LSJ_8.405_6a1iB_Momentum SW_R.pdf

LIMITED SOURCES JUSTIFICATION

PURSUANT TO FAR SUBPART 8.4

1. Identification of the agency and the contracting activity:

This is a Limited Sources Justification for an acquisition being conducted by the Department of State, Office of Acquisitions Management (AQM) in support of DoS Bureau of the Comptroller and Global Financial Services (CGFS/GFMS) and the United States Agency for International Development (USAID).

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

The U.S. Department of State, Office of the Deputy Chief Financial Officer (DCFO), Global Financial Management Systems (GFMS), and the U.S. Agency for International Development, Chief Financial Officer, Financial Systems Office, request authority to award a 5-year order to CGI Federal on a sole source basis under its Multiple Award Schedule (MAS) IT Professional Services contract GS-35F 281DA. This order is required to continue the software maintenance support for the proprietary suite of Momentum software packages, which are proprietary products of CGI Federal, Inc. (CGI). The applicable Momentum software in use by DoS and USAID for which product maintenance efforts are required include both modules within specific, existing “Momentum Financials Plus” modules and additional “Momentum Add-on Modules.”

Together, these software modules serve as the foundation and core of the DoS and USAID Financial Management Systems.

Currently, CGI is the contract holder for both the proprietary and non-proprietary services provided via the Joint Financial Management System (JFMS) Support Blanket Purchase Agreement (BPA). A separate follow-on competitive acquisition process for all non-proprietary maintenance and support is already ongoing. However, while the Department continues to rely on the use of Momentum for many financial and budgetary functions, the Department must be able to continue to rely on CGI for the maintenance of the proprietary, baseline software. Accordingly, a sole source award to CGI for the maintenance of this proprietary product is planned.

DoS acquired a 30-year perpetual license for Momentum in 1999. The procurement of additional licenses is not part of this software maintenance sole source acquisition.

3. A description of the supplies or services required to meet the agency’s needs

(including the estimated value).

The requirement is to provide the following:

a. Maintenance of the existing Momentum DoS/USAID-specific instances of the following software packages:

Momentum Financials Plus o Momentum Contract Management (Acquisitions) o Momentum Project Cost Acct System (PCAS) o Momentum Fixed Assets o Momentum Travel Accounting

Momentum Add-On Modules o Momentum Performance Budgeting o Momentum SAM Connector: Site o Enterprise Integration Framework – Enterprise

b. Maintenance requirements include:

Standard baseline proprietary Momentum software code maintenance support;

and

Customized proprietary Momentum software code maintenance support.

NOTE: The scope of this requirement does NOT include any software maintenance or support services with respect to non-proprietary software code within the DoS/USAID Financial Management Systems that is not included within the proprietary Momentum software code as described above.

The estimated value for the planned period of performance is , including options.

Awarding this contract this will allow CGI to continue to provide baseline software maintenance, which provides DoS with mission critical financial, budgetary, and acquisition support services.

4. The authority and supporting rationale and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the supply or service.

This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3), and 40 U.S.C. 501), as implemented by FAR 8.4 and substantiated by the following:

FAR 8.405-6(a)(1)(i)(B) - Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

CGI Federal is uniquely qualified to continue providing proprietary support for the Momentum proprietary, baseline software maintenance to DoS and USAID, based upon the following reasons:

a. DoS acquired a 30-year perpetual license for Momentum in 1999. As Momentum is a proprietary software package and owned by CGI Federal, the source code is not commercially available to any other vendor.

b. Competition for the entire program is only viable if it allows for the replacement of the current JFMS Momentum-specific solution which would result in the DoS having to restart the program at the beginning of the investment cycle. An Assessment of Alternatives (AoA) is planned and may ultimately result in a solution change, but this process cannot be undertaken in the time currently available pending the requirement for award of the planned contract.

c. The systems operated under the current JFMS Program are mission-critical to both DoS and USAID. Failure to continue the Momentum solution upon expiration of the current BPA would have severe, adverse impact on the ability of both DoS and USAID to carry out their missions. [A system shutdown would result in the necessity for all functions currently performed by JFMS/Phoenix to be performed manually].

d. Because the systems that comprise the JFMS program are mission-critical, DoS and USAID cannot simply shut them down. Because CGI Federal owns the JFMS proprietary Momentum software, DoS and USAID must issue a contract to CGI Federal to maintain the Momentum software.

e. The JFMS Momentum solution is integrated with DoS Integrated Logistics Management System (ILMS). ILMS has multiple interface/integration points with JFMS, encompassing hundreds of unique data fields. Because each of those, along with interfaces or integration points with other systems, would need to be rewritten and regression tested with a new financial management application, significant expenditure of resources and time would be required for a competitive process for Momentum replacement. Such a process is likely to take years to complete and would be followed by a considerable transition interval to realize a smooth transition of services should a contractor other than CGI eventually be selected.

5. A determination by the ordering activity Contracting Officer that the order represents the best value consistent with FAR 8.404(d).

As GSA has already deemed unit pricing to be fair and reasonable, no further reasonableness determination is required by the Contracting Officer prior to awarding a sole source order. The Contracting Officer will ensure that reasonable discounts off CGI’s MAS prices are provided, where applicable/appropriate. The Contracting Officer will seek discounts similar to those rates that are currently active under the JFMS BPA.

6. A description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted.

Based upon information currently available, CGI Federal’s Momentum suite continues to be one of only three known equivalent systems available for federal agency use. It is estimated that the time to update prior research and locate and qualify an alternative source for Momentum will take several years. It is for this reason that formal market research was not conducted to seek out alternative system capabilities in relation to this sole source contract. However, after the CGI sole source contract and the EBAARS competition are awarded, it is expected as indicated above that the Department will conduct an AoA to determine and evaluate the available systems and the cost to transition to another system. To transition to another system, CGFS would be required to conduct such an assessment and to demonstrate technical and cost benefits while considering the transition cost and the amount including training costs already invested in Momentum.

7. Any other facts supporting the justification.

a. Technology. To date, there are no known significant advances in technology that would make any other vendor’s approach (both hardware and software) materially more advantageous to DoS and USAID than that currently being implemented by CGI Federal.

Investigation of possible alternatives could not be done in the required timeframe for continuity of current services.

b. Return on Investment. When the JFMS program was approved as an OMB-monitored and supported major capital investment project, it used a 16+ year life cycle to justify the investment. To incur a new investment of potentially equal magnitude by bringing on a new vendor as a result of competing the requirement now (12 years into the 16+ year life-cycle period) is not warranted or feasible within the required timeline.

However, completion of the planned AoA and of decision processes along with transition processes for an alternate system would have a timeline of at least 4 years, thereby placing any transition at the end of this 16-year period.

8. 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.

Due to the proprietary license that CGI Federal holds for the current solution to the JFMS program, the conduct of a competition for a JFMS software solution, maintenance and enhancements may result in the selection of a different solution. It would not be prudent nor practicable, however, to plan and conduct an acquisition that would possibly result in selection and implementation of a new solution while we are in the process of conducting a follow-on competition for support of the very product we would need to replace. After awarding the follow-on BPA for the operations and maintenance (competitive, non-proprietary) support of the Momentum suite of products and initiating the AoA process, AQM, in coordination with CGFS, will assess the value to the government of issuing a Request for Information (RFI) soliciting alternative systems. The responses will be evaluated to consider costs and technological advantages, if any. It is anticipated that this will be a multi-year process. Changeover to a new platform would need to consider training, integration, phase-out costs, and implementation risks.

Implementation could only be considered after extensive testing and IV&V.

The Department has already committed to examining the impact of selecting a new integrated financial systems solution during the next 5-year period via the planned AoA process. If a new solution to JFMS is deemed advantageous and the impact is determined to be economically viable, DoS will undertake a full and open competition for a replacement system. It is not likely that a new solution could be implemented during the early stages of this planned contract but could be phased in during the latter option periods.