated cost for the total contract (base period and two one year option periods) is XXXXXXX. (Option periods are estimated at XXXXXX a year)

4. STATUTORY AUTHORITY:

10 U.S.C. 2304(c) authorizes the Department of Defense (DoD) to contract without full and open competition under certain circumstances. For this acquisition, other than full and open competition is permitted per FAR 6.302-1 (c)

5. PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS:

DFAS currently owns thirty-one (31) HP Blade servers. Infrastructure services that either wholly or partially run on these servers (ML370) include the following: enterprise monitoring tools, RightFax, email gateways that process all email coming in from and out of DFAS (millions of messages per day). Because the HP server chassis is unique to each DFAS site, there are virtually no spare chassis from which to “cannibalize” parts or other chassis available from stock to backfill. The Servers chassis is unique in design and requires highly specialized parts. Due to their tightly-packed configuration, performing hardware maintenance on these servers (ML370) requires special care and experience. Should there be a serious hardware malfunction on one of these servers, it is highly likely that DFAS would not have any parts in inventory to quickly restore service, as to minimize disruption to DFAS mission essential requirements. The process of acquiring, building and configuring new hardware in the event of a failure would introduce a disruption to the critical services of each affected DFAS site that would be unacceptable to the user community. The unique nature of the Server chassis, the lack of spare part(s) inventory, and the criticality of the services housed on the Blades Servers require that DFAS obtain the best possible support for these servers. Request authority to process this requirement as brand name requirement with an authorized HP reseller and/or distributor.

DFAS MPO Corporate Services requires the renewal of a maintenance support agreement with an authorized Hewlett

Packard (HP) reseller and/or distributor for thirty-one (31) HP Blade servers. These servers came with a standard next business day 5 days a week support for 3 years. Because these servers play a crucial role in the DFAS network environment a management decision was made to upgrade the maintenance to 24 hours 7 days a week 4 hour response.

Maintenance has been provided on these servers under contracts XXXXXXXXXXX and XXXXXXXXX. These servers require HP specific equipment and parts to be used when servicing or replacing defective parts. These parts and equipment are currently only available from HP directly or through HP authorized resellers and/or distributors. No other vendors or manufacturers have access to the equipment and/or parts required to maintain these HP Blade servers.

If the HP servers are not supported and there is a serious hardware malfunction, DFAS runs the risk of not having spare parts or technical expertise available for repair. In addition to the cost of lost productivity and labor required to mitigate the issue, estimates for a replacement HP server cost approximately between XXXXX to XXXXXX compared to the cost to renew maintenance for all thirty-eight (31) servers is XXXXXX for one year. As stated the cost of annual support for all thirty-one (31) servers is only a fraction of the cost of one replacement server, making maintenance the logical follow-on for this contract.

Consequently, this acquisition is for the renewal of maintenance for hardware previously purchased, implemented, and currently being used by DFAS users, and is considered to be a logical follow-on in accordance with FAR 8.405-6(b)(2) and also represents the most cost effective approach for DFAS, ensuring continuity of operations without interruption.

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

An Request for Quote (RFQ) will be issued through NASA SEWP to all Contract Holders under the groups B, C, and

D in accordance with NASA SEWPs Fair Opportunity Procedures. Accordingly, the exception in FAR 5.202(a)(6) applies.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable

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In determining a fair and reasonable price, the Contracting Officer will evaluate a more detailed breakdown from a formal Independent Government Cost Estimate (IGCE). Based on an RFQ issued against the SEWP IDIQ vehicle, it is anticipated the pricing will be fair and reasonable, as determined under the terms and conditions of the RFQ to be submitted to all SEWP contract holders. Additionally, price comparisons will also be accomplished from as many other sources as possible, including commercially as well as any Government-Wide Acquisition Contracts (GWAC) and the GSA Federal Supply Schedules.

These items are available from multiple Value Added Resellers on the NASA SEWP schedule. Based on market research, it is anticipated that SEWP pricing will be lower than open market pricing.

Leveraging DFAS’ current use of the Vendor/Manufacturers product and services, along with open market price comparison, the contracting officer is confident in obtaining the best value for DFAS.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

http://www.arnet.gov/far/current/html/Subpart%205_2.html#wp1107980 http://www.arnet.gov/far/current/html/Subpart%205_2.html#wp1107990 http://www.arnet.gov/far/current/html/FARTOCP10.html#wp266706

Availability and pricing information was sought from the following NASA SEWP Contract Holders:

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NOTE: Based on additional market research there may be other interested sources as well.

Market research was conducted for the purpose of seeking as many potential sources as possible. Although Hewlett

Packard is the sole manufacturer and provider of the service, there are multiple distributors with the required maintenance and support available on the NASA SEWP Contracts. An RFQ will be posted on NASA SEWP.

Competition will be sought among all authorized resellers for the best possible pricing. Market research has shown that the services are available in a competitive environment under NASA SEWP.

9. Any other facts supporting the use of other than full and open competition, such as:

Nothing to add to this section that has not already been articulated within this justification document.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

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11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

Nothing to add to this section that has not already been articulated within this justification document.

CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this justification and which form a basis for this justification are complete and accurate.

Requiring Activity/Program Management Office Certification

Printed Name:__XXXXXXXXXXXXXX_________________

Title XXXXXXXXXXXXXXX Org. Code _____XXXXXXXXXXXXX_________

Signature XXXXXXXXXXXXXXXXXXX Phone XXXXXXXXXX Date__XXXXXXX______

Contracting Officer Certification

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Printed Name: XXXXXXXXXXXXXXXXXXX

Title Contracting Officer Organization Code DFAS/CSD-CO/ZECAB

Signature__XXXXXXXXXXXXXXXXXXXXXX___ Phone XXXXXXXXX Date__XXXXXXX_______