M9549419Q0014_Brand_Name_Justification1.pdf

UNITED STATES MARINE CORPS

MARINE CORPS INSTALLATIONS COMMAND

3000 MARINE CORPS PENTAGON

WASHINGTON, DC 20350-3000

IN REPLY REFER TO:

Source Selection Information – See FAR 2.101 & 3.104 1

MCICOM-JA-19-005

10 June 2019 Justification for Other than Full and Open Competition

1. Identification of the Contracting Activity and the Requiring Agency.

The Contracting Activity is the Marine Corps Installation Command (MCICOM) HQ Contracting located in Arlington, VA. The Requiring Agency is MCICOM HQ located in Arlington, VA.

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

This action being approved is justification for other than full and open competition of a Brand Name requirement for IBM MAXIMO software licenses and support for the Facilities Sustainment Restoration Modernization (FSRM) Program. This requirement will be awarded as a firm-fixed-price (FFP) contract to an authorized reseller of IBM products, the original equipment manufacturer (OEM).

3. Description of the Supplies/Services Required to Meet the Agency’s Needs (including estimated value).

This requirement provides for license access to the IBM Maximo suite of products in support of the US Marine Corps USMCMax facilities management system. USMCMax captures and communicates relevant data (work orders, labor hours, work order status, job assignment, material used, etc.) that supports the maintenance and repair of $76 Billion in real property infrastructure. The software support required includes software version updates, information assurance security patches, and telephone help desk support for thousands of users (peaking at more than 300 concurrent users) accessing this suite of software across the enterprise.

MCICOM historically procured access to the Maximo suite of products by purchasing perpetual licenses on an annual basis for a set number of users for each separate Maximo product. IBM now offers a different, more economical, method of access to their products of purchasing “Tokens,” which are essentially floating licenses keys.

In this token structure, each Maximo product the USMC wants to access consumes a pre-defined token value per license. The license key has a pool of tokens from which the license server automatically calculates the tokens being “checked in” or “checked out” by users at any given point in time. MCICOM’s users are able to obtain access to the software as long as sufficient unused Tokens are available for the entitled token products. Based upon analytics of USMC historical usage of these products, the number of perpetual licenses purchased historically on an annual basis was higher than actually used, and significantly higher than concurrently used. Instead of continuing to purchase annual licenses for set users, for set products, this new Maximo agreement will allow the USMC to continuously allow different users to access different products on a concurrent basis, as long as the number of total tokens is not exceeded. Additionally, the “Tokens” structure provides the USMC access to a greater pool of products, a benefit not offered under the current perpetual license model which limits the USMC to specific products and specific users.

One additional benefit includes the “Maximo Anywhere” software, which allows users to work online and offline.

This new Maximo feature will improve the efficiency of the work management processes and add flexibility to the use of the mobile devices. The USMCMax annual requirement is for 4675 total tokens for access to IBM Maximo products as shown in the chart below:

Source Selection Information – See FAR 2.101 & 3.104 2

DESCRIPTION PART NUMBER VERSION

PERIOD OF

PERFORMANCE

ANNUAL TOKENS

IBM Maximo Asset Management for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXCL

7.6.1 01 July 2019 to 30

June 2024

IBM Maximo Anywhere for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXAL

7.6.1 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Scheduler for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support

M18MXEL

7.6.1

01 July 2019 to 30

June 2024

IBM Maximo Asset Management Scheduler Plus for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXFL

7.6.1 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Asset Configuration manager for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXBL

7.6.6 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Asset Health Insights for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXQL

7.6.1 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Express for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support

M18MXTL

7.6.1

01 July 2019 to 30

June 2024

IBM Maximo Asset Management Limited for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support

M18MXUL

7.6.1

01 July 2019 to 30

June 2024

IBM Maximo Asset Management for Managed Service Providers for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXDL

7.6.3 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Calibration for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support

M18MXGL

7.6.7

01 July 2019 to 30

June 2024

IBM Maximo Asset Management Health, Safety, and Environmental Manager for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXML

7.6.1 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Linear for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXNL

7.6.0 01 July 2019 to 30

June 2024

IBM Maximo Asset Management Spatial for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXOL

7.6.0.IFR1

01 July 2019 to 30

June 2024 IBM Maximo Asset Management Spatial Server for Concurrent User per Token Initial Fixed Term License + SW Subscription & Support M18MXPL

7.6.0.IFR1

01 July 2019 to 30

June 2024

WITHIN TOKEN TOTAL

The total estimated value of this requirement is for a (5) five year license subscription (one-year base with four (4) one-year options). Fiscal Year 2019 Operations and Maintenance (O&M) funds will be used for the base period.

4. Identification of the statuary authority permitting other than full and open competition.

FAR 6.302-1 – Only one responsible source and no other supplies or services will satisfy agency requirements;

specifically 6.302-1(c)(1) – a particular brand-name product peculiar to one manufacturer. The procedures in FAR subpart 13.5 are being used for this brand-name acquisition in accordance with 41 U.S.C. 1901.

5. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Requires

Use of the Exception to Fair Opportunity.

In 2002, the FSRM program issued a solicitation for the overarching USMC Max Systems. That effort resulted in a competitively awarded contract that included the IBM MAXIMO software. IBM MAXIMO has been the software solution for approximately 15 years and has been integrated into the USMC infrastructure. The required IBM MAXIMO software licenses and support is unique, highly specialized, and is essential to satisfying the USMC’s requirement. As stated in section 3 above, the MAXIMO software captures and communicates relevant data that supports the maintenance and repair of $76 Billion in real property infrastructure and the software support includes software version updates, information assurance security patches, and telephone help desk support for over 4,675 active users accessing this suite of software across the enterprise. The software must achieve these tasks without additional customization and additional costs to the USMC. These tasks are not achievable if the USMC were to transition to another system. Introducing new software, other than IBM, into the existing architecture would result in stoppage of existing work. Further, the cost to transition and implement another system will cost the government

Source Selection Information – See FAR 2.101 & 3.104 3 approximately $4.7 million per year. These costs include approximately $1.5 million to purchase new software similar in capability to replace the perpetual licenses already owned by the US Marine Corps. Any alternative solution would bring with it the required annual support cost as well; approximately $2.7 million to re-engineer current systems, install new vendor software, migrate all data to the new system, and reconfigure interfaces and user accounts; and approximately $500,000 to train the user base in the new software. Considerable time and costs would be expended on technical reviews, removal of existing software, testing, training, and implementations of an alternate solution. The time and costs incurred to rewrite applications to function with replacement products throughout the USMC enterprise would also result in substantial work interruptions creating unnecessary obstacles, restraints, and losses in efficiency. To duplicate another functional replacement initiative through full and open competition is not in the best interest of the government at this time. It is not economically feasible to deviate from the currently installed proprietary software.

In addition to the Marine Corps’ deployment of IBM MAXIMO, the Navy’s Installation FSRM program, known as Naval Facilities Engineering Command (NAVFAC) Single Platform Maximo, also uses the IBM MAXIMO platform. Therefore the entire Department of Navy has standardized on the IBM platform for FSRM activities, making automated data exchanges between USMC and NAVFAC much simpler and efficient. The processes can be scripted and automated in most cases, ensuring that compiled DON-wide data inventories can be produced to meet DOD data calls and requirements. If the USMC were to deploy other than IBM solutions, these processes will require manual manipulation of data and translation between formats. IBM MAXIMO will provide the most economically feasible solution to satisfy the government’s requirement for the software support renewal.

The required IBM software support is proprietary and is manufactured by IBM. IBM owns the copyrighted source software with all legal rights, privileges, and ownership contained therein. No other source may legally modify or change the software, nor would they have access to the source code to do so. IBM, the OEM, or its authorized resellers will provide the most economically feasible solution to satisfy the government’s requirement for the IBM MAXIMO software support.

Based on the above, IBM MAXIMO software is the only product that will meet the agency's needs.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

During market research, IBM informed MCICOM that there are only three (3) current authorized resellers of these Maximo software products. To maximize competition to these three (3) companies, an RFQ will be posted on FBO to allow all three (3) authorized resellers the opportunity to provide a quote. This requirement will be a combined synopsis/solicitation in accordance with FAR 5.203(a)(2).

7. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will conduct a price analysis prior to award in order to determine the anticipated cost to the Government will be fair and reasonable. Adequate competition is expected which will provide the basis for fair and reasonableness of the proposed pricing.

8. Description of Market Research Conducted

Market research was conducted based upon the commercial nature of the requirements, historical data from similar/recent requirements and discussions with NAVFAC Public Works personnel and the Original Equipment Manufacturer, IBM. Discussion with IBM indicated that while the software was proprietary, IBM confirmed that they do allow other authorized resellers to resell the IBM MAXIMO software support.

Historical data shows that IBM software licenses have been procured through a DoD ESI BPA, which is a required source per DFARS 208.7402. There were two IBM BPA contract holders but both contracts expired on 30 March 2019. There are no current active IBM BPA contract holders on DoD ESI; Therefore, DoD ESI BPA is no longer feasible.

A NASA SEWP and GSA search yielded one (1) contract holder authorized to resell IBM software; the authorized reseller is a small business. However, discussions with the OEM reveal there are two other small business vendors

Source Selection Information – See FAR 2.101 & 3.104 4 authorized to resell IBM tokens described above on the open market, . and .

Soliciting on the open market via FBO allows all three (3) authorized resellers to provide competitive quotes and is deemed to be the best procurement approach for this requirement.

9. Actions to Remove Barriers to Future Competition.

At this time, it is deemed that only IBM software would be able to function with the USMC’s current architecture.

The IBM software licenses and support must be procured through IBM or their authorized resellers. If IBM elects to surrender their legal ownership, copyright, and/or intellectual property software right and move toward a complete open-source solution, then the USMC will seek open competition. Regardless, the USMC will continue to search the marketplace and alternative software solutions will continually be researched to determine if they will function with currently used products. If the government determines that IBM software is no longer required or other software meets the government’s needs, then the government will seek full and open competition for the required functionality. If similar requirements arise, every effort will be made to compete it to the maximum extent practicable.

060719

6/13/19

14 June 2019