JA__15364_LS_HP_Warranty_Except_to_Fair_Opp_-_redacted.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO, VIRGINIA 22134-6050

Code: CT-2.4

J&A Number: 15,364

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. Contracting Activity

Marine Corps Systems Command

Information Systems and Infrastructure, Contracts

Marine Corps Enterprise Information Technology Services (MCEITS)

Product Management Office

2200 Lester Street

Quantico, VA 22134-6050

2. Nature and/or Description of the Action Being Approved

This is a limited sources acquisition to procure brand name

Hewlett-Packard (HP) Hardware Service Technical support used within the Marine Corps Enterprise Information Technology

Services (MCEITS) environment in Kansas City, Missouri (MO).

This brand name procurement will be conducted using the National

Aeronautics and Space Administration (NASA) Solutions for

Enterprise Wide Procurement (SEWP) contracts as a limited exception to the fair opportunity procedures contained in

Federal Acquisition Regulation (FAR) 16.505.

3. Description of Supplies/Services

The proposed contract action is to procure brand name HP Service

Technical Support for the HP hardware and software used by

MCEITS in Kansas City, MO. Product Manager MCEITS uses HP

Service Technical Support to maintain the MCEITS enclaves located in Kansas City, MO. The enclaves have HP products and required support must be HP centric or brand name and not a compatible product support because the HP product line is proprietary. The requested product includes technical support and maintenance on a 24 hour, 7 days a week, 365 day with a 4 hour onsite response time. Maintenance includes standard onsite support with parts and materials and defective media retention.

The period of performance required is for one (1) base year

(FY15 O&M XXXXXXXX) from contract award plus one 12 month option period (FY16 O&M XXXXXXXX). The total estimated dollar value for this procurement is XXXXXXXXXX.

4. Identification of the Justification Rationale

The statutory authority for the proposed action is While the enumerated exceptions in FAR 16.505(b)(2) do not specifically apply to brand name limitations, in order to maximize fair opportunity this limited sources justification has been prepared in accordance with FAR 16.505(a)(4) and 16.505(b)(2)(ii)(B), modified to reflect a brand name justification. Although this is a brand name procurement, there are HP Service Technical resellers available on the NASA SEWP contracts thereby providing sufficient competition.

The HP professional service technical support is the only service technology that offers comprehensive HP technical assistance, online knowledge base, software upgrades, and device replacement options compatible with the existing MCEITS hardware and software baseline which utilizes a HP Operating System. The

Project Officer’s intent is to maintain existing business solutions implemented within the MCEITS environment Information

Assurance (IA) configurations and to support the MCEITS user base.

5. Fair and Reasonable Determination

The Government will ensure that quoted prices are consistent with or lower than prices already listed on existing SEWP contracts. Quoted prices provided by authorized resellers will be compared to other price quotes received in response to the solicitation and all quotes will be compared against an

Independent Government Cost Estimate (IGCE). Further, the

Contracting Officer will seek additional discounts where possible.

Orders placed against NASA SEWP, using procedures under FAR part

16, are considered to be issued using full and open competition because the listed prices have been competed. Pursuant to FAR

5.202 and 16.505(a), a synopsis is not required; however, this justification will be posted in accordance with FAR

16.505(a)(4)(iii).

6. Description of Market Research Conducted

In accordance with the Better Buying Power 3.0 memo, “Implementation Directive for Better Buying Power 3.0 –

Achieving Dominant Capabilities through Technical Excellence and

Innovation” market research was conducted by the MCEITS Project

Officer, within the last six weeks, using the NASA SEWP and

General Services Administration (GSA) Advantage websites.

Market research demonstrated that HP Service Technical support is available via contract vehicles on both sites. The GSA

Advantage website, however, revealed sixteen (16) resellers of hardware and associated software maintenance and technical support while the NASA SEWP contract holder lookup revealed eighty-three (83) authorized resellers, of which, forty-five

(45) are small businesses, that provide HP maintenance and technical support of hardware and associated software.

Therefore, this solicitation will be competed as a small business set-aside competition through NASA SEWP amongst HP

Service Technical Support Resellers.

7. Other Facts Supporting the Justification

Department of Defense Instruction (DoDI) 8500.2 requires valid software licenses and associated software support and maintenance to sustain compliancy in an IA accredited environment.

HP has a Partners Program made up of distributors, resellers, and appliance partners. HP OEM support is purchased through an

HP designed support reseller. Current HP professional service technical support is required to maintain operations. A decision not to purchase the HP Service Technical Support could cause the

MCEITS environment to become unstable and unreliable. Expired hardware and associated software warranty support is a Category

I vulnerability per instance (hardware and associated software).

MCEITS cannot retain Authority to Operate (ATO) with a Category

I finding. Therefore, the procurement of technical and associated software maintenance support is necessary to remain compliant with all Department of Defense instructions and directives for cyber security.

8. Actions to Remove Barriers to Future Competition

MCEITS will continue to conduct market research throughout the lifecycle to examine suitability of emerging software and hardware technologies and products. If new software and/or hardware are capable and compatible, full and open competition will be sought to the maximum extent possible. Equipment procured will always be comparable and of best value to the

Marine Corps regardless of existing OEMs.

Additionally, under Better Buying Power 3.0, the Marine Corps is seeking to incentivize productivity and innovation in Industry and Government by thoroughly defining technically acceptable requirements that ensure needed quality as well as emphasize technology insertion and refresh in program planning. Market research shows that HP does not offer a cost plus fixed fee level of effort or time and materials contract for warranty support. Competition among distributors, resellers, and appliance partners is incentivized by HP’s proponent for discounting services. HP resellers will respond to the RFQ with individualized pricing; allowing the Government to evaluate on an LPTA basis.

CERTIFICATIONS AND APPROVAL

TECHNICAL AND REQUIREMENTS CERTIFICATION:

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

TECHNICAL AND REQUIREMENTS COGNIZANCE:

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LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

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CONTRACTING OFFICER CERTIFICATION:

I certify that this Justification is accurate and complete to the best of my knowledge and belief:

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mailto:masco.settles@usmc.mil mailto:brendan.klapak@usmc.mil mailto:theodes.salley@usmc.mil

COMPETITION ADVOCATE APPROVAL:

Upon the basis of the above justification, I hereby approve, as the Competition Advocate of Marine Corps Systems Command, the solicitation of the proposed procurement(s) described herein using a limited exception to the fair opportunity procedures contained in Federal Acquisition Regulation (FAR) 16.505 (a)

(4).

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mailto:valerie.mosqueira@usmc.mil